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Resolution 2017-23 Resolution No. 2017-.9U1 A RESOLUTION OF THE UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS,APPROVING A REAL ESTATE SALE CONTRACT AND THE EXECUTION OF A LOAN COMMITMENT LETTER WHEREAS, the United City of Yorkville, Kendall County, Illinois (the "City") is a duly organized and validly existing non home-rule municipality created in accordance with the Constitution of the State of Illinois of 1970 and the laws of this State; and, WHEREAS,the City is authorized to purchase real estate for public purposes pursuant to Section 11-61-3 of the Illinois Municipal Code, 65 ILCS 5/11-61-3. WHEREAS, the City desires to purchase certain real property commonly known as 102 E. Van Emmon Street, Yorkville, Illinois 60560 (the "Subject Property"), as legally described on Exhibit A hereto; and, WHEREAS, the current owner is willing to sell the Subject Property to the City for the sale price of$1,170,000.00; and, WHEREAS, in order to fund the purchase of the Subject Property, the City requires a commercial loan in the amount of$800,000; and, WHEREAS, First National Bank is willing to provide a loan to the City in the amount of $800,000 on the terms contained in the Loan Commitment attached hereto and made a part hereof; and, WHEREAS, the Mayor and City Council of the City have determined that it is in the best interests of the City and its citizens to obtain a loan from First National Bank in the amount of$800,000 and to purchase the Subject Property for the above stated sale price. NOW, THEREFORE,BE IT RESOLVED,by the Mayor and City Council of the United City of Yorkville, Kendall County, Illinois, as follows: Section 1. That the Real Estate Sale Contract attached hereto and made a part hereof, is hereby approved and the Mayor and City Clerk are hereby authorized to execute and deliver and to undertake any and all action as may be required to implement the terms of said Contract on behalf of the United City of Yorkville. Section Z That the Loan Commitment attached hereto and made a part hereof is hereby approved and the Mayor and City Clerk are hereby authorized to execute and deliver the Loan Resolution No.2017-a 3 Page 1 Commitment and all documents necessary to secure a loan under the terms and conditions contained in the Loan Commitment and to undertake any and all action as may be required to implement the terms thereof on behalf of the United City of Yorkville. Section 3. This Resolution shall be in full force and effect from and after its passage and approval as provided by law. Passed by the City Council of the United City of Yorkville, Kendall County, Illinois this ( day of l L , 2017. CITY CLERK CARLO COLOSIMO _� KEN KOCH y JACKIE MILSCHEWSKI Y ARDEN JOE PLOCHER y CHRIS FUNKHOUSER Y JOEL FRIEDERS RE('MSEb SEAVER TARULIS Y DIANE TEELING Y Approved by me, as Mayor of the United City of Yorkville, Kendall County, Illinois, this 024 day of APRIL. , 2017. W,/b Mayr f Attest: Ci Cler Resolution No.2017- oZ 3 Page 2 LOAN CONIlVIITMENT April 17,2017 The United City Of Yorkville 800 Game Farm Road Yorkville,IL 60560 Dear Rob, First National Bank is pleased to inform you that we have approved The United City of Yorkville's loan request for the purchase of real estate at 102 E Van Emmon Street,Yorkville IL 60560.This commitment is subject to the following terms and conditions. Borrower(s): The United City of Yorkville Loan Amount: $800,000 Use of Proceeds: Purchase property at 102 E Van Emmon Street,Yorkville IL 60560 Interest Rate(s): Tax Exempt of 3.00%fixed for 48 months. Term of Loan: Fully amortized over 48 months with annual principal/interest payments due starting April 1,2018 Collateral: Unsecured j i Fees/Charges: First National Bank will charge an origination fee of$500 on the term loan.We will seek reimbursement of any third party fees charged to the bank that are associated with proper perfecting and documenting of the loan. Other Conditions: Letter from The United City of Yorkville's Attorney stating that the loan qualifies for tax-exempt status. Expiration Date: We will require that the loan close no later than May I e,2017 Documentation: Lender will require that all documentation associated with this financing be in form and substance acceptable to the Bank.We will require outside counsel to review the paperwork prior to closing. s { { i The foregoing loan conditions need to be met before or at closing or the Bank may withdraw its s commitment without liability for so doing. E First National Bank will consider this commitment withdrawn if the loan commitment is not signed by April 306'2017. This commitment is issued in reliance upon the representations of fact submitted by you to First National Bank. In the event of either:(1)discovery by First National Bank hereafter of any fact which,if known at the date hereof would have prompted the withholding of this commitment;(2)discovery by First National Bank of any misrepresentation of any fact contained in your loan application and/or any other written documentation you have submitted to First National Bank in support of your loan application;or(3) the occurrence hereafter of any change of material fact or circumstance upon which this commitment is based, First National Bank may withdraw and terminate this commitment, all without any liability for so doing,and in such event,this commitment shall thereupon be of no further force and effect whatsoever. The City is not legally bound by this commitment until all terms of the loan/documents have been negotiated and agreed to. In addition the City is not bound until the purchase of the real estate has been completed. Please acknowledge your acceptance of these terms and conditions by signing and returning one copy of this letter to First National Bank at 109 West Veterans Parkway,Yorkville IL 60560. Rob, thank you for providing First National Bank with the opportunity to assist The United City of Yorkville with its financing needs. If you should have any questions or concerns regarding this commitment,please do not hesitate to contact me at 630-553-6070. Regards. V4ZA-- L,Zon R-Hanson Commercial Banker First National Bank ' 109 West Veterans Parkway Yorkville IL 60560 630-553-6070 Stan Fr Seni anager Commercial Banking First ational Bank 109 West Veterans Parkway Yorkville IL 60560 815-234-0542 The undersigned hereby accepts this commitment and agrees to the terms and conditions contained herein: )tril Date: r —7 i REAL ESTATE SALE CONTRACT THIS REAL ESTATE SALE CONTRACT (the "Contract") is dated Al2-C11 g57 ,2017(the"Date of Acceptance"), and is by and between the United City of Yorkville, endall County, Illinois ("Purchaser") and Imperial Investments, LLC, an Illinois limited liability company("Seller"). 