Ordinance 2013-02 i
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UNITED CITY OF YORKVILLE
KENDALL COUNTY, ILLINOIS
ORDINANCE NO , 2013-02
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AN ORDINANCE APPROVING A FIRST AMENDMENT TO THE
REDEVELOPMENT AGREEMENT FOR THE
DOWNTOWN YORKVILLE REDEVELOPMENT PROJECT AREA
(Imperial Ini)estments, LLC)
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Passed by the City Council of the
United City of Yorkville, Kendall County, Illinois
This 8 "' day of January, 2013
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Published in pamphlet form by the
authority of the Mayor and City Council
of the United City of Yorkville, Kendall
County, Illinois on April 26, 2013 .
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Ordinance No . 2013- Ooh
AN ORDINANCE APPROVING A FIRST AMENDMENT TO THE
REDEVELOPMENT AGREEMENT FOR THE
DOWNTOWN YORKVILLE REDEVELOPMENT PROJECT AREA
(Imperial Investments, LLCM j
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WHEREAS , by Ordinance No . 2006-46 adopted by the Mayor and City Council of the
United City of Yorkville (the " Corporate Authorities") on June 13 , 2006, the Downtown
Yorkville Tax Increment Financing Redevelopment Project and Plan (hereinafter the
"Redevelopment Plan") was approved, which project and plan covered some of the oldest
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properties of the City which constitute a significant portion of the City ' s historic Downtown;
and,
WHEREAS , by Ordinance No . 2006-47 and No . 2006-48 adopted by the Corporate
Authorities on June 13 , 2006 , the City designated approximately 200 acres containing 114
buildings as a "redevelopment project area" (" Yorkville Downtown Redevelopment Project
Area") and adopted tax increment financing pursuant to the Tax Increment Allocation
Redevelopment Act (65 ILLS 5/ 11 -74 . 4- 1 et seq . ) (hereinafter referred to as the "Act") ; and,
WHEREAS , pursuant to the TIF Act, on April 23 , 2012 , Ordinance No . 2012-06 , the
Corporate Authorities entered into a Redevelopment Agreement for the Downtown Yorkville
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Project Area (the " Original Agreement") with Imperial Investments , LLC (the "Developer"), in
order to induce the development and redevelopment of certain properties within the Yorkville
Downtown Redevelopment Project Area; and,
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WHEREAS , pursuant to the Original Agreement, the City agreed to reimburse the
Developer for Redevelopment Project Costs for certain projects as identified therein; and,
WHEREAS , the Developer has now submitted proposals to the City to acquire
additional properties within the Yorkville Downtown Redevelopment Project Area for the
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Ordinance No . 2013-
Page 2
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purpose of redevelopment, rehabilitation and renovation, all such projects being in furtherance of
the Redevelopment Plan (the "Additional Projects") ; and,
WHEREAS , the Developer has further advised the City that in order to proceed with
these additional new projects, additional financial assistance shall be needed and, therefore, in
addition to the designation of the Yorkville Downtown Redevelopment Project Area and the
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adoption of the TIF Act, the Developer has also requested financial assistance from the revenues
to be derived from a portion of the commercial area of the Yorkville Downtown Redevelopment
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Project Area as a result of the designation of such area as a "Business District" in accordance
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with the Business District Development and Redevelopment Act (65 ILCS 5/ 11 -743 et seq. ) the
` Business District Act") ; and,
WHEREAS , the City desires the Developer to proceed with the Additional Projects and
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is, therefore, willing to commit additional incentives pursuant to the Act and the Business
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District Act in order to induce the Developer to undertake these Additional Projects, all as set
forth in the First Amendment to the Redevelopment Agreement for the Downtown Yorkville
Redevelopment Project Area ("Imperial Investments, LLC"), attached hereto and made a part
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hereof.
NOW, THEREFORE, BE IT ORDAINED by the Mayor and City Council of the
United City of Yorkville, Kendall County, Illinois , as follows :
Section 1 . The First Amendment to the Redevelopment Agreement for the Downtown
Yorkville Redevelopment Project Area (Imperial Investments, LLC) is hereby approved and the
Mayor and City Clerk are hereby authorized to execute said Agreement.
Section 2. The City Administrator is hereby authorized to undertake any and all action as
may be required to implement the terms thereof.
Ordinance No . 2013 - O(R
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Section 3 . This Ordinance shall be in full force and effect from and after its passage and
approval as provided by law .
