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Economic Development Packet 12-15-05 ( o United City of Yorkville fp,:„. 800 Game Farm Road EST.IN . : 1836 Yorkville, Illinois 60560 a Iii Telephone: 630-553-4350 Fax: 630-553-7575 frit CE Lv). AGENDA ECONOMIC DEVELOPMENT COMMITTEE MEETING Thursday, December 15, 2005 7:00 p.m. City Hall Conference Room REVISED: 12/15/05 1. Approval/Correction of Minutes: November 17, 2005 2. EDC 2005-01 SSA Tax Policy 3. EDC 2005-08 Building Permit Report for October 2005 4. EDC 2005-07 Feasibility of Relocating Overhead Power Lines to Underground 5. EDC 2005-03 Kendall County Transportation Development Fees Draft Agreement 6. EDC 2005-09 Façade Improvement Agreement 7. PC 2005-52 Kleinwatcher— Annexation and Zoning 8. Additional Business Page 1 of 3 ECONOMIC DEVELOPMENT COMMITTEE Thursday,November 17,2005 7:00 pm City Hall Conference Room Present: Mayor Art Prochaska Tony Scott, Kendall County Record Alderman Joe Besco Stephanie DeHainaut AIderman Marty Munns Jim DeHainaut Alderwoman Valerie Burd Michael Kranse, MPI Communities Finance Director Tracy Pleckham Art Zwempke, Robert Arthur Land Co. City Attorney John Wyeth Sharon Leifheit Coldwell Banker Kelly Kramer Jennie Leifheit, CB Primus Realty Mary Ann Schafer, Coldwell BankerScott Harmon Unde Harmon Barb Celler, Coldwell Banker Jeann Martinez John Phillipchuck, Moser Enterprises Sharon Wiley, Coldwell Banker Carla Hill, Coldwell Banker Kevin McCanne, Speer Financial Peter Raphael, William Blair Janice VanRiper, VanRiper Insurance Agency Lynn Dubajic, YEDC John Purcell, Kendall County Paula Wilkinson, Kettley Realtors Brenda Wicker Scott Harmon Steve Wicker The meeting was called to order at 7:00 pm by Chairman Munns. 1. Approval/Correction of Minutes: September 15, 2005 4. PC 2005-51 Van Riper Insurance Agency—Rezoning 708-710 N. Bridge Street - This is a duplex on Rt. 47. The petitioner would like to be rezoned as B! For an Insurance Agency. The Plan Commission meeting had 1 person who spoke opposed to the change. The concern was for parking and access. There was also question about whether this was illegal spot zoning. There are other B3 uses in the vicinity. The property is surrounded by R4. The plan Commission voted 2 in favor and 3 against. There is not usually much traffic in and out of an Insurance Agency. The building would be kept the same. This will move on to COW. 5. PC 2005-49 Oak Grove Subdivision— 1 1/2 Mile Review—There was a question about the cul-de-sac becoming a road connection. The smallest lot is 27,000 square feet with 30,000—36,000 being the average size lots and the largest lot is more than 40,000 square feet. This will move on to COW. 2. EDC 2005-01 SSA Tax Policy—Scott Harman spoke about the confusion the tax creates. It is actually set up as a loan would be with interest and a lien on the property. There is very little disclosure required. Prospective buyers may not be aware of the SSA tax, and therefore the price of the home is not competitive, and not clear. He would like to see a listing price disclosure on the SSA lien amount. He was not given an amount,he was given a payment schedule. He would also like to see a disclosure about what the SSA funds. Page 2 of 3 John Purcell said an SSA is not more affordable, it is similar to a non-SSA in cost. John Purcell asked what happens if the homeowner can't pay the tax. Are the homeowners forced into foreclosure? An SSA distorts the market because the price of the home appears to be less. If the home was priced higher,the schools and the city would get taxes based on the higher price, and that would be more money for the county, the city and the schools. John Butler talked about the 6.875% SSA rate in Raintree village imposed in September of 2003. The average mortgage rate at this time was 4.9%. John Butler wanted to know why the city would allow float funding nearly double what the homeowners would be able to get. The Bonds are tax free to the Bond holders. There is a management fee of$12,000 per year to manage the bonds. If there was no SSA, that service would not be needed. To be able to compare the true value of an SSA home vs. a non-SSA home is very difficult. The salespeople don't bring up the SSA. Alderman Besco pointed out that last year the Aldermen were looking for more information about SSAs. Alderman Besco asked if the foreclosure rate is higher on homes with an SSA. Carla Hill is an agent at Coldwell Banker/Primus Realty in Plano. She said the lender she spoke to sees the SSA as a tax and the borrower must qualify for both the house