HomeMy WebLinkAboutOrdinance #3074 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 19TH DAY OF
AUGUST, 2014 ADOPTED ORDINANCE NO. 3074, A TRUE AND CORRECT COPY OF
WHICH IS CONTAINED IN THIS PAMPHLET.
GIVEN UNDER MY HAND AND SEAL THIS 19TH DAY OF AUGUST, 2014.
(SEAL)
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D A PAV Y-R K
CITY CLERK
CITY OF CANTON
ORDINANCE NO. 3074
AN ORDINANCE APPROVING AND AUTHORIZING
THE FIRST AMENDMENT TO 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 19TH DAY OF AUGUST, 2014
PUBLISHED IN PAMPHLET FORM BY AUTHORITY OF THE CITY
COUNCIL OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS,
THIS 19TH DAY OF AUGUST, 2014
EFFECTIVE AUGUST 19, 2014
CITY OF CANTON
FULTON COUNTY, ILLINOIS
ORDINANCE NO. 3074
CANTON 2—RT. 9/CHESTNUT STREET
TAX INCREMENT FINANCING (TIF) DISTRICT
AN ORDINANCE APPROVING AND AUTHORIZING
THE FIRST AMENDMENT TO 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 CORPORATE AUTHORITIES
OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS,
ON THE 19TH DAY OF AUGUST, 2014.
CITY OF CANTON, ILLINOIS: ORDINANCE NO. 3074
CANTON 2—RT. 9/CHESTNUT STREET
TAX INCREMENT FINANCING (TIF) DISTRICT
AN ORDINANCE APPROVING AND AUTHORIZING
THE FIRST AMENDMENT TO 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 First Amendment to a Redevelopment Agreement originally approved on April
1, 2014 by and between the Ciry of Canton, Fulton Counry, Illinois and Jerry
Jarnagin, Individually and as Trustee for Chestnut Rentals Land Trust (Exhibit A
attached) is hereby approved.
2. The Mayor is hereby authorized and directed to enter into and execute on behalf of
the City said First Amendment 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 as amended shall be effective the date of its
approval on the 19`h day of August, 2014.
4. This Ordinance shall be in full force and effect from and after its passage and
approval as required by law.
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PASSED,APPROVED AND ADOPTED by the Corporate Authorities of the Ciry of
Canton, Fulton County, Illinois, on the 19`�'day of August, A.D., 2014, and deposited and filed in
the Office of the City Clerk of said Ciry on that date.
CITY COUNCIL AYE NAY ABSTAIN ABSENT
VL'ard 1 Alderman Jim Nelson }�
Ward 1 Alderman Dave Pickel X
Ward 2 Aldcrman Craig West X
Ward 2 Alderman Tad Putrich X
Ward 3 Alderman Gerald Ellis }�
Ward 3 Alderman Justin Nelson X
Ward 4 Alderman John Lovell X
Ward 4 Alderwoman Angela Hale X
TOTAL VOTES � � 1 �
APPROVED: ,Date {�/�� / 2014
Jeff itz,I ayo , iry of Canton
ATTEST: Date: 0 /�/ 2014
Diaria Pavley-Rock, Ciry ler , Citj�of Canton
ATTACHMENT:
EXHIBIT A: First Amendment to a Redevelopment Agreement originally approved on April 1, 2014 by and between the
City of Canton,Fulton County,Illinois and Jerry Jarnagin,Individually and as Trustee for Chestnut Rentals Land Trust.
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EXHIBIT A
CANTON 2—RT. 9/CHESTNUT STREET
TAX INCREMENT FINANCING (TIF) DISTRICT
FIRST AMENDMENT TO A REDEVELOPMENT AGREEMENT
by and between
THE CITY OF CANTON
and
JERRY JARNAGIN, INDIVIDUALLY AND AS TRUSTEE FOR
CHESTNUT RENTALS LAND TRUST
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FIRST AMENDMENT
to
THE REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON, FULTON COUNTY, ILLINOIS
and
JERRY JARNAGIN, INDIVIDUALLY, AND AS TRUSTEE FOR
CHESTNUT RENTALS LAND TRUST
CANTON 2 - RT. 9/CHESTNUT STREET
TAX INCREMENT FINANCING DISTRICT
AUGUST 2014
FIRST AMENDMENT
to
TIF REDEVELOPMENT AGREEMENT
by and between
CITY OF CANTON, ILLINOIS
and
JERRY JARNAGIN, INDIVIDUALLY, and as TRUSTEE of the
CHESTNUT RENTALS LAND TRUST
THIS FIRST AMENDMENT TO A REDEVELOPMENT AGREEMENT (the "Amended
Agreement") is dated this 19`h day of August, 2014, by and between the City of Canton ("City"), an
Illinois Municipal Corporation, Fulton County, and Jerry Jarnagin,individually, and as Trustee of the
Chestnut Rentals Land Trust ("the Developer"). Hereinafter,collectively,the City and the Developer
may, for convenience, be referred to as the "Parties".
