HomeMy WebLinkAboutOrdinance #3032 ? �
CITY OF CANTON,
FULTON, ILLINOIS
ORDINANCE NO. �.1 d�2
CANTON 2-RT. 9/CHESTNUT STREET
TAX INCREMENT FINANCING (TIF) DISTRICT
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON
and
EAST & EM PROPERTIES, LLC
ADOPTED BY THE CORPORATE AUTHORITIES
OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS,
ON THE�DAY OF NOVEMBER, 2013.
! t
CITY OF CANTON, ILLINOIS: ORDINANCE NO._ ,_3 03�
CANTON 2- RT. 9/CHESTNUT STREET
TAX INCREMENT FINANCING (TIF) DISTRICT
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A REDEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF CANTON
AND
EAST & EM PROPERTIES, LLC
BE IT ORDAINED BY THE CITY OF CANTON THAT:
SECTION ONE: The Redevelopment Agreement with East & EM Properties, LLC (Exhibit A
attached) is hereby approved.
SECTION TWO: The Mayor is hereby authorized and directed to enter into and execute on behalf
of the City said Redevelopment Agreement and the City Clerk of the City of Canton is hereby
authorized and directed to attest such execution.
SECTION THREE: The Redevelopment Agreement shall be effective the date of its approval on
the�day of November,2013. "
SECTION FOUR: This Ordinance shall be in full force and effect from and after its passage and
approval as required by law.
[Balanc•e ofpc�ge i.r intentionally blank.]
-2-
,
, �
PASSED, APPROVED AND ADOPTED by the Corporate Authorities of the Ciry of Canton,
Fulton County, Illinois, on the �9 day of November, A.D., 2013, and deposited and filed in the
Office of the City Clerk of said City on that date.
MAYOR&ALDERMEN AYE VOTE NAY VOTE ABSTAIN/ABSENT
Ald. David Pickel
Ald.James Nelson �(
Ald. Craig West
Ald.Tad Putrich
Ald. Gerald Ellis
Ald.Justin Nelson X
Ald.John Lovell �
Ald.Jeremy Pasley x
Hon.Jeffrey A. Fritz,Mayor
TOTAL VOTES � �
APPROVED: ��:.-��4�;�� ,Date �_/ �� / 2013
Hon.Je frey A. ritz, Mayor,City of Canton
ATTEST ,Date: �/ �/ 2013
lia Pavley- ock, C erk, Ciry of Canton
ATTACHMENTS:
EXHIBIT A. REDEVELOPMENT AGREEMENT BY AND BE'I'WEEN THE CITY OF
CANTON AND EAST&E:�1 PROPERTIES,LLC.
-3-
� �
EXHIBIT A
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON
and
EAST & EM PROPERTIES, LLC
CANTON 2 - RT. 9/CHESTNUT STREET
TAX INCREMENT FINANCING (TIF) DISTRICT
-4-
< <
CANTON 2- RT. 9/CHESTNUT STREET
TAX INCREMENT FINANCING DISTRICT
TIF REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON, FULTON COUNTY, ILLINOIS
and
EAST & EM PROPERTIES, LLC
NOVEMBER 2013
� �►
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON
and
EAST & EM PROPERTIES, LLC
CANTON 2 - RT. 9/CHESTNUT STREET TIF DISTRICT
THIS AGREEMENT(including Exhibit 1)is entered into this�day of November,2013,by the
City of Canton ("City"), an Illinois Municipal Corporation, Fulton County, Illinois; and East & EM
Properties,LLC ("Developer"),individually.