and the tax. An appraiser she spoke with said an SSA makes it very hard to find the value of the home. She also asked why a homeowner would pay off the tax if they were not going to live there for the next 30 years. Marianne Schaffer from Coldwell Banker?Primus Realty in Yorkville said some lenders do not consider the cost of the SSA tax into the prospective home buyer's debt ratio. Mayor Prochaska said the cities are asking the developers to fund more things up front. An SSA bond would be financing that would allow the developer to fund these things. A man spoke about the SSA's in Montgomery. He said 13 homes went to a tax sale at the county out of 735. This is 2%. He had heard nothing about foreclosures but rumors. Art Zwempke worked on the SSA for Grande Reserve. It was a privately held development. With the SSA financing and allocating resources wisely,the developer was able to fund building the school without the referendum. An SSA allows a 30 year payback. A Bank would want the money back in 2—3 years. The tax on undeveloped land is paid by the developer. It would be nice to have a requirement that the consumer be informed. Also there could be requirements for SSA's. The improvements the SSA funds could be limited. This will come back to EDC in December. 3. EDC 2005-02 Draft Economic Incentives Policy to Attract Commercial/Industrial Business to Yorkville—Lynn Dubajic's only question was on Page 2 and Page 4 under incentive parameters. What was the meaning of Public improvements completed on a grant basis? It will now read Public improvements completed on a specified basis. This will go on to COW. Page 3 of 3 6. EDC 2005-03 Kendall County Transportation Development Fees Draft Agreement—John Purcell said the money Yorkville collects for transportation would be spent on roads within the city limits or roads that Yorkville residents will use. This will be revised for Yorkville. Fran at the county will need some information before it can be revised. This will come back to EDC for discussion. 7. EDC 2005-04 Feasibility of Relocating Overhead Power Lines to Underground— This was requested to be postponed until December EDC. 8. Additional Business—Alderwoman Burd requested that a discussion about the facade agreement be put on next month's agenda. She would like to know what kind of recourse there would be if an owner would do something not in the facade agreement after the grant is given. Alderman Munns said a subdivision is requesting a name change from Cornerstone to Briarwood. This will move on to COW. The meeting was adjourned at 9:10 pm. Minutes submitted by Laura Leppert. 4 STATE OF ILLINOIS ) Ebe„ Jcc,5 -c i )ss COUNTY OF KENDALL ) - - RESOLUTION NO. 2002- U`1 RESOLUTION APPROVING SPECIAL TAX BOND POLICY WHEREAS, the UNITED CITY OF YORKVILLE is experiencing substantial growth for residential, commercial, manufacturing, and industrial uses which require the installation of substantial infrastructure to the City and related tax bodies; and WHEREAS,the need for substantial installation of infrastructure has generated extra ordinary costs over and above those normally associated with the development of real property within the City limits; and WHEREAS, the City if desirous of providing that the cost of infrastructure be borne as much as possible from private funding sources, so as not to constitute a burden on its existing citizens; and WHEREAS, the Illinois Legislature has approved various private funding mechanisms know as Special Tax Service Areas (SSA) and Special Tax Assessment Areas (SAA), but not limited thereto, and there may be future types of private funding mechanisms created which will inure to the benefit of the UNITED CITY OF YORKVILLE and private property owners to provide private funding mechanisms for purposes of creating a fund for payment and construction of infrastructure improvements; and WHEREAS, the UNITED CITY OF YORKVILLE through the services of private Consultants has done a study to determine the applicability of said private funding mechanisms to the creation, design, andconstruction of infrastructure improvements within the UNITED CITY OF YORKVILLE; and WHEREAS, the City Council of the UNITED CITY OF YORKVILLE deems it in the best interest of the City, its Citizens, and as an acceptable method of providing the financing for the construction of various infrastructure improvements; and WHEREAS, the City is further desirous of providing that said infrastructure improvements will be constructed and financed with no recourse on the underlying bond obligations to the UNITED CITY