HomeMy WebLinkAboutOrdinance #3056 CITY OF CANTON
ORDINANCE NO. 3056
AN ORDINANCE APPROVING AND AUTHORIZING
THE EXECUTION OF A REDEVELOPMENT AGREEMENT
BY AND BETWEEN
THE CITY OF CANTON
AND
JERRY JARNAGIN,INDIVIDUALLY AND AS TRUSTEE FOR
CHESTNUT RENTALS LAND TRUST
PASSED BY THE CITY COUNCIL
OF THE CITY OF CANTON
THE 1 ST DAY OF APRIL, 2014
PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY
COUNCIL OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS,
THIS 1 ST DAY OF APRIL, 2014
EFFECTIVE APRIL 1, 2014
CITY OF CANTON
FULTON COUNTY, ILLINOIS
ORDINANCE NO. 3056
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
JERRY JARNAGIN, INDIVIDUALLY AND AS TRUSTEE FOR
CHESTNUT RENTALS LAND TRUST
ADOPTED BY THE CORPOR.ATE AUTHORITIES
OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS,
ON THE 1ST DAY OF APRIL, 2014.
CITY OF CANTON, ILLINOIS: ORDINANCE NO. 3056
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
JERRY JARNAGIN, INDIVIDUALLY AND AS TRUSTEE FOR
CHESTNUT RENTALS LAND TRUST;
BE IT ORDAINED BY THE CITY OF CANTON THAT:
1. The Redevelopment Agreement by and between the City of Canton, Fulton County,
Illinois and Jerry Jarnagin, Individually and as Trustee for Chestnut Rentals Land
Trust (F,ti�hibitA attached) is hereby approved.
2. The Mayor is hereby authorized and directed to enter into and execute on behalf of
the City said First r�mendment to the Redevelopment Agreement and the City 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 1s`
day of April,2014.
4. This Ordinance shall be in full force and effect from and after its passage and
approval as required by law.
�'I'he remainder of thi.r page i.r intentionally blank.J
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PASSED,APPROVED AND ADOPTED by the Corporate Authorities of the Ciry of
Canton, Fulton County,Illinois, on the 15`day of April,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 /ABSENT
Alderman Pasley X
Alderman Lovell X
rllderman Ellis X
Alderman Justin Nelson X
Alderman Pickel X
Alderman Jim Nelson X
Alderman Putrich X
Alderman West X
TOTAL VOTES 7 0 1
APPROVED: ��" �� ,Date �/Q� / 2014
Jeff ritz, Mayor, � Canton
,.
ATTEST: L ,Date: �/ l / 2014
D a Pavley-Rock, City lerk, City of Canton
ATTACHMENT:
EXHIBIT A: Redevelopment Agreement by and between the City of Canton, Fulton County, Illinois and Jetry Jarnagin,
Individually and as Trustee for Chestnut Rentals Land Trust.
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EXHIBIT A
REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON
and
JERRY JARNAGIN, INDIVIDUALLY AND AS TRUSTEE FOR
CHESTNUT RENTALS LAND TRUST
CANTON 2—RT. 9/CHESTNUT STREET
TAX INCREMENT FINANCING (TIF) DISTRICT
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CANTON 2 -RT. 9/CHESTNUT STREET
TAX INCREMENT FINANCING DISTRICT
TIF REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON, FULTON COUNTY, ILLINOIS
and
JERRY JARNAGIN, INDIVIDUALLY, AND AS TRUSTEE FOR
CHESTNUT RENTALS LAND TRUST
MARCH - 2014
TIF REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON
and
JERRY JARNAGIN, INDIVIDUALLY, and as TRUSTEE of the
CHESTNUT RENTALS LAND TRUST
��.�l
THIS AGREEMENT (including ExbiUit.r) is entered into this I day of l�o4fereh,2014,by and
between the CITY OF CANTON("City"),an Illinois Municipal Corporation,Fulton County,Illinois
and JERRY JARNAGIN, individually, and as Trustee of the CHESTNUT RENTALS LAND
TRUST (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
promoting 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
econorruc development within the municipaliry; and
WHEREAS, pursuant to the Tax Increment Allocation 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 properties which are vacant,underutilized or obsolete or a combination thereof,adopted Tax
Increment Financing and created a Tax Increment �llocation Redevelopment r�rea 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 r�rea),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
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WHEREAS,included in the Redevelopment Project Area is a property owned by the Developer,
which property is commonly known as 1605-1611 East Chestnut Street, Canton, Illinois (the
"Property"),and identified by real estate parcel identification number 09-08-25-301-006; and
WHEREAS, based on incentives offered by the City, the Developer intends to redevelop said
Property by renovating the existing building and making additional site improvements for the operation
