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HomeMy WebLinkAbout05-21-2015 joint review board meeting minutes JOINT REVIEW BOARD MEETING AGENDA MAY 219 2105 I. Sign In Sheet II. Purpose of Meeting is to review concurrently the status of the Canton TIF Districts. A. Section 74.4-5. (e) "The joint review board shall meet annually 180 days after the close of the municipal fiscal year or as soon as the redevelopment project audit for that fiscal year becomes available to review the effectiveness and status of the redevelopment project area up to that date." B. Report made by Mayor(or JK/ EDG Representative). III. Canton TIF 1-Downtown: Fiscal Year 2014 A. Itemized list of income and expenses II. Projects listed were done in that Fiscal Year only III. Discuss Projects prior to beginning of May 1, 2013 IV. Discuss current Projects from May 1, 2013 to date IV. Canton TIF 2-11t. 9: Fiscal Year 2014 A. Itemized list of income and expenses B. Projects listed were done in that Fiscal Year only C. Discuss Projects prior to beginning of May 1, 2013 D. Discuss current Projects from May 1, 2013 to date V. Adjourn B) an analysis prepared by financial advisor or underwriter setting forth: (i) nature and term of obligation;and (ii) projected debt service including required reserves and debt coverage. (9) For special tax allocation funds that have experienced cumulative deposits of incremental tax revenues of$100,000 or more,a certified audit report reviewing compliance with this Act performed by an independent public accountant certified and licensed by the authority of the State of Illinois. The financial portion of the audit must be conducted in accordance with Standards for Audits of Governmental Organizations, Programs,Activities,and Functions adopted by the Comptroller General of the United States (1981), as amended, or the standards specified by Section 8-8-5 of the Illinois Municipal Auditing Law of the Illinois Municipal Code. The audit report shall contain a letter from the independent certified public accountant indicating compliance or noncompliance with the requirements of subsection (q) of Section 11-74.4-3. For redevelopment plans or projects that would result in the displacement of residents from 10 or more inhabited residential units or that contain 75 or more inhabited residential units,notice of the availability of the information,including how to obtain the report,required in this subsection shall also be sent by mail to all residents or organizations that operate in the municipality that register with the municipality for that information according to registration procedures adopted under Section 11-74.4-4.2. All municipalities are subject to this provision. (d-1) Prior to the effective date of this amendatory Act of the 91st General Assembly, municipalities with populations of over 1,000,000 shall,after adoption of a redevelopment plan or 1roject, make available upon request to any taxing district in which the redevelopment project area is located the following information: (1) Any amendments to the redevelopment plan, the redevelopment project area,or the State Sales Tax Boundary,,and (2) In connection with any redevelopment project area for which the municipality has outstanding obligations issued to provide for redevelopment project costs pursuant to Section 11-74.4-7, audited financial statements of the special tax allocation fund. je) The joint review board shall meet annually 180 days after the close of the municipal fiscal year or as soon as the redevelopment project audit for that fiscal year becomes available to review the effectiveness and status of the redevelopment project area up to that date. lank . (g) In the event that a municipality has held a public hearing under this Section prior to March 14 1994 the effective date of Public Act 88-537), the requirements imposed by Public Act 88-537 relating to the method of fixing the time and place for public hearing, the materials and information required to be made available for public inspection,and the information required to be sent after adoption of an ordinance or resolution fixing a time and place for public hearing shall not be applicable. (Source: P.A. 91-357, eff 7-29-99;91-478, eff. 11-1-99, 91-900, eff. 7-6-00; 92-263, eff. 8-7-01; 92-624, eff. 7-11-02.) (65 ILCS 5/11-74.4-6)NOTICE OF PUBLIC HEARING Sec. 11-74.4-6. (a) Except as provided herein,notice of the public hearing shall be given b3 publication and mailing. Notice by publication shall be given by publication at least CITY OF CANTON Canton 1- Downtown/5th Ave. Tax Increment Financing (TIF) District FY 2014 Summary 2 North Main Street,Canton,IL 61520 Ph:(309)647-0065 Harvester Inn Hotel,Canton TIF 1 Canton TIF District 1 — FY2014 Overview In 1983, International Harvester reported a $165 million loss and announced permanent closure of the Canton, Illinois plant. When the IH plant closed, more than 3,000 jobs were lost and the equivalent of 20 percent of Canton's population was suddenly out of work. In 2004,the Canton International Harvester Site Project Area Tax Increment