OF YORKVILLE: NOW THEREFOR upon Motion duly made, seconded, and approved by those so voting the Special Tax Bond Policy attached hereto and incorporated herein by reference is hereby adopted and it is RESOLVED by the City Council of the UNITED CITY OF YORKVILLE that said Special Tax Bond Policy shall be the guideline structure to determine the applicability of those private funding mechanism indicated above and within the Special Tax Bond Policy to be used in the UNITED CITY OF YORKVILLE to fund infrastructure improvements. MIKE ANDERSON JOSEPH BESCO VALERIE BURR PAUL JAMES LARRY KOT MARTY MUNNS ROSE SPEARS RICHARD STICKA p APPROVED �y1byme, as Mayor of the United City of Yorkville, Kendall County, Illinois, this da of �! ( A.D. 20 • d-/� /.,. YOR ile PASSED by the City Council of the United City of Yorkville, Kendall County, Illinois this c /./Say of Mr4\--( i , A.D. 20`:q" _ \ e CIT LERK • Law Offices of Daniel J. Kramer 1107A S. Bridge Street Yorkville, Illinois 60560 630.553.9500 Draft updated 3/20/02 United City of Yorkville SPECIAL TAX BOND POLICY General Statement: In order to provide more comprehensive public infrastructure for projects undertaken in the City and to help projects meet or exceed the desired standards and guidelines of Yorkville, it is the desire of the City to consider issuing Special Tax Bonds as a municipal financing instrument. The Special Tax Bonds shall be issued as either Special Service Area Bonds (35 ILCS 200/27-5) or Special Assessment Bonds (65 ILCS 5/9-1-1) (the "Bonds"). Such Bonds shall finance public infrastructure for defined areas where the burden of the tax or assessment is limited to that specific area. The City will not be liable or responsible for, nor will it pledge any general obligation or other City revenue for, the repayment of such Special Tax Bonds. The Bonds shall be repaid only from a tax or assessment on the benefited property. No other taxpayers are obligated to pay this special tax. Eligible Infrastructure Costs: The City will consider the issuance of Special Tax Bonds for the following public costs associated with a proposed project: • Water mains, laterals and qualified water storage and production facilities • Sewer interceptors, mains & laterals • Sewer treatment facilities • Roads including signaling • Right of way landscaping &curbs • Engineering and related professional fees • Walking paths & sidewalks • Park improvements • Offsite land acquisition cost for storm water& detention improvements including regional or multi-party storm water management use • Certain connection fees • Certain mass grading costs • Certain pro-rata costs for police, fire and/or public works facilities related to the project 1 Draft updated 3/20/02 All such costs shall pay for public improvements that are either owned by the public or are the subject to permanent public easements. All such costs shall be reviewed and approved by the City and its bond counsel and financial advisor before issuance. Eligible Projects: The City will consider such Bonds for housing, retail, commercial, office and/or industrial projects. Realizing that there is an expenditure of time and effort on the part of the City and its professionals, the City requests that a qualified bond underwriter review all Special Tax Bond proposals for reasonableness and marketability before the formal presentation to the City. The City may further and likely will, hire the services of an independent financial consultant to review the terms of any Special Tax Service Area or Special Assessment Area Bonds, advising the City of the appropriateness of the issue, the marketability, and providing financial advice to the City. Further, the City shall seek an independent Bond Counsel to issue a Legal Opinion Letter ensuring that the City has no direct liability or residual liability on said Bonds. All the consulting fees incurred by the City whether for legal services or independent financial consulting shall be reimbursed to the City out of the Bond proceeds, at the first draw down upon said bonds. Policies & Procedures: All normal and regular City ordinances, policies, procedures and • subdivision control standards shall be followed and required of the proposed project. The City reserves the right to suspend or stop discussion or proceedings concerning Special Tax Bonds at anytime. 