Ordinance 2013-01 III
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UNITED CITY OF YORKVILLE
KENDALL COUNTY, ILLINOIS
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ORDINANCE NO , 2013-01
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AN ORDINANCE DESIGNATING THE UNITED CITY OF YORKVILLE, KENDALL
COUNTY, ILLINOIS , DOWNTOWN YORKVILLE BUSINESS DEVELOPMENT DISTRICT
AND IMPOSING A RETAILERS ' SERVICE AND OCCUPATION TAX THEREIN
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Passed by the City Council of the
United City of Yorkville, Kendall County, Illinois
This 8"' day of January, 2013
Published in pamphlet form by the
authority of the Mayor and City Council
of the United City of Yorkville, Kendall
County, Illinois on March 26 , 2013 .
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Ordinance No. 2013- 01
AN ORDINANCE DESIGNATING THE UNITED CITY OF YORKVILLE, KENDALL
COUNTY, ILLINOIS, DOWNTOWN YORKVILLE BUSINESS DEVELOPMENT DISTRICT
AND IMPOSING A RETAILERS ' SERVICE AND OCCUPATION TAX THEREIN
BE IT ORDAINED by the Mayor and City Council of the United City of Yorkville,
Kendall County, Illinois, as follows :
Section 1 . Authority. The United City of Yorkville, Kendall County, Illinois (the
" City") is authorized, pursuant to the provisions of the Business District Development and
Redevelopment Law, 65 ILCS 5/ 11 -74 . 3 - 1 , et seq. (the "Act"), to designate business districts to
promote development or redevelopment in the City and to impose a retailers ' occupation tax, a j
service occupation tax, and a hotel operators ' occupation tax therein and to issue bonds to
provide for the payment of business district project costs .
Section 2. Findings .
(a) The designation of the area hereinafter described as the Downtown Yorkville
Business Development District (the "Business District") was considered at a public hearing held
on November 13 , 2012 (the "Public Hearing") . The Public Hearing was held pursuant to notices
duly published twice in a newspaper of general circulation within the City not more than thirty
(30) nor less than ten ( 10) days prior to the Public Hearing. Said notices conform in all respects
to the requirements of the Act.
(b) At the Public Hearing, all interested persons were given an opportunity to be heard j
on the question of the designation of the Business District, the approval of a business district
development and redevelopment plan for the Business District, the imposition of a retailers '
occupation tax and a service occupation tax in the Business District for the planning and for the
payment of business district project costs as set forth in such plan, and the issuance of
obligations by the City to provide for the payment of business district project costs secured by
the business district tax allocation fund established hereinafter pursuant to the Act.
(c) After considering the data as presented to the Mayor and City Council of the City
(the " Corporate Authorities") and at the Public Hearing, the Corporate Authorities find that it is
in the best interests of the City and of the residents and property owners within the Business
District that the Business District be designated.
(d) The Business District is contiguous and includes only parcels of real property directly
and substantially benefited by the proposed business district development plan as required by the
Act.
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(e) The Business District conforms to the comprehensive plan of the City which was
adopted in 2008 .
The Business District is a blighted area that b reason of defective non-existent
(f) The � Y
or inadequate street layout, deterioration of site improvements and improper or obsolete platting,
Ordinance No. 2013 - 01
Page 2
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thereby hindering the growth and development in the area, all as set forth in the business district
plan prepared by Kathleen Field Orr & Associates of Chicago, Illinois . Due to such conditions,
the Business District constitutes an economic liability upon the City and its residents .
(f) The blighting factors as stated above are widely present throughout the Business
District and therefore the Business District on the whole has not been subject to growth and
development through investment by private enterprise and would not reasonably be anticipated
to be developed or redeveloped without the adoption of the business district plan .
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(g) It is in the best interests of the City that the Business District be designated in order
to provide for the financing of the Business District project costs as set forth in the Business
District Plan hereinafter described; that a retailers ' occupation tax and a service occupation tax
be imposed in the Business District for the planning, execution, and implementation of the
Business District Plan and for the payment of Business District Project costs as set forth in the
Business District Plan ; and, that obligations , if approved by the City, be issued to provide for the
payment of Business District project costs secured by the Downtown Yorkville Business
Development District Tax Allocation Fund established pursuant to the Act and hereinafter
described.
Section 3. Designation of the United City of Yorlh)ille, Downtown Yorkville Business
Development District. The "United City of Yorkville, Illinois, Downtown Yorkville Business
Development District" is hereby designated for a period of twenty three (23 ) years from the date
of adoption of this ordinance and shall consist of the contiguous territory legally described in the
attached Exhibit A and outlined on a map in the attached Exhibit B, which exhibits are by this
reference incorporated herein and made a part hereof.
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Section 4. Approval of the United City of Yorkville, Kendall County, Illinois,
Downtown Yorkville Business Development District Plan . A plan for the development and
redevelopment of the Business District (the "Business District Plan"), attached hereto as Exhibit
C, and by this reference incorporated herein and made a part hereof, was presented to the j
Corporate Authorities and considered at the Public Hearing. The Business District Plan is found
to conform to the requirements of the Act and to promote the public interest. The Business
District Plan is hereby approved.