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Passed by the City Council of the United City of Yorkville, Kendall County, Illinois, this
day of ja 0 , A. D . 2013 ,
CHRIS FUNKHOUSER KEN KOCH L- _
CARLO COLOSIMO DIANE TEELING
JACKIE MILSCHEWSKI / MARTY MUNNS
ROSE ANN SPEARS LARRY KOT
APPROVED by me, as Mayor of the United City of Yorkville, Kendall County, Illinois,
this day of : 56RUAK y , A.D . 2013 .
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Mayo
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Attest:
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City Clerk
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Ordinance No . 2013 - 0a
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FIRST AMENDMENT TO THE REDEVELOPMENT AGREEMENT FOR THE
DOWNTOWN YORKVILLE REDEVELOPMENT PROJECT AREA
(Imperial Investments, LLC)
THIS FIRST AMENDMENT TO THE REDEVELOPMENT AGREEMENT (the
"Amendment") dated April 23, 2012, by and between the United City of Yorkville, Kendall
County, Illinois, a municipal corporation (hereafter the "City") and Imperial Investments, LLC;
an Illinois limited liability company corporation (hereafter the "Developer") is dated as of
4� 6% ,2013.
WITNESSETH:
WHEREAS, by Ordinance No. 2006-46 adopted by the Mayor and City Council of the
City (the "Corporate Authorities") on June 13, 2006, the Downtown Yorkville Tax Increment
Financing Redevelopment Project and Plan (hereinafter the "Redevelopment Plan") was
approved, which project and plan covered some of the oldest properties of the City which
constitute a significant portion of the City's historic Downtown; and,
WHEREAS, by Ordinance No. 2006-47 and No. 2006-48 adopted by the Corporate
Authorities on June 13, 2006, the City designated approximately 200 acres containing 114
buildings as a "redevelopment project area" ("Yorkville Downtown Redevelopment Project
Area") and adopted tax increment financing pursuant to the Tax Increment Allocation
Redevelopment Act (65 ILCS 5/11-74.4-1 et seq.) (hereinafter referred to as the "Act"); and,
WHEREAS, pursuant to the TIF Act, on April 23, 2012, pursuant to Ordinance No.
2012-06, the Corporate Authorities entered into a Redevelopment Agreement for the Downtown
Yorkville Project Area (the "Original Agreement") with the Developer in order to induce the
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development and redevelopment of certain properties within the Yorkville Downtown
Redevelopment Project Area; and, j
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WHEREAS, pursuant to the Ori ginal Agreement, the City agreed to reimburse the
Developer for Redevelopment Project Costs as specifically identified therein for the following
four (4) Projects :
14 Cobblestone Bakery Project No . 1 ;
2, Follies Theater Project No . 2;
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3 . Follies Box Office Project No . 3 ; and, �
4 . Van Emmon Apartments Project No . 4; and,
WHEREAS, the Developer has now submitted proposals to the City to acquire
additional properties within the Yorkville ' Downtown Redevelopment Project Area for the
purpose of redevelopment, rehabilitation and renovation, all such projects being in furtherance of
the Redevelopment Plan; and, j
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WHEREAS, the Developer has further advised the City that in order to proceed with
these additional new projects, additional financial assistance shall be needed and, therefore, in
addition to the designation of the Yorkville Downtown Redevelopment Project Area and the
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adoption of the TIF Act the Developer has requested a portion of the commercial area of the
Yorkville Downtown Redevelopment Project Area be designated a "Business District" in
accordance with the Business District Development and Redevelopment Act (65 ILCS 5111 -74 .3
et seq .) the "Business District Act") and,
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WHEREAS , pursuant to the Business District Act, the City is authorized to adopt a
development or redevelopment plan and impose a business district retailers ' occupation tax and a
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business district service occupation tax ("Business District Taxes") to pay business district
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project costs including the planning, execution and implementation of an approved business
district plan; and,
WHEREAS, pursuant to its powers and in accordance with the requirements of the
Business District Act, the Corporate Authorities authorized a review of the eligibility of an area
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within the City to determine whether such area could be benefitted by the Business District Act,
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in order to eliminate those blighting factors which have, historically, inhibited development; and,
WHEREAS, after a review of the requirements under the Business District Act and the
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conditions of the properties within the proposed district, it was determined that there existed
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blighting conditions sufficient to designate the proposed area, depicted on Exhibit A attached
hereto and made a part hereof; as the Downtown Yorkville Business Development District (the
"Downtown Business District") under the Business District Act; and,
WHEREAS, upon the findings of eligibility for the proposed Downtown Business
District, the Corporate Authorities authorized the preparation of a Downtown Yorkville Business
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District Development Plan setting forth the goals and objects, proposed projects, estimated
budget and the potential sources of funds to implement said Plan for the proposed Downtown
Business District; and,
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WHEREAS, pursuant to the Business District Act, once a business district is designated,
