HomeMy WebLinkAboutOrdinances - 21-60 - 11/01/2021 - Abating Taxes - Jessup Jessup Manufacturing Company
Real Estate Tax Abatement and Incentive Agreement
I
This Economic Incentive Agreement ("Agreement") is entered into by and between the
City of McHenry, McHenry County, Illinois("City"),
(collectively "Taxing Bodies") and Jessup
Manufacturing Company("Developer").
Recitals
A. Whereas, the Taxing Bodies and the City have the power and authority to enter
into this Agreement pursuant to the provisions of Article VII, Section 10 of the Illinois
Constitution of 1970 and the Illinois Intergovernmental Cooperation Act, ILCS 220/1 et seq.;
B. Whereas, the Subject Property, 2815 W. Route 120, legally described on Exhibit
A attached hereto and incorporated herein, is identified as nine tax parcels more or less and
contains an approximately 50,200 square foot one-store building;
C. Whereas,the total 2018 Equalized Assessed Evaluation of the Subject Property is
$652;950;
D. Whereas, the City and Taxing Bodies desire to promote commercial growth,
facilitate redevelopment and provide business retention services within the City;
E. Whereas,the Taxing Bodies and the City play a vital role in achieving defendable
and sustainable incentives for new development which will in turn support future tax relief for
the citizens of the City;
F. Whereas, the City and the Taxing Bodies mutually agree to cooperative
participation with the understanding that either party may participate at will with any and all
Incentives offered to an individual business under this Agreement;
G. Whereas,this Agreement is made pursuant to 35 ILCS 200/18-184;
H. Whereas, each of the Taxing Bodies are taxing districts within Illinois;
I. Whereas, the Developer proposes construction of an approximately 35,000
square-foot addition ("Addition");
J. Whereas, the City and Taxing Bodies find that Developer's construction of the
Addition on the Subject Property will 1) create and enhance existing and additional business
opportunities within the City; 2) improve the image of the City; 3) increase annual property
taxes of all of the Taxing Bodies; 4) create or retain job opportunities within the City; 5) further
the development of adjacent area; 6) strengthen the commercial sector of the City; and 7) is
generally in the best interest of each the Taxing Bodies;
K. Whereas, but for the economic incentives contained in this Agreement,
Developer would likely not have gone forward with construction of the Addition; and
L. Whereas, the Taxing Bodies have worked cooperatively to promote the
economic growth in the community as a whole.
NOW, THEREFORE, in consideration of the foregoing and the covenants hereinafter set
forth, it is mutually agreed as follows:
1. Limitation of City Responsibilities. Other than the limited Real Estate Tax
Abatement made pursuant to this Agreement, the City and the Taxing Bodies shall have no
obligation to incur any expense associated with Developer.
2. Procedure for Abatement. Upon execution of this Agreement, the City shall
adopt an ordinance attaching a fully executed copy of this Agreement requiring the McHenry
County Clerk to abate that portion of the real estate taxes on the Subject Property that exceed
the 2018 base amount of$74,828.35. This abatement shall apply annually in each of the five
years following the first year in which real estate taxes are abated ("Property Tax Abatement
Term"). Thereafter, no abatement shall be applied, and the City and all Taxing Bodies shall be
entitled to receive 100%of the Real Estate Tax Revenue generated by the Subject Property,
3. Clawback Provision. Developer agrees to repay all Property Tax Abatements
referenced in this Agreement to the Taxing Bodies if Developer ceases its business operation in
the City, at the Subject Property, during the term of this Agreement. Ceasing business
operation shall be defined as the permanent closure of the building on the Subject Property for
a period of six (6) or more consecutive months prior to the end of the Property Tax Abatement
Term.
4. No Other Obligations. Other than property taxes pursuant to this Agreement,
the City and Taxing Bodies shall have no obligation to incur any expense,share any revenue or
abate any property tax associated with Developer,their business or the Subject Property.
2
. I
5. Governing Law, Waiver and Notices. The laws of the County of McHenry, the
State of Illinois, shall govern this Agreement and the sole and exclusive venue for any disputes
arising out of this Agreement shall be the Twenty-Second Judicial Circuit, McHenry County,
Illinois. Any notices required in this Agreement shall be effective when in writing and three
days after mailing by certified mail, return receipt requested, or by delivering the same in
person or to any officer of such party or private overnight courier, when appropriate, addressed
to the party to be notified.