of a multi-unit retail shopping center (the "Project"); and
WHEREAS, it is the intent of the City to encourage economic development which will increase
the real estate and municipal tax bases of the City and the tax bases of other taxing bodies, which
increased incremental taxes will be used,in part,to finance incentives to assist redevelopment projects
undertaken within the Tax Increment Financing District; and
WHEREAS, the Developer's Project is consistent with the land uses of the Ciry as adopted;and
WHEREAS, the City has the authority under the �ct 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
as set forth in Exhibit 1 and that said Developer's Project will,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 citi7ens and generally to enhance the economy of the
City;and
WHEREAS, the City will establish a separate account within the Special Tax Allocation Fund for
the TIF District designated as the `fetty,Jarnagrn SpecialAccount"("Special Account"). All monies
deposited to this Special Account shall be used exclusively by the City for the purposes set forth in this
Agreement;and
WHEREAS, the City agrees to reimburse the Developer a portion of the Developer's Eligible
Project Costs(see Exhibit�by providing a lump-sum,forgivable loan to the Developer in the amount
of Sixty Thousand Dollars and No Cents ($60,000.00) from the Canton 2 - Rt. 9/Chestnut Street
TIF District Special Tax Allocation Fund, pursuant to specific terms defined below in Section C,
`7ncentive.r; and
WHEREAS,beginningwhen the Loan for$60,000.00 has been sarisfied,the City shall also annually
segregate Fifty Percent(50%) of the"net"incremental increases in real estate taxes derived from this
Developer's Project to reimburse Developer up to Two Hundred Sixty-Three Thousand Five
Hundred Dollars and No Cents ($263,500.00) of additional TIF Eligible Project Costs (see Exhibit
2
1),or until Canton 2-Rt.9/Chestnut Street TIF District ends in tax year 2035 payable 2036,whichever
occurs first. "Net Increment"is defined as increases in annual real estate tax increment derived from
the Developer's Redevelopment Project after payment for a proportionate amount of administrative
fees and costs and payments pursuant to Intergovernmental Agreements,if any;and
WHEREAS, the City and the Developer agree that in no event shall the total cumulative
reimbursement paid by the City to the Developer exceed Three Hundred Twenty-Three Thousand
Five Hundred Dollars and No Cents ($323,500.00);and
WHEREAS, in consideration of the execution of this Agreement, the Developer expects to
complete the Project by March 15,2014; and
WHEREAS, the City is entering into this Agreement having encouraged and induced the
Developer to redevelop the Property in a manner consistent with the estimated costs (Exhibit 1).
AGREEMENTS
NOW,THEREFORE,in consideration of the mutual promises contained herein and other good
and valuable consideration,the receipt of which is hereby acknowledged,the Parries 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 incenrives for the Developer's Project in anricipation of the expected
completion of the Project as set forth herein.
4. Each of the Parties represents that it has taken all actions necessary to authorize its
representarives to execute this Agreement.
B.ADOPTION OF TAX INCREMENT FINANCING
The City has created the TIF District which includes the Developer's Property. The City has
previously assisted certain Redevelopment Projects using tax increment financing incentives and now
intends to provide such assistance to the Developer's Project.
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C. INCENTIVES
In consideration for the Developer's purchase of the Property and in anticipation of completion of
the Developer's Redevelopment Project,the Ciry agrees to extend to Developer the following incenrives
to assist Developer's completion of the Developer's Redevelopment Project:
1. Prornissory Note: The City agrees to loan to the Developer by separate Promissory Note (.ree
Exhtbit 2) Sixty Thousand Dollars and No Cents ($60,000.00) from the Canton 2 - Rt.
9/Chestnut Street Special Tax Allocation Fund (the "Loan") for TIF Eligible Project Costs
incurred as a result of the Developer's Project (see Exhibit�. The terms and conditions for
the Loan shall be as follows:
a. The full Loan amount of$60,000.00 shall be paid to Developer from the Canton 2-Rt.