the Corporate Authorities may impose a retailers ' occupation tax, service occupation tax, and a
hotel operators ' occupation tax in an amount not to exceed one percent ( 1 %) to pay costs to be
incurred in connection with the planning, execution and implementation of the goals and
objectives as set forth in the business district plan, and the Corporate Authorities have, in fact,
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imposed a retailers ' occupation tax, service occupation tax, and hotel operators ' occupation tax
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of one percent ( 1 %) in the business district; and,
WHEREAS, pursuant to the Business District Act, on January 8 , 2013 , the Corporate
Authorities, after public hearings, passed Ordinance No . 2013 -01 designating the Downtown
Yorkville Business District to include the property depicted on Exhibit A (the "Downtown
Yorlilille BD") and imposed retailers ' occupation tax and a service occupation tax in the amount
of one percent ( 1 %) on all commercial operations within its boundaries for the planning,
execution and implementation of the Downtown Yorkville Business District Plan (the "Business
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District Plan"); and,
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WHEREAS, the additional new projects include the acquisition and rehabilitation of:
1 . 209 South Bridge Street;
2 . The parking lot immediately to the north of 209 South Bridge Street;
39 213 South Bridge Street;
4 . An expansion of the Cobblestone Bakery Project No. 1 (collectively the
"Additional Projects"); and,
WHEREAS , the City desires the Developer to proceed with the Additional Projects and
is, therefore, willing to commit additional incentives available pursuant to the Act and the
Business District Act in order to induce the Developer to undertake these Additional Projects, all
as hereinafter set forth.
NOW, THEREFORE, for and in consideration of the premises and the mutual
covenants hereinafter set forth, the parties agree as follows .
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Section 1. Incorporation . The representations and recitations set forth in the preambles
hereto are material to this Amendment and are hereby incorporated into and made a part of this
Amendment as though fully set forth in this Section I and said representations and recitations
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constitute the understandings of the City and the Developer.
Section 2. The Imperial In vestment Additional Projects,
A. The Developer represents and warrants that it has acquired the following
properties, said properties being located within the Downtown Yorkville Redevelopment Project
Area and the Downtown Business District:
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1 . The property commonly known as 101 / 107 W. Van Emmon Street, identified
as parcel No 02-33 -283 -014 and hereinafter referred to as "Cobblestone Bakery Expansion
Project No. 1 ";
2 . The property commonly known as 213 S . Bridge Street, identified as parcel
No . 02-32-283 -007 hereinafter referred to as "Mongolian 211 Project";
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3 . The property commonly known as 209 S . Bridge Street, identified as parcel
No . 02-32-283-005 hereinafter referred to as "Kendall Grill Project"; and,
4. The parking lot directly north of 209 S . Bridge Street, identified as parcel Nos .
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02-32-283-003 and 02-32-287-002, hereinafter referred to the "Parking Lot Improvement
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Project".
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B . The Developer covenants and agrees to develop the Additional Projects in
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conformance with all applicable federal, state and City laws, regulations, ordinances, zoning and
building codes, life safety codes, property maintenance codes and all other applicable ordinances
of the City (collectively hereinafter referred to as the "Legal Requirements") . I
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C . On or before March 31 , 2013 , the Developer shall have submitted plans for each
of the Additional Projects, which plans shall be in conformance with the Legal Requirements and j
shall have also submitted an estimated itemized budget for each such Additional Project.
Section 3. Developer 's Obligations as a Condition Precedent to the City 's Commitment.
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A . On or before December 31 , 2013 , the Developer shall have completed all of the
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Additional Projects in a good and workmanlike manner and in accordance with the Legal
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Requirements .
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B . On or before December 31 , 2013 , the Developer shall have commenced operation of
Mongolian 211 and restaurant the Kendall Grill at 213 South Bridge Street and 209 South Bridge
Street, respectively.
Section 4. Obligations and Co»anitments of the City.
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A. So long as no notice pursuant to Section 20 of the Original Agreement has been issued
and remains uncured and so long as the Developer shall have completed construction of the
Additional Projects in conformance with the Legal Requirements, the City shall reimburse the
Developer for "Redevelopment Project Costs" as hereinafter defined and itemized on Exhibit B
attached hereto to pay any cost included in the estimated budget for Additional Projects which
are eligible as Redevelopment Project Costs in an amount not to exceed twenty-five percent
(25 %) of all costs incurred by the Developer in connection with the Additional Projects plus
costs of financing, marketing and professional fees paid by the Developer.
B . All reimbursements to the Developer shall be in conformance with the requirements
and procedures set forth in the Original Agreement.