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Section S. Imposition of Retailers ' Occupation Tax, Creation of Downtown Yorkwille
Business Development District Tax Allocation Fund. Pursuant to the Act, a tax is hereby imposed
upon all persons engaged in the business of selling tangible personal property, other than an item
of tangible personal property titled or registered with an agency of this State ' s government, at
retail within the boundaries of the Business District at the rate of one percent ( I %) of the gross
receipts from such sales made in the course of such business while this ordinance is in effect.
Such tax shall not be applicable to the sales of food for human consumption that is to be
consumed off the premises where it is sold (other than alcoholic beverages, soft drinks, and food
that has been prepared for immediate consumption) , prescription and nonprescription medicines,
drugs, medical appliances, modifications to a motor vehicle for the purpose of rendering it usable
by a disabled person, and insulin, urine testing materials, syringes, and needles used by diabetics
for human use. All businesses in the Business District affected by this tax are listed on Exhibit
Ordinance No . 2013- 0 L
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D, attached hereto and incorporated herein. The proceeds of this tax shall be used for the
planning, execution and implementation of the Business District Plan, the payment of Business
District project costs as set forth in the Business District Plan and the payment of obligations of
the City issued to provide for the payment of Business District project costs . The proceeds of
such tax shall be deposited into a special fund of the City which is hereby created and designated
the "Downtown Yorkville Business Development District Tax Allocation Fund. " The tax
imposed under this Section and all civil penalties that may be assessed as an incident thereto
shall be collected and enforced by the Illinois Department of Revenue. The Department of
Revenue shall have full power to administer and enforce the provisions of this Section.
Section 6. Imposition of Service Occupation Tax. Pursuant to the Act, a tax is hereby
imposed upon all persons engaged within the boundaries of the Business District in the business
of making sales of service, at the rate of one percent ( 1 %) of the selling price of all tangible
personal property transferred by such serviceman as an incident to a sale of service. Such tax
may not be imposed on food for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for
immediate consumption) , prescription and nonprescription medicines, drugs, medical appliances,
modifications to a motor vehicle for the purpose of rendering it usable by a disabled person, and
insulin, urine testing materials, syringes, and needles used by diabetics for human use. All
businesses in the Business District affected by this tax are listed on Exhibit D . The proceeds of
this tax shall be used for the planning, execution and implementation of the Business District
Plan, the payment of Business District project costs as set forth in the Business District Plan and
the payment of obligations of the City issued to provide for the payment of Business District
project costs . The proceeds of such tax shall be deposited into the "Downtown Yorkville
Business Development District Tax Allocation Fund. " The tax imposed under this Section and
all civil penalties that may be assessed as an incident thereto shall be collected and enforced by
the Illinois Department of Revenue. The Department of Revenue shall have full power to
administer and enforce the provisions of this Section .
Section 7. Filing. A certified copy of this Ordinance, together with a description of
the boundaries of the Business District, shall be filed with the Department of Revenue
immediately following its passage and shall be considered filed on or before April 1 , 2013 , in
accordance with Section 1 of this Ordinance.
Section 8. Supercede Conflicting Ordinance . All ordinances or parts of ordinances
in conflict with the provisions of this Ordinance are repealed to the extent of such conflict.
Section 9. Effective Date. This Ordinance shall be in full force and effect from and
after its passage and approval in the manner provided by law and the Illinois Department of
Revenue and City shall proceed to administer and enforce Sections 5 and 6 of this Ordinance on
the first day of January next following the adoption and filing of this Ordinance with the Illinois
Department of Revenue.
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Ordinance No . 2013- O 1
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United City of Yorkville, Kendall County, Illinois, this day of
loo 7 A . D . 2011
CHRIS FUNKHOUSER LARRY KOT
CARLO COLOSIMO ( DIANE TEELING
JACKIE MILSCHEWSKI I MARTY MUNNS
ROSE ANN SPEARS ( KEN KOCH
APPROVED by me, as Mayor of the United City of Yorkville, Kendall County, Illinois,
this Iq day of JAd ud , A . D . 2013 .
Ali/ 1�1012
Mayor
Attest:
/f�e�
City Clerk
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Ordinance No . 2013 -_QL
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EXHIBIT A
Legal Description
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(see attached)
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LEGAL DESCRIPTION
Lots 1 , 25 3 , 45 5 , 6, 75 83 93 10, 11 and 12 in Block 1 of Blacks Addition to the Village of
Yorkville, being a subdivision of part of section 32, Township 37 North, Range 7 East of the
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Third Principal Meridian according to the plat recorded June 29, 1863 in Book 4, Page 8 , Kendall
County, Illinois. j
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EXHIBIT B
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Map of the Business District
(see attached)
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NaT� a ,•� � -�j z _
W Van Emmon-St
United City of Yorkville GIS The Data is provided without warranty or any representation of N
Y accuracy,timeliness,or completeness.It is the responsibility of the
Parcel Data and Aerial Photography "Requester"to determine accuracy,timeliness,completeness,and w c
Provided By Kendall County GIS appropriateness of its use.The United City of Yorkville makes no s
warranties,expressed or implied,to the use of the Data.