PREAMBLE
WHEREAS, the City has the authority to promote the health, safety, and welfare of the City and its
citizens, and to prevent the spread of blight and deterioration and inadequate public facilities, by
promoting the development of private investment properry thereby increasing the tax base of the City
and providing employment for its citizens; and
WHEREAS, pursuant to 65 ILCS 5/8-1-2.5 a municipaliry may expend funds for economic
development purposes to commercial enterprises that are necessary or desirable for the promotion of
economic development within the municipality;and
WHEREAS,pursuant to the Tax Increment r�llocation Redevelopment Act,65 ILCS 5/11-74.4 et.req.,
as amended (the "Act"), the City has the authoriry to provide incentives to owners or prospective
owners of real property to develop,redevelop,and rehabilitate such property by reimbursing the owner
for certain costs from resulting increases in real estate tax revenues and enter into contracts with
developers necessary or incidental to the implementation of its redevelopment plan pursuant to 65 ILCS
5/11-74.4-4(b) and (j); and
WHEREAS,the City,recognizing the need to foster the development,expansion and revitalization of
certain properries which are vacant,underutilized or obsolete or a combination thereof,adopted Tax
Inerement Financing and created a Tax Increment Allocation Redevelopment Area under the Act
known as the Canton 2 -Rt. 9/Chestnut Street TIF District (the"TIF District") on February 6, 2012
by Ordinance No.2068 (Approving the Redevelopment Plan and Projects),No.2069 (Designating the
Redevelopment Project Area),and No.2070(Adopting TIF for the Redevelopment Plan,Projects and
Area);and
WHEREAS, pursuant TIF Act, the City approved the First Amendment to the Canton 2 -Rt.
9/Chestnut Street TIF District on March 19,2013 by Ordinance No. 3009;and
WHEREAS, included in the Redevelopment Area is a property located at the corner of 409- 411 N.
Main Street & 5 East Ash Street, Canton, Illinois (I'IN 09-08-27-218-015, herein defined as the
"Property") for which the Developer is the current owner; and
WHEREAS, the Developer is proceeding with plans to paint the exterior of the building at the
1
,�
northeast corner of Main and Ash Streets and is requesting incentives for the reimbursement of
contracted labor and materials related to said improvements to the building (the "Project");and
WHEREAS, it is the intent of the City to encourage economic development which will increase the
real estate tax base of the City and the tax base of other ta�ng bodies,which increased incremental taxes
will be used,in part, to finance incentives to assist development within the Tax Increment Financing
District;and
WHEREAS, the Developer's Project is consistent with the land uses of the City as adopted;and
WHEREAS,the City has the authority under the Act to incur Redevelopment Project Costs("Eligible
Project Costs") and to reimburse Developer for such costs pursuant to 65 ILCS 11-74.4-4(j);and
WHEREAS, the City has determined that this Developer's Project requires the incentives requested
herein and that said Developer's Project would, as part of the Plan, promote the health, safety and
welfare of the City and its citizens by attracting private investment to prevent blight and deterioration
and to provide employment for its citizens and generally to enhance the economy of the City; and
WHEREAS, the City and the Developer("Parties") have agreed that the City shall provide a grant to
the Developer for reimbursement of the Developer's Eligible Project Costs in the amount of Four
Thousand Five Hundred Dollars($4,500.00)to be paid from the Canton 1-Downtown/5th Avenue
TIF District Special Tax Allocation Fund as specified below in Section C, Incentive.r, and
WHEREAS,in consideration of the execution of this Agreement,the Developer has proceeded with
the Project as set forth herein;and
WHEREAS, the City is entering into this Agreement having encouraged and induced the Developer
to paint the exterior of the building on said Property.
AGREEMENTS
NOW, THEREFORE, the Parties, for good and valuable consideration, the receipt of which is
acknowledged, agree as follows:
A. PRELIMINARY STATEMENTS
1. The Parties agree that the matters set forth in the recitals above are true and correct and form a
part of this Agreement.
2. Any terms which are not defined in this Agreement shall have the same meaning as they do in the
Act,unless indicated to the contrary.
3. The City is extending incentives for Developer's Project in anticiparion of the expected
completion of the Developer's Project as set forth herein.
4. Each of the Parties represents that it has taken all actions necessary to authorize its representatives
2
�+
to execute this Agreement.
B.ADOPTION OF TAX INCREMENT FINANCING
The City has created a Tax Increment Financing District, currently known as "Canton 2 - Rt.
9/Chestnut Street TIF District"which includes the Developer's Properry. The City has previously
�ssisted certain Redevelopment Projects through TIF incentives, similar to the incentives provided
herein for this Developer's Project.