1. Real Estate. Seller shall transfer, assign, sell, and convey or cause to be transferred, assigned, sold, and conveyed to Purchaser all of Seller's interest in the land ("the Land") in Kendall County, Illinois, legally described on Exhibit A hereto (which Land is commonly known as 102 E. Van Emmon Street, Yorkville, Illinois, and which has a permanent real estate tax identification number as shown on Exhibit A), an approximately 8,400 sq. foot building with parking ("the Building") and all other improvements on the Land (collectively, the "Improvements")together with all of Seller's rights,titles, and interests, if any, in and to: A. all easements, party walls, rights of way, privileges, appurtenances, and rights to the same,belonging to or inuring to the benefit of the Land; B. all streets, alleys, or other public ways adjacent to the Land, before or after vacation thereof; and C. all fixtures, contents and other personal property located in the Building or on the Real Estate. The Land, the Building, the Improvements, and other real property interests to be conveyed as aforesaid are collectively referred to herein as "the Real Estate." The conveyance of the Real Estate shall be by a recordable warranty deed with release of homestead rights, if any, subject only to Permitted Exceptions as defined in Paragraph 3.C. 2. Purchase Price; Earnest Money. A. The purchase price to be paid by Purchaser to Seller at Closing for the Real Estate ("the Purchase Price") shall be $1,170,000.00, less any and all prorations and adjustments, if any (as defined and described in Paragraph 7 of this Contract). B. Simultaneous with the execution of this Contract, Purchaser will deliver to the Seller the sum of$10,000, ("the Earnest Money"). The Seller shall hold and retain the Earnest Money, in trust, and shall disburse the same in accordance with the terms and conditions contained in this Contract. If this Contract is terminated, the Earnest Money (along with any interest) shall be disbursed to Seller or Purchaser, as applicable, in accordance with the terms hereof 3. Title Insurance; Permitted Exceptions; Survey. 1 A. Not later than 10 days after execution of this Contract, Seller shall deliver or cause to be delivered to Purchaser, at Seller's expense, a commitment ("the Commitment") by a Title Insurance Company (the "Title Insurer" or the "Escrow Agent") to issue a current form ALTA owner's title insurance policy (the "Owner's Title Policy"), in the amount of the Purchase Price, covering title to the Real Estate, subject to the Permitted Exceptions. B. Not later than 14 days after execution of this Contract, Seller, at its own expense, shall furnish Purchaser with an ALTA survey of the Real Estate, dated after the date of this Contract, made by an Illinois licensed surveyor, in accordance with ALTA/ACSM land title survey requirements and sufficient to allow the Title Insurer to provide "extended coverage", containing Table A numbers 1-5, 7(a), 7(b), 7(c), 8, 9, 11, and 14, and as otherwise required by Purchaser's lender or the Title Insurer ("Survey"), and verifying whether the Property is in a flood zone, and certified to the Purchaser, its lender (if any) and the Title Insurer. The Survey shall indicate the total square footage of the Land, location of all improvements upon the Land, including fences, walks, drives and parking areas, and of all easements, building lines, set-back requirements and rights-of-way, recorded or visible. C. The following matters shall be permitted exceptions to title insurance coverage ("Permitted Exceptions"): 1) general exceptions set out in the Commitment; 2) Property Taxes for the Current Tax Period and subsequent years, including,but not limited to, any lien securing the payment thereof; 3) any other matter (including encroachments and liens and encumbrances of a definite and ascertainable amount) over which the Title Insurer will issue an endorsement or against which Purchaser will be indemnified by the Title Insurer, provided that the same is acceptable to Purchaser; 4) all reservations, exceptions, covenants, conditions, restrictions, agreements, easements, setback lines and other matters of record which are disclosed in the Title Commitment and to which Purchaser has not objected; 5) zoning regulations and other governmental laws, rules, regulations, codes, orders and directives affecting the Property; 6) unrecorded easements, discrepancies, boundary line disputes, overlaps, shortages in area, encroachments and other matters which are disclosed by Seller to Purchaser and to which Purchaser has not objected; 7) the rights that the public and upper and lower riparian owners have in any waters present on the Real Estate; and 8) matters arising as a result of the acts or omissions of Purchaser or any of its Affiliates, agents, employees, contractors or representatives. 2 D. If the Commitment discloses exceptions (including disclosure that Seller is not in title to the Real Estate), if the legal description on the Survey does not match that on the Commitment, or if the Survey discloses encroachments, boundary line disputes, or other matters which do or may render title to the Real Estate unmarketable (herein referred to as "survey defects"), Purchaser shall have 5 Business Days from the date of delivery thereof to provide Seller with a written notice (the "Purchaser's Objections Notice") of any matters on the Commitment or the Survey to which Purchaser objects (the "Purchaser's Objections"). If Purchaser fails to deliver Purchaser's Objections Notice within such 5 Business Day period, Purchaser shall be deemed to have waived any objections to and accepted the Commitment and the Survey. Within 5 Business Days after Seller's receipt of the Purchaser's Objections Notice (the "Seller Objection Response Period"), Seller shall provide written notice to Purchaser as to whether Seller will cure any of the Purchaser's Objections or refuse to cure the Purchaser's Objections (the "Seller's Response Notice"). In no event shall Seller be obligated to cure any of the Purchaser's Objections. If Seller fails to deliver the Seller's Response Notice within the Seller Objection Response Period, Seller shall be deemed to have elected not to cure the Purchaser's Objections. In the event Seller elects, or is deemed to have elected, not to cure any of Purchaser's Objections, then Purchaser shall have the right, by written notice delivered to Seller within 10 Business Days after the expiration of the Seller's Objection Response Period (the "Purchaser's Election Notice"), to either (i) waive the Purchaser's Objections which Seller shall not cure and proceed to Closing, in which event each of such Purchaser's Objections shall be deemed a Permitted Exception, or (ii) terminate this Contract, in which event the Earnest Money shall be refunded to Purchaser and the parties shall have no further rights or obligations hereunder. In the event Purchaser fails to deliver the Purchaser's Election Notice to Seller within 10 Business Days after the expiration of the Seller's Objection Response Period, then Purchaser shall be deemed to have elected to waive the Purchaser's Objections and proceed to Closing. All of Purchaser's Objections that are waived, or deemed to be waived by Purchaser shall become Permitted Exceptions. In the event Seller elects to cure any of Purchaser's Objections, Seller shall complete the cure of such Purchaser's Objections on or before the Closing Date. E. At the Closing, Seller shall deliver to Purchaser evidence that Purchaser will receive from the Title Insurer, at Seller's expense, a current form ALTA owner's title insurance policy insuring the fee simple interest of Purchaser in the Real Estate in the amount of the Purchase Price and subject to the Permitted Exceptions. 4. Purchaser's Conditions Precedent to Closing. A. A precondition to Purchaser's obligation to consummate the purchase of the Real Estate is Purchaser's satisfaction with the results of one or more inspections of the Improvements. Purchaser, or persons selected by Purchaser, shall make such inspection or inspections at a reasonable time or at reasonable times within 15 days of the Date of Acceptance (the"Due Diligence Period"). Seller shall allow Purchaser, and all persons selected by Purchaser to make any of such inspections,unrestricted access to the Land and Improvements at reasonable times for the purpose of making such inspections. 