2 Page 1 of 1 n Liz D'Anna ' 6: • 01- From: Wendy Yaksich [wyaksich@moserenterprises.com] Gni Sent: Wednesday, December 14, 2005 5:50 PM To: bolson@yorkville.il.us; Liz D'Anna Cc: jfp@dbcw.com; John Philipchuck; Mike Krause Subject: Letter on SSAs for EDC Meeting Liz/Bart- We have prepared a letter for distribution to the EDC for consideration at Thursday's meeting. We would appreciate any help you can provide in distributing this letter to Committee members in advance of the meeting. Otherwise, we will plan on handing out the letters to members at the meeting tomorrow night. Thanks- Wendy Wendy Yaksich Land Acquisition and Planning Moser Enterprises 300 E. 5th Avenue, Suite 430 Naperville, IL 60563 630/420-3078 12/15/2005 M♦P•I COMMUNITY December 14,2005 Economic Development Committee United City of Yorkville 800 Game Farm Road Yorkville, a, 60560 Dear Economic Development Committee Members: This letter is in response to the Yorkville Economic Development Committee's November 17th meeting regarding the future of Special Service Area bond financing in new residential developments. At this meeting, various members of the City Council, residents of Yorkville and real estate industry representatives discussed the pros and cons of allowing future developments to apply for SSA financing. While MPI Communities acknowledges the concerns voiced at this meeting, it is our position that consideration of a blanket denial of future SSA communities, as suggested by some participants,is unwarranted. Many of the issues voiced at the meeting are related to the "newness" and relative complexity of SSAs. However, with increased awareness and continued education, SSA developments can and will provide future public benefit as evidenced by Grande Reserve. Additionally, MPI strongly believes that effective communication and careful management of the SSA is critical to successful implementation. Listed below is a summary of the key issues raised by committee members and meeting attendees and MPI's response regarding how these issues can be addressed. Concern: Two residents expressed concern that builders avoid discussion of the SSA until the buyer is close to signing a contract. One resident indicated that they were aware of a buyer in a Yorkville subdivision that was not made aware of the SSA tax until after signing the contract. MPI Response: MPI and our builder partners recognize the importance of educating consumers and disclosing information prior to contract negotiations. All of Grande Reserve's builders have a contractual obligation to have home buyers sign an SSA acknowledgement form when contracts are signed. MPI has recently held meetings with Grande Reserve builder sales staff to reiterate the importance of proper disclosure in a timely manner. Grande Reserve builders are provided with an ample supply of SSA brochures and other information including how to contact the developer or SSA Administrator with questions. 300 E. 5th Avenue, Suite 430, Naperville, IL 60563 630/420-3000 12/14/05 Page 2 of 3 Concern: Realtors and consumers need better education and information regarding SSAs to ensure clarity. MPI Response: In addition to the preparation of the SSA brochure and general information for the public and our builder sales teams, we have been working to educate the realtor/broker community. MPI has sponsored focused sessions with Peter Raphael, and our builders have also held meetings with members of the realtor community. We acknowledge continued efforts are required. MPI will be collaborating with John Greene Realtor in early 2006 on an SSA training seminar for their realtors. Expert panelists will present information and field questions regarding SSA disclosures,payments, etc. Our hope is that the realtor community will act as the catalyst for a greater understanding of SSAs in Yorkville and beyond. SSA trained realtors will be able to better inform their clients and will raise the overall comfort level and awareness of consumers. Concern: One resident was concerned that the SSA payment on his home increased more than the maximum 1.5% from one year to the next. MPI Response: This is a common misconception. Increases in annual SSA payments are capped by the Maximum Special Tax defined by city ordinance.For instance, the Maximum Special Tax will increase by exactly 1.5% per year, but recall that the 1.5% annual increase refers only to the maximum payment. As more and more residents move into an SSA community and other factors such as the capital reserve, a homeowner's annual payment may be less than the maximum. For example, a homeowner may pay less than the maximum payment in 2006. In 2007,due to factors mentioned above,the homeowner may be required to pay the maximum tax. The result is an annual payment that increased more than 1.5% from 2006 to 