Ordinance 2008-029 STATE OF ILLINOIS )
) ss.
COUNTY OF KENDALL )
Ordinance No. 2008 -
AN ORDINANCE AUTHORIZING THE ACQUISITION OF
202 E. COUNTRYSIDE PARKWAY, UNITED CITY OF YORKVILLE,
KENDALL COUNTY, ILLINOIS
WHEREAS, the United City of Yorkville, Kendall county, Illinois, is committed to
increasing the recreational facilities and park areas available to its residents thereby improving
the quality of life within the community; and,
WHEREAS, the owners and operators of Club 47 Health and Fitness Center located at
202 E. Countryside Parkway in Yorkville ( "Club 47 ") have decided to sell this facility and its
business operation; and,
WHEREAS, the Park and Recreation Board of the City have recommended to the Mayor
and City Council that the City acquire Club 47 in order to assure its continued operation as a
health and fitness center serving the Yorkville community; and,
WHEREAS, after extensive investigation and discussion, the Mayor and City Council
have determined that it is in the best interest that Club 47 continue to operation at its present
location and that its operation should be expanded to provide additional recreational services for
the citizens of Yorkville and the surrounding community; and,
WHEREAS, the Mayor and City Council have determined that leasing the facility and
acquiring an option to purchase the facility and the business operation during the lease term is in
the best interest of its residents in order to ascertain whether such facility should become a
permanent part of the City's Park and Recreation Department; and,
WHEREAS, after extensive negotiations with the owners and operators of Club 47, it
has been determined that it is in the best interests of the City to enter into a lease agreement with
an option to purchase pursuant to the terms and conditions hereinafter set forth.
NOW, THEREFORE, BE IT ORDAINED by the Mayor and City Council of the
United City of Yorkville, Kendall County, Illinois, as follows:
Section 1: That the City Attorney be directed to prepare a lease with an option to
purchase the business and the facility located at 202 E. Countryside Parkway pursuant to the
terms and conditions as set forth on Exhibit A attached hereto and made a part hereof.
Section 2. That the Mayor and City Clerk are hereby authorized to execute said lease and
option to purchase incorporating the terms and conditions as itemized on Exhibit A.
Section 3: This Ordinance shall be in full force and effect immediately from and after its
passage and approval according to law.
Passed by the City Council of the United City of Yorkville, Kendall County, Illinois, this
tea.. day of , A.D. 2008.
ROBYN SUTCLIFF JOSEPH BESCO lf�
ARDEN JOE PLOCHER WALLY WERDERICH L
GARY GOLINSKI MARTY MUNNS X
ROSE SPEARS
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APPROVED by me, as Mayor of the United City of Yorkville, Kendall County, Illinois,
this d<q day of -A PQ I I , A.D. 2008.
F
Mayor
Attest:
C Jerk
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EXHIBIT A
LEASE/ PURCHASE OPTION OF CLUB 47 FACILITY
AGREEMENT POINTS
1. Building and property purchase price: $4,000,000.
2. City pays $100,000 capital improvement payment at signing of lease to be put toward mutually
agreeable improvements as agreed to by Parks Director and Lessor.
3. Purchase price increases $100,000 per year through term of lease.
4. City purchases fixed assets for $250,000 at time of building purchase from Club 47.
5. Lease would be $17,500 per month and includes Club 47 and rental unit D for years 1 and 2 of the
lease.
6. Lease would increase $500 per month in years 3 to 5. It would increase $500 per month in years 6
to 10.
7. Proposed Lease Commencement is June 1, 2008.
8. City is responsible for real estate taxes, sanitation pick up, snowplowing, and outdoor maintenance
for entire site, including units A, B, and C.
9. City carries insurance on its operation of the building. The private businesses in the rental units
carry insurance on their operations. Walker Custom Homes, Inc. carries insurance on whatever it
deems appropriate for its assets.
10 Term is 10 years. Should City seek to purchase or build another recreation center, the purchase of
Club 47 will receive precedent over the other building.
11. If not purchased by the City during the term of lease, city must pay $100,000 termination fee to
owner.
12. Owner may not publically market the building, but may accept unsolicited purchase offers. City
has first right of refusal. Another purchaser must assume the lease.
13. Walkers retain the ability to pledge the property or the lease payments with the City as collateral
for financial obligations during the lifetime of the lease. They agree to a clause that in no event
shall they pledge the asset for more than the balance due under the terms of the lease or ultimate
purchase from the City.
14. Any additional capital improvements paid for by the Owner would increase the sale price of the
building, ie. roof replacement, HVAC replacement, or major repair.
15. Any alterations or improvements to the property must be approved in writing by both parties.
16. City would grant Walkers use privileges for their immediately family, Ron's parents, and his
brothers during the life of the Agreement.
MAINTENANCE OBLIGATIONS,
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City of Yorkville
• Maintenance on all exercise equipment
• Maintenance of all light fixtures
• HVAC systems, filters, belts, etc.
• Pool pumps, filters, belts, etc.
• Hot water heaters, softeners, etc.
• Floor surfaces
• Electronic equipment, computers, phone systems, tvs, appliances, stereos, etc.
Walker Custom Homes, Inc.
• Roof leaks
• Underground filtration lines to the pool. Main water and sewer lines
• Any structural repair