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Ordinance 2016-22 UNITED CITY OF YORKVILLE KENDALL COUNTY, ILLINOIS ORDINANCE NO. 2016-22 ORDINANCE APPROVING AN INDEMNITY AGREEMENT BETWEEN THE UNITED CITY OF YORKVILLE,KENDALL COUNTY,ILLINOIS,AND GC HOUSING DEVELOPMENT,LLC,AN ILLINOIS LIMITED LIABILITY COMPANY Passed by the City Council of the United City of Yorkville,Kendall County, Illinois This 23rd day of February,2016 Prepared by and Return to: United City of Yorkville 800 Game Farm Road Yorkville, IL 60560 Published in pamphlet form by the authority of the Mayor and City Council of the United City of Yorkville,Kendall County, Illinois on November 15,2016. Ordinance No. 2016-2-Z ORDINANCE APPROVING AN INDEMNITY AGREEMENT BETWEEN THE UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS,AND GC HOUSING DEVELOPMENT, LLC, AN ILLINOIS LIMITED LIABILITY COMPANY WHEREAS, the United City of Yorkville, Kendall County, Illinois (the "City"), is a non-home rule municipality duly organized in accordance with the 1970 Constitution and the laws of the State of Illinois; and WHEREAS, GC Housing Development, LLC, an Illinois limited liability company located at 343 Wainwright Drive, Northbrook, Illinois (the "Developer"), proposes to purchase a 3.4 acre parcel of land located at the northeast corner of Walnut Street and Freemont Street in Yorkville, Illinois, (the "Subject Property") and to construct a two-story senior independent living rental facility on the Subject Property dedicated to housing persons 55 years old and older (the "Project"); and WHEREAS, to make the Project economically viable, the Developer has applied for funding from the Illinois Housing Development Authority("IHDA"); and WHEREAS, if the Developer's request for IHDA funding is approved, the City has agreed to establish a housing assistance program (the "Program") to provide rental assistance for no more than three (3) one bedroom apartments at the Project subject to the terms and conditions set forth in the Indemnity Agreement attached hereto; and, WHEREAS, the City has determined that it is necessary and in the best interest of the current and future residents of the City to enter into an agreement with the Developer in order to clarify the obligations of the Developer and the City with respect to the Program and the Developer's indemnification of the City. Ordinance No. 2016-oQa1 Page 2 NOW, THEREFORE, BE IT ORDAINED by the Mayor and City Council of the United City of Yorkville, Kendall County, Illinois, that the Indemnity Agreement, by and between the City and the Developer, in the form attached hereto and made a part hereto is hereby approved and the Mayor and City Clerk are hereby authorized to execute same. Passed by the City Council of the United City of Yorkville, Kendall County, Illinois this day of ` K , 2016. CITY CLERK L � CARLO COLOSIMO KEN KOCH JACKIE MILSCHEWSKI LARRY KOT CHRIS FUNKHOUSER JOEL FRIEDERS A� DIANE TEELING SEAVER TARULIS Approved by me, as Mayor of the United City of Yorkville, Kendall County, Illinois, this day of �0\/i~ A82)EP, , 2016. q 'Alt �L MAYO Ordinance No. 2016-cZ a Page 3 INDEMNITYAGREEMENT BETWEEN THE UNITED CITY OF YORKVILLE,KENDALL COUNTY,ILLINOIS,AND GC HOUSING DEVELOPMENT LLC,AN ILLINOIS LIMITED LIABILITY COMPANY THIS INDEMNITY AGREEMENT dated this $ day of OVE618(5e 2016, by and between the United City of Yorkville, Kendall County, an Illinois municipal corporation (hereafter the "City") and GC Housing Development LLC, an Illinois limited liability company, 343 Wainwright Drive, Suite B,Northbrook, Illinois 60062 (hereafter the"Developer"). PREAMBLES: WHEREAS, the City is a non-home rule municipality duly organized in accordance with the 1970 Constitution and the laws of the State of Illinois; and, WHEREAS, the Developer is an experienced contractor of residential communities and is the contract purchaser of a certain 3.4 acre parcel of land located on Walnut Street, Yorkville, Illinois, approximately 115 feet east of Freemont Street and legally described on Exhibit A hereto and made a part hereof (the "Subject Property") and proposes to construct a senior independent living rental facility (55 years old and older) consisting of a two-story building containing up to 33 one-bedroom residential units and up to 18 two-bedroom residential units, surface parking, and a common area to house a fitness room, community room and several other amenities for use by residents (the"Project"); and, WHEREAS, to make the Project economically viable, the Developer has applied for funding for the Project in order to construct affordable senior independent housing and, if the funding is approved, the City has agreed to establish a housing assistance program to be funded with a portion of fees paid by the Developer in connection with the Project; and, 1 WHEREAS, the Mayor and City Council have considered the need for affordable senior independent housing in the City and the surrounding community and, therefore, are willing to establish a housing assistance program for the Project but only upon the terms and conditions hereinafter set. NOW, THEREFORE, the parties hereto, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, agree as follows: Section 1. The recitals contained in the foregoing