2007. It is important to remember that the guaranteed 1.5% annual increase is based on the maximum payment from one year to the next. The homeowner can be assured that their maximum payment will not increase more than 1.5%for the length of the obligation. Concern: There are no real benefits to SSAs. MPI Response: We strongly believe that the SSA at Grande Reserve has made positive and lasting impacts that will be enjoyed by Yorkville residents for years to come. MPI agrees with one member of the committee who stated, "Grande Reserve is a model" for SSA developments. MPI Communities applauds the positive impact that SSA financing has had on Grande Reserve and its benefit to Yorkville. The availability of the SSA to cover significant upfront development costs in Grande Reserve freed up other funds that were utilized for improvements such as roadways, the clubhouse and aquatic center and the development of parks sites. 12/14/05 Page 3 of 3 Grande Reserve's Aquatic Center and central park facilities were constructed well in advance of any residents moving in to the community. The SSA also freed up capital to allow the construction of the onsite elementary school without a tax referendum for capital needs. (MPI recognizes that a referendum will still be required for operating expenses associated with this new school) Concern: The marketplace has yet to accept and embrace SSAs communities. MPI Response: Based on data collected from MetroStudy's 3rd Quarter 2005 Report, a leading industry traffic and sales information source, Grande Reserve was the leading traffic producer in the region which includes Yorkville, Oswego, Plainfield, and Joliet. Additionally, Grande Reserve was the runner-up in total sales contracts for the 3rd Quarter in the same region. We are confident that the amenities and improvements created at Grande Reserve through the SSA have been embraced by the regional marketplace. MPI requests that the Economic Development Committee and City Council of the United City of Yorkville continue consideration of SSAs on a case-by-case basis. The diligent use of SSAs in future Yorkville developments can assist the City in securing borders, extending utilities to properties in need of public services and expanding schools to meet demand — all while freeing up capital to construct schools and parks, clubhouses and other amenities. MPI shares your concern of consumer and realtor education and disclosure, and are committed to addressing them proactively. It is our goal to foster the growth and success of Grande Reserve, and we would ask that you remain open to future SSA developments. Very Truly Yours, MPI Communities WY161641 John P. Zediker President BUILDING PERMIT REPORT United City of Yorkville Department of Building Safety October 2005 ........................................................ Types of Permits P l 2-Fami Y - Number of Permits Issued SFD eeb;„;b 2005 Multiple-Family Commercial Industrial Miscellaneous Total Construction Cost 1 Perunt,=t Structure October 2005 105 36 0 0 0 0 69 $14,853,926.00 Calendar Year 2005 1073 383 5 0 36 0 644 $98,025,411.00 Fiscal Year 2005 756 257 0 0 20 0 479 $64,350,955.00 October 2004 77 29 0 0 2 0 46 $6,708,500.00 Calendar Year 2004 2 904 407 3 0 14 1 478 $83,130,252.00 Fiscal Year 2004 632 275 0 0 11 1 345 $58,104,657.00 October 2003 82 36 0 0 2 0 44 $5,787,914.00 Calendar Year 2003 3 785 300 12 6 29 1 437 $81,145,414.00 Fiscal Year 2003 570 204 9 6 21 0 330 $57,367,013.00 October 2002 56 24 1 0 2 0 29 $5,650,007.00 Calendar Year 2002 4 710 1 245 5 4 36 1 419 $55,670,838.00 Fiscal Year 2002 469 150 3 2 20 1 293 $28,792,609.00 October 2001 53 23 1 0 3 0 24 $6,904,279.00 Calendar Year 2001 s 388 159 8 4 15 2 239 $43,647,282.00 Fiscal Year 2001 316 115 7 3 12 2 175 $33,849,862.00 z Permit Number 1-05-0012 was voided,thus only 1073 of 1074 assigned permit numbers were actually used 2 Permit Number 1-04-097 and 1-04-098 were issued for each side of a duplex,only 1 structure was built 3 Permit Number 1-2003-324 was voided,thus only 785 of 786 assigned permit numbers were actually issued. V Permit Numbers Y-2002-034,Y-2002-467,and 1-2002-579 were voided,thus only 710 of 713 assigned permit numbers were actually issued;and the SFD permit issued in August as 1-2002-579 was voided and reissued as 1-2002-691 in October. 1 v To maintain a correct count,it shall remain on the August 2002 count. 