9/Chestnut St. TIF District Special Tax Allocation Fund within ninety (90) days
following the execuuon of this Agreement;
b. The interest rate for the Loan shall be three percent(3%)per annum,and shall begin
to accrue on the date of the Loan Closing;
c. The term of the Loan shall expire December 31,2035;
d. The entire Loan amount, plus any accrued interest thereon, shall be forgiven on or
before the five(5)year anniversary of the date of the Loan Closing if and when both of
the following conditions have occurred:
i. The Property has generated enough municipal sales tax revenue and real
estate tax increment for the City to recapture the entire Loan amount plus
any accrued interest thereon,and
u. The Developer has provided,in accordance with Section F. below,verification
of not less than $60,000 of TIF eligible project costs.
e. If either of the conditions contained in Sectiora C(1)(d) above has not occurred on or
before the five(5)year anniversary of the date of the Loan Closing,then the balance of
any unpaid principal and accrued interest thereon, less any amounts of verified
municipal sales tax revenue and net real estate tax increment generated by the Property
and attributable to the Developer's Project, shall be re-amortized through the Loan
expiration date listed in Section C(1)(c)above,at the rate of interest of 3%,with monthly
payments to be made by the Developer to the City for deposit into the City's TIF Fund.
The first such monthly payment shall be due on or before the twenry-eighth (28`'') day
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of the month following the month of the five (5) year anniversary date of the Loan
closing,and then on or before the 28`h day of each month thereafter.
i. The Loan balance shall be offset, annually,by any verified municipal sales
tax revenue and annual real estate tax increment generated by the Property
and attributable to the Developer's Project. However, such reductions in
the Loan balance will not relieve the Developer of the obligarion to
continue to make payments under the revised amortization schedule.
Rather, such reductions in the Loan balance may result in the Developer
making fewer payments.
u. The Parties hereby acknowledge that this agreement does not include any
payments to the Developer from any source of City funds other than the
Canton 2-Rt. 9/Chestnut St. TIF District Special Tax Allocation Fund as
provided herein.
f. In order to verify municipal sales tax generated by the Property so that the Loan balance
may be reduced by any municipal sales tax revenue generated by the Property, the
Developer agrees to provide,or cause any Tenant of the Property to provide PTAX-
1002-21,Aut{�ori�ation to Releae�e Sale.r Tax Informatian to L,ocal Government.r(Exhibit.� to
the City to obtain from the Illinois Department of Revenue annual verificarion of retail
sales generated on the Property,until such time as the Loan has been satisfied.
If the Developer and/or any Tenant of the Property fails to provide PTt1X- 1002-21,
and the City is otherwise unable to verify municipal sales tax generated by the Property,
the Loan will not be reduced by any such unverified municipal sales tax generated by the
Properry.
g. A separate Promissory Note is attached as Exhiblt 2. In addition, the note shall be
secured with a mortgage (see MortgQge) on the property in favor of the City which the
City shall subordinate to a primary lender upon request.
h. Upon the Loan being fully forgiven under Section C(1)(d) above or paid in full under
Section C(1)(e)above,whichever is applicable,the City shall return to the Developer the
Promissory Note marked"cancelled" and a release of the Mortgage in recorded form.
i. If the Developer sells or otherwise conveys the Property at any time prior to forgiveness
of the Loan under Section C(1)(d)or full payment of the Loan under Section C(1)(e), the
remaining balance due,including any accrued interest thereon,shall be immediately due
and payable by the Developer to the City.
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2. Annual Reimbursement:Upon releasing the Loan provided under Section C(1),the City shall
reimburse the Developer Fifty Percent(50%)of the"net"incremental increases in real estate
taxes generated by the Developer's Project for the reimbursement of the Developer's Eligible
Project Costs. Said reimbursements shall commence with real estate tax increment derived
from the real estate taxes assessed in the year the Loan described in Section C(1� above has
been satisfied,and conrinuing until Canton 2-Rt.9/Chestnut Street TIF District ends in tax
year 2035 payable 2036,or until all TIF eligible project costs (Exhibit� are fully reimbursed,
not to exceed a total of Two Hundred Sixty-Three Thousand Five Hundred Dollars and
No Cents($263,500.00),whichever occurs first. These funds are to be allocated to and when
collected shall be paid to the City Treasurer for deposit in a separate account within the
Special Tax Allocation fund for Canton 2 -Rt. 9/Chestnut Street TIF District designated as
the"Jerry Jarnagin Special Account"(the"Special Account"). All monies deposited in the
Special Account shall be used exclusively by the City for the purposes set forth in this
Agreement.
a. Net increment is defined as increases in annual real estate tax increment derived from
the Developer's Redevelopment Project as described in Sec•tion C(2�above after payment
for a proportionate amount of administrative fees and costs and payments pursuant to
City approved Intergovernmental Agreements,if any, for this TIF District.
D. LIMITATION OF INCENTIVES TO DEVELOPER
1. Total cumulative reimbursement of TIF Eligible Project Costs from the City to the Developer
shall not in any event exceed $323,500.00.