C. INCENTIVES
In consideration for the Developer completing the Project as set forth herein,the City agrees to assist
the Developer as follows:
The Ciry shall provide a grant to the Developer for reunbursement of the Developer's Eligible Project
Costs in the amount of Four Thousand Five Hundred Dollars ($4,500.00) to be paid from the
Canton 2 - Rt.9/Chestnut Street TIF District Special Tax Allocation Fund, pursuant to Section E,
`Payment of Eligible Project Co.rt.r"and subject to the following conditions:
L In the event the Developer sells or otherwise conveys all or a portion of the tide to the Property
to any other individual or entiry within five (5) years following the execution of this
Redevelopment Agreement , the Developer shall repay a single lump sum to the Ciry equal to a
proportionate amount of the grant funds provided herein.
2. Said proportionate amount of grant funds shall be defined as being an amount calculated on a
daily rate equivalent to one-fifth (1/5th) of the grant amount for each year remaining within the
five (5) year period following the execution of this Redevelopment Agreement. For example,if
the Redevelopment Agreement is executed on November 12,2013 and the Developer sells the
Property 54 days later on January 5, 2014, the Developer would repay 97% (i.e., 1,771 days
remaining in the 5-year period=1,825 total days in the 5-year period),or$4,367 of the grant back
to the City.
D. LIMITATION OF INCENTIVES TO DEVELOPER
The Developer's reimbuxsement shall not exceed$4,500.00 and shall only be for contracted labor and
materials related to the Project and as set forth herein.
E. PAYMENT OF ELIGIBLE PROJECT COSTS
1. A request for payment to the Developer for Eligible Pxoject Costs as set forth by the Act, shall
be made by a Requisition for Payment of Private Development Redevelopment Costs (see
E.�hibit2,Requisition) in an amount equal to or exceeding$4,500.00, submitted by Developer
to the City's TIF Administrator,Jacob & Klein, Ltd. and The Economic Development Group
(collectively the "Administrator").
3
. ti
2. The Requisition must be accompanied by verified bills or statements of suppliers,contractors,or
professionals together with Mechanic's I_ien Waivers as required by the City's Administrator or
Clerk.
3. The Developer shall use such sums as reimbursements for eligible expenses only to the extent
permitted by law and the Act.
4. The Administrator shall approve or disapprove the Requisirion by written receipt to the Developer
within thirty(30) business days after receipt of the Requisition. Approval of the Requisition will
not be unreasonably withheld. If the Requisition is disapproved by the Administrator (or
subsequently by the Illinois Department of Revenue),the reasons for disallowance will be set forth
in wriring and the Developer may resubmit the Requisition with such additional informarion as
may be required and the same procedures set forth herein shall apply to such re-submittals.
5. The Parties acknowledge that the determination of Eligible Project Costs, and, therefore,
qualification for reimbursement hereunder are subject to changes or interpretation made by
amendments to the Act, administrative rules or judicial interpretation during the term of this
Agreement.
6. Eligible Project Costs are broadly defined in the Redevelopment Plan to include all costs defined
in the Act as Redevelopment Project Costs.
F. LIMITED OBLIGATION
The Ciry's obligation hereunder is to pay Developer for Eligible Project Costs limited to$4,500.00 as
set forth above. Said obligation does not now and shall never constitute an indebtedness of the City
within the meaning of any State of Illinois Constitutional or Statutory provision,and shall not constitute
or give rise to a pecuniary liabiliry of the Ciry or a charge or lien against the City's general credit or ta�ng
power.
G. DEFAULT; CURE; REMEDIES
In the event of a default under this Redevelopment Agreement by any party hereto (the "Defaulting
Party"),which default is not cured within the cure period provided for below,then the other party(the
"Non-defaulting Party") shall have an action for damages, or in the event damages would not fairly
compensate the Non-defaulting Party's for the Defaulting Party's breach of this Redevelopment
Agreement, the Non-defaulting Party shall have such other equity rights and remedies as are available
to them at law or in equiry. Any damages payable by the City hereunder shall be limited to the real estate
tax increment payable to the Developer under the terms of this Agreement.