5 Permit Number 01385 was for 6 Attached SFDs,reissued as Permits 01385A,B,C,D,E,and F;and Permit Number 01259 was for 4 Attached SFDs;reissued as Permits 01259A,B,C,and D. t p Vv Note: Miscellaneous permits include such items as additions,remodelling,sheds,decks,RPZs,and municipal projects. ♦,��D CJr Reviewed By: OT Legal ElCity Council 1. EST.litv a 1836 Finance ❑ Engineer ❑ L W . City Administrator ❑ Agenda Item Tracking Number O Consultant ❑ �- � ' C 7 SCE 0" City Council Agenda Item Summary Memo Title: Feasibility of relocating overhead power lines to underground City Council/ COW/ Committee Agenda Date: EDC—Dec. 15th, 2005 Synopsis: Discussion of policy to require relocating overhead utility lines to underground Council Action Previously Taken: Date of Action: Action Taken: Item Number: Type of Vote Required: N/ A Council Action Requested: N / A—Postponed to January EDC Submitted by: Bart Olson Admin Name Department Agenda Item Notes: Items for discussion regarding this project will be presented at the January EDC meeting. Staff has met with ComEd officials on the policy; ComEd will be providing a simple cost estimate for power lines located on Rt. 47 for the January EDC meeting. From there, a policy decision on whether or not to expand the scope of services or the project area should be discussed. �*1 Ciro United City of Yorkville Memo J '�' 800 Game Farm Road EST. a,% ""toy 1836 Yorkville, Illinois 60560 -.6 �� �� Telephone: 630-553-4350 •stFax: 630-553-7575 Date: December 13, 2005 To: Mayor and Economic Development Committee From: Lisa Pickering, Office Assistant The following agenda item was not available at the time packets were produced - EDC #5 — Kendall County Transportation Development Fees Draft Agreement. This item will be distributed in a supplemental packet as soon as it is ready. If you have any questions, please contact City Attorney John Wyeth. qz"<03 Cir o United City of Yorkville Memo '" 800 Game Farm Road EST. " ' - '.1836 Yorkville, Illinois 60560 _� - _ Telephone: hone: 630-553-4350 9 - \ CO Fax: 630-553-7575 $94CE `NV Date: December 13, 2005 To: Mayor and Economic Development Committee From: Lisa Pickering, Office Assistant The following agenda item was not available at the time packets were produced - EDC #6 –Façade Improvement Agreement. This item will be distributed in a supplemental packet as soon as it is ready. If you have any questions, please contact City Attorney John Wyeth. Eye " =`�Eit� c',r® United City of Yorkville Memo rik, ��, -61 _ '" 800 Game Farm Road EST. °` 1836 Yorkville, Illinois 60560 ,� -� Telephone: 630-553-4350 o� I,o f p. Fax: 630-553-7575 4CE 0.-°` Date: December 15, 2005 To: Mayor and Economic Development Committee From: Lisa Pickering, Office Assistant CC: Department Heads Subject: Additional information for Economic Development packet—December 15, 2005 Attached please find information on EDC Item#6—Façade Improvement Program. Please add this information to your EDC packet. ik`4.0 co). United City of Yorkville Memo , r- � 800 Game Farm Road EST.kw 1836 Yorkville, Illinois 60560 Telephone: hone: 630-553-4350 ® o Fax: 630-553-7575 r..d.2 county 4Lo4LE ,‘> Date: December 15, 2005 To: Economic Development Committee Members From: John Justin Wyeth, City Attorney CC: John Crois, City Administrator Subject: Façade Improvement Agreement Please find with this memo the following: 1. First Draft of an Agreement to be used with the Façade Improvement Program 2. Additional including language that would be included at Section 6 to provide for reimbursement if the Façade was either not maintained, or changed within a 5 year period. The Draft was submitted to me by Alderman Burd, and I have not made any changes pending your review and comment. It is my suggestion that the agreement concept be discussed at the December 15, 2005 EDC meeting. Thereafter, I can add comments and ideas, and the final Draft can be returned to the January EDC meeting for approval and forward to COW. United City of Yorkville Facade Improvement Agreement THIS AGREEMENT, entered into this day of , 19 between the United City of Yorkville, Illinois (hereinafter referred to as "City") and the following designated OWNER/LESSEE, to wit: Owner/lessee's name: Name of business: Tax ID #1 Social security #: Address of property to be improved: PIN Number: WITNESSETH: WHEREAS, the City has established a Facade Improvement Program for application within the City of Yorkville's corporate limits; and WHEREAS, said Facade Improvement Program is administered by the City with the advice of the Review Committee and is funded from the general fund for the purposes of controlling and preventing blight and deterioration within the City limits; and WHEREAS, pursuant to the Facade Improvement