Preambles to this Agreement are true and correct and are hereby incorporated into this Agreement as if fully restated in this Section 1. Section 2. The City shall establish a housing assistance program to provide rental assistance for no more than three (3) one bedroom apartments at the Project. The amount of rental assistance to be provided to an eligible tenant shall be an amount equal to the difference between 30% of the tenant's annual income and the established monthly rent and tenant paid utilities for a one bedroom apartment at the Project. The City agrees to fund the housing assistance program with a maximum of$105,000 for the life of such program. Section 3. It is understood and agreed that the City's housing assistance program will commence the first month of occupation of an apartment by a tenant eligible to receive rental assistance and terminate on the tenth anniversary thereof.. Section 4. Upon the establishment by the City of the housing assistance program for the benefit of the Project, the Developer agrees to indemnify the City for any rental assistances payments due from the City over and the initial funding of$105,000 up to a total of$150,000 ($45,000), which indemnification shall be in effect for so long as the City continues such housing assistance program. 2 Section S. The Developer shall indemnify and hold harmless the City, its agents, officers and employees against all injuries, claims, liabilities,judgments, costs and expenses (including reasonable attorney's fees) assessed against the same arising from the City's operation of its housing assistance program for the benefit of the Project, including but not limited to the calculation of a tenants annual income and eligibility for assistance, administration of the program, designation of the apartments assigned to eligible tenants, conditions of the apartments, and conditions of all parts of the Project both interior and exterior, but excluding for the willful and wanton negligence of the City, its agents, officers and employees. Section 6. In the event receipt of any claim against the City in connection with the housing assistance program operated in conjunction with the Project, the City shall notify the Developer within five (5) business days of receipt of a claim, whereupon the Developer shall proceed to undertake any and all action as set forth in Section 5 above. Section 7. All notices, demands, requests, consents, approvals or other communications required or permitted by this Agreement shall be given in writing at the addresses set forth below and shall be deemed to have been given (i) on the day of actual delivery if delivered personally, (ii) on the day immediately following deposit with overnight courier, or (iii) as of the third (3`d) day from and including the date of posting if mailed by registered or certified first class mail, postage prepaid, return receipt requested. The parties, by notice hereunder, may designate any further or different addresses to which subsequent notices, demands, requests, consents, approvals or other communications shall be sent. To the City: United City of Yorkville 800 Game Farm Road 3 Yorkville, Illinois 60560 Attn: City Administrator With a copy to: Kathleen Field Orr Kathleen Field Orr&Associates 53 West Jackson Blvd., Suite 964 Chicago, Illinois 60604 If to the Developer: Jeffrey D. Crane GC Housing Development LLC 343 Wainwright Drive Suite B Northbrook, Illinois 60062 With a copy to: Tracy D. Kasson 300 E. Roosevelt Road Suite 300 Wheaton, Illinois 60187 Section 8. This Agreement may be executed in several counterparts, each of which shall be deemed an original and all of which together shall constitute but one and the same instrument. Section 9. If any provision of this Agreement, or any Section, sentence, clause, phrase or word, or the application thereof, in any circumstance, is held to be invalid, the remainder of this Agreement shall be construed as if such invalid part were never included herein, and this Agreement shall be and remain valid and enforceable to the fullest extent permitted by law. 4 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized officers on the above date at United City of Yorkville, Kendall County, Illinois. United City of Yorkville, Kendall County, an Illinois municipal corporation ' A y By: -/i44 May Attest: City Clerk GC Housing Development LLC, an Illinois limited liability company By: d EFF� Y D • cRr�� Its: P1ArNA- 6 C 5 "Exhibit A" THAT PART OF THE SOUTHWEST QUARTER OF SECTION 28, TOWNSHIP 37 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF GUTHRIE SUBDIVISION; THENCE NORTH 82 DEGREES 35 MINUTES 00 SECONDS WEST ALONG THE CENTERLINE OF WALNUT STREET, 330.0 FEET FOR A POINT OF BEGINNING; THENCE NORTH 07 DEGREES 25 MINUTES 00 SECONDS EAST, A DISTANCE OF 468.00 FEET; THENCE NORTH 82 DEGREES 35 MINUTES 00 SECONDS WEST, 77.08 FEET; THENCE WESTERLY ALONG A TANGENTIAL CURVE TO THE LEFT HAVING A RADIUS OF 533.31 FEET, AN ARC DISTANCE OF 263.51 FEET; THENCE SOUTH 07 DEGREES 25 MINUTES 00 SECONDS WEST, 404.21 FEET TO SAID CENTERLINE; THENCE SOUTH 82 DEGREES 35 MINUTES 00 SECONDS EAST ALONG SAID CENTERLINE, 330.0 FEET TO THE POINT OF BEGINNING IN YORKVILLE, KENDALL COUNTY, ILLINOIS, PINS: 02-28-326-002 and 02-28-326-006.