HomeMy WebLinkAboutOrdinance #3048 1
CITY OF CANTON
ORDINANCE NO. 3048
CANTON 1- DOWNTOWN/5TH AVENUE
TAX INCREMENT FINANCING (TIF) DISTRICT
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON
and
PAIGE EDWARDS (D/B/A SQUARE CRAFTERS)
and
BILLY JOE EDWARDS
ADOPTED BY THE CORPORATE AUTHORITIES
OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS,
ON THE 7TH DAY OF JANUARY,2014.
CITY OF CANTON, ILLINOIS: ORDINANCE NO. 3048
CANTON 1-DOWNTOWN / 5TH AVENUE
TAX INCREMENT FINANCING (TIF) DISTRICT
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A REDEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF CANTON
AND
PAIGE EDWARDS (D/B/A SQUARE CRAFTERS)
AND
BILLY JOE EDWARDS
BE IT ORDAINED BY THE CITY OF CANTON, FULTON COUNTY, ILLINOIS
THAT:
1. The Redevelopment Agreement with Paige Edwards, d/b/a Square Crafters and Billy Joe
Edwards,individually (ExhibitA attached) is hereby approved.
2. The Mayor is hereby authorized and directed to enter into and execute on behalf of the City
said Redevelopment Agreement and the Ciry Clerk of the City of Canton is hereby authorized
and directed to attest such execution.
3. The Redevelopment Agreement shall be effective the date of its approval on the 7`" day of
January,2014.
4. This Ordinance shall be in full force and effect from and after its passage and approval as
required by law.
[the remainder of thi.r page i.r intentionally blank]
PASSED,APPROVED AND ADOPTED by the Corporate Authorities of the City of Canton,
Fulton County, Illinois, on the 7`h day of January, A.D., 2014, and deposited and filed in the
Office of the City Clerk of said City on that date.
MAYOR&ALDERMEN AYE VOTE NAY VOTE ABSTAIN
Alderman Pasley X
Alderman Lovell X
Alderman Ellis X
Alderman Justin Nelson X
Alderman Pickel X
Aldexman Jun Nelson X
Alderman Putrich X
Alderman West X
TOTAL VOTES 7 0 1
APPROVED: � ,Date 01/07/2014
n effr y� ritz,Mayor, City of Canton
f, ?
ATTEST: , 1�� '�
.Lk�' ��t - i.= ' ,Date: 01/07/2014
Diana Pavley-Rock,City Clerk, City of Canton
ATTACHMENTS:
EXHIBIT A. REDE�'ELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF
Cr1NTON AND PAIGE EDWARDS(D/B/A SQUr1RE CRr1FTERS).
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EXHIBIT A
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON
and
PAIGE EDWARDS (D/B/A SQUARE CRAFTERS)
and
BILLY JOE EDWARDS
CANTON 1-DOWNTOWN / 5TH AVENUE
TAX INCREMENT FINANCING (TIF) DISTRICT
CANTON 1- DOWNTOWN /5TH AVENUE
TAX INCREMENT FINANCING DISTRICT
TIF REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON, FULTON COUNTY, ILLINOIS
and
PAIGE EDWARDS (D/B/A SQUARE CRAFTERS)
and
BILLY JOE EDWARDS
JANUARY 2014
REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON
and
PAIGE EDWARDS (D/B/A SQUARE CRAFTERS)
and
BILLY JOE EDWARDS
CANTON 1-DOWNTOWN /5TH AVENUE TIF DISTRICT
THIS AGREEMENT (including all Exhibit.c)is entered into this day of January,2014,by the
City of Canton("City"),an Illinois Municipal Corporarion,Fulton County,Illinois;and Paige Edwards
(d/b/a Square Crafters) and Billy Joe Edwards (collectively the "Developer").