2. The Developer shall be reimbursed by the City for all Eligible Project Costs permitted by the
Act(subject to a limitarion of$323,500.00)as set forth herein,but only as set forth above and
only from the Property included in this Project and currendy owned by the Developer at that
location.
3. It shall be the sole responsibility of the Developer to provide to the City as requested the
following:
a. Copies of all PAID real estate tax bills, annually, for the Property included in this
Project.
b. Verification of TIF eligible project costs as required by Section E below.
E. PAYMENT OF ELIGIBLE PROJECT COSTS
1. A request for payment to the Developer for TIF Eligible Project Costs as set forth by the Act
shall be made by a Requisition for Payment of Private Development Redevelopment Costs
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(the"Requisition") as hereto attached as Exhibtt4and submitted by Developer to the City's
TIF Administrator Jacob & Klein, Ltd. and The Economic Development Group, Ltd.
(collectively the "TIF Administrator") or a successive TIF Administrator upon written
notification from the City.
Z. All Requisitions must be accompanied by a master list of itemized costs prepared by the
Developer for the Project which relates to those categories of estimated Eligible Project Costs
provided in Exhibrt 1, and such master list is to be supported by all corresponding verified
receipts,invoices,bills or statements of suppliers,contractors,or professionals together with
Mechanic's Lien Waivers,if applicable,cancelled checks or other proof of payment as required
by the Ciry. THE DEVELOPER MUST VERIFY SUFFICIENT ELIGIBLE
PROJECT COSTS NO LATER THAN MARCH 31ST FOR THE CITY TO
EXTEND INCENTIVES PROVIDED FOR IN SECTION C(2) RELATED TO
TAXES RECEIVED BY THE CITY IN THE PRIOR YEAR.
3. The Developer shall use such sums as reimbursements for eligible expenses only to the extent
permitted by law and the Act.
4. The TIF Administrator shall approve or disapprove the Requisirion by written receipt to the
Developer within thirty (30) business days after receipt of the Requisirion. Approval of the
Requisition will not be unreasonably withheld. If the Requisition is disapproved by the TIF
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 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 TIF 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. TIF Eligible Project Costs are broadly defined in the Redevelopment Plan to include all costs
defined in the Act as Redevelopment Project Costs.
7. The Developer may submit for prior approval by the City as TIF Eligible Project Costs under
the Act estimates of costs before they are incurred subject to later confirmation by actual bills.
8. All payments and reimbursements of TIF eligible project costs during the term of this
agreement are herein subject to the Developer obtaining applicable building permits and
complying with all City of Canton Building and Zoning Codes as may be related to the
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Project. The Developer and related contractors shall consult with City Staff to receive
direcrions regarding zoning, utilities, fire safety and building code requirements prior to
commencing with the Project and shall meet with City Staff upon request of the City or as
deemed necessary during the construction period to review any revised plans to construct,
enlarge,alter,repair,move,demolish or change the occupancy or use of a building or structure
or to erect install, enlarge, alter, repair, remove, convert or replace any electrical, gas,
mechanical or plumbing system.
F. LIMITED OBLIGATION
The City's obligation hereunder is to pay Developer for TIF Eligible Project Costs limited to
$323,500.00 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 liability of the City or a charge or lien against the City's general
credit or ta�ng power.
G. LIMITED LIABILITY OF CIT'Y TO OTHERS FOR
DEVELOPER'S EXPENSES
There shall be no obligation by the City to make any payments to any person other than Developer,
nor shall the City be obligated to make direct payments to any other contractor,subcontractor,mechanic
or materialman providing services or materials to Developer for the Developer's Project.
H. 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 equity. 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 under this Redevelopment r�greement, it shall not be deemed to be in default under this
Redevelopment Agreement unless it shall have failed to perfortn 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 non-monetary 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-
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defaulring Party specifying the nature of the default, provided, however, with respect to those non-
monetary 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.
I. TIME; FORCE MAJEURE
For this Agreement,time is of the essence;provided however,the Developer and City shall not be
deemed in default with respect to any obligations of this Agreement on its part to be performed if either
fails to timely perform the same and such failure is due in whole,or in part,to any strike,lock-out,labor
trouble (whether legal or illegal), civil disorder,inability to procure materials,weather conditions and
wet soil condirions, failure or interruprions of power, restrictive governmental laws and regularions,
condemnation,riots,insurrections,war, fuel shortages,accidents,casualties,Acts of God,acts caused
direcdy or indirecdy by the City(or City's agents,employees or invitees)when applicable to Developer
or third parties, or any other cause beyond the reasonable control of Developer or City.