EXHIBIT C
Business District Development and Redevelopment Plan
(see attached)
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UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS
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DOWNTOWN BUSINESS DISTRICT DEVELOPMENT PLAN
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Prepared by:
Kathleen Field Orr
Kathleen Field Orr & Associates
53 West Jackson Blvd. , Suite 935
Chicago, Illinois 60604
312 .382.2113
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UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS
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DOWNTOWN BUSINESS DISTRICT DEVELOPMENT PLAN
I. INTRODUCTION
The Business District Development and Redevelopment Act, as from time to time
amended (65 ILCS 5/ 11 -74 . 3 - 1 et seq . ) (the "BDD Act"), provides the means for
municipalities to revitalize and redevelop commercial areas and has been most
successfully used in aging central downtown districts which lack the structures, parking
and improvements mandated by modern retailing and business operations . The
objectives of the BDD Act are to attract sound and stable commercial growth; to reduce
or eliminate blighting conditions in order to attract private investment; and, to assure j
opportunities for development and redevelopment thereby enhancing the tax base of the
municipality and all affected taxing districts .
The purpose of this document, entitled " United City of Yorkville , Kendall County,
Illinois , Downtown Business District Development Plan" , is to provide a redevelopment
Plan (the "Business District Plan ") , for those properties included in the Yorkville
Downtown Business District (the "Downtown Business District") legally described on
Exhibit A , attached hereto and as depicted on the map attached hereto as Exhibit B. The
Downtown Business District includes approximately 1 . 16715 acres and is characterized
by structures at least fifty (50) years and older.
The City has been advised that the Downtown Business District qualifies as a business
district pursuant to the BDD Act, pursuant to an Eligibility Report attached hereto as a
business district pursuant to the BDD Act and to an Eligibility Report attached hereto as
Exhibit C, which report analyzes the blighting factors now found within the proposed
Downtown Business District, The City believes that the Downtown Business District
would benefit from the designation as a "business district" as such designation empowers
the Mayor and City Council of the United City of Yorkville (the " Corporate
Authorities") :
( 1 ) To make and enter into all contracts necessary or incidental to the implementation
and furtherance of a business district plan. A contract by and between the
municipality and any developer or other nongovernmental person to pay or reimburse
said developer or other nongovernmental person for business district project costs
incurred or to be incurred by said developer or other nongovernmental person shall
not be deemed an economic incentive agreement under Section 8 - 11 -20,
notwithstanding the fact that such contract provides for the sharing, rebate, or
payment of retailers ' occupation taxes or service occupation taxes (including, without
limitation, service occupation taxes (including, without limitation, taxes imposed
pursuant to subsection ( 10)) the municipality receives from the development or
redevelopment of properties in the business district. Contracts entered into pursuant
to this subsection shall be binding upon successor corporate authorities of the
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municipality and any party to such contract may seek to enforce and compel
performance of the contract by civil action, mandamus, injunction, or other
proceeding.
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(2) Within a business district, to acquire by purchase, donation of land and other real
or personal property or rights or interests therein; and to grant or acquire licenses,
easements, and options with respect thereto, all in the manner and at such price
authorized by law. No conveyance, lease, mortgage, disposition of land agreement
relating to the development of property, shall be made or executed except pursuant to
prior official action of the municipality. No conveyance, lease, mortgage, or other
disposition of land owned by the municipality, and no agreement relating to the
development of property, within a business district shall be made without making
public disclosure of the terms and disposition of all bids and proposals submitted to
the municipality in connection therewith.
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(3 ) To clear any area within a business district by demolition or removal of any
existing buildings, structures, fixtures, utilities, or improvements, and to clear and
grade land .
(4) To install, repair, construct, reconstruct, or relocate public streets, public utilities,
and other public site improvements within or without a business district which are
essential to the preparation of a business district for use in accordance with a business
district plan.
(5) To renovate, rehabilitate, reconstruct, relocate, repair, or remodel any existing
buildings, structures, works, utilities, or fixtures within a business district.
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(6) To construct public improvements, including but not limited to buildings,
structures , works, utilities, or fixtures within any business district, j
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(7) To fix, charge, and collect fees, rents, and charges for the use of any building,
facility, or property or any portion thereof owned or leased by the municipality within
a business district.
(8) To pay or cause to be paid business district project costs . Any payments to be
made by the municipality to developers or other nongovernmental persons for
business district project costs incurred by such developer or other nongovernmental
person shall be made only pursuant to the prior official action of the municipality j
evidencing an intent to pay or cause to be paid such business district project costs . A
municipality shall adopt such accounting procedures as shall be necessary to
determine that such business district project costs are properly paid,
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(9) To apply for and accept grants, guarantees, donations of property or labor or any
other thing of value for use in connection with a business district project.
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( 10) If the municipality has by ordinance found and determined that the business
district is a blighted area under this Law, to impose a retailers ' occupation tax and a
service occupation tax in the business district for the planning, execution, and
implementation of business district plans and to pay for business district project costs
as set forth in the business district plan approved by the municipality.
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( 11 ) If the municipality has by ordinance found and determined that the business
district is a blighted area under this Law, to impose a hotel operators ' occupation tax
in the business district for the planning, execution, and implementation of business
district plans and to pay for the business district project costs as set forth in the
business district plan approved by the municipality.
In order to impose a tax pursuant to item ( 11 ) or item ( 12) cited above, the Corporate
Authorities shall undertake the following :
1 . Hold a public hearing prior to designation of the business district and approval of
the business district development plan.
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2 . Affirms that the area proposed to be designated as a business district is contiguous
and includes such parcels of real property as shall be directly and substantially
benefitted by the proposed development.
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3 . Shall find that the proposed is a blighted area and has not been subject to growth
and development through private investment and without a business district
development plan is not reasonably anticipated to be developed.
