Ordinance 2011-45 STATE OF ILLINOIS
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THIS IS A COVER PAGE
FOR RECORDING PURPOSES ONLY
Memorandum of Understanding
between the United City of Yorkville and Wesley Property Corp
Prepared by: Kathleen Field Orr&Associates
53 W.Jackson Blvd., Suite 935
Chicago,IL 60604
Return to: United City of Yorkville
800 Game Farm Road
Yorkville,IL 60560
Ordinance No. 2011- q5,
ORDINANCE APPROVING A MEMORANDUM OF UNDERSTANDING
BETWEEN THE UNITED CITY OF YORKVILLE
AND WESLEY PROPERTY CORP.
WHEREAS, the City is a non-home-rule municipality pursuant to the Illinois Municipal
Code and Article VII, Section 7 of the Constitution of the State of Illinois of 1970; and,
WHEREAS, Wesley Property Corp. is an Illinois corporation ("Wesley") and the owner
of real estate in the City (the "Property") which was the subject of a Development/Economic
Incentive Agreement by and between Wesley and the City (the "Original Agreement") providing
for the construction of an addition to the facility on the Property on the condition that Wesley
receive a rebate of a portion of the sales tax generated from businesses operating at the Property
as reimbursement for certain "Reimbursable Improvements" as defined in the Original
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Agreement; and,
WHEREAS, Wesley has now received an offer to purchase the Property by a company
which would bring potential for business expansion and new job opportunities for the residents
of the City and has offered the City a substantial reduction of the amount owed to Wesley
pursuant to the Original Agreement on the condition that the City pay the entire balance due and
owing in a lump sum under the terms and conditions as set forth in the Memorandum of
Understanding attached hereto.
NOW, THEREFORE, BE IT ORDAINED by the Mayor and City Council of the
United City of Yorkville, Kendall County, Illinois, as follows:
Section 1. That the Memorandum of Understanding between the United City of
Yorkville and Wesley Property Corp. is hereby approved in the form attached to this Ordinance;
and, the Mayor and City Clerk are hereby authorized to execute same. Further, the City
Administrator and City Finance Director are hereby directed to proceed with the implementation
of its terms.
Section 2. This Ordinance shall be in full force and effect immediately upon its passage
by the Mayor and City Council and approval as provided by law.
United City of Yorkville, Kendall County, Illinois, this a3 day of
A6161 G451 , A.D. 2011.
CHRIS FUNKHOUSER GEORGE T. GILSON, JR.
CARLO COLOSIMO V _ DIANE TEELING _
JACKIE MILSCHEWSKI MARTY MUNNS I—
ROSE SPEARS LARRY KOT
APPROVED by me, as Mayor of the United City of Yorkville, Kendall County, Illinois,
this 19 day of JFQrEMbfP, , A.D. 2011.
Mayor
Attest
City Clerk
MEMORANDUM OF UNDERSTANDING
BETWEEN THE UNITED CITY OF YORKVILLE
AND WESLEY PROPERTY CORP
THIS MEMORANDUM OF UNDERSTANDING is entered into this ,30 day of
u5' , 2011, by and between the United City of Yorkville, Kendall County, Illinois, a
municipal corporation (hereinafter referred to as "City") and Wesley Property Corp., an Illinois
corporation (hereinafter referred to as "Developer").
WITNESSETH:
WHEREAS, the City is a non-home-rule municipality pursuant to the Illinois Municipal
Code and Article VII, Section 7 of the Constitution of the State of Illinois of 1970; and,
WHEREAS, Wesley Property Corp. is an Illinois corporation and the owner of real
I
estate located west of Route 47, north of Cannonball Trail on Wheaton Avenue in Yorkville,
Illinois (the "Property"); and,
WHEREAS, pursuant to Section 8-11-20 of the Illinois Municipal Code (65 ILCS 5/8-
11-20) (the "Enabling Statute") the City entered into a Development/Economic Incentive
Agreement on February 22, 2005, with the Developer recorded with the Kendall County
Recorder's Office as Document No. 200500012261 (the "Original Agreement") which provided
for the construction of an addition to the facility on the Property on the condition that the
Developer receive a rebate of a portion of the sales tax generated from businesses operating at
the Property as reimbursement for certain "Reimbursable Improvements" as defined in the
Original Agreement, in an estimated amount of$719,275 plus simple interest thereon at the rate
of 5%per annum on the unpaid amount; and,
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WHEREAS, as of August 23, 2011, the Developer and the City acknowledge that there
remains $382,505.27 due and owing as committed in the Original Agreement; and,
WHEREAS, the Developer has now received an offer to purchase the Property by a
company which would bring potential for business expansion and a substantial increase in job
opportunity to the residents of the City and has offered the City a substantial reduction of the
amount owed to it pursuant to the Original Agreement on the condition that the City pay the
entire balance due and owing within ten (10) days of the execution of this Memorandum of
Understanding as hereinafter set forth; and,
NOW, THEREFORE, in consideration of the Preambles set forth above and other good
and valuable consideration, the sufficiency of which is hereby acknowledged, the Developer and
the City mutually agree as follows:
1. Incorporation of Recitals. The Preambles set forth above are incorporated herein
by reference as if fully restated.
2. The City and the Developer agree that currently, pursuant to the Original
Agreement, the City owes the Developer for costs for Reimbursable Improvements of
$382,505.27 pursuant to the Original Agreement which amount shall be reduced to $322,505.27
upon payment by the City and receipt by the Developer of said amount in a single lump sum
payment within ten (10) days of execution of this Memorandum of Understanding.
3. The Developer covenants and agrees upon receipt of$322,505.27 in a single lump
sum payment from the City, all obligations of the City pursuant to the Original Agreement shall
have been paid in full and forever satisfied and the Developer upon receipt of said sum shall
waive and forever release the City from any and all claims, charges or demands, it may have
against the City, its officers, agents and employees pertaining to the Property; reimbursement of
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principal and/or interest for the cost of any Reimbursable Improvement; any term or agreement
of the Original Agreement; or, any other matter referenced therein or relevant thereto. Within
five (5) days following payment and receipt of aid lump sum payment as provided herein, but not
prior to said payment and receipt, the City shall, at its expense, record this Memorandum with
the Kendall County Recorder's office, thereby verifying the satisfaction and release of all
obligations and covenants under, and the termination of,the Original Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Memorandum of
Understanding by and between the United City of Yorkville and Wesley Property Corp. to be
executed by their duly authorized officers on the above date at Yorkville, Illinois.
United City of Yorkville, an Illinois municipal
Corporation
By:
Mayor t---N
Attest:
City Clerk
W ey Property Corp.
By:
\I-
ltsTAident
Atte
Secretary
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EXHIBIT "A"
LEGAL DESCRIPTION
LOT 3, EXCEPT THE WEST 796.00 FEET THEREOF, IN FINAL PLAT OF
YORKVILLE BUSINESS CENTER SUBDIVISION, BEING A SUBDIVISION OF
PART OF THE WEST HALF OF SECTION 16 AND PART OF THE EAST HALF OF
SECTION 17 AND ALSO BEING A RESUBDIVISION OF WHEATON
SUBDIVISION, ALL IN TOWNSHIP 37 NORTH, RANGE 7 EAST OF THE THIRD
PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED
OCTOBER 10, 2000 AS DOCUMENT NO. 200000013808, IN KENDALL COUNTY,
ILLINOIS.