Financing District Redevelopment Plan,Area and Projects was established to address the lack of new private investment and provide a mechanism for financing extensive environmental cleanup, site preparation and other eligible costs the City would need to incur in order to redevelop the former IH site,the City's central business district and the adjacent 511 Avenue Commercial Corridor. On November 22, 2011, the City approved the First Amendment to the Canton IH TIF District. This First Amendment renamed the TIF District as Canton 1 —Doivntonm 1511'Avenue TIF District ("Canton TIF 1") and added projects and additional TIT eligible project costs to the redevelopment plan. On February 6,2012, the City approved the Second Amendment to Canton TIF 1, thereby removing certain parcels from the redevelopment project area. The City has made significant commitments of time and money to address several of its goals and to encourage conservation and redevelopment of the Canton TIF 1 Redevelopment Project Area. In December of 2008, an emotional crowd of more than 1,000 residents listened to William "Bill" Cook, a native of Canton, announce plans to construct Cook Medical in 2010, a medical device manufacturing facility on a portion of the former International Harvester site that had received a "No Further Remediation" letter from the IEPA.The construction of this 45,000 square foot facility,which will employee more than 300,represents a significant milestone for the Canton community. A second Cook facility to manufacture polytetrafluoroethylene (PTFE) tubing was constructed in 2012. Cook Medical as well as Cook's efforts to develop the Harvester Inn Hotel and purchase and renovate several aging buildings in downtown Canton, including the 1883 Randolph Building, has brought much needed momentum to the City's economic development plan. These Projects have presented new,previously unforeseen opportunities to redevelop the embattled Canton IH TIF District redevelopment project area. Based largely on the availability of new real estate tax increment resulting from the Cook improvements, the City issued $7 million of Series 2011 Debt Certificates on December 1,2011 by pledging Canton TIF 1 funds for the annual debt service. The Debt Certificates were issued to refinance costs incurred for the cleanup and redevelopment of the IH site as well as additional public infrastructure improvements. Canton TIF District 1/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777 Canton TIF District 1 - Facts & Stats for FY2014: Established.....................................................................................................................................................................2004 Ends......................................................................................................................................Tax Year 2027 Payable 2028 BaseTax Year................................................................................................................................................................2003 TIFBase EAV....................................................................................................................................................$5,148,444 TaxYear 2012 Net Taxable EAV.................................................................................................................$12,524,285 TaxYear 2012 RE Tax Increment......................................................................................................................$778,721 Total Obligations in TIF Plan as amended,FY2014.................................................................................$68,139,348 Total Expenditures to Date (not including surplus distribution).............................................................$12,489,841 RemainingObligations....................................................................................................................................$55,649,507 Fiscal Year 2014 Activity For Fiscal Year 2014, (beginning May 1, 2013 and ending April 30, 2014), the Canton I Downtown/5th Avenue TIF District Special Fund (the"TIF Fund") had a beginning balance of$2,310,673. With deposits in the amount of $781,589, the total amount available in the TIF Fund during FY2014 was $3,092,262. Sources of funds included: Real Estate Tax Increment ($778,721) and Interest Income ($2,868) in Figure 1 below. The total public and private TIF eligible project costs expended from the TIF Fund during FY2014 amounted to $1,539,179 and included those categories of funds shown in Figure 2below. 1 V� The ending balance of the Canton TIF District I Special Fund as of April 30, 2014,was $1,553,083. These funds included $1,194,995 remaining in the SeJies 2019 Debt Certificates sub-account. The real estate tax increment generated by Canton TIF District I for FY2015 is estimated to be$934,325. a �9 Z 5 Figure 1. Canton 1-Downtown/5th Avenue TIF District Figure 2. Canton 1-Downtown/5th Avenue TIF District Revenues(FY2014) Expenditures(FY2014) Beginning Bal., $2,310,673, Facility Debt Interest, 75% Improvement, $380,119,25% Administrative $2,555,0% Professional, _,._.... 