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HomeMy WebLinkAboutOrdinances - 24-28 - 06/17/2024 - Agreement with Advance Real Estate Management CITY OF MCHENRY MCHENRY COUNTY STATE OF ILLINOIS Ordinance 24-28 AN ORDINANCE AUTHORIZING THE MAYOR'S EXECUTION OF AN MEMORANDUM OF AGREEMENT BETWEEN ADVANCE REAL ESTATE MANAGEMENT LLC AND THE CITY OF MCHENRY Passed by the Mayor and City Council Of the City of McHenry McHenry County State of Illinois June 17, 2024 Published in pamphlet form by authority of the Mayor and City Council of the City of McHenry, McHenry County, Illinois this 18th Day of June 2024 ORDINANCE NO. 24-28 AN ORDINANCE AUTHORIZING THE MAYOR'S EXECUTION OF AN MEMORANDUM OF AGREEMENT BETWEEN ADVANCE REAL ESTATE MANAGEMENT LLC AND 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. NOW, THEREFORE, BE IT ORDAINED by the CITY COUNCIL of the CITY OF MCHENRY, McHenry County, Illinois, as follows: SECTION 1: The Memorandum of Agreement, bearing the date of June 17, 2024 between Advance Real Estate Management LLC and the City of McHenry is attached to this ordinance and incorporated herein by reference as Exhibit "A". SECTION 2: The Mayor and City Clerk are hereby authorized to affix their signatures as Mayor and City Clerk to said Agreement for the uses and purposes therein set forth. SECTION 3: All Ordinance or parts thereof in conflict with the terms and provisions hereof are hereby repealed to the extent of such conflict. SECTION 4: This Ordinance shall be published in pamphlet form by and under the authority of the corporate authorities of the City of McHenry, McHenry County, Illinois. SECTION 5: This Ordinance shall be in full force and effect from and after its passage, approval, and publication in pamphlet form as provided by law. Passed this 17th day of June, 2024. Ayes Nays Absent Abstain Alderwoman Bassi x Alderman Davis x Alderman Glab x Alderman Koch x Alderman McClatchey x Alderwoman Miller x Alderman Santi x /�' ��.�*�. GL e�. Wayne ett, Mayor Monte Johnson, eputy City Clerk EXHIBIT A Memorandum of Agreement by and between the Citv of McHenry and Advance Real Estate Manaeement,LLC This Memorandum of Agreement by and between the City of McHenry and Advance Real Estate Management,LLC is entered into and is effective on the date last signed by the parties below. Recitals A. The purpose of this Memorandum is to summarize the current incentive balance under that certain Economic Incentive Agreement between the parties hereto dated July 19,2021 ("Incentive AgreemenY')and confirm an additional tenant incentive being provided to The Treehouse Play Caf�. B. A summary of the Incenrive Agreement payment obligations is as follows: Tenant Buildout Concession:$250,000 Maximum City Payment Obligation:$1,SQ0,000 Fixed Payment:$75,000 fixed payment annually; Variable Payment: 50%of sales taaces received over$195,744.78 annually Start Date: 5/1/22 Term End: 1/1/2043 or Maximum City Payment Obligation reached C. The incentive balances under the Incentive Agreement,as of the date of this Memorandum,are as follows: TI Buildout Concession $ 250,000.00 Less: 11/7/2022 Payment -85,000.00 Remaining TI Buildout Concession $ 165,000.00 Landlord Construction Obli ation $1,250,000.00 2022 Fixed Payment(May 2022-December 2022) -50,000.00 2022 Variable Payment(May 2022-October 2022) -4,712.58 2023 Fixed Payment(January 2023-December 2023) -75,000.00 2023 Variable Payment(November 2022-Octoher 2023) None . Remaining Landlord Construction Obligation $1.120.287.42 Ma�cimum City Payment Obli ae rion $1.500.000.00 D. The Treehouse Play Cafe intends to lease space from Advance Real Estate Management,LLC at their building complex,2328 N.Richmond Road,McHenry Illinois(space previously occupied by the former tenant,Pier One Imports("Prospective Treehouse Play Caf�Locarion"). E. Now,therefore,in consideration of the promises and agreements made herein,the adequacy and sufficiency of which is agreed to by the Parties hereto,and to incentivize Treehouse Play Cafe to lease space at the Prospective Treehouse Play Cafe Location from Advance Real Estate Management,LLC,the parties hereto agrec as follows: 1. The initial�250,000 Tenant Incentive Concession portion of the Incentive Agreement shall hereby be increased by$20,000 to a total of$270,000; 2. The initial$1,250,000 Landlord Construction Obligation portion of the Incentive Agreement shall remain the same;and 3. The Maximum City Payment Obligation referenced in the Incentive Agreement shall be changed to$1,520,000. 4. Based on the agreements referenced in paragraphs 1-3,abovc,the Parties hereto further agree that the agreements set forth herein supplement and amend the lncentive Agreement accordingly. The revised summary of the incentive Agreement payment obligations and incentive balances under the Incentive Agreement,as of the effective date of this Memorandum Agreement,are as follows: TI Buildout Concession $ 250,000.00 Less: 11/7/2022 Payment -85,000.00 Add Treehouse Play Cafe incentive +20,000.00 Remaining Tl Buildout Concession $ 185.000.00 Landlord Construction Obligation $1,250,000.00 2022 Fixed Payment(May 2022-December 2022) -50,000.00 2022 Variablc Payment(May 2022-October 2022) -4,712.58 2023 Fixed Payment(January 2023-December 2023) -75,000.00 2023 Variable Payment(November 2022-October 2023) $ None Remaining Landlord Construction Obligation $1,120,287.42 Maximum Citv Payment Obli�ation $1,520.000.00 City of McHenry Advance Real Estate Man ent,LLC 6/17/2024 B : � I � ���� By: Y � Wayn S ett,Mayor Date - Date tts: r1/�GLU1��i Vt� �Q,G ��