Upon the finding that the proposed Business District is "blighted," as hereinafter defined,
the Retailers ' Occupation Tax may be imposed in quarter percent (.25 %) increments at a
total rate not to exceed one percent ( 1 %) of the gross receipts from such sales made in the
Downtown Business District in the course of selling tangible personal property, other
than an item of tangible personal property titled and registered with an agency of the
state ' s government. The Retailers ' Occupation Tax may not be imposed for more than 23
years and may not be imposed on "food for human consumption that is to be consumed
off the premises where it is sold (other than alcoholic beverages, soft drinks, and food j
that has been prepared for immediate consumption) , prescription and non-prescription
medicines, drugs, medical appliances, modifications to a motor vehicle for the purpose of
rendering it usable by a disabled person, and insulin, urine testing materials, syringes, and
needles used by diabetics for human use. A Service Occupation Tax may be imposed in
a quarter percent ( . 25 %) increments at a total rate not to exceed one percent ( 1 %) of the
selling price of tangible personal property so within the Business District incident to
making sales of service . The Retailer ' s Occupation Tax and Service Occupation Tax
shall hereafter collectively be referred to as " Sales Taxes . " Sales Taxes, if imposed, shall
be collected by the Illinois Department of Revenue and then disbursed to the City.
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The BDD Act defines a "blighted area" as :
"Blighted area" means an area that is a blighted area which, by reason of
the predominance of defective, non-existent, or inadequate street layout,
unsanitary or unsafe conditions, deterioration of site improvements,
improper subdivision or obsolete platting, or the existence of conditions
which endanger life or property by fire or other causes, or any
combination of those factors, retards the provision of housing
accommodations or constitutes an economic or social liability, an
economic underutilization of the area, or a menace to the public health,
safety, morals, or welfare. "
Given the Eligibility Report which concludes that the Downtown Business District is a
blighted commercial area as defined by the BDD, the City desires to proceed with all
other actions required under the BDD Act to impose such taxes as permitted thereby in
order to implement this Business District Plan.
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II. THE UNITED CITY OF YORKVILLE
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The United City of Yorkville is located 50 miles southwest of Chicago in the Fox River
Valley of Kendall County. The City is generally bounded on the north by the Villages of
Montgomery and Sugar Grove; the Village of Oswego on the East, the City of Plano on
the west and the City of Morris on the south. The town of Yorkville was originally
settled in 1832 south of the Fox River as an agricultural business center with a downtown
district along the Fox River on Bridge Street. From the beginning, the City was a
growing area which was soon reinforced by the designation of Yorkville as the County
Seat in 1859 . Yorkville was incorporated as a village in 1874 . Simultaneously, on the
north bank of the Fox River, the town of Bristol was also growing and incorporated in
1861 until it combined with Yorkville in 1957, hence the name the "United City of
Yorkville" .
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Yorkville has grown from a population of 6, 189, as of the census of 2000, to its current
population of 16, 921 per the 2010 census. During this decade, the City has annexed
hundreds of acres for development as residential subdivisions while also developing new
commercial corridors and an industrial park. Its attraction to tourists as a recreational
destination has recently grown due to the opening of the Marge Cline Whitewater Course
at the Glen D . Palmer Dam located at the City' s Bicentennial Riverfront Park.
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III . DOWNTOWN BUSINESS DISTRICT BOUNDARIES
The proposed Downtown Business District encompasses some of the oldest properties
and oldest structures of Yorkville in the City ' s historic downtown area which is a mixed
use area with a wide range of commercial and retail uses, restaurants, residences , public
and civic uses , and several industrial uses . The Downtown Business District constitutes a
portion of the historic downtown bounded on the east by Bridge Street, on the south by
Van Emmon Street, on the west by Main Street and on the north by Hydraulic Street.
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Until 1970, the historic downtown area was the City ' s only business district when the
City annexed 1 . 16715 acres at US Route 34 and substantial retail development has
occurred with major "big box" users coming to the City. As a result of this new
development and general market changes, the historic downtown area has not benefitted
from new private investment. With the improvements to Bicentennial Riverfront Park, a
new interest in the historic downtown area has been sparked. In 2006, the City of
Yorkville designated the Downtown Yorkville Tax Increment Financing Redevelopment
Project Area ("Downtown TIF Distric(") pursuant to the Tax Increment Allocation
Redevelopment Act (65 ILCS 5/ 11 -74 .4- 1 et seq .) (the " TIF Act") which includes
approximately 200 acres inclusive of streets and rights-of-way. The benefits of the TIF
Act remain to be realized but it is evidence of the City ' s commitment to recognize the
changing requirements for development and redevelopment and to pursue all avenues to j
achieve opportunities for growth and redevelopment. The Downtown Business District is
the City ' s effort to focus on the commercial development of a portion of the Downtown
TIF District and to apply the benefits of the BDD Act to a specific commercial strip to
increase the interest in this area and excitement to attract private investment in the entire
district. A list of the parcels included in the Downtown Business District is attached
hereto as Exhibit D.