186,688,12% Parks and Trails, $1,850,0% Surplus Distribution, Streets, $34,732,2% $153,913,10% Business Marketing, Retention, $18,447,1% $277,537,18% R.E.Tax / Revitilization, Interest, Increment, Capital Costs,J $10,244,1% $3,141,0% $2,868,0% $778,721, Site Prep, 25% Developer $45,750,3% Agreement, Environmental, $96,549,6% $327,654,22% Canton TIF District 1/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777 CITY OF CANTON DOWNTOWN 5TH AVE TAX INCREMENT FINANCING DISTRICT I Established: 2004 Ends: Tax Yr.2027 Payable 2028 Base Tax Year: 2003 TIF Base EAV: $5,148,444 TABLE 1. FINANCIAL SUMMARY EXPENDITURES BY FISCAL YEAR ENDING APRIL 30TH CUMULATIVE RESULTS Original Anticipated& Amended Obligations Per Cumulative Remaining PROJECT TYPE TIF Redev.Plan FY 04-2010 FY 2011 FY 2012 FY 2013 FY 2014 Expenditures Obligations PUBLIC REDEVELOPMENT PROJECTS Street/Sidewalk/Parking Lots $15,174,285 $450,675 $576,393 $605,439 $70,013 $153,913 $1,856,433 $13,317,852 Sanitary Sewer/Lift Station/Treatment $1,292,428 $0 $8,997 $59,742 $0 $0 $68,739 $1,223,689 Strom Sewers/Ponds&Basins $967,886 $39,270 $0 $0 $0 $0 $39,270 $928,616 Landscape&Lighting $409,400 $0 $0 $0 $0 $0 $0 $409,400 Fencing $58,486 $19,044 $7,210 $0 $0 $0 $26,254 $32,232 Site Prep/Demolition $634,776 $257,042 $328,247 $665 $1,178 $45,750 $632,882 $1,894 2009 Debt Certificates $4,000,000 $0 $0 $4,000,000 $0 $0 $4,000,000 $0 a. General Fund $805,280 $248,942 $0 $0 $0 $1,054,222 $0 b. Environmental Costs $2,714,273 $477,154 $192,025 $0 $0 $0 $669,179 $990,872 Water Main/Hydrants/Storage/Treatment $3,687,353 $187,353 $163,695 $68,330 $0 $0 $419,378 $3,267,975 Utility Improvements $1,000,000 $0 $0 $0 $0 $0 $0 $1,000,000 Public Facilities Improvements $3,500,000 $0 $0 $0 $0 $2,555 $2,555 $3,497,445 Land Acquisition/Environmental Contaminants $4,000,000 $0 $0 $113,411 $27,750 $327,654 $468,815 $3,531,185 Marketing/Signage/Website/Lighting $500,000 $0 $0 $0 $77,448 $18,447 $95,895 $404,105 Parks/Trails/Green Space $500,000 $0 $0 $0 $0 $1,850 $1,850 $498,150 Downtown Revitalization $500,000 $0 $0 $110,031 $9,315 $10,244 $129,590 $370,410 Business Retention&Expansion $500,000 $0 $0 $0 $0 $277,537 $277,537 $222,463 Neighborhood Rehabilitation $500,000 $0 $0 $0 $0 $0 $0 $500,000 Engineering/ArchitecVLegal/Training $600,000 $0 $0 $275,217 $433,876 $93,115 $802,208 ($202,208) 2011 Debt Certificate $7,000,000 $0 $0 $0 $0 $100,000 $100,000 $6,683,945 a. Debt Issuance Costs $0 $0 $216,055 $0 $0 $216,055 $0 b. Interest $3,340,605 $0 $0 $120,000 $291,012 $280,119 $691,131 $2,649,474 x. PRIVATE REDEVELOPMENT PROJECTS Commercial Projects I-XIV $8,171,787 $0 $0 $0 $0 $0 $0 $8,171,787 a.J&K Newburn(American Grille) $133,300 $0 $0 $0 $17,431 $17,696 $35,127 $98,173 b.White Oak Tap,Inc. $57,243 $0 $1,766 $1,824 $1,938 $1,673 $7,201 $50,042 c. Black Crow Candle(Janssen&Franzoni) $21,000 $0 $0 $21,000 $0 $0 $21,000 $0 d.Ipava State Bank $150,000 $0 $0 $0 $6,461 $1,179 $7,640 $142,360 e.Michelle Behymer $700 $0 $0 $0 $700 $0 $700 $0 f.Ronald Eric Matthews $4,000 $0 $0 $0 $0 $4,000 $4,000 $0 g.Canton Harvester Inn,LLC $250,000 $0 $0 $0 $0 $66,708 $66,708 $183,292 h.Paige Edwards(D/B/A Square Crafters) $4,970 $0 $0 $0 $0 $4,970 $4,970 $0 i.Fuller's Jewelry,Inc. $22,000 $0 $0 $0 $0 $0 $0 $22,000 Light Industrial Projects I-IV $2,911,528 $0 $0 $0 $0 $0 $0 $2,911,528 a. Cook Canton Real Estate(PTEE Plant) $1,418,472 $0 $0 $0 $0 $323 $323 $1,418,149 Apartment/Townhouse I&II $1,000,000 $0 $0 $0 $0 $0 $0 $1,000,000 Assisted Living I&II $1,800,000 $0 $0 $0 $0 $0 $0 $1,800,000 TAXING DISTRICT'S CAPITAL COSTS Canton Union School District#66 $500,000 $0 $0 $0 $0 $3,141 $3,141 $496,859 a ADM I NISTRATI V E/P ROFESS IONAL Administrative $116,971 $6,338 $21,824 $1,337 $605 $93,073 $123,177 ($6,206) Professional/Debt Admin $580,914 $484,276 $144,085 $0 $0 $500 $628,861 ($47,947) Interest $116,971 $35,000 $0 $0 $0 $0 $35,000 $81,971 GRANDTOTAL $68,139,348 $2,761,432 1$1,693,184 1 $5,593,051 1 $937,727 $1,504,447 $12,489,841 $55,649,507 SURPLUS DISTRIBUTION $0 $0 $0 $0 $34,732 TABLE 2. CANTON TIF DISTRICT I SUMMARY STATISTICS FY 04-2010 FY2011 FY2012 FY2013 FY2014 Real Estate Tax Year: n/a 2009 2010 2011 2012 Taxes Payable in Calendar Year: n/a 2010 2011 2012 2013 Total Incremental EAV: $0 $2,212,000 $5,585,360 $6,580,702 $8,020,906 Total Real Estate Tax Increment- $266,545 $192,273 $507,135 $626,119 $778,721 $2,370,793 Canton TIF District 1/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777 Figure 3. Canton 1-Downtown/5th Avenue TIF District Total Revenue and Deposits by Fiscal Year $8,000,000 $7,500,000 $7,000,000 - $6,500,000 $6,000,000 $5,500,000 $5,000,000 $4,500,000 $4,000,000 w ,< $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 ®RETI ■Interest ■Misc. w Debt Certificates Private Redevelopment Agreements: 1. Petersen Health Resources, Inc. (2005) 2. Crawford's Fashion Floors, Inc. (2007) 3. White Oak Tap, Inc. (2008) 4. Cook Canton Incorporated (2009) 5. Jon& Kimberly Newburn / American