3 Purchaser and its agents, employees, contractors and representatives shall have the right to enter upon the Real Estate for purposes of performing inspections, surveys, environmental audits and other similar activities during the Due Diligence Period; provided Purchaser and Purchaser's agents, employees, contractors or representatives shall adhere to the following requirements: (i) Before Purchaser (or any of its agents, employees, contractors or representatives) may enter upon the Real Estate, Purchaser shall give as much notice as reasonably possible under the circumstances. Seller may accompany Purchaser and its agents, employees, contractors and representatives while they are on the Real Estate. (ii) Purchaser shall repair all damage to the Real Estate resulting from Purchaser's exercise of its rights under this Paragraph 4(A) or caused by Purchaser (or any of its agents, employees, contractors or representatives)prior to Closing. (iii) Purchaser shall indemnify, defend and hold harmless Seller from and against all claims, demands, actions, lawsuits, liabilities, damages, costs and expenses (including, but not limited to, court costs, litigation expenses and attorneys' fees) arising as a result of Purchaser's activities on the Real Estate prior to the Closing, except to the extent the same are directly due to the negligence or willful misconduct of Seller or any of its agents, employees, contractors or representatives. (iv) In the event Purchaser conducts a Phase II environmental investigation of the Real Estate(the"Phase II"), Purchaser agrees (a)that it will hold all information relating to the Phase II in confidence, (b)that it will not disclose any information pertaining to the Phase II to any third party, other than its representatives who have a need to know such information in connection with the discussions concerning the acquisition of the Real Estate, (c) that it will not use or permit its representatives to use any such information for purposes other than in connection with the discussions concerning the acquisition of the Real Estate, and(d)that it will not provide a copy of the Phase II or otherwise disclose or communicate the results of the Phase II to the Seller without the Seller's express written consent. The confidentiality obligation shall not apply to (x) information which becomes generally available to the public, other than as a result of a disclosure by Purchaser; (y) information which can be shown by Purchaser to have already been known to Purchaser on a nonconfidential basis prior to the commencement of the Phase II; or(z)information which becomes available to Purchaser on a nonconfidential basis from a third party not involved in the Phase II. In the event that Purchaser is requested or required (by oral questions, interrogatories, requests for information or documents, subpoenas, civil investigative demand or similar process) to disclose any of the information, it is agreed that Purchaser provide Seller with prompt notice of such request(s), so that Seller may seek an appropriate protective order or, if appropriate, waive Purchaser's compliance with the confidentiality obligation. It is further agreed that, if in the absence of a protective order or the receipt of a waiver hereunder, Purchaser is nonetheless, in the opinion of Purchaser's counsel, legally compelled to disclose the information, Purchaser may disclose such information to the extent legally required. 4 B. A precondition to Purchaser's obligation to consummate the purchase of the Real Estate is that Seller shall not file a petition in bankruptcy, make an assignment for the benefit of creditors, or otherwise declare itself to be insolvent, and shall not be the subject of an involuntary petition in bankruptcy or similar insolvency proceeding unless Seller reasonably persuades Purchaser that such involuntary proceeding will be vigorously contested and promptly dismissed or discharged. If there is more than one Seller, this provision shall apply to each Seller. C. A precondition to Purchaser's obligation to consummate the purchase of the Real Estate is that Seller delivers to Purchaser at Closing all documents and deliveries which Seller is required by the terms of Paragraph 8(B) of this Contract to deliver to Purchaser at Closing. D. A precondition to Purchaser's obligation to consummate the purchase of the Real Estate is that the Building and other Improvements shall be maintained by Seller. Seller shall maintain the Real Estate in its present condition, normal wear and tear excepted. E. A precondition to Purchaser's obligation to consummate the purchase of the Real Estate is that each representation and warranty made by Seller herein shall be true and complete in all material respects as of the Closing Date, and Seller shall not have failed to disclose any information necessary to make such representation or warranty, in light of the relevant facts and circumstances,not materially misleading. F. A precondition to Purchaser's obligation to consummate the purchase of the Real Estate is that Seller shall have complied with and performed all of Seller's representations and warranties as provided in Paragraph 12 hereof. G. A precondition to Purchaser's obligation to consummate the purchase of the Real Estate is that Purchaser has secured, within 21 days of the Date of Acceptance, a firm written commitment for a commercial loan in the amount of$800,000.00, or such lesser amounts that Purchaser shall accept, with all terms of said commercial loan acceptable to Purchaser in Purchaser's sole discretion(the "Loan Commitment"). Purchaser shall execute all documents and provide all information so that Purchaser's lender can issue the Loan Commitment and close the transaction. The Parties may mutually agree to extend the period to obtain the Loan Commitment. If Purchaser makes a good faith effort but is unable to obtain the Loan Commitment, then Purchaser may cancel the Contract in which event the Earnest Money shall be refunded to Purchaser and the Parties shall have no further rights or obligations hereunder. H. A precondition to Purchaser's obligation to consummate the purchase of the Real Estate is that the Real Estate appraise for not less than the Purchase Price, as determined by Purchaser's lender's appraiser; provided, however, that the appraisal shall be completed prior to the expiration of the Due Diligence Period. I. A precondition to Purchaser's obligation to consummate the purchase of the Real Estate is that Seller shall, within 10 Business Days of the Date of Acceptance, provide the documents listed in Exhibit B ("Due Diligence Materials"), attached hereto and made a part hereof,to Purchaser for review. 