Program the City has agreed to participate, subject to its sole discretion, in reimbursing Owners/Lessees for the cost of eligible exterior improvements to commercial establishments within the City Limits for up to a maximum of 50% of the approved contract cost of such improvements; and WHEREAS, the Owner/Lessee's property is located within the Corporate limits of the United City of Yorkville, and the Owner/Lessee desires to participate in the Facade Improvement Program pursuant to the terms and provisions of this Agreement. NOW, THEREFORE, in consideration of the mutual covenants and agreements obtained herein, the City and the Owner/Lessee do hereby agree as follows: SECTION 1: With respect to façade improvements to the front and side of a building and related eligible improvements, the City shall reimburse Owner/Lessee for the cost of improvements to the Owner/Lessee's property at the rate of up to fifty per cent (50%) of such cost, providing that the Owner/Lessee has spent at least $1,000 on the improvement project. With respect to improvements to rear entrance(s) of a building and related eligible improvements, the City shall reimburse Owner/Lessee for the cost of improvements to the Owner/Lessee's property at the rate of up to 50% of such cost, providing that the Owner/Lessee has spent at least$1,000 on the improvement project. The actual total reimbursement amounts per this Agreement shall not exceed $ for façade improvements to the front and side of a building and related eligible improvements and $ for improvements to rear entrance(s) of a building and related eligible improvements. The improvement costs which are eligible for City reimbursement include all labor, materials, equipment and other contract items necessary for the proper execution and completion of the work as shown on project plans, design drawings, specifications and estimates approved by the City. Such plans, design drawings, specifications and estimates are attached hereto as Exhibit I. SECTION 2: No improvement work shall be undertaken until its design has been submitted to and approved by the Review Committee. Following approval, the Owner/Lessee shall contract for the work and shall commence and complete all such work within six months from the date of such approval. SECTION 3: The City Building and Zoning inspector shall periodically review the progress of the contractor's work on the façade improvement pursuant to this Agreement. Such inspections shall not replace any required permit inspection by the Building and Zoning officer. All work which is not in conformance with the approved plans, design drawings and specifications shall be immediately remedied by the Owner/Lessee and deficient or improper work shall be replaced and made to comply with the approved plans, design drawings and specifications and the terms of this Agreement. SECTION 4: Upon completion of the improvements and upon their fmal inspection and approval by the City Building and Zoning Inspector, the Owner/Lessee shall submit to the Review Committee a properly executed and notarized contractor statement showing the full cost of the work as well as each separate component amount due to the contractor and each and every subcontractor involved in furnishing labor, materials or equipment in the work. In addition, the Owner/Lessee shall submit to the Review Committee proof of payment of the contract cost pursuant to the contractor's statement and fmal lien waivers from all contractors and subcontractors. The Owner/Lessee shall also submit to the Review Committee a copy of the architect's statement of fees for professional services for preparation of plans and specifications. The Review Committee shall, within fifteen days (15) of receipt of the contractor's statement, proof of payment and lien waivers, and the architect's statement, issue a check to the Owner/Lessee as reimbursement for up to one-half of the approved construction cost estimate, subject to limitations set forth in Section 1 hereof. In the alternative, at its sole discretion, the City may reimburse Owner/Lessee in two payments. The first reimbursement may be made only 1) upon completion of work representing 40% or more of the maximum reimbursement specified in Section 1 hereof and 2) upon receipt by the Review Committee of the architect's invoices, contractor's statements, invoices, proof of payment and notarized final lien waivers for the completed work and 3) upon a determination by the City's Building and Zoning Inspector that the remainder of the work is expected to be delayed for 30 days or more