Grille Restaurant (2010) 6. Harvester Inn,LLC (2012) 7. Cook Canton Real Estate, LLC / PTFE Plant (2011) S. Black Crow Candle Co. (2011) 9. Ronald Eric Matthews (2013) 10. Michelle Behymer/B-Designed Salon (2012) 11. Ipava State Bank (2012) 12. Fuller's Jewelry,Inc. (2013) 13. Paige Edwards (D/B/A Square Crafters) (2014) Canton TIF District 1/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777 NEW REDEVELOPMENT AGREEMENTS DURING FY2014 FULLER'S JEWELRY, INC. Date Agreement Approved by City: December 3, 2013 Project: The Developer will incur costs for contracted labor and materials necessary to replace an exterior load-bearing support wall for the building located at 46 N Main Street. Developer: David Fuller, Owner Fuller's Jewelry, Inc. 46 N. Main Street Canton, IL 61520 Description of Agreement: The Developer shall receive a loan in the amount of Twenty-Two Thousand Dollars ($22,000.00) from the TIF 1 Fund for contracted labor and materials related to the Project. (a) The interest rate for the loan shall be 3%; (b) the default rate for the loan shall be Prime Rate plus '/2%; (c) loan shall amortize over five (5)years and shall mature 5 years from the date of the loan closing; (d) Developer shall make monthly payments of principal and interest, beginning l mo. after loan closing; (e) City shall take as collateral a lien on a second or higher priority mortgage on the Property; (f) Loan proceeds shall be disbursed from time to time as Developer requests, upon submission and City's approval of paid invoices for services and materials for the Project, until the earlier of 6 months from date of loan closing or until $22,000 has been fully dispersed; and (g) the Developer shall complete the Project within 6 months from the date of the loan closing. Term of Agreement: The Agreement shall terminate upon expiration of the Developer's loan. Parcel: 09-08-27-412-012 Eligible Project Costs:Eligible Project Costs total not to exceed$22,000.00. Canton TIF District 1/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777 PAIGE EDWARDS (DB/A SQUARE CRAFTERS) & BILLY JOE EDWARDS Date Agreement Approved by City: January 7, 2014 Project: The Developer will incur costs for leasehold improvements and building renovations for building located at 44 White Court. Developer: Paige Edwards d/b/a Square Crafters 328 N. Avenue A Canton, IL 61520 Owner: Billy Joe Edwards 647 South 1St Canton,IL 61520 Description of Agreement: The Developer shall receive a grant in the amount of Four Thousand Nine Hundred Seventy Dollars ($4,970.00) from the TIF I Fund for contracted labor and materials related to the Project. If the Developer sells or otherwise conveys all or a portion of the title to the Property to any other individual or entity other than the current tenant within five (5)years following the execution of this Agreement, the Developer shall repay a single lump sum to the City equal to the proportionate amount of the grant funds provided. Said proportionate amount shall be calculate on a daily rate equivalent to 1/5 of the grant amount for each year remaining. Term of Agreement: Agreement terminates five (5)years from the date of execution. Parcel: 09-08-27-415-016 Eligible Project Costs:Eligible Project Costs total not to exceed$4,970.00. Canton TIF District 1/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777 INTERGOVERNMENTAL AGREEMENT: 1. Canton Union School District#66, executed on June 4, 2013 NOTES/COMMENTS: Canton TIF District 1/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777 Canton 1—Downtown/5"Avenue TIF District Redevelopment Project Area � 5 -_«r41IJ-f 0 da � V C � , W x _wrY� l a «y YSxV uM !J WM,Y4M � « � Z x S a 3 11 ; AuY4 J 3 a a Canton TIF District 1/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777 t J CITY OF CANTON la' Canton 2 — Rt. 9/Chestnut St. Tax Increment Financing (TIF) District FY 2014 Summary � 2 North Main Street,Canton,IL 61520 Ph:(309)647-0065 i t 3 s i Canton TIF District 2 — FY2014 Overview Established on February 6, 2012, the Canton 2 — Rt. 9/Chestnut Street TIF District ("Canton TIF District 2") was established for the purpose of undertaking public and private redevelopment on underutilized commercial, residential and light industrial properties. By alleviating blighting conditions and addressing the lack of inadequate infrastructure, the City hopes to attract new private investment that will that would not otherwise be reasonably expected to occur without the use of tax increment financing. Such redevelopment will help to increase the population base of the community,increase employment opportunities, expand and diversify the local tax base and increase the overall quality of life for Canton area residents. On March 19, 2013, the City approved the First Amendment to the Canton TIF District 2. This First Amendment reduced the size of the Canton TIF 2 redevelopment project area (the "Area") by removing two (2) parcels of land and further documenting corrections for scrivener errors in the original legal description of the Area. As stipulated in the TIF