In the event a Defaulring Party shall fail to perform a monetary covenant which it is required to perform
under this Redevelopment Agreement,it shall not be deemed to be in default under this Redevelopment
Agreement unless it shall have failed to perform such monetary covenant within thirty (30) days of its
receipt of a notice from a Non-defaulting Party specifying that it has failed to perform such monetary
covenant. In the event a Defaulring Party fails to perform any nonmonetary covenant as and when it
4
�
is required to under this Redevelopment Agreement,it shall not be deemed to be in default if it shall
have cured such default within thirty (30) days of its receipt of a notice from a Non-defaulting Party
specifying the nature of the default, provided, however, with respect to those nonmonetary defaults
which are not capable of being cured within such thirty (30) day period,it shall not be deemed to be in
default if it commences curing within such thirty (30) days period, and thereafter diligendy and
continuously prosecutes the cure of such default until the same has been cured.
H. WAIVER
Any Party to this Agreement may elect to waive any remedy it may enjoy hereunder,provided that no
such waiver shall be deemed to e�st unless the Party waiving such right of remedy does so in writing.
No such waiver shall obligate such Party to waive any right of remedy hereunder, or shall be deemed
to constitute a waiver of other rights and remedies provided said Party pursuant to this Agreement.
I. SEVERABILITY
If any section, subsecrion,term or provision of this Agreement or the application thereof to any party
or circumstance shall, to any extent, be invalid or unenforceable, the remainder of said section,
subsection,term or provision of this Agreement or the application of same to Parties or circumstances
other than those to which it is held invalid or unenforceable, shall not be affected thereby.
J. NOTICES
All notices, demands,requests,consents,approvals or other instruments required or permitted by
this Agreement shall be in writing and shall be executed by the party or an officer,agent or attorney
of the Party,and shall be deemed to have been effective as of the date of actual delivery,if delivered
personally,or as of the third (3"�) day from and including the date of posting,if mailed by registered
or certified mail,return receipt requested,with postage prepaid addressed as follows:
TO CITY TO DEVELOPER
City Clerk
2 N. Main Street East&EM Properties,LLC
Ciry of Canton % Nicholas Onvig,Member/Manager
Canton,IL 61520 875 East Linn Street
Canton,IL 61520
With copy to Admini.rtrator.•
Jacob&Klein,Ltd.
The Economic Development Group,Ltd.
1701 Clearwater Avenue
Bloo�gton,Illinois 61704
K. NO JOINT VENTURE,AGENCY, OR PARTNERSHIP CREATED
Neither anything in this Agreement nor any acts of the Parties to this Agreement shall be construed by
the Parties or any third person to create the relationship of a partnership, agency, or joint venture
between or among such Parties.
5
7
L. INDEMNIFICATION OF CITY
Developer acknowledges that it is responsible for compliance with the Illinois Prevailing Wage Act,to
the extent such is applicable. Applicability is to be determined by Developer and Developer shall
indemnify and hold harmless the City,and all City elected or appointed officials, officers, employees,
agents,representatives,engineers,consultants and attorneys(collectively,the Indemnified Parties),from
any and all claims that may be asserted against the Indemnified Parties or one or more of them, in
connection with the applicability,determination, and/or payments made under the Illinois Prevailing
Wage Act(820 ILCS 130/0.01 et..req.),the Illinois Procurement Code,and/or any sirrvlar State or Federal
law or regulation. This obligation to indemnify and hold harmless obligates Developer to defend any
such claim and/or action,pay any liabilities and/or penalties imposed,and pay all defense costs of City,
including but not limited to the reasonable attorney fees of City.
M. WARRANTY OF SIGNATORIES
The signatories of Developer warrant full authority to both execute tl�is Agreement and to bind the
enrity in which they are signing on behalf of.
N. TERM OF THE AGREEMENT
This Agreement shall expire five (5) years following the execution of this Redevelopment agreement.
IN WITNESS WHEREOF the Parties hereto have caused this Agreement to be e�cecuted by their
duly authorized officers on the above date at Canton, Illinois.
CITY DEVELOPER
CITY OF CANTON, an Illinois Municipal EAST & EM PROPERTIES, LLC, an Illinois
Corporation: limited liability �om n �
BY• .� BY: �
ayor, on Member/Manager
ATTEST: ATTES �
erk,City of Can on �'" ��
Tide: �Q ��3R..�
EXHIBITS ARE ATTACHED AS FOLLOWS:
Exhibit 1. Summary of Estimated TIF Eligible Project Costs.