following completion of the initial work due to weather, availability of materials, or other circumstances beyond the control of the Owner/Lessee. The second, final reimbursement payment shall be made by the City only upon submittal of all necessary documents as described herein. SECTION 5: If the Owner/Lessee or his contractor fails to complete the improvement work provided for herein in conformity with the approved plans, design drawings and specifications and the terms of this Agreement, then upon written notice being given by the Review Committee to the Owner/Lessee, by certified mail to the address listed above, this Agreement shall terminate and the financial obligation on the part of the City shall cease and become null and void. SECTION 6: Upon completion of the improvement work pursuant to this Agreement and for a period of five (5)years thereafter, the Owner/Lessee shall be responsible for properly maintaining such improvements in finished form and without change or alteration thereto, as provided in this Agreement, and for the said period of five (5) years following completion of the construction thereof, the Owner/Lessee shall not enter into any agreement or contract or take any other steps to alter, change or remove such improvements, or the approved design thereof, nor shall Owner/Lessee undertake any other changes, by contract or otherwise, to the improvements provided for in this Agreement, unless such changes are first submitted to the Review Committee for approval. Such approval shall not be unreasonably withheld if the proposed changes do not substantially alter the original design concept of the improvements specified in the plans, design drawings and specifications approved pursuant to this Agreement. Owner/Lessee shall execute and record a restrictive covenant, in a form substantially the same as"Exhibit II"hereto, at City's request. SECTION 7: The Owner/Lessee releases the City from, and covenants and agrees that the City shall not be liable for, and covenant and agrees to indemnify and hold harmless the City and its officials, officers, employees and agents from and against, any and all loses, claims, damages, liabilities or expenses, of every conceivable kind, character and nature whatsoever arising out of, resulting from or in any way connected directly or indirectly with the façade improvement(s), including but not limited to actions arising from the Prevailing Wage Act (820 ILCS 30/0.01 et seq.). The Owner/Lessee further covenants and agrees to pay for or reimburse the City and its officials, officers, employees and agents for any and all costs, reasonable attorneys' fees, liabilities or expenses incurred in connection with investigating, defending against or otherwise in connection with any such losses, claims, damages, liabilities, or causes of action. The City shall have the right to select legal counsel and to approve any settlement in connection with such losses, claims, damages, liabilities, or causes of action. The provisions of this section shall survive the completion of said façade improvement(s). SECTION 8: Nothing herein is intended to limit, restrict or prohibit the Owner/Lessee from undertaking any other work in or about the subject premises which is unrelated to the façade improvement provided for in this Agreement. SECTION 9: This Agreement shall be binding upon the City and upon the Owner/Lessee and its successors, to said property for a period of five (5) years from and after the date of completion and approval of the façade improvement provided for herein. It shall be the responsibility of the Owner/Lessee to inform subsequent Owner(s)/Lessee(s) of the provisions of this Agreement. IN WITNESS THEREOF, the parties hereto have executed this Agreement on the date first appearing above. OWNER/LES SEE UNITED CITY OF YORKVILLE Mayor N U 0 EL:. cnH H d Facade Improvement Agreement, First Draft: Section 6: Add: The parties agree that should Owner/Lessee fail to maintain or change the improvement work for the 5 year period as required buy this Section 6,then Owner/Lessee shall reimburse the City a portion of the total amounts paid under this agreement as follows: Year in which the failure to maintain or change occurs % of amount to be reimbursed First Year after Completion (Months 1-12) 100% Second Year after Completion(Months 13 -24) 80% Third Year after Completion (Months 25 -36) 60% Fourth Year after Completion (Months 37-48) 40% Fifth Year after Completion (Months 49-60) 20% Said promise shall be included in the covenant, and shall be an obligation against the land.