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C . In connection with the establishment and ongoing administration of the Downtown
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Business District, the City has established a special fund pursuant to the requirements of the
Business District Act, known as the Downtown Yorkville Business District Tax Allocation Fund 1
(`BD Fund"), into which the City shall deposit all sales tax revenues imposed at a rate of one
percent ( 1 %) generated by businesses operating in the Downtown Yorkville BD ("BD Taxes") ,
The City shall thereafter transfer all BD Taxes in the BD Fund as follows :
(i) On March 1 of each year during the term of this Agreement, the City shall deposit
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all BD Taxes deposited into the BD Fund into the Imperial Investment BD Sub-
Account of the Special Tax Allocation Fund as established in the Original
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Agreement.
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(ii) Notwithstanding the foregoing obligation on the part of the City to reimburse the
Redevelopment Project Costs from BD Taxes, such obligation is contingent upon
written authorization from the Developer to the Illinois Department of Revenue to
release any and all information regarding the payment of sales taxes and service
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taxes collected by the businesses operating at the Imperial Investment Projects
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and Additional Projects . Failure on the part of any business to provide such
written authorization shall result in a cancellation and waiver of the City' s
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obligation to reimburse the Developer from BD Taxes attributable to such
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business.
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THE CITY ' S OBLIGATIONS TO REIMBURSE THE DEVELOPER UNDER THIS
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AGREEMENT IS A LIMITED OBLIGATION PAYABLE SOLELY FROM INCREMENTAL
TAXES DEPOSITED IN THE IMPERIAL INVESTMENT SUBACCOUNT OF THE STAF
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FROM TIME TO TIME AND SHALL NOT BE SECURED BY THE FULL FAITH AND
CREDIT OF THE CITY. As used in this Agreement, "Incremental Taxes" shall mean the
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amount in the STAF equal to the amount of ad valorem taxes, if any, paid in respect of the
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Redevelopment Project Area and its improvements which is attributable to the increase in the
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equalized assessed value of all the Imperial Investment Projects and all projects of the Developer i
which are approved by the City and their improvements over the initial equalized assessed value
of all approved Imperial Investment Project,
D . Redevelopment Project Costs, in addition to the meaning set forth in Section 4B
of the Original Agreement, shall also mean Business District Project Costs as defined in the
Business District Act,
E. Reimbursement of Redevelopment Project Costs shall be made annually on each
STAF Allocation Date (or, if later, the date which is ten ( 10) days following approval by the City
of payment of such Redevelopment Project Costs), as provided in the Original Agreement,
provided, that reimbursement of Redevelopment Project Costs shall only be made to the extent
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money is available therefore in the Imperial Investment Subaccount of the STAF from deposits
of BD Taxes and Incremental Taxes. To the extent money in the Imperial Investment
Subaccount is insufficient to reimburse the Developer for Redevelopment Project Costs, such
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Request for Reimbursement shall be held for payment on the following STAF Allocation Date.
Section 6. Undertakings on the Part of Developen
A. The Developer covenants and agrees that the Project shall result in a private
investment of no less than $2 ,000,000. 00 for the Additional Projects.
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Be The Developer hereby covenants and agrees to promptly pay, as the same become
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due, any and all taxes and governmental charges of any kind that may at any time be assessed
with regard to its operation including all real estate taxes assessed against the Imperial
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Investment Projects or any other location in the City owned or controlled by the Developer. j
Section 7. Tenn . Section 7 of the Original Agreement is amended to state that unless
earlier terminated pursuant to Section 20 of the Original Agreement, the term of this
Redevelopment Agreement shall commence on the date of execution and end December 31 ,
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2029, regarding the City' s obligation to deposit Incremental Taxes into the Imperial Sub-
Account and December 31 , 2036, with regard to the City' s obligation to deposit BD Taxes, into
the Imperial Investment Sub-Account.
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Section 8. All other provisions of the Original Agreement not amended by this j
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Amendment one hereby affirmed as in full force and effect.
Section 9. Counterparts. This Amendment Agreement may be executed in two or more
counterparts, each of which shall be deemed an original but all of which together shall constitute
one and the same instrument.
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IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to the
Redevelopment Agreement to be executed by their duly authorized officers on the above date at
Yorkville, Illinois .
United City of Yorkville, an Illinois
municipal corporation
By: Li y
Mayor
Attest:
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City Clerk
IMPERIAL INVESTMENTS, LLC, an Illinois
liability co ny
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Exhibit A
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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 �S>i
Parcel Data and Aerial Photography "Requester"to determine accuracy,timeliness,completeness,and «' �y">E
Provided By Kendall County GIS appropriateness of its use.The United City of Yorkville makes no �Q
warranties,expressed or implied,to the use of the Data, s
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