All notices to the City shall be sent to:
City Administrator
City of McHenry
333 S. Green Street
McHenry, IL 60050
With a copy to:
David W. McArdle
Zukowski, Rogers, Flood &McArdle
50 Virginia Street
Crystal Lake, IL 60014
All notices to Property Owner shall be sent to:
Robert Jessup
2815 W. Illinois Route 120
McHenry, IL 60051
or to such other address as a party may designate for itself by notice given from time to time to
the other parties in the manner provided herein.
6. Remedies. In the event of a breach of any of the terms and conditions of this
Agreement, the non-breaching party shall have the right to terminate this Agreement. In
addition, the non-breaching party shall have the right, by any action or proceeding at law or in
equity, to secure the specific performance of the covenants and agreements herein contained,
may be awarded damages for failure of performance, or both. The foregoing rights and
remedies shall be cumulative and not exclusive. The prevailing party in any action related to
this Agreement shall be entitled to recover its reasonable attorney's fees incurred against the
non-prevailing party.
3
7. Entire Agreement. This instrument contains the entire agreement between the
parties with respect to the transaction contemplated in this Agreement.
8. Amendment. This Agreement may not be amended, altered or revoked at any
time, in whole or In part, unless such changes are agreed to in writing and signed by all of the
parties to this Agreement.
9. Successors. This Agreement shall be binding on the parties, and their respective
successors,assigns, heirs and legal representatives.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date
first above written.
City of McHenry Developer
By By
e Jefi, Mayor Robert Jessu
Taxing Bodies
Z;\M\McHeiuyCityotlEasetnentsRoutel20WbatementAgrecinentJessup.doe
4
McHenry Township Road and Bridge
Name:
Si ure; �
Title:
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Date: ���11�
OFFICIAL SEAL €
JACOUELINE WAGNER
Attested; l.2l.- NOTARY PUBLIC-STATE OF ILLINOIS
r I Ll
MY COMMISSION EXPIRES:07/23/20
Date: f l�
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10
McHenry Township Fire Protection District
Name: N
Signature:,
Title: (P
Date:
Attested:
Date: �" 1
5
McHenry Public Library District
Name: .0-1gMc.s C.• l�z
Signature: C.
Title: �..�1tieu,.�lut cI.Jlrct ,d`� y
Date: 7-1(o-o?D lit 'fir QA d".,
Attested: c w4,- ,
Date: 71 <<P I�o t 9
13
McHenry District 156
Name: (,'jA4j?Aj
Signat
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Title: S p NT
Date:
Attested:
Date:
8
McHenry County College District 528
Name: linton E. Gabbard
Signature:
Title: President
Date: 11-4-19
Attested: Mary Cornett
Date: 11-4-19
11
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PARCEL 1: LOTS 12 AND 13 (EXCEPT THAT PART OF TOT 13 AS CONVEI'ED TO THE STATE OF ELIINA
DEPARTMENT OF TRANSPORTATION IN TRUSTEE'S DEED RECORDED AS DOCUMENT 92R=73 AS FOLLOWS;
BEOWt% AT THE NORTHERNW CM OF LOT A THENCE ON AN ASSUMED BEARING OF SOUT1'L 50
DEGREES 45 MUTES 33 SECONDS WEST ALONG THE NCRMTERLY LINE OF LOT 13 A DISTANCE OF 20.42
FEET; THENCE SOUTH 75 DEGREES 11 MINUTES 55 SECONDS EAST ALONG A LINE PARALLEL MITH THE
CENTERK G UWS ROUTE 120 A DISTANCE OF 19.93 FEET TO A POINT ON AN EASTERLY LIFE OF THE
LM OF THE GRANTOR; THENCE NORTH 10 DEGREES 50 MUTES 14 SECONDS VOT ALONG SAM
EASTERLY LINE W4 FEET TO THE POINT OF BE6 NG) N BLOCK 7 IN EDGEWATER SUBDIVISION„ A
S'UBMSION OF PART OF THE NORTHWEST FRACTIOc1AL QUARTER OF SECTION A V P 45 NORTH,
RANG 4 EAST OF THE THIRD MWAL MERIDIAN ACCORDING TO THE PLAT THEREOF RECORDED JULY
A1920 AS DOCUMENT NO. 4H M N BOOK 4 OF PUTS, PAGE 19 N NCHW COUNTY, 6lUNOIS.