Redevelopment Plan, the City will declare twenty percent (20%) of the total gross real estate tax increment generated annually within the Canton 2- Rt9/Chestnut Street TIF District as surplus funds. For a portion of the Canton 2 - Rt. 9/Chestnut Street TIF District Redevelopment Project Area defined as a Special Surplus Area,the City shall declare as surplus funds one hundred percent (100%,) of gross real estate tax increment generated annually from the "natural growth" of the parcels located within the Special Surplus Area. "Natural growth" is defined as that portion of the annual real estate tax increment, if any, of real estate taxes which are attributable to the increase in the current equalized assessed valuation of each taxable lot, block or tract or parcel of real property within the Special Surplus Area over and above the initial equalized assessed value of each property in the Special Surplus Area. In the event any parcels within the Special Surplus Area are included in a Private Redevelopment Agreement at any time during the life of the TIF District,those parcels are temporarily exempt from this Special Surplus Area provision. Intergovernmental Agreements: 1. Canton Union CUSD #66 (2011) and Amended (2013) Private Redevelopment Agreements: 1. Ipava State Bank (2012) 2. Canton Crossing Corporation (2013) 3. East& EM Properties,LLC (2013) 4. Stinauer Family Dentistry, Inc. (2013) 5. Jerry Jarnagin, Chestnut Rentals (2014) Cc v- 'fly— Ci'0, ) Canton TIF District 2/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777 Canton TIF District 2 - Facts & Stats for FY2014: Established.....................................................................................................................................................................2012 Ends......................................................................................................................................Tax Year 2035 Payable 2036 BaseTax Year................................................................................................................................................................2010 TIFBase EAV..................................................................................................................................................$14,168,556 Tax Year 2012 Net Taxable EAV.................................................................................................................$14,334,852 Tax Year 2012 RE Tax Increment........................................................................................................................$85,214 Total Obligations in TIF Plan as amended,FY2013.................................................................................$80,359,500 Total Expenditures to Date (not including surplus distribution)...................................................................$953,368 RemainingObligations....................................................................................................................................$79,406,132 Fiscal Year 2014 Activity For Fiscal Year 2014, (beginning May 1, 2013 and ending April 30, 2014), the Canton 2 Rt. 9/Chestnut St. District Special Tax Allocation Fund (the "TIF Fund") had a beginning balance of a negative-$36,066. With deposits in the amount of$85,274, the total amount available in the TIF Fund during FY2014 was $49,208. Sources of funds included: Real Estate Tax Increment ($85,214) and Interest Income ($60), as depicted in Figure Z The total public and private TIF eligible project costs expended from the TIF Fund during FY2014 amounted to$888,885,as depicted in Figure 2 The ending balance of Canton TIF District 2 Special Tax Allocation Fund as of April 30,2014 was a negative -$839,677. The real estate tax increment generated by Canton TIF District 2 for FY2015 is estimated to be $127,335. Fig.1. Canton TIF District 2 Rt.9-Revenues(FY2014) Fig.2. Canton TIF District 2 Rt.9 Expenditures (FY2014) Admin& Interest, $60, Professional, 0% R.E.Tax $24,874,3% Street& Increment, Sidewalk, Beginning $85,214,70% $18,584,2% Balance, $(36,066),-30% Redevelopment Agreement, $804,581,91% Building Rehab, $4,539,0% Surplus Distribution, $36,307,4% Canton TIF District 2/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777 CITY OF CANTON RT. 9/CHESTNUT STREET TAX INCREMENT FINANCING DISTRICT II Established: 2012 Ends: Tax Yr.2035 Payable 2036 Base Tax Year: 2010 TIF Base EAV: $14,168,556 TABLE 1. FINANCIAL SUMMARY CUMULATIVE RESULTS Original Anticipated& Amended Obligations Per Cumulative Remaining PROJECT TYPE TIF Redev.Plan FY 2012 FY 2013 FY 2014 Expenditures Obligations PUBLIC REDEVELOPMENT PROJECTS Street/Sidewalk/Parking Lots $22,000,000 $0 $0 $18,584 $18,584 $21,981,416 Sanitary Sewer/Lift Station/Treatment $2,500,000 $0 $0 $0 $0 $2,500,000 Water Main/Treatment Plant $11,000,000 $0 $5,000 $0 $5,000 $10,995,000 Storm Sewer/Retention/Detention $1,000,000 $0 $0 $0 $0 $1,000,000 Utilities/Telecommunication $1,000,000 $0 $0 $0 $0 $1,000,000 Land Acquisition/Site Prep/Demolition $3,000,000 $0 $11,068 $0 $11,068 $2,988,932 Building Rehab/Construction $1,500,000 $0 $0 $4,539 $4,539 $1,495,461 Removal Environmental Contaminants $1,000,000 $0 $0 $0 $0 $1,000,000 Marketing/Signage/Website/Lighting $800,000 $0 $0 $0 $0 $800,000 Parks/Trails/Green Space $200,000 $0 $0 $0 $0 $200,000 Commercial Rehab/Revitalization $1,000,000 $0 $0 $0 $0 $1,000,000 Neighborhood Rehabilitation $500,000 $0 $0 $0 $0 $500,000 Professional $1,000,000 $44,437 $5,790 $15,033 $65,260 $934,740 Safety&Emergency Services $500,000 $0 $0 $0 $0 $500,000 Contiguous Districts Infrastructure $500,000 $0 $0 $0 $0 $500,000 PRIVATE REDEVELOPMENT PROJECTS Commercial Projects I-V $4,714,385 $0 $0 $0 $0 $4,714,385 a. Canton Crop Services, Inc. $156,115 $0 $0 $0 $0 $156,115 b.Stinauer Family Dentistry, Inc. $175,000 $0 $0 $0 $0 $175,000 c. East&EM Properties, LLC $4,500 $0 $0 $4,500 $4,500 $0 Commercial General Merchandise I-IV $1,775,000 $0 $0 $0 $0 $1,775,000 a. Canton Crossing Corporation $1,175,000 $0 $0 $800,000 $800,000 $375,000 Convenience Store/Restaurant 1-III $350,000 $0 $0 $0 $0 $350,000 Commercial/Retail Strip $276,500 $0 $0 $0 $0 $276,500 a.Jerry Jarnagin, Chestnut Rentals $323,500 $0 $0 $0 $0 $323,500 Commercial Motel/Hotel $2,500,000 $0 $0 $0 $0 $2,500,000 Commercial Rehab/Renovation $5,000,000 $0 $0 $0 $0 $5,000,000 Light Industrial Project I-IV $2,060,000 $0 $0 $0 $0 $2,060,000 Townhouse/Apartment Complex I& II $2,000,000 $0 $0 $0 $0 $2,000,000 Residential Single Family Housing $1,750,000 $0 $0 $0 $0 $1,750,000 Residential Duplex $800,000 $0 $0 $0 $0 $800,000 Senior Development Project $1,500,000 $0 $0 $0 $0 $1,500,000 Assisted/Supportive Living Facility $750,000 $0 $0 $0 $0 $750,000 Residential Rehab/Renovation $2,400,000 $0 $0 $0 $0 $2,399,919 a. Annexation Agreement $0 $0 $81 $81 "511, 74777'311W TAXING DISTRICT'S CAPITAL COSTS Canton Union School District#66 $5,000,000 $0 $0 $0 $0 $5,000,000 ADM I NISTRATIV E/PROFESSIONAL Administrative $149,500 $0 $34,495 $9,841 $44,336 $105,164 GRAND TOTAL $80,359,500 $44,437 $56,353 $852,578 $953,368 $79,406,132 SURPLUS DISTRIBUTION $0 $O $36,307 TABLE 2. CANTON TIF DISTRICT II SUMMARY STATISTICS FY2012 FY2013 FY2014 Real Estate Tax Year: 2010 2011 2012 Taxes Pa able in Calendar Year: 2011 2012 2013 Total Incremental EAV: n/a n/a $904,327 Total Real Estate Tax Increment: n/a n/a $85,214 $85,214 Canton TIF District 2/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777 NEW REDEVELOPMENT AGREEMENTS DURING FY2014 PREFERRED-EAGAN I, LLC AND CANTON CROSSING CORP. Date Agreement Approved:May 21,2013 Project: Renovate the existing buildings located at 1741-73 E. Chestnut St. and make additional site improvements for the operation of a retail shopping center to be known as Canton Crossing Shopping Center. Developer: Preferred-Eagan I,LLC&Canton Crossing Corporation Attn: Evan Cliff,President 2480 N. Lakeview Ave. Chicago,IL 60614 Ph: (312) 953-1802 evanLa)preferreddevelopment.com Description of Agreement: Promissory Note: City will provide a lump-sum, forgivable loan to the Develoer in the amount of$800,000 from the TIF Fund. 1/8 of the loan shall be forgiven each year commencing 12/31/14,provided that the Developer has been in full compliance with the Agreement. Loan converted to a grant,unless prior to tax year 2020 payable 2021: ❑ Fails to purchase property ❑ Do not verify EPCs in amount of at least$800,000 ❑ Sells or transfers property ❑ Commercial operations cease for 180 days ❑ EAV is reduced to less than$600,000,then Developer repays City for then outstanding balance of the loan Annual Reimbursement:Beginning the first tax year which real estate tax increment is generated,the City shall annually segregate 30%of the real estate tax increment derived from the Developer's project,to be deposited into the"Canton Crossing.Shopping Center Special Account', for reimbursement of additional eligible project costs up to an additional$375,000. If the EAV is reduced to less than $600,000,the City is not obligated to make the annual reimbursement. If EAV is reduced to less than$600,000 for 4 consecutive years,then the Agreement shall terminate. Beginning with tax year 2014 payable 2015,each year prior to March 31 the Developer will provide a sworn affidavit from each commercial retail tenant which will cumulatively verify a minimum of 25 full-time or FTE employees were employed at the facilities on Developer's property during the previous 12 months. This Agreement is not transferable or assignable prior to 12/31/21. Term of Agreement: Until the TIF District ends in tax year 2027 payable 2028 or upon payment of all eligible project costs,whichever occurs first. Parcel: 09-08-25-301-017 Eligible Project Costs: Total eligible project costs not to exceed$1,175,000. Amount verified as of August 5,2014: $1,102,439.50 canton TIF District 2/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777 EAST & EM PROPERTIES, LLC Date Agreement Approved by City: November 19, 2013 Project: The Developer will paint the exterior building located at the corner of 409-411 N. Main Street& 5 East Ash Street and incur costs for contracted