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
promoring the development of private investment property 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 municipality may expend funds for economic
development purposes to commercial enterprises that are necessary or desirable for the promotion of
economic development within the municipaliry;and
WHEREAS,pursuant to the Tax Increment Allocation Redevelopment Act,65 ILCS 5/11-74.4 et.ceq.,
as amended (the "Act"), the Ciry has the authority to provide incentives to owners or prospective
owners of real properry 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 properties which are vacant,underutilized or obsolete or a combination thereof,adopted Tax
Increment Financing and created a Tax Increment Allocation Redevelopment Area under the Act
known as the Canton International Harvester Site Project Area TIF District (the "Canton IH TIF
District" currendy known as the"Canton 1-Downtown/5th Avenue TIF District") on July 6,2004
by Ordinance No. 1807;and
WHEREAS,pursuant TIF Act,the City approved the First Amendment to the Canton IH TIF District
on November 22,2011 by Ordinance No. 2052;and
WHEREAS, included in the Redevelopment Area is a property located at 44 White Court, Canton,
Illinois(I'IN 09-08-27-415-016,herein defined as the"Properry")forwhich the Developer is the current
l
tenant and owner of the property;and
WHEREAS, the Developer is proceeding with plans to incur costs for leasehold improvements and
buildingrenovations(see Earhibitl. DevelopetLetteroflnten�andis therefore requestingincentives
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 (`Bligible
Project Costs") pursuant to 65 ILCS 11-74.4-3(c� 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, safery 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("Parries") have agreed that the City shall provide a grant to
the Developer for reimbursement of the Developer's Eligible Project Costs (Exhibit�in the amount
of Four Thousand Nine Hundred Seventy Dollars ($4,970.00) to be paid from the Canton 1 -
Downtown/5th Avenue TIF District Special Tax Allocation Fund as specified below in Section C,
Incentive.,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
2
Act,unless indicated to the contrary.
3. The City is extending incenrives for Developer's Project in anricipation 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
to execute this Agreement.
B.ADOPTION OF TAX INCREMENT FINANCING
The City has created a Tax Increment Financing District, currently known as "Canton 1 -
Downtown/5`h Avenue TIF District" which includes the Developer's Property. The Ciry has
previously assisted 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 City shall provide a grant to the Developer for reimbursement of the Developer's Eligible Project
Costs in the amount of Four Thousand Nine Hundred Seventy Dollars($4,970.00)to be paid from
the Canton 1 -Downtown/5th Avenue TIF District Special Tax Allocarion Fund,pursuant to Section
E, `Payment of Eligible Project Cost.r"and subject to the following conditions:
1. In the event the Developer sells or otherwise conveys all or a portion of the ude to the Property
to any other individual or enrity other than the current tenant within five (5) years following the
execution of this Redevelopment Agreement,the Developer shall repay a single lump sutn to the
City 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 January 15, 2014 and the Developer sells the
Property 54 days later on March 10, 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$4,821 of the grant back
to the City.
D. LIMITATION OF INCENTIVES TO DEVELOPER
The Developer's reimbursement shall not exceed$4,970.00 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 Project Costs as set forth by the Act, shall
3
be made by a Requisition for Payment of Private Development Redevelopment Costs (see
Exhtbtt 3, Requisition) in an amount equal to or exceeding$4,970.00, submitted by Developer
to the City's TIF Administrator,Jacob & Klein, Ltd. and The Economic Development Group
(collectively the "Administrator").
2. The Requisition must be accompanied by verified bills or statements of suppliers,contractors,or
professionals together with Mechanic's Lien 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 Requisition by written receipt to the Developer
within thirty(30) business days after receipt of the Requisirion. Approval of the Requisirion will
not be unreasonably withheld. If the Requisition is disapproved by the Administrator (or
subsequendy by the Illinois Department of Revenue),the reasons for disallowance will be set forth
in writing and the Developer may resubmit the Requisirion with such additional information 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, administrarive 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 City's obligation hereunder is to pay Developer for Eligible Project Costs limited to$4,970.00 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 liability of the City 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 "Defaulring
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 Defaulring 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 Defaulting Party shall fail to perform a monetary covenant which it is required to perform
4
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 Defaulting Party fails to perform any nonmonetary covenant as and when it
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-defaulring Party
specifying the nature of the default, provided, however, with respect to those nonmonetary defaults
which are not capable of being cured within such thirry (30) day period,it shall not be deemed to be in
default if it commences curing within such thirry (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, subsection,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 secrion,
subsecrion,term or provision of this Agreement or the application of same to Parries 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 posring,if mailed by registered
or certified mail,return receipt requested,with postage prepaid addressed as follows:
TO CITY TO DEVELOPER
Ciry Clerk Paige Edwards
2 N. Main Street d/b/a Square Crafters
Ciry of Canton 328 N.Avenue A
Canton,IL 61520 Canton,IL 61520
With c•opy to Admini.rtrator.•
Jacob&HIein,Ltd. Billy Joe Edwards
The Economic Development Group,Ltd. 647 South 1"
1701 Clearwater Avenue Canton,IL 61520
Bloomington, IL 61704
5
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.
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 detertnined by Developer and Developer shall
indemnify and hold harmless the City, and all Ciry 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. seq.), the Illinois Procurement Code, and/or any similar State or
Federal law or regulation. This obligation to indemnify and hold harmless obligates Developer to
defend any such claun and/or action,pay any liabilities and/or penalties imposed,and pay all defense
costs of Ciry,including but not limited to the reasonable attorney fees of Ciry.
