Ordinance 2013-19 i
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UNITED CITY OF YORKVILLE
KENDALL COUNTY, ILLINOIS
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ORDINANCE NO , 2013- 19
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AN ORDINANCE APPROVING A SECOND AMENDMENT TO THE
REDEVELOPMENT AGREEMENT FOR THE
DOWNTOWN YORKVILLE REDEVELOPMENT PROJECT AREA
"(Imperial Investments, LLCM
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Passed by the City Council of the
United City of Yorkville, Kendall County, Illinois
This 9"' day of April, 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 June 18 , 2013 .
Ordinance No. 2013 .
AN ORDINANCE APPROVING A SECOND AMENDMENT TO THE
REDEVELOPMENT AGREEMENT FOR THE
DOWNTOWN YORKVILLE REDEVELOPMENT PROJECT AREA
(Imperiallnvestments, LLC)
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
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"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;
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WHEREAS , by Ordinance No . 2006-47 and No . 2006-48 adopted by the Corporate
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Authorities on June 13 , 2006 , the City designated approximately 200 acres containing 114
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buildings as a "redevelopment project area" (" Yorkwille 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 , Ordinance No . 2012-06 , the
Corporate Authorities entered into a Redevelopment Agreement for the Downtown Yorkville j
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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
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Downtown Redevelopment Project Area; and,
WHEREAS , pursuant to the Original Agreement, the City agreed to reimburse the
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Developer for Redevelopment Project Costs for certain projects as identified therein ; and ,
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WHEREAS , the Developer thereafter submitted proposals to the City to acquire
additional properties within the Yorkville Downtown Redevelopment Project Area for the
Ordinance No . 2013 - '�L
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purpose of redevelopment, rehabilitation and renovation, all such projects being in furtherance of
the Redevelopment Plan (the "Additional Projects") and requested financial assistance in order
to proceed; and,
WHEREAS , in order to assist with the Additional Projects, the Corporate Authorities by
Ordinance No . 2013 - 01 designated a portion of the commercial area of the Yorkville Downtown
Redevelopment Project Area as a "Business District" in accordance with the Business District
Development and Redevelopment Law (65 ILCS 5/ 11 -74 . 3 et seq .) (the "Business District Act")
and imposed a one percent ( 1 %) retailers ' occupation tax and a service occupation tax as
permitted by the Business District Act (the ` BD Taxes") in order to pay redevelopment project
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costs ; and,
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WHEREAS , the Developer has now submitted a proposal to the City to acquire
additional properties commonly known as 102 E . Van Emmon Street, formerly used as a bank
facility (the "Bank Property") and a parking lot located at the northeast corner of West Van
Emmon Street and the west alley (the "Parking Lot") located 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,
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WHEREAS , the City desires the Developer to proceed with the acquisition and
rehabilitation of the Bank Property and the Parking Lot and is, therefore, willing to commit
additional incentives available pursuant to the Act and the Business District Act in order to
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induce the Developer to undertake these new projects, all as set forth in the Second Amendment
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to the Redevelopment Agreement for the Downtown Yorkville Redevelopment Project Area
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attached hereto and made a part hereof.
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Ordinance No . 2013 -�
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NOW, THEREFORE, BE IT ORDAINED by the Mayor and City Council of the
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United City of Yorkville, Kendall County, Illinois, as follows :
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Section 1 . The Second 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.
Section 3 . This Ordinance shall be in full force and effect from and after its passage and
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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 Alar , , A.D . 2013 . �
CARLO COLOSIMO KEN KOCH
JACKIE MILSCHEWSKI LARRY KOT
MARTY MUNNS CHRIS FUNKHOUSER
ROSE ANN SPEARS DIANE TEELING
APPROVED by me, as Mayor of the United City of Yorkville, Kendall County, Illinois ,
this day of J UIJE- , A . D . 2013 ,
a A A
�Aw �- ' 6 1112X
Mayo
Attest:
City Clerk
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Ordinance No . 2013 -
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SECOND AMENDMENT TO THE REDEVELOPMENT AGREEMENT FOR THE
DOWNTOWN YORKVILLE REDEVELOPMENT PROJECT AREA
(Imperial Investments, LLC)
THIS SECOND AMENDMENT TO THE REDEVELOPMENT AGREEMENT (the
"Amendment") dated April 23 , 2012, as amended January 8 , 2013 , 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
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"Developer") is dated as of Arpril 1 , 2013 .