5 J. On or before the expiration of the Due Diligence Period, Purchaser may choose to cancel this Contract, and Purchaser may exercise this right by delivering notice of its election to do so to Seller prior to the end of the Due Diligence Period. Once Purchaser(1) restores the Real Estate, in a reasonable manner, to the condition which existed prior to any testing or other activities on the Real Estate which were undertaken by or through Purchaser, and (2) discharges all liens (as hereinafter defined) against the Real Estate resulting from Purchaser activities, the Earnest Money shall be returned to Purchaser. If Purchaser fails to terminate this Contract by giving written notice to Seller prior to the end of the Due Diligence Period, then Purchaser will be deemed to have waived its right to terminate this Contract under this Paragraph 4(J). If any one of the Purchaser Closing Conditions is not satisfied as of the date and time the Closing is scheduled to occur, and Seller has not terminated this Contract in accordance with the terms hereof, then Purchaser may: (i) terminate this Contract by written notice to Seller, in which case the Earnest Money shall be returned to Purchaser; (ii) waive such Purchaser Closing Conditions and proceed with the Closing; or (iii) if the Purchaser Closing Condition is not satisfied as a result of Seller's breach of this Contract, seek specific performance in accordance with Paragraph 17. 5. Seller's Conditions Precedent to Closing. Seller's obligation to consummate the transaction contemplated by this Purchaser is contingent upon all of the following conditions (the "Seller's Closing Conditions") being satisfied as of the date and time the Closing is scheduled to take place under Paragraph 8: A. Purchaser not being in default under this Contract, all of the representations and warranties made by Purchaser in this Contract being true, accurate and complete in all material respects as of the Closing Date. and Purchaser not having failed to disclose any information necessary to make such representation or warranty, in light of the relevant facts and circumstances, not materially misleading. B. Seller's receipt of the Purchase Price from Purchaser, subject to the prorations, credits and adjustments expressly provided for in this Contract. C. Purchaser not having filed a petition in bankruptcy, making an assignment for the benefit of creditors, or otherwise declaring itself to be insolvent, and not being the subject of an involuntary petition in bankruptcy or similar insolvency proceeding. D. Purchaser executing and delivering all of the documents required under Paragraph 8. If any one of the Seller Closing Conditions is not satisfied as of the date and time the Closing is scheduled to occur, and Purchaser has not terminated this Contract in accordance with the terms hereof, then Seller may: (i) terminate this Contract by written notice to Purchaser, in which case the Earnest Money shall be paid to Seller as the sole and exclusive remedy of Seller; or(ii)waive such Seller Closing Conditions and proceed with the Closing. Purchaser and Seller agree that the foregoing damages are reasonable given the circumstances now existing, including, but not 6 limited to, the range of harm to Seller that is reasonably foreseeable and the anticipation that proof of Seller's actual damages would be costly, impractical and inconvenient. 6. Pre-Closing Inspection. Seller and Purchaser shall conduct an inspection of the Real Estate for the purpose of confirming that the condition of the Real Estate is the same as on the date of this Contract, ordinary wear and tear excepted and as otherwise provided above. The inspection conducted pursuant to this Paragraph 6 shall be made at the latest reasonable time before the Closing Date. 7. Prorations and Credits. A. Calculation. All prorations to be made under this section"as of the Closing Date" shall be made as of the Closing Date, with the effect that Seller shall pay the portions of the expenses and receive the portions of the income to be prorated under this Contract which are allocable to periods prior to and including the Closing Date and Purchaser shall pay the portions of such expenses and receive the portions of such income which are allocable to periods after the Closing Date. B. Property Taxes. 1. Current Tax Period. The Real Estate is being purchased by a tax exempt unit of government and the Real Estate will be exempt from Property Taxes as of the Closing Date. The Seller shall enter an escrow agreement with the Escrow Agent under which Seller shall be responsible for all Property Taxes to become due and owing for any period prior to the Closing Date (the "Tax Escrow"). Seller represents and warrants that it shall fully indemnify Purchaser for any Property Taxes Purchaser is required to pay for Property Taxes accrued prior to the Closing Date. A fully executed copy of the the Tax Escrow shall be provided to Purchaser at the Closing as required by Paragraph 8.B.9.hereof. 2. Contest of Prior Periods. Seller agrees to cooperate and assist with any contest or appeal by Purchaser of the Property Taxes. The parties agree to prorate the costs thereof among them relative to the amount of time each will own the property during the period in which the assessment reduction shall remain in place. C. Utilities. Seller shall pay, when due, all charges for utilities furnished to the Real Estate prior to the Closing under any account maintained in Seller's name, and Seller shall be entitled to retain any utility deposits made by Seller which are refundable. Purchaser shall be responsible for making arrangements for the continuation of such utilities to the Real Estate on the Closing Date or within 3 days thereof. 8. Closing. 7 A. The consummation of the transactions described in this Contract ("the Closing") shall occur at such location, on such date ("the Closing Date"), and at such time as Seller and Purchaser shall agree, but no later than May 16, 2017, or as mutually agreed by the Parties in writing. B. At the Closing, Seller shall at Seller's expense deliver or cause to be delivered to Purchaser the following: 1. A Warranty Deed (the "Deed"), in a form reasonably acceptable to Purchaser, conveying the Real Estate to Purchaser, with Seller's warranties limited only by matters which are Permitted Exceptions, accompanied by evidence of the Commitment consistent with Paragraph 3 herein. 2. An affidavit of title, appropriately executed and acknowledged by Seller, stating that: a) Within 4 months preceding the Closing Date no improvements or repairs have been made in or to the Real Estate, nor any work done, which have not been fully paid for, no materials have been furnished or delivered to the Real Estate which have not been fully paid for, no contract has been made or entered into and nothing has been done, suffered, or permitted in relation to the Real Estate the consequence of which will cause any lien or claim of lien to be made against the Real Estate under the Mechanics Lien Act of the State of Illinois. b) No person or entity has a right or claim of right to occupy or be possessed of the Real Estate or any part or parts thereof other than Seller, whose rights will terminate as of the consummation of the Closing. C) Seller has done nothing on or subsequent to the effective date of the most current Commitment which would render inaccurate the status of title to the Real Estate as reported in such Commitment. 3. A non-foreign seller affidavit in accordance with the requirements of Section 1445 of the Internal Revenue Code of 1986, as amended. 4. Transfer tax declarations for the State of Illinois, County of Kendall, and any applicable municipality. The conveyance provided for herein is an exempt transaction pursuant to 35 ILCS 200/31-45(b)(1) and no real estate transfer taxes shall be payable to the State of Illinois, County of Kendall, or Purchaser as a consequence of the conveyance of the Real Estate. 