M. WARRANTY OF SIGNATORIES
The signatories of Developer warrant fu11 authority to both execute this Agreement and to bind the
entity 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 executed by their
duly authorized officers on the above date at Canton,Illinois.
CITY DEVELOPER
CITY OF CANTON, an Illinois Municipal PAIGE EDWARDS (D/B/A SQUARE
Corporation: CRAFTERS ,a sole prop �etorship.
,,.--�--� ,��, .�
BY• BY: ?� �
� Mayor, ity f C � n;' '
� �i %r ? BILLY JOE EDWARDS,individually.
/ � /`� ,�' ,-� ,.�
ATTEST -� � � � � �
BY: I
Clerk,City of Canton 1 ,
EXHIBITS ARE ATTACHED AS FOLLOWS:
Exhibit 1. Developer Letter of Intent
Exhibit 2. Sutnmary of Esrimated TIF Eligible Project Costs.
Exhibit 3. Private Project Request for Reimbursement
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6
12/31/2013 TUS 13�11 PAX 3096d72348 City of Canton �001/001
December 10,2013
I am the owner of Square Crafters,a craft-related retaii and education business in Canton. I
moved my business ta a building located at 44 White Court,but have not yet reopened at this
time due to renovation. Previous(y,Square Crafters was located next to the movie theate�on
the Square.
The bui�ing at 44 White Court was purchased in my father's name but I pay rent.It is my ir�eM
to purchase the buElding from him in 2044. My father, Biil Edwards, has provided his conseM for
me to make improvements fo this building and request a reimbursement from the City of Canton
TIF 1-Downtownl5�'Avenue T1F District for any leasehold improvements I complete at 44 White
court.
Square Crafters is a family business at heart, as my father acts as handyman and my mother
worlcs for me(when the shop is open for businesa}. It is my goal to be able ta coMEnue to
provlde a croative outlet for a11 ages,and appreciate the assistance thie grant prov'ides.
I value your consideration and support.
Thank you,
��� �. . .
,� ����
Paige L�dwards, usiness owner
Sqttare Crafters
44 White Court
Canton, IL 81520
309.338.6194
sauarecraftersCc�hatmail.com
Bill Ed s ' ing owne
�
EXHIBIT 2
SUMMARY OF ESTIMATED TIF ELIGIBLE PROJECT COSTS
Paige Edwards (d/b/a Square Crafters) and Billy Joe Edwards
Canton 1 -Downtown/5`"Avenue TIF District
City of Canton,Fulton County, Illinois
Project Description: Developer is proceeding with plans to incur costs for leasehold
itnprovements and building renovations.
Street Locarion: 44 White Court, Canton, Illinois (PIN 09-08-27-415-016)
Estimated Eligible Project Costs:
Contracted labor and materials for leasehold improvements and building renovations . . . . 4 970.00
Total Estimated TIF Eligible Project Costsl . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,970.00
1 Although the Developer's TIF Eligible Project Costs may exceed$4,970.00,the City's reimbursement to the
Developer shall not exceed$4,970.00 pursuant to the terms and condition contained herein.
g
CiTY OF CANTON, ILLINOIS
CANTON 1 - DOWNTOWN/5T" AVENUE
TAX INCREMENT FINANCING DISTRICT
PRIVATE PROJECT
REQUEST FOR REIMBURSEMENT
BY
PAIGE EDWARDS (D/B/A SQUARE CRAFTERS) AND BILLY JOE EDWARDS
Date
Attention: City TIF Administrator, City of Canton
Re: TIF Redevelopment Agreement, dated
by and between the City of Canton, Illinois, and
Paige Edwards d/b/a Square Crafters and Billy Joe Edwards (collectively 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 Paige Edwards (d/b/a Square Crafters) and Billy Joe Edwards 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: Paige Edwards (d/b/a Square Crafters) and Billy Joe Edwards
3. AMOUNTS REQUESTED TO BE DISBURSED:
Description of TIF Eligible Project Cost Amount
Total
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4. The amount requested to be disbursed pursuant to this Request for Reimbursement will
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 for which reimbursement is requested, and proof of payment of the invoices;
and
(iv) the amounts requested are not greater than those necessary to meet 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.
' �r
BY� � ,;1��� � � �r � ��,�._ � ; ,.'" (Developer)
�-� ,�
TITLE: '�� ' �: C.. .- .,`�- �t �,�{
� �
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APPROVED: CITY OF CANTON, ILLINOIS
BY: '�s� G�.,�
TITLE:��,.� DATE: �' 7"��
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