PREAMBLE
WHEREAS, the City of Canton, Fulton County, Illinois by its duly elected Mayor and City Council
heretofore adopted a Redevelopment Plan and Projects;designated a Redevelopment Project Area;and
adopted Tax Increment Financing pursuant to the Tax Allocation Redevelopment Act,65 ILCS 5/11-
74.4 et. ,req., known as the Canton 2 - Rt. 9/Chestnut Street TIF District ("TIF District") on February
6, 2012; and
WHEREAS,the Parties hereto entered into a Redevelopment Agreement(Exhibit 1) on Apri11,2014
(the "Original Redevelopment Agreement"),wherein the Ciry agreed to extend incentives to provide
reimbursement of certain Redevelopment Project Costs ("TIF Eligible Project Costs") for the
Developer's commercial Project; and
WHEREAS, the Parties wish to amend the timing, amount and method of calculating the
reimbursements as set forth in the Original Redevelopment Agreement; and
WHEREAS, it is the intent of the City to encourage economic development which will increase the
real estate tax base of the Ciry,which increased taxes will be used,in part,to finance incentives to assist
development within the Tax Increment Financing District; and
WHEREAS,the City has the authority under the Act to reimburse Developer for TIF Eligible Project
Costs as a result of the Developer's Project; and
WHEREAS, the City desires to assist the Developer in reimbursing the TIF Eligible Project Costs
incurred as a result of the Developer's Project referenced in the Original Redevelopment Agreement
and is willing to extend reimbursements to the Developer as set forth in the attached Exhibit 2; and
WHEREAS,the City has determined that this Project requires the incenuves requested and that said
Project will,as a part of the Plan,promote the health, safet��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
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WHEREAS,the City previously agreed to pay the Developer the Eligible Project Costs for its Project
subject to the following terms:l) the City agreed to loan the Developer by separate Promissory Note
$60,000.00; 2) the loan amount of the Promissory Note plus any accrued interest thereon would be
for�,riven after 5 years if the Properry had 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;3)upon
forgiveness of the loan balance due under the Promissory Note, the City would then reimburse the
Developer 50`%of the net real estate tax increment generated by the Developer's Project until the end
of the TIF District,or until the Developer was fully reimbursed for its TIF eligible project costs not to
exceed a total of�263,500, whichever occurs first. The real estate tax increment generated by the
Project was to be allocated to a separate account within the Special Tax Allocation Fund for the TIF
District designated the "Jerry Jarnagin Special Account"; and
WHEREAS,pursuant to the terms of the Original Redevelopment Agreement,and attached as Exhibit
"2" theretq the Developer gave a Promissory Note, payable to the Ciry in the amount of Sixty
Thousand and 00/100 Dollars ($60,000.00) (the "Promissory Note"); and
WHEREAS,in consideration of the execution of this Amended Agreement,the City shall forgive the
balance due under the Promissory Note and shall return the Promissory Note to the Developer marked
"cancelled", and
WHEREAS,the parties agree to Amcnd the terms of the original Redevelopment Agreement executed
on April 1, 2014, as set forth below.
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 Amended Agreement.
2. Any terms which are not defined in this Amended Agreement shall have the same
meaning as they do in the Act,unless indicated to the contrary.
3. Any use of the"Property"in this Amended Agreement shall refer to the"Properry"as
defined in the Original Redevelopment Agreement attached hereto as Exhibit "1".
4. Any use of the "Project" in this Amended Agreement shall refer to the "Project" as
defined in the Original Redevelopment Agreement attached hereto as Exhibit "1".
5. Within thirty(30) days of execution of this Amended Agreement,the City shall forgive
the balance due under the Promissory Note given it by the Developer pursuant to the
terms of the Original Redevelopment Agreement, and shall return the same to the
Developer marked "cancelled".