5. An ALTA statement in duplicate and all other documents required by the Title Insurer to issue a policy of title insurance conforming to the requirements of this Contract. 8 6. Payoff letters from all holders of obligations, if any, secured by interests in the Real Estate, effective on the Closing Date. 7. Copies of plans of the Improvements, engineering reports, maintenance schedules and operating manuals, if any. 8. A bill of sale conveying all personal property remaining at the Real Estate to Purchaser. 9. A fully executed copy of the Tax Escrow between Seller and the Escrow Agent with terms acceptable to Purchaser. C. At the Closing, the Earnest Money shall be applied against the Purchase Price and Purchaser shall deliver or cause to be delivered to Seller, in the form of Good Funds as defined in the Illinois Title Insurance Act,the balance of the Purchase Price,plus or minus any prorations and adjustments provided for in this Contract D. Seller and Purchaser shall jointly prepare a Closing Statement reciting the Purchase Price and all credits,prorations, and adjustments thereto. E. At or prior to Closing, Seller shall deliver to Purchaser, to the extent available and in Seller's possession or control, originals of all warranties affecting any part of the Real Estate, licenses, permits, drawings, certificates of occupancy, authorizations, consents and approvals required by law and issued by any governmental authority having jurisdiction over the Real Estate and relating thereto, as well as originals of any Due Diligence Materials previously furnished as copies. F. 1) At Closing, Seller shall pay: (i) 50% of the fees charged by the Title Insurer to coordinate the Closing; (ii) the premium for the Owner's Title Policy, including the cost of extended coverage under the Owner's Title Policy; (iii)the cost of the survey; and(iv) all transfer taxes, documentary stamps, intangible taxes and surtaxes due, if any, in connection with the transfer of the Real Estate to Purchaser. 2) At Closing, Purchaser shall pay: (i) 50% of the fees charged by the Title Insurer to coordinate the Closing; (ii) the cost of any endorsements to the Owner's Title Policy requested by Purchaser or its lender; and (iii) all recording charges and other similar fees due in connection with the transfer of the Real Estate to Purchaser and the recording of the documents described in this Paragraph 8. 3) Except as otherwise expressly provided herein, Seller and Purchaser shall each be responsible for paying the attorneys' fees that it incurs in connection with the transaction contemplated by this Contract and all other costs and expenses incident to its negotiation of this Contract and to 9 their performance and compliance with all agreements contained herein on its part to be performed. In addition, Purchaser shall pay, prior to delinquency, all expenses incurred by Purchaser in connection with its due diligence with respect to the Real Estate (including, but not limited to, the cost of physical inspections, environmental assessments, zoning and permits reviews), and any financing obtained by Purchaser in connection with its acquisition of the Real Estate. 9. Possession. Seller shall deliver possession of the Real Estate to Purchaser as of the Closing Date. Possession of Improvements shall be delivered in broom-clean condition. Any property left on the Real Estate by Seller after that time shall be deemed abandoned and, at Purchaser's election, shall be sold or discarded. Purchaser shall be entitled to keep all proceeds of sale, if any, from any such property sold, and shall be reimbursed by Seller for any costs of removal and disposal of such property or debris. 10. Escrow. The transaction contemplated by the Agreement shall be closed by means of a Deed and Money "New York Style" Escrow at the office of the Title Insurer. The attorneys for the parties are authorized to sign the escrow instructions on behalf of the parties. This Contract shall not be merged into the escrow agreement but the latter shall be deemed auxiliary to this Contract, and as between the parties hereto, upon failure of the escrow or otherwise, the provisions of this Contract shall be controlling. The cost of the deed and money escrow shall be borne equally by Seller and Purchaser. Purchaser shall pay any escrow charges for money lender's escrow, if any. 11. Brokers. The parties represent that no brokers other than Jason Pesola of Commercial Affiliated (the "Broker") have been involved in this transaction. Seller is solely responsible for any commission due the Broker and will make payment according to the Agreement between Seller and Broker. 12. Seller's Representations and Warranties. Seller represents and warrants to Purchaser as of the Date of Acceptance: A. Seller is the sole and absolute owner of and has good and marketable title to the Real Estate. Upon consummation of the Closing, Purchaser shall have good and marketable title to the Real Estate free and clear of all liens, claims, and encumbrances. B. There are no pending or, to Seller's knowledge, threatened condemnation or eminent domain proceedings against all or any part of the Real Estate. 10 C. There are no notices, suits, or judgments relating to violations of fire, zoning, building, health, or other applicable codes, laws, and ordinances, or, to Seller's knowledge, any other matters, which may result in an obligation or liability of Purchaser after Closing or, to Seller's knowledge, which have created or might in the future create a lien against the Real Estate, that have not been corrected or disclosed in writing to Purchaser, nor are there any threats thereof which are known to Seller. D. There is no litigation or proceeding pending or, to Seller's knowledge, threatened against or relating to the Real Estate that has not been disclosed to Purchaser in writing. E. There are no special assessments affecting the Real Estate in effect or, to Seller's knowledge, contemplated. F. No person or entity other than Seller is entitled to use, possession, or occupancy of the Real Estate and, other than this Contract, no leases, options, listing agreements, or other agreements granting or giving a right, or which may cause Seller to become obligated to grant or give a right, to use, occupy, be possessed of, or manage the Real Estate, or any part or parts thereof, are executed or under negotiation. G. Environmental Matters. To Seller's knowledge, the Real Estate has not been used as a site for the use, generation, manufacture, storage, disposal, or transportation of any Hazardous Materials. The term "Hazardous Materials" shall mean any substance, material, waste, gas or particulate matter which is regulated by any local governmental authority, the State of Illinois, or the United States Government, including, but not limited to, any material or substance which is (a) defined as a "hazardous waste", "hazardous material", "hazardous substance", "extremely hazardous waste", or "restricted hazardous waste" under any provision of Illinois law, (b) petroleum, (c) asbestos, (d) polychlorinated biphenyl, (e) radioactive material, (f) designated as a "hazardous substance" pursuant to Section 311 of the Clean Water Act, 33 U.S.C. Sec.1251 et seq., (g) defined as a "hazardous waste" pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. 6901 et seq., or (h) defined as a "hazardous substance" pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. 