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IV. DOWNTOWN BUSINESS DISTRICT GOALS
General goals for the Yorkville Downtown Business District include, but are not limited
to , the following :
$ To create an environment that will contribute more positively to the
health, safety and general welfare of the City;
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$ To improve infrastructure that will provide safe and efficient access to the
parcels and detention/retention to address stormwater needs;
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$ To encourage new investment and development that will increase the
value of properties within and adjacent to the Downtown Business
District, improving the real estate and sales tax base;
$ To increase construction, part-time, and full-time employment
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opportunities for residents and non-residents of the City;
$ To maintain and enhance the viability of the City ' s historic downtown as a
commercial center;
$ To eliminate the factors that qualified the Downtown Business District as
a blighted area; and,
$ To provide a strong, positive visual image of the Downtown Business
District through attractive and high-quality building design and site
improvements, and landscaping.
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$ To develop a land use pattern which promotes the highest degrees of
health, safety and the well-being of the community.
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V. DOWNTOWN BUSINESS DISTRICT PROJECTS
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The City proposes to achieve its development and redevelopment goals for the
Downtown Business District through the use of public financing techniques and the
imposition of Sales Taxes as authorized under the BDD Act to undertake the activities,
improvements and projects described below . The City also maintains the flexibility to
undertake additional activities, improvements and projects authorized under the BDD Act
and other applicable laws, if the need for activities, improvements and projects changes
as redevelopment occurs in the Downtown Business District, including :
• Construct buildings and facilities;
• Revitalize and upgrade buildings through site planning, fagade improvements, and
construction methods that provide cohesive urban design features, provide focus
to the streetscape and buildings in the Downtown Business District, and quality
building materials;
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• Improve streetscape design, pedestrian access, distinctive lighting, signage and
landscaping, and other appropriate site amenities;
• Redesign site to improve access, which may require the demolition and
replacement of buildings;
• Provide and upgrade infrastructure to serve the development, including the
construction of and improvements to utility and stormwater management
infrastructure;
• Create convenient parking areas as mandated by users no longer within walking
distances ;
• Study of utility services to the Downtown Business District and the
reconfiguration of such utility services to sufficiently serve the developments;
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• Construction of streetscape enhancements including new light poles; accent
paving in crosswalks; street tree and ornamental vegetation plantings; and
community banners and attractive features to attract pedestrian usage and provide
increased safety for both pedestrians and motorists;
• Site clearance and site preparation, such as subdividing or combing parcels for
commercial use, to attract development; and,
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• Make access improvements to provide safe, convenient, efficient and effective
access to the business in the Downtown Business District for automobiles, trucks
and delivery vehicles , public transportation, bicycles, and pedestrians.
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VI. BUSINESS DISTRICT DEVELOPMENT PROJECT COSTS
A. The BDD Act states :
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"Business district project costs" shall mean and include the sum total of all costs
incurred by a municipality, other governmental entity, or nongovernmental person in
connection with a business district, in the furtherance of a business district plan,
including, without limitation, the following:
( 1 ) Costs of studies, surveys, development of plans and specifications,
implementation and administration of a business district plan, and personnel and
professional service costs including architectural, engineering, legal, marketing,
financial, planning, or other professional services, provided that no charges for
professional services may be based on a percentage of tax revenues received by
the municipality;
(2) Property assembly costs, including but not limited to, acquisition of land and
other real or personal property or rights or interests therein, and specifically
including payments to developers or other nongovernmental persons as
reimbursement for property assembly costs incurred by that developer or other
nongovernmental person;
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(3 ) Site preparation costs, including but not limited to clearance, demolition or
removal of any existing buildings, structures, fixtures, utilities, and improvements
and clearing and grading of land;
(4) Costs of installation, repair, construction, reconstruction, extension, or relocation
of public streets, public utilities, and other public site improvements within or
without the business district which are essential to the preparation of the business
district for use in accordance with the business district plan, and for use in
accordance with the business district plan, and specifically including payments to
developers or other nongovernmental persons as reimbursement for site
preparation costs incurred by the developer or nongovernmental person;
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(5) Costs of renovation, rehabilitation, reconstruction, relocation, repair, or
remodeling of any existing buildings, improvements, and fixtures within the
business district, and specifically including payments to developers or other
nongovernmental persons as reimbursement for costs incurred by those
developers or nongovernmental persons;
(6) Costs of installation or construction within the business district of buildings,
structures, works, streets, improvements, equipment, utilities, or fixtures, and
specifically including payments to developers or other nongovernmental persons
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as reimbursements for such costs incurred by such developer or nongovernmental
person;
(7) Financing costs, including but not limited to all necessary and incidental expenses
related to the issuance of obligations, payment of any interest on any obligations
issued under this Law that accrues during the estimated period of construction of
_ any development or redevelopment project for which those obligations are issued
and for not exceeding 36 months thereafter, and any reasonable reserves related to
the issuance of those obligations; and
(8) Relocation costs to the extent that a municipality determines that relocation costs
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shall be paid or is required to make payment of relocation costs by federal or State
law.
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B . Estimated Project Costs
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( 1 ) Costs of studies, development plans engineering and professional services
$ 500,000 . 00
(2) Land assembly
$ 350005000 . 00
(3 ) Site preparation, including land clearance
$ 25000,000 . 00 j
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(4) Repair and remodeling of existing buildings
$ 3 , 0005000 . 00
(5) Improvements to public utilities
$ 15000,000 . 00
(6) Streetscape improvements
$ 150005000 . 00
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(7) Construction of improvements
$ 350005000 . 00
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(8) Interest costs $ 11000, 000 . 00
$ 14, 500, 000 . 00
The City reserves the right to exceed budgeted costs in particular estimated development
project costs categories so long as the total estimated cost is not exceeded over the 23
year life of the Downtown Business District, unless otherwise amended.