J. ASSIGNMENT
The rights, including, but not limited to, the right to payments contemplated by Section C of this
Agreement, and obligations (or either of them) of the Developer under this rlgreement shall be fully
assignable by the Developer provided written notice is provided to the City and the City's consent is
obtained prior to such assignment. Further,no such assignment shall be deemed to release the assignor
of its obligations to the City under this Agreement unless the consent of the City to the release of the
assignor's obligations is first obtained and the nature of the Developer's Redevelopment Project shall
not be substantially changed.
K. 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.
L. 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,
subsection,term or provision of this Agreement or the application of same to Parties or circumstances
other than those to�vhich it is held invalid or unenforceable, shall not be affected thereby.
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M. NOTICES
All norices,demands,requests,consents,approvals or other instruments required or permitted by
this Agreement shall be in writing and shall be executed by the Parry 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
cerufied mail,return receipt requested,with postage prepaid addressed as follows:
CITY DEVELOPER
City of Canton Jerry Jarnagin
% City Administrator 3100 N. Main
2 N. Main St. Canton,IL 61520
Canton,IL 61520 Ph: (309)224-1060
Ph: (309) 647-0065 Email:jJarnagin(�a,bdws.com
Fax: (309) 647-2348
With copy to: IYlith copy to:
Jacob &Klein,Ltd and
The F,conomic Development Group, Ltd.
1701 Clearwater Avenue
Bloomington, IL 61704
Ph: (309) 664-7777
Fax: (309) 664-7878
Email: skline(a�afillinois.com
N. SUCCESSORS IN INTEREST
Subject to the Provisions of Paragraj�h J,above, this Agreement shall be binding upon and inure to
the benefit of the Parties hereto and their respective successors.
O. 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.
P. 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
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indemnify and hold harmless the City, and all City elected or appointed officials, officers, employees,
agents, representatives, engineers, consultants and attorneys (collectively, the "Indemnified Parries"),
from any and all claims that may be asserted against the Indemnified Parries or one or more of them,
in connecrion 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 regularion. 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 Ciry.
Q. TERM OF THE AGREEMENT
This Agreement shall expire: upon the Developer receiving reimbursement of all of the Developer's
TIF Eligible Project Costs as provided in Section C(2);bankruptcy of the Developer;or the expiration
of the Canton 2 - Rt. 9/Chestnut Street Redevelopment Plan ending with tax year 2035 payable 2036,
whichever occurs first.
R. AMENDMENTS TO THIS AGREEMENT
The parties hereto may amend this Agreement at any time by their mutual consent,which amendment
must be in writing and executed by the Parties.
S. WARRANTY OF SIGNATORIES
The signatories of Developer warrant full authority to both execute this Agreement and to bind the
entity to which they are signing on behalf of.
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IN WITNESS WHEREOF the City of Canton and Jerry Jarnagin 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 JERRY JARNAGIN, Individually, and as
Corporation: Trustee of the CHESTNUT RENTALS
LAND TRUST:
BY: ..� BY: � �""
Mayor, City of Ca 4 n Je Jar gin
ATTEST
erk, City of Canton
EXHIBITS ARE ATTACHED AS FOLLOWS:
Exhibit 1. Suirunary of Estimated TIF Eligible Project Costs.
Exhibit 2. Promissory Note.
Exhibit 3. PTAX 1002-21 tluthorizauon to Release Sales Tax Inforination to Local Governements.
Exhibit 4. Private Project Request for Reunbursement.
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EXHIBIT 1
SUMMARY OF ESTIMATED TIF ELIGIBLE PROJECT COSTS
Jarnagin East Chestnut Street Project
Canton 2 - Rt. 9/Chestnut Street TIF District in the City of Canton,Fulton County,Illinois
Project Description: Developer is proceeding with plans to acquire and renovate the existing
building for use as a multi-unit retail shopping center located at 1605 & 1611
East Chestnut St., Canton, Illinois.
PIN#: 09-08-25-301-006
Estimated TIF Eligible Project Costs:
Land and buildings (acquisition costs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $215,000
Demolition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,000
Professional Fees (planning, engineering,architectural,legal,accounring, other) . . . . . . . . . . . $3,500
Building Rehabilitation,Repairs and Renovation Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . $100.000
Total Estimated TIF Eligible Project Costs' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $323,500
' NOTE: Pursuant to Section D, the total cumulative reimbursement of TIF Eligible Project
Costs from the City to the Developer shall not in any event exceed $323,500.00.