9601 et seq. The term "Environmental Laws" shall mean all statutes specifically described in the foregoing sentence and all federal, state and local environmental health and safety statutes, ordinances, codes, rules, regulations, orders and decrees regulating, relating to or imposing liability or standards concerning or in connection with Hazardous Materials. 1. Seller represents and warrants that to the best of Seller's knowledge: (a) neither the Real Estate nor any part thereof is in breach of any Environmental Laws, and (b) the Real Estate is free of any Hazardous Materials that would trigger response or remedial action under any Environmental Laws or any existing common law theory based on nuisance or strict liability. If the foregoing representation is in any manner inaccurate or any such warranty is in any manner breached (collectively, a "Breach"), and if such 11 Breach gives rise to or results in liability(including, but not limited to, a response action, remedial action or removal action) under any Environmental Laws or any existing common law theory based on nuisance or strict liability, or causes a significant effect on public health, Seller shall promptly take any and all remedial and removal action as required by law to clean up the Real Estate, mitigate exposure to liability arising from, and keep the Real Estate free of any lien imposed pursuant to, any Environmental Laws as a result of such Breach. 2. Seller has received no notice that the Real Estate or any part thereof is, and, to the best of its knowledge and belief, no part of the Real Estate is located within an area that has been designated by the Federal Emergency Management Agency, the Army Corps of Engineers or any other governmental body as being subject to special hazards. H. To Seller's knowledge, the Land is not in a wetland or flood plain or otherwise subject to regulation by any federal, State, municipal, or governmental body or agency or subject to any act or regulation affecting flood plains or flood prone property. I. The execution, delivery, and performance of this Contract and the documents ancillary thereto by Seller have been authorized by all necessary corporate action required on the part of Seller. The individual executing this Contract on behalf of Seller has the authorization and direction of Seller to so execute and deliver this Contract and bind Seller to the provisions thereof and covenants and agreements contained herein. J. Each representation and warranty made by Seller herein is true and complete in all material respects. With respect to each representation and warranty made by Seller herein, Seller has disclosed all information and has not failed to disclose any information necessary to make such representation or warranty, in light of the relevant facts and circumstances, not misleading. 13. Purchaser's Representations and Warranties. Purchaser represents and warrants to Seller as of the Date of Acceptance: A. (i) Purchaser is an Illinois municipal corporation, duly organized, validly existing and in good standing under the laws of the State of Illinois, (ii) Purchaser has all power and authority necessary for it to execute and deliver this Contract and perform its obligations hereunder, and (iii) the execution, delivery and performance of this Contract by Purchaser does not conflict with or constitute a breach of any contract, agreement or other instrument by which Purchaser is bound; B. (i) the execution and delivery of this Contract by Purchaser and Purchaser's performance of its obligations under this Contract does not conflict with or result in a breach of any order, judgment, writ, injunction or decree of any court, arbiter or governmental instrumentality in any action to which Purchaser is a party as of the Date of Acceptance, (ii) the 12 individual executing this Contract on behalf of Purchaser has the authorization and direction of Purchaser to so execute and deliver this Contract and bind Purchaser to the provisions thereof and covenants and agreements contained herein, and (iii) this Contract and any documents executed by Purchaser pursuant to this Purchaser are binding and enforceable against Purchaser; C. Purchaser is not a party to any pending lawsuits or governmental proceedings that could have a material adverse effect on Purchaser's ability to perform its obligations under this Contract; D. Purchaser has not (i) filed any voluntary petition in bankruptcy or sought to reorganize its affairs under the Bankruptcy Code of the United States or any other federal, state or local law related to bankruptcy, insolvency or relief for debtors, (ii) been adjudicated as bankrupt or insolvent, or (iii) had an involuntary petition filed against it under the Bankruptcy Code of the United States or any other federal, state or local law related to bankruptcy, insolvency or relief for debtors; E. Purchaser's source of funds for the acquisition of the Real Estate will not involve any amounts that violate or would be subject to seizure under 18 U.S.C. §§1956-1957 (Laundering of Money Instruments), 18 U.S.C. §§ 981-986 (Federal Asset Forfeiture), 21 U.S.C. § 881 (Drug Property Seizure), Executive Order 13224, or the USA Patriot Act; and Each representation and warranty made by Purchaser herein is true and complete in all material respects. With respect to each representation and warranty made by Purchaser herein, Purchaser has disclosed all information and has not failed to disclose any information necessary to make such representation or warranty, in light of the relevant facts and circumstances, not misleading. Purchaser shall give Seller prompt notice of the occurrence of any event or the receipt by Purchaser of any notice or knowledge before the Closing Date of the effect of which would be to make a representation or warranty of Purchaser herein untrue or misleading if made on or immediately following the occurrence of such event or the receipt of such notice or knowledge. 14. [Intentionally Omitted] 15. Seller's Covenants. A. Seller shall give Purchaser prompt notice of the occurrence of any event or the receipt by Seller of any notice or knowledge before the Closing Date of the effect of which would be to make a representation or warranty of Seller herein untrue or misleading if made on or immediately following the occurrence of such event or the receipt of such notice or knowledge. B. Seller shall, after the Date of Acceptance, continue the ownership and operation of the Real Estate in its normal course and shall not incur any obligation or do any unusual act with respect to the ownership, management, operation, and maintenance of the Real Estate without prior notice to and consent of Purchaser and to undertake and carry out the transactions contemplated by this Contract. 13 C. Seller shall promptly notify Purchaser in writing of the occurrence of any enforcement, cleanup, removal, or other governmental or regulatory action instituted on or before the Closing Date pursuant to any statute, law, ordinance, regulation, or order of court governing or with respect to Hazardous Materials and of any claim made or threatened by any third party against Seller or the Real Estate relating to damage, contribution, cost recovery compensation, loss, or injury resulting from any Hazardous Materials. D. Seller will not enter into any leases with respect to the Real Estate from and after the date Seller signs this Contract without the express prior written consent of the Purchaser. 