Exhibit 2. Private Project Request for Reimbursement
I L\C,W�f(1�\C,AN�l'(?�Z R'C9-Chcstnut St�A�rccmcnts\�iiclz O»eig�l�an'on�1'll�2_C)r��i�Rll,A_I��n�al 3U Oct 21113.���Pu
6
�,� ti
EXHIBIT 1
SUMMARY OF ESTIMATED TIF ELIGIBLE PROJECT COSTS
East& EM Properties,LLC.
Canton 2 - Rt. 9/Chestnut Street TIF District
City of Canton,Fulton County, Illinois
Project Description:
Developer is proceeding with plans to paint the exterior of the building at the northeast corner
of Main and Ash Streets.
Street Location: 409 and 411 North Main Street& 5 East Ash Street, Canton, Illinois
Estimated Eligible Proaect Costs:
Contracted labor and materials for painting exterior of building . . . . . . . . . . . . . . . . . . . . . . 4 500.00
Total Estimated TIF Eligible Project Costs' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,500.00
'Although the Developer's TIF Eligible Project Costs may exceed$4,500.00,the City's reimbursement to the
Developer shall not exceed$4,500.00 pursuant to the terms and condition contained herein.
�
,� �
EXHIBIT 2
PRIVATE PROJECT REQUEST FOR REIMBURSEMENT
8
�/ n�� �
CITY OF CANTON, ILLINOIS
CANTON 2 - RT. 9/CHESTNUT STREET
TAX INCREMENT FINANCING DISTRICT
PRIVATE PROJECT
REQUEST FOR REIMBURSEM�NT
BY
EAST & EM PROPERTIES, LLC.
Date (( ZS 13
Attention: City Administrator, City of Canton
Re: TIF Redevelopment Agreement, dated
by and between the City of Canton, Illinois, and
East & EM Properties, LLC (the "Developer")
The City of Canton is hereby requested to disburse funds from the Special Tax
Allocation Fund pursuant to the Redevelopment Agreement described above in the
amount(s), to East & EM Properties, LLC and for the purpose(s) set forth in this Request
for Reimbursement. The terms used in•�this Request for Reimbursement shall have the
meanings given to those terms in the Redevelopment Agreement.
1. REQUEST FOR REIMBURSEMENT NO. �-
2. PAYMENT DUE TO: East & EM Properties, LLC
3. AMOUNTS REQUESTED TO BE DISBURSED:
Description of TIF Eligible Project Cost Amount
4 4 r s /`W(�v��,f .�pr' • '�"^'• GAT�70r �7�D0• yO
. '^� ,
O (jv/� r
Total �y,s'oa. "
4. The amount requested to be disbursed pursuant to this Request for Reimbursement will
9
�J , I�,,
be used to reimburse the Developer for Redevelopment Project Costs for the Project
detailed in "Exhibit 1" of the Redevelopment Agreement.
5. The undersigned certifies that:
(i) the amounts included in (3) above were made or incurred or financed and were
necessary for the Project and were made or incurred in accordance with the
construction contracts, plans and specifications heretofore in effect; and
(ii) the amounts paid or to be paid, as set forth in this Request for Reimbursement,
represent a part of the funds due and payable for TIF Eligible Redevelopment
Project Costs; and
(iii) the expenditures for which amounts are requested represent proper
Redevelopment Project Costs as identified in the "Limitation of Incentives to
Developer" described in Section D of the Redevelopment Agreement, have not
been included in any previous Request for Reimbursement, have been properly
recorded on the Developer's books and are set forth with invoices attached for all
sums forwhich reimbursement is requested, and proof of payment of the invoices;
and
(iv) the amounts requested are not greater than those necessary to me?t obligations
due and payable or to reimburse the Developer for its funds actually advanced for
Redevelopment Project Costs; and
(v) the Developer is not in default under the Redevelopment Agreement and nothing
has occurred to the knowledge of the Developer that would prevent the
performance of its obligations under the Redevelopment Agreement.
6. Attached to this Request for Reimbursement is Exhibit 1 of the Redevelopment
Agreement, together with copies of invoices, proof of payment of the invoices, and
Mechanic's Lien Waivers relating to all items for which reimbursement is being
requested.
�
BY: (Developer)
TITLE: � �� r
APPROVED: CITY OF CANTON, ILLINOIS
BY:
TITLE: DATE:
]0