13
EXHIBIT 3
Promissory Installment Note
l. RECITATIONS:
Date: 1��� l , 2014
Borrower: Jerry Jarnagin, Individually, and
as Trustee of the Chestnut Rentals Land Trust
Borrowers' Addresses: Jerry Jarnagin
3100 N. Main
Canton, IL 61520
Lender: City of Canton
Place for Payment: 2 North Main Street, Canton, Illinois 61520
Principal Amount: $60,000.00
Maturity: December 31, 2035
2. PROMISE TO PAY. Borrower promises to pay Lender, or order, any lawful money of
the United States of America, the principal amount of Sixty Thousand and no/100 Dollars
($60,000.00), subject to the Payment Terms contained in the Redevelopment Agreement and
contained in Paragraph 4 below.
3. INTEREST RATE. The interest rate shall be at the rate of three percent (3%) per
annum, and shall begin to accrue on the date of the Loan Closing.
4. PAYMENT TERMS: No monthly payments shall be due on the loan for five (5) years
from the closing date of the loan. The entire amount of the loan, plus any accrued interest
thereon, shall be forgiven on or before the five (5) year anniversary of the date of the loan
closing if and when the following conditions have occurred:
a. Borrower's real property located at 1605-1611 East Chestnut Street, Canton, Illinois
(the "Property") has generated enough municipal sales tax and real estate tax
increment for Lender to recapture the entire amount of the loan, plus any accrued
interest thereon, and
b. Borrower has provided, in accordance with Section E of the Redevelopment
Agreement, verification of not less than sixty thousand dollars and no cents
($60,000.00) of TIF eligible project costs, and
Promissory Installment Note Page 1 of 5
c. Borrower has been in full compliance with every term of the Redevelopment
Agreement.
If, on the five (5) year anniversary of the date of the loan closing, any one of the above
conditions has not yet occurred, then the balance of any unpaid principal and accrued interest
thereon, less any amounts of verified municipal sales tax and real estate tax increment generated
by the Property, shall be re-amortized through the loan maturity date listed in Section 1 above, at
the rate of interest of three percent (3%), with monthly payments to be made by Borrower. The
first such payment shall be due on or before the 28th day of the month following the month of the
five (5) year anniversary date of the loan closing, and then on or before the 28`h day of each
month thereafter. The balance of the loan shall be offset, annually, by any verified municipal
sales tax revenue and annual real estate tax increment generated by the Property and attributable
to the Borrower's project. However, such reductions in the loan balance will not relieve
Borrower of the obligation to continue to make payments under the revised amortization
schedule. Rather, such reductions in the loan balance may result in Borrower making fewer
payments.
If Borrower sells or otherwise conveys the Property at any time prior to the loan being fully
forgiven or paid, whichever is applicable, the remaining balance due, including any interest
accrued thereon, shall be immediately due and payable by Borrower to Lender.
Upon the loan being fully forgiven or paid in full, whichever is applicable, Lender shall return to
Borrower the Promissory Note marked "cancelled" and a release of the Mortgage in recorded
form.
5. PRE-PAYMENT. Borrower may pay without penalty all or a portion of the amount
owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing,
relieve Borrower of the obligation to continue to make payments under the amortization
schedule. Rather, early payments will reduce the principal balance due and may result in
Borrowers making fewer payments. Borrower agree not to send Lender payments marked "paid
in full", "without recourse", or similar language. If Borrower sends such a payment, Lender may
accept it without losing any of Lender's rights under this note, and Borrower will remain
obligated to pay any further amount owed to Lender. All written communications concerning
disputed amounts, including any check or payment instrument that indicates that the payment
constitutes "payment in full" of the amount owed where that is tendered with other conditions or
limitations or as full satisfaction of the disputed amount must be made or delivered to "City of
Canton, 2 N. Main Street, Canton, IL 61520".
6. PLACE FOR PAYMENT. Borrower will pay Lender at Lender's address shown above
or at such other place as Lender may designate in writing.
7. DEFAULT AND ACCELERATION CLAUSE. If Borrower defaults in the payment
of this note or in the performance of any obligation, including, but not limited to those noted
below, and the default continues after Lender gives Borrower notice of the default and the time
in which it must be cured, as may be required by law or written agreement, then the Lender may
declare the unpaid principal balance on this promissory installment note immediately due.
Promissory Installment Note Page 2 of 5
Borrower and each surety, endorser, and guarantor waive all demands for payment, presentation
for payment, notices of intentions to accelerate maturity, notices of acceleration of maturity,
protests and notices of protest, to the extent permitted by law.