PARCEL 2: A PARCEL. OF LAND LYING EASTERLY FROM AND ADJOINING LOT 13 IN BLOCK 7 ACCORDING TO
THE PLAT OF BOATER MVtSION, A S<SYM OF PART OF THE 0140 FRAC10AL QUARTER
OF SECTION 36 TOWNSHIP 45 NORTH, RANGE 8, EAST OF THE THIRD PWAL MAN ACCiMG TO THE
PLAT THEREOF RECORDED JULY 28, 1920 AS DOCUMENT NO. OR IN BOOK 4 OF PLATS, PAGE 19
DESCRIBED AS FMLf.OWS: BEG1tN W AT THE MOST NORTHERLY CORNER OF SAID LOT; THENCE SOUVXY
ALONG THE EASTERLY BOUNDARY OF SAID LOT 13� A DISTANCE OF 150 FEET TO THE SOUTHEAST OORNER
THEREOF; THENCE NORTHEASTERLY ON A LINE FORMING AN ANGLE OF 6'DEGREES 14 MOTES TO THE RI{;IfT
FROM THE EASTERLY BOUNDARY OF LOT 13 AFORESAID, FOR A DISTANCE OF 76.2 FEET TO A POINT;
THENCE NORTHWESTERLY ON A LINE FOWNG AN ANGLE OF 12 DEGREES 31 MUTES TO THE LEFT, WITH A
PROLONGATION OF THE LAST DMM Lam, FOR A DISTANCE OF 74.8 FEET TO THE PUT OF BEGNNIK
IN MOM COUNTY, LJNX
6
EXHIBIT A
09-36-102-009
09-36-103-015
09-36-127-013
09-36-103-013
09-36-127-007
09-36-103-014
09-36-127-010
09-36-102-002
09-36-102-018
Jessup Manufacturing Company
Real Estate Tax Abatement and Incentive Agreement
This Economic Incentive Agreement ("Agreement") is entered into by and between the
City of McHenry, McHenry County, Illinois ("City"), McHenry Township (collectively "Taxing
Bodies") and Jessup Manufacturing Company ("Developer").
Recitals
A. Whereas, the Taxing Bodies and the City have the power and authority to enter
into this Agreement pursuant to the provisions of Article VII, Section 10 of the Illinois
Constitution of 1970 and the Illinois Intergovernmental Cooperation Act, ILCS 220/1 et seq.;
B. Whereas, the Subject Property, 2815 W. Route 120, legally described on Exhibit
A attached hereto and incorporated herein, is identified as nine tax parcels more or less and
contains an approximately 50,200 square foot one-store building;
C. Whereas, the total 2018 Equalized Assessed Evaluation of the Subject Property is
$652;950;
D. Whereas, the City and Taxing Bodies desire to promote commercial growth,
facilitate redevelopment and provide business retention services within the City;
E. Whereas, the Taxing Bodies and the City play a vital role in achieving defendable
and sustainable incentives for new development which will in turn support future tax relief for
the citizens of the City;
F. Whereas, the City and the Taxing Bodies mutually agree to cooperative
participation with the understanding that either party may participate at will with any and all
incentives offered to an individual business under this Agreement;
G. Whereas, this Agreement is made pursuant to 35 ILCS 200/18-184;
H. Whereas, each of the Taxing Bodies are taxing districts within Illinois;
I. Whereas, the Developer proposes construction of an approximately 35,000
square-foot addition ("Addition");
J. Whereas, the City and Taxing Bodies find that Developer's construction of the
Addition on the Subject Property will 1) create and enhance existing and additional business
opportunities within the City; 2) improve the image of the City; 3) increase annual property
taxes of all of the Taxing Bodies; 4) create or retain job opportunities within the City; 5) further
the development of adjacent area; 6) strengthen the commercial sector of the City; and 7) is
generally in the best interest of each the Taxing Bodies;
K. Whereas, but for the economic incentives contained in this Agreement,
Developer would likely not have gone forward with construction of the Addition; and
L. Whereas, the Taxing Bodies have worked cooperatively to promote the
economic growth in the community as a whole.