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VII. SOURCES OF FUNDS TO PAY DEVELOPMENT PROJECT COSTS
Upon designation of the Downtown Business District by City ordinance, the City intends
to impose the retailers = occupation within the Downtown Business District, at a rate not
to exceed one percent ( 1 %) of the gross receipts from sales made in the course of any
business within the Downtown Business District. Such tax shall not be applicable to the
sales of food for human consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, soft drinks, and food that has been prepared for
immediate consumption), prescription and nonprescription medicines, drugs, medical
appliances, modifications to a motor vehicle for the purpose of rendering it usable by a
disabled person, and insulin, urine testing materials, syringes, and needles used by
diabetics for human use .
The City also intends to impose a service occupation tax upon all persons engaged within
the boundaries of the Downtown Business District in the business of making sales of
service at a rate not to exceed one percent ( 1 %) of the selling price of all tangible
personal property transferred by such serviceman as an incident to a sale of service. Such
tax may not be imposed on food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft drinks, and food that has
been prepared for immediate consumption) , prescription and nonprescription medicines,
drugs, medical appliances, modifications to a motor vehicle for the purpose of rendering
it usable by a disabled person, and insulin, urine testing materials, syringes, and needles
used by diabetics for human use .
The retailers ' occupation tax and the service occupation tax shall be collectively referred
to as the " Taxes . "
The proceeds of these Taxes shall be used during the term of the designation of the
Downtown Business District (not to exceed 23 years from the date of adoption of this j
Business District Plan) for the planning, execution and implementation of the Business
District Plan, the payment of business district project costs as set forth in the Business
District Plan and permitted by the BDD and the payment of obligations of the City issued
to provide for the payment of business district project costs .
A City ordinance shall also be adopted by the Mayor and City Council to create a
separate fund entitled the "Downtown Business District Tax Allocation Fund" in order to
receive the revenues generated by the Taxes . Pursuant to the Business District Act, all
funds received from the Taxes must be deposited into this special fund .
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Funds necessary to pay for business district project costs and to secure municipal
obligations issued for such costs are to be derived primarily from the Taxes . Other
sources of funds which may be used to pay for business district project costs or to secure
municipal obligations are state and federal grants, investment income, private financing
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and other legally permissible funds the City may deem appropriate . All such funds shall
be deposited in the Downtown Business District Tax Allocation Fund.
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VIII. ISSUANCE OF OBLIGATIONS
The City may issue obligations pursuant to the BDD Act and other authorities in order to
pay for business district project costs . The obligations may be secured by the Downtown
Business District Sales Taxes, and other sources that the City may deem appropriate .
Additionally, the City may provide other legally permissible credit enhancements to any
obligations issued pursuant to the BDD Act.
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All obligations issued by the City pursuant to this Business District Plan and the BDD
Act shall be retired within twenty-three (23 ) years from the date of adoption of the
ordinance approving this Business District Plan. One or more series of obligations may
be issued from time to time in order to implement this Business District Plan.
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Obligations may be issued on either a taxable or tax-exempt basis, as general obligation
bonds, general obligation debt certificates, alternate bonds or revenue bonds, or other
debt instruments, with either fixed rate or floating interest rates; with or without
capitalized interest; with or without deferred principal retirement; with or without interest
rate limits except as limited by law; with or without redemption provisions, and on such
other terms, all as the City may determine and deem appropriate.
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IX. ESTABLISHMENT AND TERM OF THE DOWNTOWN BUSINESS DISTRICT
The establishment of the Downtown Business District shall become effective upon
adoption of an ordinance by the Mayor and City Council adopting the Downtown
Business District Plan and designating the Downtown Business District. Development
agreements between the City and any developers or other private parties shall be
consistent with the provisions of the BDD Act and this Business District Plan.
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Pursuant to the BDD Act, the Downtown Business District Sales Taxes described in
Section VI may not be imposed for more than twenty-three (23 ) years pursuant to the
provisions of the BDD Act. The Downtown Business District shall expire upon the
termination of the imposition of the Downtown Business District Sales Taxes and the
final payout of the same from the Downtown Business District Tax Allocation Fund,
which shall be no later than 23 years from the date of adoption of the ordinance
approving this Business District Plan.
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X. FORMAL FINDINGS
Based upon the information described in the attached Exhibit C, the Mayor and City
Council of the United City of Yorkville finds and determines the following :
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(a) the Downtown Business District is a contiguous area and includes only parcels of
real property directly and substantially benefitted by the proposed business district
development or redevelopment plan;
(b) the Downtown Business District Plan is consistent with the United City of
Yorlville= s Comprehensive Plan for the development of the City as a whole;
(c) the Downtown Business District is a blighted area as defined in the BDD Act by
reason of the predominance of defective or inadequate street layout;
(d) the Downtown Business District constitutes an economic liability to the City in its
present condition and use; and,
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(e) the Downtown Business District on the whole has not been subject to growth and
development by private enterprises or would not reasonably be anticipated to be
developed or redeveloped without the adoption of the business district
development or redevelopment plan.
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XI. PROVISIONS FOR AMENDING THE BUSINESS DISTRICT PLAN
The Mayor and City Council of the United City of Yorkville may amend this Business
District Plan from time to time by adopting an ordinance providing for such amendment.