Each of the following shall constitute an event of default under this note:
a. Payment default: Borrower fails to make any payment when due under this note.
b. Other defaults: Borrower fails to comply with or to perform any other term,
obligation, covenant or condition contained in this note or in the Redevelopment
Agreement between Lender and Borrower.
c. Default in favor of third parties: Borrower or any guarantors default under any
loan, extension of credit, security agreement, purchase for sales agreement, or any
other agreement, in favor of any other creditor or person that may materially affect
any of Borrower's property or Borrower's ability to repay this note or perform
Borrower's obligation under this note or any other related documents.
d. False statements: Any warranty, representation or statement made or furnished to
Lender by Borrower or on Borrower's behalf under this note or the related documents
as false or misleading in any material respect, either now or at the time made or
furnished or becomes false or misleading at any time thereafter.
e. Insolvency: The dissolution or termination of Borrower's existence as a business, the
insolvency of Borrower, the appointment of a receiver for any part of Borrower's
property, any assignment for the benefit of creditors, any type of creditor workout, or
the commencement of any preceding under any bankruptcy or insolvency laws by or
against Borrower.
f. Change in ownership: Any change in ownership of twenty-five percent or more of
the common stock of Borrower.
g. Adverse change: A material adverse change occurs in Borrower's financial condition,
or Lender believes the prospect of payment or performance of this note is impaired.
h. Insecurity: Lender in good faith believes itself insecure.
8. INTEREST ON PAST DUE INSTALLMENTS AND CHARGES. All past due
installments of principal and/or interest and/or all other past-due incurred charges shall bear
interest after maturity at the maximum amount of interest permitted by the Laws of the State of
Illinois until paid in full. Failure by Borrower to remit any payment by the tenth (lOt") day
following the date that such payment is due entitles the Lender hereof to declare the entire
principal and accrued interest immediately due and payable. The Lender's forbearance in
enforcing a right or remedy as set forth herein shall not be deemed a waiver of said right or
remedy for a subsequent cause, breach or default of the Borrower's obligations herein.
Promissory Installment Note Page 3 of 5
9. INTEREST. Interest on this debt evidenced by this Note shall not exceed the maximum
amount of non-usurious interest that may be contracted for, taken, reserved, charged, or received
under law; any interest in excess of the maximum shall be credited on the principal of the debt
or, if that has been paid, refunded. On any acceleration or required or permitted prepayment, any
such excess shall be canceled automatically as of the acceleration or prepayment or, if already
paid, credited on the principal of the debt or, if the principal of the debt has been paid, refunded.
10. FORM OF PAYMENT. Any check, draft, money order, or other instrument given in
payment of all or any portion hereof may be accepted by the holder and handled in collection in
the customary manner, but the same shall not constitute payment hereunder or diminish any
rights of the holder hereof except to the extent that actual cash proceeds of such instruments are
unconditionally received by the Lender and applied to this indebtedness in the manner elsewhere
herein provided.
11. ATTORNEY'S FEES; EXPENSES. If this Note is given to an attorney, including any
attorney within the employ of the City of Canton, for collection or enforcement, or if suit is
brought for collection or enforcement, or if it is collected or enforced through probate,
bankruptcy, or other judicial proceeding, then Borrower shall pay the Lender all costs of
collection and enforcement, including reasonable attorney's fees and expenses in addition to
other amounts due.
12. CONFESSION OF JUDGEMENT. Borrower hereby irrevocably authorizes and
empower any attorney at law to appear in any court of record and to confess judgment against
Borrower for the unpaid amount of this Note as evidenced by an affidavit signed by an officer or
elected official of the Lender setting forth the amount then due, attorney's fee plus cost of suit, to
release all errors, and waive all rights of appeal. If a copy of this Note, verified by an affidavit,
shall have been filed in the preceding, it will not be necessary to file the original as a warrant of
attorney. Borrower waives the right to any stay of execution and the benefit of all exemption
laws now or hereafter in effect. No single exercise of the forgoing warrant in power to confess
judgment will be deemed to exhaust the power, whether or not any such exercise shall be held by
any court to be invalid, violable, or void; but the power will continue undiminished and may be
exercised from time to time as the Lender may elect until all amounts owed on this Note have
been paid in full. Borrower hereby waives and releases any and all claims or causes of action
which Borrower might have against any attorney acting under the terms of authority which
Borrower has granted herein arising out of or connected with the confession of judgment
hereunder.
13. SEVERABILITY. If any provision of this Note or the application thereof shall, for any
reason and to any extent, be invalid or unenforceable, neither the remainder of this Note nor the
application of the provision to other persons, entities or circumstances shall be affected thereby,
but instead shall be enforce to the maximum extent permitted by law.
14. BINDING EFFECT. The covenants, obligations and conditions herein contained shall
be binding on and inure to the benefit of the heirs, legal representatives, and assigns of the
parties hereto.