WITNESSETH ,
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WHEREAS , by Ordinance No . 2006-46 adopted by the Mayor and City Council of the j
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
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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,
WHEREAS, pursuant to the Original Agreement, the City agreed to reimburse the
Developer for Redevelopment Project Costs as specifically identified therein for the following
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four (4) Projects :
1 , Cobblestone Bakery Project No . 1 ;
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2 , Follies Theater Project No. 2;
3 , Follies Box Office Project No . 3 ; and,
4 . Van Emmon Apartments Project No . 4; and,
WHEREAS, on January 8 , 2013 , the Original Agreement was amended to add additional
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redevelopment projects (the "Additional Projects") to include the acquisition and rehabilitation
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1 . 209 South Bridge Street;
2 . The parking lot immediately to the north of 209 Bridge Street;
1 213 South Bridge Street; and,
4. An expansion of the Cobblestone Bakery Project No. 1 ; and,
WHEREAS, the Developer also advised the City that in order to proceed with the
Additional Projects, additional financial assistance shall be needed and, therefore, in addition to
the designation of the Yorkville Downtown Redevelopment Project Area and the adoption of the
TIF Act, by Ordinance No. 2013 -01 , the City designated a portion of the commercial area of the
Yorkville Downtown Redevelopment Project Area as a "Business District" in accordance with
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the Business District Development and Redevelopment Act (65 ILCS 5/ 11 -74. 3 et seq .) the
"Business District Act") on January 8, 2013 ; and,
WHEREAS, pursuant to the Business District Act, once a business district is designated,
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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,
imposed a retailers ' occupation tax and a service occupation tax of one percent ( 1 %) in the
business district; and,
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WHEREAS , the Developer has now submitted a proposal to the City to acquire
additional properties commonly known as 102 E. Van Emmon Street and formerly a bank
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facility (the "Bank Property") and a parking lot located at the northeast corner of West Van
Emmon Street and the west alley (the "Parking Lot") located 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,
WHEREAS, the City desires the Developer to proceed with the acquisition and
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rehabilitation of the Bank Property and the Parking Lot 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 this project, all as hereinafter set forth.
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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 I. 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
constitute the understandings of the City and the Developer.
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Section 2. The Imperial Investment Additional Projects.
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A. The Developer represents and warrants that it has acquired the Bank Property
commonly known as the 102 E. Van Emmon and identified as Parcel No. 02-33 - 157-001 ; 02-33 -
157-004; 02-33 -301 -001 and 02-33 - 157-006 and the Parking Lot identified as Parcel No . 02-32-
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283 -009 located within the Downtown Yorkville Redevelopment Project Area and the
Downtown Business District,
B . The Developer covenants and agrees to develop the Bank Property in conformance
with all applicable federal, state and City laws, regulations, ordinances, zoning and building j
codes, life safety codes, property maintenance codes and all other applicable ordinances of the
City (collectively hereinafter referred to as the "Legal Requirements") .
C . On or before April 30, 2013 , the Developer shall have submitted plans for the
redevelopment of the Bank Property, which plans shall be in conformance with the Legal
Requirements and shall have also submitted an estimated itemized budget for this redevelopment
project.
Section 3. Developer 's Obligations as a Condition Precedent to the City 's Commitment,
A. On or before December 31 , 2013 , the Developer shall have completed all of the
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rehabilitation on the Bank Property in a good and workmanlike manner and in accordance with
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the Legal Requirements and have taken possession of the Parking Lot and assumed the sole
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responsibility for the maintenance thereof.
B . On or before December 31 , 2013 , the Developer shall have commenced operation of
an athletic/workout facility d/b/a Boombah Performance at the Bank Property. ,
Section 4. Obligations and Commitments of the City.
A. So long as no notice pursuant to Section 20 of the Original Agreement has been issued
and remains uncured, 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
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estimated budget for the improvements to the Bank Property and to the Parking Lot which are
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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 improvements to the Bank Property
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and the Parking Lots plus costs of financing, marketing and professional fees paid by the
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Developer.