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Exhibit A
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Legal Description
Lots 1 , 2, 3 , 4, 5 , 6, 7, 8 , 9, 10, 11 and 12 in Block 1 of Blacks Addition to the Village of
Yorkville, being a subdivision of part of section 32, Township 37 North, Range 7 East of
the Third Principal Meridian according to the plat recorded June 29, 1863 in Book 4,
Page 8 , Kendall County, Illinois.
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Exhibit B
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United City The Data is provided without warranty or any representation of N
y of Yorkville GIS accuracy,timeliness,or completeness.It is the responsibility of the �Ps�
Parcel Data and Aerial Photography "Requester"to determine accuracy,timeliness,completeness,and «' �y v
Provided By Kendall County GIS appropriateness of its use.The United City of Yorkville makes no s
warranties,expressed or implied,to the use of the Data.
II'
EXHIBIT C
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DOWNTOWN YORKVILLE BUSINESS DEVELOPMENT DISTRICT
ELIGIBILITY REPORT
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BUSINESS DEVELOPMENT DISTRICT
DOWNTOWN YORKVILLE US S
ELIGIBILITY REPORT
The proposed Downtown Yorkville Business Development District includes thirteen ( 13 )
parcels as identified on Exhibit D of the proposed Downtown Business District
Development Plan. The area includes approximately 1 . 13 acres and is bounded on the
north by West Hydraulic Avenue, on the east on Bridge Street (Illinois Route 47) , on the
south by West Van Emmon Street and on the west by the alley approximately 190 feet
west of Bridge Street (the "Proposed Business District") . The legal description of the
Proposed Business District is attached as Exhibit A to the proposed Downtown Business
District Development Plan.
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In order for the United City of Yorkville to designate the Proposed Business District as a
"business district" under the Business District Development and Redevelopment Law (65
ILCS 5/ 11 -74 . 3 - 1 et seq. ) (the "BDD Act") and to implement a sales tax or a hotel tax to
fund improvements to the Proposed Business District, the City is required to make a
formal finding that the Proposed Business District is a "blighted area" which is defined
by the BDD Act as :
"Blighted area" means an area that is a blighted area which, by reason of
the predominance of defective, non-existent, or inadequate street layout,
unsanitary or unsafe conditions, deterioration of site improvements,
improper subdivision or obsolete platting, or the existence of conditions
which endanger life or property by fire or other causes, or any
combination of those factors, retards the provision of housing
accommodations or constitutes an economic or social liability, an
economic under-utilization of the area, or a menace to the public health,
safety, morals , or welfare . "
The BDD Act also requires the municipality to determine that the Proposed Business
District has not been subject to growth and development through private investment and
would not reasonably be anticipated to experience investment and redevelopment without
the adoption of the proposed Downtown Business District Development Plan .
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I. ANALYSIS OF THE PROPOSED BUSINESS DISTRICT
The Proposed Business District encompasses some of the oldest properties and oldest
structures in the United City of Yorkville dating back to the early 1900 ' s and is
surrounded by a wide-range of mixed uses, including commercial and retail uses,
industrial uses, residential uses, as well as civic uses . Despite the fact that the downtown
runs along the Fox River and has significant structures such as a historic court house and
other historic buildings, interest in this area waned with the annexations of properties
along Route 34 by the City and the development of "big box" users creating new and
modern retail centers . In addition, population growth of the City within the past decade
caused numerous vacancies in the downtown due to the fact that the local post office and
the local downtown bank required larger facilities and left the historic downtown are to
locations on major thoroughfares which have ample parking. Decline in the downtown
area was progressive and severe.
As part of its economic development program , the City engaged planning experts to
develop a comprehensive plan for the redevelopment of the entire downtown area and in
2006 adopted Tax Increment Allocation Redevelopment Act (65 ILCS 5/ 11 -74 . 3 - 1 et
seq . ) (the " TIF Act"), in effort to spur interest in the area and induce private investment.
As a result of its efforts, the City entered into a Development Agreement for a mixed use
development to house retail uses on the street level and condominiums for residential use
on two-floor above street level . As in most historic districts, parking is a key component
of redevelopment due to the limited area available. Problems arose when the developer
attempted to construct underground parking and, due to the significant costs and
unforeseen structural difficulties, the project failed to proceed . It was several years
thereafter before the City was able to generate any interest or any potential developer.
Curiously, as hope waned, a local businessman realized the downtown area presents an
opportunity for creating an attractive "main street" incorporating some of the historic
buildings into new commercial endeavors and began to acquire properties . Despite
significant investment, the issues of the area have stalled continuing development and
shall continue to limit the redevelopment of the area unless addressed ,
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II . EXISTENCE OF BLIGHTING FACTORS
A. Obsolete Platting
The most significant blighting factor to be found in the Proposed Business District is
obsolete platting. Exhibit A, attached hereto depicts 8 parcels which are 22 to 26 feet in
width . Exhibit B is a depiction of the buildings located on these parcels which appear to
have been built without regard to lot lines . Redevelopment can only occur if ownership
is combined into a single entity and the parcels are combined or the structures are
demolished to permit replatting. Given the historical buildings which give the area its
greatest potential for the creation of a new commercial district combining old with new,
demolition of the structure is not recommended .