labor and materials. Developer: East& EM Properties, LLC c/o Nicholas Orwig, Member/Manager 875 East Linn Street Canton, IL 61520 Description of Agreement: The Developer shall receive a grant in the amount of Four Thousand Five Hundred ($4,500.00) from the TIF 2 Fund for contracted labor and materials related to the Project. If the Developer sells or otherwise conveys all or a portion of the title to the Property to any other individual or entity other than the current tenant within five (5)years following the execution of this Agreement, the Developer shall repay a single lump sum to the City equal to the proportionate amount of the grant funds provided. Said proportionate amount shall be calculate on a daily rate equivalent to 115 of the grant amount for each year remaining. Term of Agreement: Agreement terminates five (5)years from the date of execution. Parcel: 09-08-27-218-015 Eligible Project Costs: Eligible Project Costs total not to exceed $4,500.00. Canton TIF District 2/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777 STINAUER FAMILY DENTISTRY,INC. Date Agreement Approved by City: December 3, 2013 Project: The Developer will purchase property and prepare the site to construct a new professional dental clinic on property located at the southwest corner of Locust Street and North 5th Avenue. Developer: Stinauer Family Dentistry, Inc. c/o Dr. Robert F. Stinauer, DMD, President 312 W. Main St. Havana, IL 62644 Description of Agreement: The Developer shall receive 50% of the"net'real estate tax generated by the project until the earlier of(a)tax year 2035 payable 2036; or(b) Developer has been reimbursed $175,000 of total eligible project costs. "Net'increment is defined as real estate tax increment derived from the Project after payment of administrative fees and costs and payments pursuant to Intergovernmental Agreements. The City will establish a separate account within the TIF 2 Fund designated as the "Stinauer Family Dentistry, Inc. Special Account". Term of Agreement: The Agreement shall expire upon full reimbursement of all eligible project costs; bankruptcy of the Developer; or the expiration of the Canton 2 - Rt. 9/Chestnut St. TIF District in tax year 2035 payable 2036,whichever occurs first. Parcel: 09-08-26-307-006; 007 and 008 Eligible Project Costs: Eligible Project Costs total not to exceed$175,000. Canton TIF District 2/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777 JERRY JARNAGIN, INDIVIDUALLY& AS TRUSTEE FOR CHESTNUT RENTALS LAND TRUST Agreement Date: April 1, 2014 First Amendment: August 19,2014 Project: Renovate existing buildings located at 1605-1611 East Chestnut Street and make additional site improvements for operation of a multi-unit retail shopping center. Developer: Jerry Jarnagin, 3100 N. Main, Canton, IL 61520, Ph: (309) 224-1060 JJaaginA bdws.commai Ito:Barkerk42366(&yahoo corn Agreement: City originally agreed to loan the Developer$60,000 from Canton 2 TIF Fund for eligible project costs, to be paid to Developer within 90 days of execution of the Agreement. (Loan was not paid to Developer.) Amendment: Within 30 days of execution of the Amended Agreement, City shall forgive the balance due under the Promissory Note and return it to the Developer marked "cancelled". The City agrees to reimburse the Developer$20,000 per year for 4 consecutive years ($80,000 total) with the first payment due within 30 days of execution of the Amended Agreement. The City further agrees to reimburse the Developer 50% of the "net" incremental increases in real estate taxes generated by the Project for reimbursement of additional eligible project costs, commencing with tax year 2017 payable 2018. "Net" increment is defined as real estate tax increment derived from Developer's project after payment of a proportionate amount of administrative fees and costs and payments pursuant to any Intergovernmental Agreements for this TIF District. If, after 5 years from the execution of the Amended Agreement, the Property has not generated sufficient municipal sales tax and real estate tax increment ("increment") for the City to recapture $60,000 ("recapture") of the amount paid to the Developer in the first 4 years, the City shall not be required to reimburse Developer 50% of the net real estate tax increment until the Property has generated sufficient increment for the recapture. If the Property has not generated sufficient increment upon expiration of the TIF District, within 5 days the Developer shall pay to the City, the amount of any shortfall of the recapture. Term: Until eligible project costs are reimbursed, upon bankruptcy of Developer, upon Developer selling or otherwise conveying Property, or expiration of the TIF District(tax year 2035 payable 2036), whichever occurs first. Parcel: 09-08-25-301-006 Eligible Costs: Total reimbursements for eligible project costs not to exceed$323,500. Canton TIF District 2/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777 Canton 2—Rt. 9/Chestnut St. TIF District Redevelopment Project Area and Speical Surplus Area, as Amended MHB1T 6-SPECW.SURPLUS AREA era 1 s� -*"Woo C"2•11.10""Saes _ T maid `� ,fib T E __--wA�►a- A � � t ;� �a—= EJICYpoott6amt6eCmroc2 � � 13 `�""rp ��-��—' �t,A'CtieaentSn�csl1FDiwin (i -AMRMp hot MIWep Am 4 "Sit 11A k h►� t IAM t �: I Olt rw►u w*wk"*W11 M[#;�O-dz 1-0,_- 1 � 8 I ^ J — : -W eat = 1 Ma G � -• M Ifr4� t � 4 I ti �- l,S �- i rI I a.u _2• _ � I ', �•arww4—• Canton 2-Rc 9lCbe90 Sweet Tff WIM • I N _ aNraa Canton TIF District 2/FY2014 Summary prepared by Jacob&Klein,Ltd.and The Economic Development Group,Ltd.