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HomeMy WebLinkAboutOrdinances - 21-60 - 11/01/2021 - Abating Taxes - JessupCITY OF MCHENRY MCHENRY COUNTY STATE OF ILLINOIS Ordinance 21-60 An Ordinance and Agreement among certain Taxing Bodies Authorizing the Abatement of Taxes on Certain Property Within the City of McHenry Passed by the Mayor and City Council Of the City of McHenry McHenry County State of Illinois November 1, 2021 Published in pamphlet form by authority of the Mayor and City Council of the City of McHenry, McHenry County, Illinois this 2"d day of November, 2021. ORDINANCE NO.21-60 An Ordinance and Agreement among certain Taxing Bodies Authorizing the Abatement of Taxes on Certain Property Within the City of McHenry WHEREAS, the City of McHenry, McHenry County, Illinois, is a home rule municipality as contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the passage of this Ordinance constitutes an exercise of the City's home rule powers and functions as granted in the Constitution of the State of Illinois; WHEREAS, on or about November 18, 2019, the City and Jessup Manufacturing Company entered into a Real Estate Tax Abatement and Incentive Agreement ("Agreement") for property located at 2815 W. Route 120, McHenry, Illinois and assigned property identification tax numbers of 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 and 09-36-102-018 (collectively, the "Property"), and legally described in the Agreement, a copy of which is attached Exhibit A; WHEREAS, title to the Property is held by Jessup McHenry Enterprises LLC, and the real estate tax bills for the Property are mailed to Jessup McHenry Enterprises LLC, 3023 Ellice Way, Naples, Florida 34119-1603;and WHEREAS, the governing bodies of the following taxing bodies previously met and have approved the real estate tax abatement referenced in paragraph 2 of the Agreement: McHenry Township; City of McHenry, McHenry Township Road and Bridge District; McHenry Township Fire Protection District; McHenry Public Library District; McHenry District 156; and McHenry County College District 528. School District 15 and the McHenry County Conservation District are not participating in this abatement and the County of McHenry has entered into a separate agreement with Jessup McHenry Enterprises, LLC. NOW, THEREFORE, BE IT ORDAINED by the CITY COUNCIL of the CITY OF McHENRY, McHenry County, Illinois, as follows: SECTION 1: Pursuant to the terms of the Agreement, beginning with the 2021 tax year, the McHenry County Clerk is directed to annually abate for five (5) years (2021-2025) the property tax of all of the following taxing bodies, for the Property referenced in Exhibit A, exceeding each respective taxing body's proportional share totaling $32,371.45 of the 2018 base year total liability of $74,828.38 as follows: Participating Taxing Body Authority Base Year Tax City of McHenry 4,570.54 McHenry Township 797.41 McHenry Township Road and Bridge District 1,686.05 McHenry Township Fire Protection District 3,603.90 McHenry Public Library District 2,067.43 McHenry District 156 17,259.49 McHenry County College District 528 2,386.63 Proportionate Base Year Tax Cap 32,371.45 Jessup Abatement, Page 1 After year five (5), this direction for abatement shall expire on its own and taxes shall be fully assessed for the Property. SECTION 2: If any section, paragraph, subdivision, clause, sentence or provision of this Ordinance shall be adjudged by any Court of competent jurisdiction to be invalid, such judgment shall not affect, impair, invalidate or nullify the remainder thereof, which remainder shall remain and continue in full force and effect. SECTION 3: All ordinances or parts of ordinances in conflict herewith are hereby repealed to the extent of such conflict. SECTION 4: This Ordinance shall be in full force and effect upon its passage, approval and publication in pamphlet form (which publication is hereby authorized) as provided by law. Passed this 1 st day of November, 2021. Ayes Alderman Devine x Alderman Glab x Alderman Harding x Alderman McClatchey _ Alderwoman Miller x Alderman Santi x Alderman Strach x A V*/ - Wayne ett, Mayor Nays Absent x Abstain 7-%'a . Monte Johnson, Deputy City Clerk Jessup Abatement, Page 2 CERTIFICATION I, Monte Johnson, do hereby certify that I am the duly appointed, acting and qualified Deputy Clerk of the City of McHenry, McHenry County, Illinois, and that as such Clerk, I am the keeper of the records and minutes and proceedings of the Mayor and Aldermen of said City of McHenry. I do hereby further certify that at a regular meeting of the Mayor and Aldermen of the City of McHenry, held on the I" day of November, 2021, the foregoing Ordinance entitled An Ordinance and Agreement among certain Taxing Bodies Authorizing the Abatement of Taxes on Certain Property Within the City of McHenry, was duly passed by the City Council of the City of McHenry. The pamphlet form of Ordinance No. 21-60 including the Ordinance and a cover sheet thereof, was prepared, and a copy of such Ordinance was posted in the City Hall, commencing on the 2nd day of November 2021, and will continue for at least 10 days thereafter. Copies of such Ordinance are also available for public inspection upon request in the office of the City Clerk. I do further certify that the original, of which the attached is a true and correct copy, is entrusted to me as the Clerk of said City for safekeeping, and that I am the lawful custodian and keeper of the same. GIVEN under my hand and seal this 2nd day of November 2 02 1. 1a. ')'0, - Monte Johnson, De uty City Clerk City of McHenry, McHenry County, Illinois (SEAL) 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: 3: 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� F 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 _ . / �a 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 °� ° °bb b i �� b $ ° a •� � `o �q� o $ • •: . ail$ xI^ € � 3 a • a 6 •of bcl E of Uzi, &a a~ E �, 0 w •Joe 0 y Y onip o� ' b « 5 op E t g _ w ••- 0� ° � t � � 15 Is A Et °° a vs so +_ r t . I i fig. �� o - Q. 0 zj 0 0�� W fi - Y f d po -. w W w 0 Os Lll °it! d i s W .r �s ��� � a� $�� o �a� �F$ � �a� `bbo � � �� • ss ''N %.. � � �° � . Ali ll I •El D w ° • onw € • t awe Ail i PSI 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 �,,, .•.,........,,•• IPA, 31` .. O Z:\M\McHenryCityof\EasementsRouteI20\AbatementAgreemenUessup.doc '"t r MY 4 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: u. s 9