16. Casualty; Condemnation. A. A fire or other casualty which damages or destroys the Building or other Improvements or which otherwise damages or adversely affects the Real Estate shall not terminate this Contract unless Purchaser so elects as herein provided. Seller shall promptly notify Purchaser in writing of the nature of the casualty, the amount of insurance coverage, and the anticipated loss adjustment. Seller shall further promptly notify Purchaser in writing of the amount of the award which the insurer will pay in respect of such loss. If Purchaser so elects, the Closing shall be postponed pending Seller's receipt of such information so that Purchaser may preserve the right of termination herein provided. In the event of such casualty, the insurance proceeds in respect of such loss shall be applied in payment of part or all of the Purchase Price. Purchaser may elect to terminate this Contract by giving written notice thereof to Seller at any time after such casualty and prior to 7 days after receipt of Seller's written notice stating the amount of the award which the insurer will pay in respect of such loss. Purchaser's failure to give such written notice within such time shall be deemed a waiver of Purchaser's election to terminate this Contract. B. If Seller is notified by any governmental agency or authority that the Real Estate, or any part or parts thereof, will be condemned or otherwise taken under power of eminent domain, or if Seller learns that a condemnation or taking is contemplated by any governmental agency or authority, then Seller shall promptly give Purchaser written notice thereof including, with or in such written notice, a copy of the notice received by Seller or a description of the information learned by Seller. Within 5 days after Seller gives such notice to Purchaser, Purchaser shall, by written notice to Seller, elect either to rescind this Contract or to perform notwithstanding such condemnation or taking. If Purchaser elects to perform notwithstanding such condemnation or taking, then Purchaser shall be entitled to all proceeds paid by the applicable governmental agencies or authorities in respect thereof. Purchaser's failure to give such written notice of election within such time shall be deemed a waiver of Purchaser's right to rescind this Contract. 17. Rights Upon Default. A. No party shall be in default hereunder unless the party has been given written notice of the claimed violation; provided however, no such notice shall be required to be given to a party who has sought relief under the United States Bankruptcy Code, as amended, and from 14 time to time in effect (the "Code"). Upon being given such notice, the party claimed to be in violation shall be in default hereunder unless, within 10 days from the date of having been given such notice (or within such longer or shorter time as is elsewhere herein specified with respect to such violation), such party either establishes that there is no violation or commences correction of the conditions or circumstances giving rise to such violation and diligently pursues such correction thereafter. B. If Purchaser shall be in default hereunder in accordance with Section 17A, then Seller may terminate this Contract, in which event the Earnest Money shall be paid to Seller as liquidated damages and applied by Seller as full satisfaction for all reasonable attorneys' fees, title costs, advertising costs, Seller's lost time, effort and profits, and all other expenses incurred by Seller or on Seller's behalf, and this Contract shall thereupon terminate. C. If Seller shall be in material default hereunder in accordance with Section 17A, and the default occurs before Closing,then Purchaser may either: 1. terminate this Contract and receive a return of any Earnest Money, in which event Seller shall have no further obligations or liabilities under this Contract, or 2. enforce this Contract by specific performance. In the event Purchaser desires to bring an action for specific performance of this Contract, Purchaser must commence such action within 60 days after the date the Closing was scheduled to occur. Purchaser's failure to commence an action for specific performance within the period required shall constitute an irrevocable waiver of its right to bring the same. If Seller shall be in material default, and the default occurs after the Closing, then Purchaser may recover its reasonable, direct and verifiable damages; provided, however, that (i) in no event shall the Seller be liable for consequential damages, special damages, incidental damages, indirect damages, exemplary damages or punitive damages whatsoever (including, but not limited to, loss of profits or revenue, business interruption or loss of production, additional production costs, costs of capital, downtime costs, or other losses resulting from the failure of materials or services or noncompliance with any law, acts, codes or ordinances), however caused and by whomsoever alleged or incurred, and (ii) notwithstanding anything contained in this Contract or otherwise, Seller's total liability, whether arising from or based upon breach of warranty, breach of contract, tort, including the Seller's negligence, strict liability, indemnity, or any other cause or basis whatsoever, is expressly limited to the purchase price paid for the Real Estate. D. Tender of the deed or other document or documents of conveyance, or Purchase Price, as provided herein, shall be excused when there has been a material default by the other ply. 15 E. In the event that Seller shall file a petition seeking relief under the Code and shall thereafter, as debtor-in-possession or by action of a trustee appointed in the debtor's case, elect to assume this Contract, no such election shall be effective unless: (i) Purchaser has elected in writing to continue this Contract; (ii) all defaults of Seller under this Contract have been cured and Seller shall have promptly demonstrated to Purchaser, to Purchaser's reasonable satisfaction, Seller's ability to so effect such cure of all defaults; and (iii) Seller shall have delivered to Purchaser within 10 Business Days of Seller's election to assume this Contract, evidence acceptable to Purchaser in Purchaser's reasonable discretion, that Seller shall be able to comply with all of its obligations under this Contract. F. In the event that Purchaser shall file a petition seeking relief under the Code and shall thereafter, as debtor-in-possession or by action of a trustee appointed in the debtor's case, elect to assume this Contract, no such election shall be effective unless: (i) Seller has elected in writing to continue this Contract; (ii) all defaults of Purchaser under this Contract have been cured and Purchaser shall have promptly demonstrated to Seller, to Seller's reasonable satisfaction, Purchaser's ability to so effect such cure of all defaults; and (iii) Purchaser shall have delivered to Seller within 10 Business Days of Purchaser's election to assume this Contract, evidence acceptable to Seller in Seller's reasonable discretion, that Purchaser shall be able to comply with all of its obligations under this Contract. 18. Post-Closing Cooperation. The parties hereto agree that, after the Closing, they will at all times use their best efforts to cooperate with each other to effectuate the spirit and intent of this Contract including, without limiting the generality of the foregoing, the execution by Seller of documents reasonably requested by Purchaser to cause or complete the conveyance to Purchaser of title or the assignment of the exclusive right to use and occupy the Real Estate and other property to be conveyed to Purchaser hereunder. 