(309)664-7777 CITY OF CANTON CANTON 2 - RT. 9/CHESTNUT ST. TIF DISTRICT CANTON CROP SERVICE, INC. July 17, 2012 Updated: 4/25/2013 Project: Prepare the site and construct a retail agricultural service facility on 8.2 acres located on Enterprise Drive, requiring a total projected investment in excess of$400,000. Developer: Canton Crop Service, Inc. C/O Ken Barker, Owner/Operator 14750 E. Kenny Lane Lewistown, IL 61542 Ph: (�09) 231-6206 Barkcrk423660"yalioo.com Description of Agreement: Developer is to receive a percentage of the"Net"real estate tax - increment derived from the Developer's project and deposited into the"Canton Crop Service Special Account" as follows: 89% in tax years 2013 and 2014; 50% in tax years 2015 to 2018; and 75% in tax years 2019 through remaining life of the TIF District. "Net"increment is defined as real estate tax increment derived from Developer's project after payment of administrative fees and costs and payments pursuant to Intergovernmental Agreements. Term of Agreement: For the life of the TIF District or upon payment of all eligible project costs, whichever occurs first. Parcels: 09-08-29-401-012 (Lot 18) & 09-08-29-401-013 (Lot 19) Eligible Project Costs: Total eligible project costs not to exceed $156,115. N:V C.4ATTON4C4,VTON 1 RT9-Clieshrut S"greements!RD.4 Suniniaries iCanton Crop Sewtce.xpd CANTON TI F 2 - RT. 9/CHESTNUT ST. CANTON CROP SERVICE, INC. 2013 Payable 2014 Developer Reimbursement Calculation 9/25/2014 Taxable TIF Base 2013 Tax Real Estate Tax Parcel Number Value Value Rate Increment 09-08-29-401-012 $2,590 $0 9.7486% $252.49 09-08-29-401-013 $28,600 $0 9.7486% $2,788.10 Totals $31,190 $0 $3,040.59 Surplus(20%): $608.12 Administrative Fee: $236.84 Net Real Estate Tax Increment: $2,195.63 Developer Share of Net(89%): $1,954.11 (Tax Years 2013&2014) Total Verified Eligible Project Costs: $113,897.53 Total Developer Reimbursements to date: $1,954.11 Remaining Balance of Verified Eligible Project Costs: $111,943.42 C.JAH SrevelEDGICanton Crop Service Reimbs.xlsx The Economic Development Group,Ltd. CANTON TI F 2 - RT. 9/CHESTNUT ST. CANTON CROP SERVICE, INC. 2014 Payable 2015 Estimated Developer Reimbursement Calculation 5/5/2015 ESTIMATE FOR REVIEW PURPOSES ONLY Taxable TIF Base 2014 Tax Real Estate Tax Parcel Number Value Value Rate Increment 09-08-29-401-012 $2,590 $0 9.8207% $254.36 09-08-29-401013 $81,8501 $0 $8,038.24 Totais $84,440 $0 9.8207% $8,292.60 Surplus(20%): $1,658.52 Administrative Fee: $400.44 Net Real Estate Tax Increment: $6,233.64 Developer Share of Net(89%): $5,547.94 (Tax Years 2013&2014) Total Verified Eligible Project Costs: $113,897.53 Total Developer Reimbursements to date: $7,502.05 Remaining Balance of Verified Eligible Project Costs: $106,395.48 C.'W SteveJEDG►Canton Crop Service Reimbs.xlsx The Economic Development Group,Ltd. CANTON TIF 2 - RT. 9/CHESTNUT ST. 2014 PAYABLE 2015 ESTIMATED REVENUES & EXPENDITURES 5/5/2015 2014 Estimated TIF Increase in EAV $1,900,805 2014 Total Tax Rate 9.8207% Estimated TIF 2 2014 Real Estate Tax Increment $186,672 Estimated Developer Reimbursements: Canton Crop Service, Inc. $5,548 Canton Crossing Corp. (2013-2014) $13,575 Jerry Jarnagin $20,000 Stinauer Family Dentistry, Inc. (2013-2014) $15 Estimated Surplus-Special Surplus Area $32,139 Estimated Surplus-Balance of TIF District $30,907 Estimated TIF Administrative Fees&Costs $9,014 Total Estimated TIF 2 Expenditures $111,197 Estimated TIF 2 Net Real Estate Tax Increment $75,475 H:CANTON�CANTON 2 RT9-Chestnutstjspreadsheetsl Net RETIJCanton 2 Estimated Net RE Tax Increment CANTON TIF 1 - DOWNTOWN/5TH AVENUE 2014 PAYABLE 2015 ESTIMATED REVENUES & EXPENDITURES 5/5/2015 2014 Estimated TIF Increase in EAV $9,564,060 2014 Total Tax Rate 9.8207% Estimated TIF 12014 Real Estate Tax Increment $939,258 Estimated Developer Reimbursements: Canton Harvester Inn LLC $68,966 Cook Canton Real Estate LLC(PTFE)-2013/2014 $29,860 Cook Canton Real Estate LLC(PTFE)-2014/2015 $57,559 Crawford's Fashion Floors, Inc. (2011-2014) $3,427 Fuller's Jewelry, Inc. (On Hold) $22,000 Ipava State Bank $1,222 Jon & Kimberley Newburn $18,457 Lucas Subway, Inc. &Scott W. Lucas III $4,189 White Oak Tap, Inc. $1,743 Estimated Hotel Surplus $36,010 Estimated Hotel Additional School Share $3,619 Estimated TIF Administrative Fees&Costs $12,988 2011 Debt Certificate Payments $522,919 Total Estimated TIF 1 Expenditures $782,958 Estimated TIF 1 Net Real Estate Tax Increment $156,300 H: CANTONI CANTON 1-DT 5TH AVENUE TIFVpreodsheets�Net RETI�Conton 1 Estimated Net RE Tax Increment