B . All reimbursements to the Developer shall be in conformance with the requirements
and procedures set forth in the Original Agreement,
C . In connection with the establishment and ongoing administration of the Downtown
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Yorkville Redevelopment Project Area and the Downtown Business District, the City established j
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a special fund pursuant to the Act known as the "Downtown Yorkville Redevelopment Project
Area Special Tax Allocation Fund (the "STAFF) and pursuant to the Original Agreement
established the Imperial Investment Sub-Account of the STAF . In addition, as required by the
Business District Act, a special fund known as the Downtown Yorkville Business District Tax
Allocation Fund ("BD Fund") was also established. The City shall deposit all sales tax revenues
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imposed at a rate of one percent ( 1 %) generated by businesses operating in the Downtown
Yorkville BD ("BD Taxes") into the BD Fund and thereafter shall 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
all BD Taxes deposited into the BD Fund into the Imperial Investment Sub-
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Account of the Special Tax Allocation Fund as established in the Original
Agreement.
(ii) Notwithstanding the foregoing obligation on the part of the City to reimburse the
Redevelopment Project Costs from the Imperial Investment Sub-Account
including the BD Taxes deposited therein, 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
taxes collected by the businesses operating within the Business District. Failure
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on the part of any business to provide such written authorization shall result in a
cancellation and waiver of the City ' s obligation to reimburse the Developer from
BD Taxes attributable to such business.
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THE CITY' S OBLIGATIONS TO REIMBURSE THE DEVELOPER UNDER THIS
AGREEMENT IS A LIMITED OBLIGATION PAYABLE SOLELY FROM INCREMENTAL
TAXES AND BD TAXES DEPOSITED IN THE IMPERIAL INVESTMENT SUBACCOUNT
OF THE STAF FROM TIME TO TIME AND SHALL NOT BE SECURED BY THE FULL
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FAITH AND CREDIT OF THE CITY. As used in this Agreement, "Incremental Taxes" shall
mean the amount in the STAF equal to the amount of ad valorem taxes, if any, paid in respect of
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the Redevelopment Project Area and its improvements which is attributable to the increase in the
equalized assessed value of all the Imperial Investment Projects and all projects of the Developer
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 j
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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 Sub-Account of the 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 Request for
Reimbursement shall be held for payment on the following STAF Allocation Date.
Section 5. Undertakings on the Part of Developer.
A. The Developer covenants and agrees that these new projects shall result in a total
investment of no less than $900,000 by the Developer in the Yorkville Downtown
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Redevelopment Project Area. f
B . The Developer hereby covenants and agrees to promptly pay, as the same become
due, any and all taxes and governmental charges of any kind that may at any time be assessed
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with regard to its operation including all real estate taxes assessed against the Imperial
Investment Projects or any other location in the City owned or controlled by the Developer.
Section 6. Ternz . . 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
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Redevelopment Agreement shall commence on the date of execution and end December 31 ,
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 7. All other provisions of the Original Agreement and the Second Amendment
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thereto are hereby affirmed as in full force and effect.
Section 8. 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
munici al corporation
By:
Mayor
Attest:
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City Clerk
IMPERIAL INVESTMENTS, LLC, an Illinois
liability co ny
By:
President
Attest:
Secretary
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Exhibit B
COSTS AND EXPENSES BASED ON IMPERIAL INVESTMENTS YORKVILLE PROPERTIES
Property Name: Boombah Performance
Address or PIN# 02-33-157-014
Address or PIN #
Acquisition Cost:
$
714,000.00
General renovation costs:
$
200,000.00
All engineering, architectural design costs:
$
9,000.00
Any legal fees incurred by developer:
$
500.00
Signage costs:
$
4,000.00
Outdoor lighting costs:
$
1,000.00
Landscaping costs:
$
3,000.00
Any interest costs on borrowing:
TBD
Comment:
Former Old Second Bank
(Van Emmon and S
Bridge Street)
Property Name: Lot 6 Parking Lot
Address or PIN #
02-32-283-009
Acquisition Cost:
$ 13,500.00
General renovation costs:
$ 20,000.00
All engineering, architectural design costs:
$ 5,000.00
Any legal fees incurred by developer:
$ 500.00
Signage costs:
$ -
Outdoor lighting costs:
$ 2,000.00
Landscaping costs:
na
Any interest costs on borrowing:
TBD
Comments
Located to the west side of Cobblestone Bakery
and Bistro and just East of the West Alley