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Ordinance 2011-45 STATE OF ILLINOIS )SS d E-E IB 1-'4 1 T rE. I- E COUNTY OF KENDALL C J' L,L-E D A,- L COUNTT, i,E'&V'1 9/21/201110:14 AM S&bO RN'SPS FEE: i0.00 BASES:C' 5: 5 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 i 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, i 1 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 2 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 3 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.