Promissory Installment Note Page 4 of 5
15. DESCRIPTIVE HEADINGS. The descriptive headings used herein are for
convenience of reference only and they are not intended to have any affect whatsoever in
determining the rights or obligations under this Note.
16. CONSTRUCTION. The pronouns used herein shall include, where appropriate, either
gender or both, singular or plural.
17. GOVERNING LAW. This Note shall be governed, construed and interpreted by,
through and under the Laws of the State of Illinois.
PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE
PROVISIONS OF THIS NOTE. BORROWER AGREES TO THE TERMS OF THIS NOTE.
BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS
PROMISSORY NOTE.
EXECUTED this day of March, 2014.
BORROWER
�
Jerry rna 'n
Promissory Installment Note Page 5 of 5
EXHIBIT 3
PTAX-1102-21 FORM
Autbori�ation to Relea.re Sale.r Tax Information to L.ocal Government.r
15
CITY OF CANTON, ILLINOIS
CANTON 2 - Rt. 9 / CHESTNUT STREET
TAX INCREMENT FINANCING DISTRICT
PRIVATE PROJECT
REQUEST FOR REIMBURSEMENT
BY
JERRY JARNAGIN
Date
Attention: City Administrator, City of Canton
Re: TIF Redevelopment Agreement, dated
by and between the City of Canton, Illinois, and
Jerry Jarnagin (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 Jerry Jarnagin 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: Jerry Jarnagin, Developer
3. AMOUNTS REQUESTED TO BE DISBURSED:
Description of TIF Eligible Project Cost Amount
Tota I
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.
BY: �-- � (Developer)
TITLE: n�Q�,�,�.�
APPROVED: CITY OF CANTON, ILLINOIS
BY: �.a�',�,T��.�
TITLE:�,,�� DATE: d�/�',/��
Illinois Department of Revenue
Authorization to Release Sales Tax Information to Local Governments
General Information
Complete this form only if you
• make retail sales of tangible personal property from a permanent location in Illinois or conduct a tent sale where you
complete ST-556 forms for individual transactions; and
• want to authorize us(Illinois Department of Revenue)to disclose to your local government its share of sales tax
received from your business.
Incomplete requests will be returned to the local government.
Step 1: Provide the retail business details Enter your Illinois Account ID
1 �- here,�your Federal Employer
Identification Number(FEIN).
Illinois Account ID number(Sales Tax number)
2
Taxpayer/business name
IL
Address(actual address of retail location) City County State Zip
3 I authorize this release for the reporting periods through
(month,year) (month,year)
Note:All requests must have a beginning and ending date.
4 This information is to be released to the(circle one) village, city, town or county of
Note:All Financial Reporting requests will be mailed to the Treasurer of the local government. No additional copies will be sent by
the Department.
5 Sign below
I, as the owner or authorized officer, authorize the Illinois Department of Revenue(IDOR)to disclose to the designated village, city,
town, or county the amount of the local governmenYs share of sales tax received from the taxpayer for the reporting period specified
above.
Signature of owner or authorized officer of the business Title
� � -
Print Name Telephone number
Step 2: Give this form to your local government designated to receive the tax information
Step 3: To be completed by the local government official receiving information
Type of request(circle one): group/district stand-alone
If group/district, enter name here:
I, as the local government official, verify that this form is accurate and complete.
� � '
Signature of local government official Title Telephone number
IL
Address City State Zip
Completed forms should be returned to: Illinois Department of Revenue, Local Tax Allocation Division 3-500,
PO Box 19014, Springfield, IL 62794-9014 or by fax to 217 524-0526
QuestiOnS? Call 217 785-6518
This form is authorized by the Retailers'Occupation Tax Act 35 ILCS 120/11.Disclosure of this information is VOLUNTARY.This form
has been approved by the Forms Management Center.IL-492-4561
PTAX-1002-21(R-7/11)
CERTIFICATE
THE UNDERSIGNED CERTIFIES THAT SHE IS THE CITY CLERK FOR THE CITY OF
CANTON,ILLINOIS,AND THAT THE CITY COUNCIL AT A REGULARLY CONSTITUTED
MEETING OF SAID CITY COUNCIL OF THE CITY OF CANTON ON THE 1 ST DAY OF
APRIL,2014 ADOPTED ORDINANCE NO.3056, A TRUE AND CORRECT COPY OF WHICH
IS CONTAINED IN THIS PAMPHLET.
GIVEN UNDER MY HAND AND SEAL THIS � DAY OF A{ ,. , 2014.
(SEAL)
d n.
I NA PA Y-ROCK
CITY CLERK