NOW, THEREFORE, in consideration of the foregoing and the covenants hereinafter set
forth, it is mutually agreed as follows:
1. Limitation of City Responsibilities. Other than the limited Real Estate Tax
Abatement made pursuant to this Agreement, the City and the Taxing Bodies shall have no
obligation to incur any expense associated with Developer.
2. Procedure for Abatement. Upon execution of this Agreement, the City shall
adopt an ordinance attaching a fully executed copy of this Agreement requiring the McHenry
County Clerk to abate that portion of the real estate taxes on the Subject Property that exceed
the 2018 base amount of $74,828.35. This abatement shall apply annually in each of the five
years following the first year in which real estate taxes are abated ("Property Tax Abatement
Term"). Thereafter, no abatement shall be applied, and the City and all Taxing Bodies shall be
entitled to receive 100%of the Real Estate Tax Revenue generated by the Subject Property.
3. Clawback Provision. Developer agrees to repay all Property Tax Abatements
referenced in this Agreement to the Taxing Bodies if Developer ceases its business operation in
the City, at the Subject Property, during the term of this Agreement. Ceasing business
operation shall be defined as the permanent closure of the building on the Subject Property for
any period of time prior to the end of the Property Tax Abatement Term.
4. No Other Obligations. Other than property taxes pursuant to this Agreement,
the City and Taxing Bodies shall have no obligation to incur any expense, share any revenue or
abate any property tax associated with Developer, their business or the Subject Property.
5. Governing Law, Waiver and Notices. The laws of the County of McHenry, the
State of Illinois, shall govern this Agreement and the sole and exclusive venue for any disputes
2
arising out of this Agreement shall be the Twenty-Second Judicial Circuit, McHenry County,
Illinois. Any notices required in this Agreement shall be effective when in writing and three
days after mailing by certified mail, return receipt requested, or by delivering the same in
person or to any officer of such party or private overnight courier, when appropriate, addressed
to the party to be notified.
All notices to the City shall be sent to:
City Administrator
City of McHenry
333 S. Green Street
McHenry, IL 60050
With a copy to:
David W. McArdle
Zukowski, Rogers, Flood & McArdle
50 Virginia Street
Crystal Lake, IL 60014
All notices to Property Owner shall be sent to:
Robert Jessup
2815 W. Illinois Route 120
McHenry, IL 60051
or to such other address as a party may designate for itself by notice given from time to time to
the other parties in the manner provided herein.
6. Remedies. In the event of a breach of any of the terms and conditions of this
Agreement, the non-breaching party shall have the right to terminate this Agreement. In
addition, the non-breaching party shall have the right, by any action or proceeding at law or in
equity, to secure the specific performance of the covenants and agreements herein contained,
may be awarded damages for failure of performance, or both. The foregoing rights and
remedies shall be cumulative and not exclusive. The prevailing party in any action related to
this Agreement shall be entitled to recover its reasonable attorney's fees incurred against the
non-prevailing party.
7. Entire Agreement. This instrument contains the entire agreement between the
parties with respect to the transaction contemplated in this Agreement.
3
8. Amendment. This Agreement may not be amended, altered or revoked at any
time, in whole or in part, unless such changes are agreed to in writing and signed by all of the
parties to this Agreement.
9. Successors. This Agreement is not assignable or transferrable by the Developer.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date
first above written.
City of McHenry Developer
By Y l/ lS' l°I By
a n Jett/MaY or Date Robert Jess u Date
McHenry Township
Date
B , its Supervisor
OF Mc�Fti
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McHenry Township
Name: (2)69 - Qv9-x)6
Signature:
O' x�72 0,�
Title:
Date: OFFCK
c OENISE MM
Attested: _ rN)TAW U M-STATEOFILLINOIS
W COMMISSION EXPIRES:05/17/22
Date:
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9