19. Notices. Any notice, or any other communication required to be given hereunder, shall be in writing and shall be delivered to the other party either personally, or by overnight courier, or by messenger service or by e-mail. A party's address for notice shall be as set forth in this Paragraph unless such party gives notice of a change of address as provided herein. Notices to Seller shall be addressed to: Imperial Investments, LLC c/o Barbara Wroble, CFO 202 Boombah Blvd. Yorkville, IL 60560 Phone 630-385-7751 Fax 630-518-4173 with a copy given to Seller's attorney: Julie Schlichting 202 Boombah Blvd. Yorkville, IL 60560 16 Phone 630-988-2030 Julie.schlichting@boombah.com Notices to Purchaser shall be addressed to: United City of Yorkville c/o Bart Olson, City Administrator 800 Game Farm Rd. Yorkville, IL 60560 Phone 630-553-8537 bolson@yorkville.il.us with a copy given to Purchaser's attorneys: Kathleen Field Orr Kathleen Field Orr and Associates 53 West Jackson Blvd., Ste 964 Chicago, Illinois 60604 Phone 312.362.0000 Fax 312.362.0440 kfo@kfoassoc.com Notices to Escrow Agent shall be addressed to: A notice to a party shall be deemed given to the party when received by the party and the party's attorney. 20. Time for Performance; Counterparts; Entire Agreement; Partial Invalidity; Interpretation; Amendments; Time of the Essence; Binding on Successors and Assigns; Survival. A. If under the terms hereof the performance of any act will or is required to occur on a Saturday, Sunday, or a holiday recognized in Illinois as a day on which banking institutions are generally not open for business, then the performance of such act shall be made on the next day which is not a Saturday, Sunday, or holiday recognized in Illinois as a day on which banking institutions are generally not open for business. B. This Contract may be executed in counterparts, and each counterpart shall, for all purposes for which an original of this Contract must be produced or exhibited, be the Contract, but all such counterparts shall constitute one and the same agreement. C. This Contract contains the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior understandings, discussions, negotiations and representations, if any, with respect thereto. 17 D. The invalidity or unenforceability of any provision hereof shall not affect,modify, or impair the validity and enforceability of all other provisions hereof. E. The use of paragraph headings and of singular or plural, masculine, feminine or neuter nouns and pronouns is for convenience only and shall not affect the construction to be given any of the provisions hereof. This Contract shall be governed by and construed in accordance with the laws of the State of Illinois. F. This Contract may not be modified, terminated, or amended nor any of its provisions waived except by a written instrument signed by the parties. G. Time is of the essence of this Contract. H. This Contract shall be binding upon and inure to the benefit of the heirs, representatives, successors, and assigns of the parties hereto. I. This Contract and the representations, warranties, and covenants contained herein shall survive the Closing and shall not be deemed merged into any document of conveyance. J. The parties agree that all information obtained by either party regarding the other shall be deemed confidential and proprietary and shall not be disclosed without the approval of the entity to which such information relates. K. For purposes of this Contract, each of the following terms, when used with an initial capital letter, shall have the meaning ascribed to it as follows: "Affiliate" means any person or entity that owns or controls, is owned or controlled by, or is under common ownership or control with the party in question. As used in the preceding sentence, the term "control" (and its derivatives) shall mean the possession, directly or indirectly, of the power to direct the management and policies of an entity, whether through voting rights, by contract or otherwise. For the purposes of this Purchaser, any separate account or client for which Purchaser is sponsor, managing agent, asset manager or fund manager shall be deemed an"Affiliate"of Purchaser. "Business Days" means Monday through Friday, excluding federal holidays on which national banking associations in Greensboro,North Carolina are authorized to be closed. "Closing" means the closing and consummation of the purchase and sale of the Real Estate pursuant to this Purchaser. "Current Tax Period"means the tax year in which the Closing occurs. "Legal Requirements" means all applicable governmental laws, statutes, codes, ordinances,rules,regulations, orders,judgments and decrees. 18 "Property Taxes" means the real property taxes, personal property taxes and assessments (general and special,public and private) levied against the Real Property and the Personal Property. [SIGNATURE PAGE TO FOLLOW) 19 IN WITNESS WHEREOF, the parties hereto have executed this Contract at Yorkville, Illinois on or as of the date first above written. SELLER: ImperiaJI ?ets"W By: PURCHASER: United City of Yorkville By. /I/X/j,." -waimic, , Mff/ 20 ESCROW RECEIPT 1. Seller acknowledges receipt of this Contract on the.2 day of , 2017. 2. Seller acknowledges receipt of Earnest Money in the amount of$10,000 in the form of C w t , on the day of ,r/ , 2017. SELLER: Date: S` By: 21 EXHIBIT A Property Address: 102 E. Van Emmon Street,Yorkville, Illinois Property Identification Numbers: Legal Description: 22 LEGAL DESCRIPTION AND PIN LOT 2 IN OLD SECOND BANK BRIDGE STREET SUBDIVISION, BEING A SUBDIVISION IN THE EAST 1/2 OF SECTION 32 AND THE WEST 1/2 OF SECTION 33, TOWNSHIP 37 NORTH, RANGE 7, EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED MAY 30, 2012 AS DOCUMENT 201200009814 IN KENDALL COUNTY, ILLINOIS. PERMANENT TAX NUMBER: 02-33-157-014 i EXHIBIT B Due Diligence Materials 1. Copies of the last 3 years real estate tax bills and all documents relating to the assessment of the Real Estate and any contest thereof within the past 3 years. 2. A copy of any existing title insurance policies with copies of the documents affecting the Real Estate in Seller's possession, if available. 3. A copy of any existing"as built" surveys, if available. 4. Copies of all Use Permits, Building Permits, Certificates of Occupancy, ADA Compliance Plan and any other similar kinds of governmental approval and permits, if available. 5. Copies of all casualty, liability and other insurance policies, copies of any claims filed against such insurance companies, and companies of all insurance loss control reports; and copies of fire department inspection reports, if available. 6. Copies of all contracts relating to the Real Estate and in effect on the Date of Acceptance, including, but not limited to, management agreements, leasing commission agreements (especially relative to any unpaid current or future commissions), and service contracts, if available. 7. Copies of all existing environmental reports, notices and studies relating to environmental, soil, geological and ground water conditions or the presence of any toxic or hazardous substances, including asbestos,if available. 8. Flood hazard certification, if available. 23