B . Deterioration of Site Inprovenients
The structures within the Proposed Business District are used for commercial purposes,
however, these properties do not provide adequate parking. Moreover, the minimal
parking that is currently available is either completely unpaved or the pavement is
significantly deteriorated. In addition, the areas around the buildings , as well as the
alleyway, demonstrate serious deterioration.
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C . Defective or Inadequate Street Layout
The Proposed Business District is bordered on the west by an alley way of twenty (20)
feet in width. Two of the structures depicted on Exhibit A as 1 and 209 abut the alley
thereby limiting circulation of parking areas serving the operating businesses . Vision is
seriously hampered for vehicles exiting into the alley whether going north or south. The
structure identified as number 1 on Exhibit B houses a well and pump station owned and
operated by the City. The cost to remove this structure is prohibitive so that providing
for alternate parking to serve the area is essential in order to further development of the
area,
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III . DETERMINATION OF ELIGIBILITY UNDER THE BDD ACT
The proposed Downtown Business District meets the requirements of the BDD Act for
designation as a blighted area. Several of the blight factors listed in the BDD Act are
present and the presence of these blight conditions has hindered growth and development
in the area. The blight conditions in the area have been present for an extended period of
time and the market alone has not been able to support new development to mitigate
these conditions . The City has tried for several years to encourage economic investment
in this large and important part of the community and has achieved very limited success ;
however, future private reinvestment would not be reasonably expected to continue by
private enterprise alone.
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The conclusion of this Eligibility Study is that the Proposed Business District qualifies as
a blighted commercial area under the requirements of the state statutes and the area is in
need of revitalization and guided growth to ensure that it will contribute to the long-term
physical, economic and social well-being of the City.
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IV . FORMAL FINDINGS
A. The proposed Downtown Yorkville Business Development District is a
contiguous area and includes only parcels of real property which will be
directly benefitted by the proposed Downtown Business District Development j
Plan. j
B . The Business District Plan is consistent with the City ' s comprehensive plan.
C . The proposed Downtown Yorkville Business Development District is a
blighted area as defined in the BDD Act due to :
1 . Obsolete platting;
2 . Deterioration of site improvement;
3 . Defective or inadequate street layout.
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D . The proposed Downtown Yorkville Business Development District is an
economic liability in its present condition due to the economic
underutilization of the area.
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E . The proposed Downtown Yorkville Business Development District has
experienced minimal development by private enterprise but continued
development is not reasonably anticipated without the adoption of the BDD
Act, approval of the proposed Downtown Business District Plan and
assistance of the City with the extraordinary costs of the necessary
improvements to induce private investment.
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Identified ` °�� 21
Structures 211 O
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The Data is provided without warranty or any representation of
E X h 1 b 1 t A accuracy,timeliness,or completeness. It is the responsibility of the
"Requester"to determine accuracy,timeliness,completeness,and
appropriateness of its use. The United City of Yorkville makes no
warranties,expressed or implied,to the use of the Data.
-Parcel data provided by Kendall County GIS
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City Well and ` }l
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The Data is provided without warranty or any representation of
E X h 1 b 1 t B accuracy,timeliness,or completeness. It is the responsibility of the
"Requester"to determine accuracy,timeliness,completeness,and
appropriateness of its use. The United City of Yorkville makes no
warranties,expressed or implied,to the use of the Data.
-Parcel data provided by Kendall County GIS
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Exhibit D
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PIN# Address Property Owner
02-32-283 -003 201 S . Bridge Street Imperial Investments, LLC
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02-32 -283-003 203S . Bridge Street Imperial Investments, LLC
02-32-283-004 205S. Bridge Street Imperial Investments, LLC
02-32-283-005 209S . Bridge Street Imperial Investments, LLC
02 -32-283 -006 211S . Bridge Street Imperial Investments, LLC
02-32 -283-007 213S , Bridge Street Imperial Investments, LLC
02-32-283-010 215S , Bridge Street Imperial Investments, LLC
02 -32-283 -011 217S . Bridge Street Imperial Investments, LLC
02-32-283 -012 219 S . Bridge Street Imperial Investments, LLC
02-32 -283-013 101 W . Van Emmon Road Imperial Investments, LLC
02-32-283-014 101 W . Van Emmon Road Imperial Investments, LLC
02 -32-283 -008 --- United City of Yorkville
( Pump House #3 )
02-32 -283-009 --- United City of Yorkville
( Parking Area )
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EXHIBIT D
Businesses within the Business District
(see attached)
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PIN# Address Property Owner
02 -32 -283-003 201 S . Bridge Street Imperial Investments, LLC
02-32-283 -003 203S , Bridge Street Imperial Investments, LLC j
02-32-283 -004 205S . Bridge Street Imperial Investments, LLC
02-32 -283 -005 209S . Bridge Street Imperial Investments, LLC
02 -32-283-006 211S . Bridge Street Imperial Investments, LLC
02 -32-283 -007 213S . Bridge Street Imperial Investments, LLC
02-32-283 -010 215S . Bridge Street Imperial Investments, LLC
02-32-283 -011 217S . Bridge Street Imperial Investments, LLC
02-32 -283 -012 219S . Bridge Street Imperial Investments, LLC
02 -32 -283 -013 101 W . Van Emmon Road Imperial Investments, LLC
02-32-283-014 101 W . Van Emmon Road Imperial Investments, LLC
02-32-283 -008 --- United City of Yorkville
( Pump House #3 )
02 -32 -283 -009 --- United City of Yorkville j
( Parking Area )
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