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B. INCENTIVES
The Ciry agrees to extend to the Developer the revised incentives set forth below to assist
Developer's Project and the Parties agree to replace,Section C`7ncentive.r"of the Original Redevelopment
Agreement as follows:
1. The City agrees to reimburse the Developer for its TIF Eli�;ible Project Costs as
described in Exhibit "2'; from the Canton 2 - Rt. 9/Chestnut Street Special Tax
Allocation Fund, Twenty Thousand and 00/100 Dollars ($20,000.00) per year for
four (4) consecutive years with the first payment to be made within thirty(30) days of
the execution of this Amended Agreement. 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 eaclusively by the Ciry for the
purposes set forth in this Agreement.
2. The City further agrees to reimburse the Developer Fifty Percent (50%) of the"net"
incremental increase in real estate taxes generated by the Developer's Project for the
reimbursement of the Developer's remaining Eligible Project Costs. Said
reimbursements shall commence with real estate tax increment derived from the real
estate taxes assessed in the year 2017 and paid in year 2018 and,provided Section.r B(4)
�nd B(5)are satisfied,shall continue until Canton 2-Rt.9/Chestnut Street TIF District
ends in tax year 2035 payable 2036, or until all TIF eligible project costs (Exhibit"2")
are fully reimbursed,not to exceed a total of Two Hundred Forry-Three Thousand
Five Hundred and 00/100 Dollars ($243,500.00), whichever occurs first. These
funds are to be allocated to and when collected shall be paid to the Ciry Treasurer for
deposit in the Special Account.
3. "Net increment"is defined as increases in annual real estate tax increment derived from
the Developer's Project as previously described after deducting administrative fees and
costs and payments pursuant to Intergovernmental Agreements,if any.
4. If,after five(5)years from the execution of this Amended Agreement,the Property has
not generated enough municipal sales tax and real estate tax increment for the City to
recapture Sixty Thousand and 00/100 Dollars($60,000.00)of the amount it has paid to
the Developer under Section B(1)herein, the City shall not be required to reimburse the
Developer for amounts calculated to be paid under Sectiort B(2)herein until the Property
has generated total cumulative municipal sales tax and real estate tax increment in such
amount.
If the Property has not generated enough municipal sales tax and real estate tax
increment for the City to recapture $60,000.00 of the amount it has paid to the
Developer under Section B(1)herein upon expiration of the TIF District,the Developer
shall pay to the City, within five (5) days of the expiration of the TIF District, the
amount of any shortfall between $60,000.00 and the cumulative amount of municipal
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sales tax and real estate tax increment generated by the Properry.
5. If the Developer sells or otherwise conveys the Property (other than by lease) within
five (5) years of the date of execution of this Amended Agreement, and if, at the time
of such conveyance, there is a shortfall between the amount the City is to recapture
under Sectiort B(4)and the cumulative amount of municipal sales tax and real estate tax
increment generated by the Property, the Developer shall pay the amount of any such
shortfall to the Ciry within five (5) days of the conveyance of the Properry.
G. In order to verify municipal sales tax generated by the Property for the purpose of
making the necessary calculations in Section.r B(4)and B(S�above, the Developer agrees
to provide, or cause any Tenant of the Property to provide P'I"AX - 1002-21,
Authori�ation to Release Sale.r Ta,x Inforrreation to I.ocal Government.r(Exhibit"3) to the City
to obtain from the Illinois Department of Revenue annual verification of retail sales
generated on the property until such time as the City has recaptured the amount
referenced in Section B(4).
If the Developer and/or any Tenant of the Property fails to provide PTAX- 1002-21,
and the Ciry is otherwise unable to verify municipal sales tax generated by the Properry,
any such unverified amounts will not be used in any calculation to be made under this
Amended Agreement.
7. The total cumulative Eligible Project Costs reimbursed by the City to the Developer
under Section B(1)and(2)herein shall not, in any event,exceed $323,500.00.
C. PRIOR AGREEMENT TERMS APPLY
The terms of the original Redevelopment Agreement shall apply to this Amendment unless
specifically modified by this Agreement.
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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.
CI� DEVELOPER
CITY OF CANTON, an Illinois Municipal JERRY JARI�TAGIN,Individually, as as
Corporation: Trustee of the Chestnut Rentals Land
Trust:
BY:
Mayor it of �
By: --�
rry J rn n, In ividually, and as
ATTEST: � Trustee of the Chestnut Rentals Land Trust
�ry Clerk, City of
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EXHIBIT 1
ORIGINAL REDEVELOPMENT AGREEMENT
BY AND BETWEEN THE
CITY OF CANTON
AND
JERRY JARNAGIN, INDIVIDUALLY,AND AS TRUSTEE OF THE CHESTNUT
RENTALS I.AND TRUST
DATED APRIL 1,2014
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