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HomeMy WebLinkAboutOrdinances - O-98-894 - 11/23/1998 - AUTHORIZE ANNEX AGMT PACINI GROUP KRESSWOOD TRAILSORDINANCE NO. 0-98-894 AN ORDINANCE PROVIDING FOR THE APPROVAL OF AN ANNEXATION AGREEMENT BETWEEN PARKWAY BANK AND TRUST COMPANY, TRUST NO. 10693, LEWIS PACINI AND LOIS PACINI, THE PACINI GROUP LLC, AND THE CITY OF MCHENRY, MCHENRY COUNTY, ILLINOIS WHEREAS, The PARKWAY BANK AND TRUST COMPANY, not individually, but as Trustee under Trust Agreement dated October 7, 1993, and known as Trust No. 10693, holds fee simple title to the real estate hereinafter described (the "Subject Property"), LEWIS PACINI and LOIS PACINI are the holders of 100% of the beneficial interest in Trust No. 10693, and THE PACINI GROUP LLC, an Illinois Limited Liability Company, is the contract purchaser of the Subject Property; and WHEREAS, notice of public hearing was published in the Northwest Herald, a newspaper of general circulation in the City of McHenry, within the time provided by law, notifying the public of a hearing on said Annexation Agreement held before the Corporate Authorities of the City of McHenry, McHenry County, Illinois; and WHEREAS, the Corporate Authorities of the City have held the hearing required by law and have found that the entry into said Annexation Agreement will not be detrimental to the public health, welfare, or safety of the inhabitants of the City of McHenry, McHenry County, Illinois. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MCHENRY, MCHENRY COUNTY, ILLINOIS, AS FOLLOWS: Section 1: The Annexation Agreement, bearing the date of NOVEMBER 23 1998, by and between the PARKWAY BANK AND TRUST COMPANY, TRUST NO. 10693, LEWIS PACINI AND LOIS PACINI, THE PACINI GROUP LLC, AND THE CITY OF MCHENRY, MCHENRY COUNTY, ILLINOIS, be and the same is hereby approved. A full, true, complete, and accurate copy of said Annexation Agreement is attached to this Ordinance and incorporated herein by reference as Exhibit A. Section 2: The Mayor and City Clerk are authorized to affix their signatures to said Annexation Agreement for the uses and purposes therein set forth. Section 3: All Ordinances or parts thereof in conflict with the terms and provisions hereof are hereby repealed to the extent of such conflict.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.ma DAY OF Nomug , 1998. AYES: BOLGEg, GI AR_ MCCLATCHEY. MURGATROYD. BAIRD. CUDA. NAYS: NONE. ABSTAINED: NONE. ABSENT: NONE NOT VOTING: NONE. APPROVED THIS 23RD DAY OF NOVEMBER , 1998. 4�il I I /-'� IVRY—OR ATTEST: CITY CLERK Draft: November 16, 1998 ANNEXATION AGREEMENT THIS ANNEXATION AGREEMENT is made and entered into this day of N-6,� , 1998, by and between the CITY OF McHENRY ("City"), a municipal corporation, in the County of McHenry, State of Illinois, and PARKWAY BANK AND TRUST COMPANY, not individually, but as Trustee under Trust Agreement dated October 7, 1993, and known as Trust No. 10693 ("Trust"), LEWIS PACINI and LOIS PACINI ("Beneficiaries") and THE PACINI GROUP LLC, an Illinois Limited Liability Company ("Developer"). The Trust, Beneficiaries and Developer shall hereinafter collectively be referred to as "Owners." RECITALS A. The Trust holds fee simple title to the parcel of real estate legally described on the attached "Exhibit A" ("Property"). Beneficiaries are the holders of 100% of the beneficial interest in the Trust. Developer is the contract purchaser of the Property. B. Owners filed with the City Clerk a Petition for Annexation of the Property to the City, contingent upon the terms and provisions of this Agreement, which Petition has been filed in accordance with 65 ILCS 5/7-1-8 and the ordinances of the City. C. The Property is presently vacant, unimproved, and has no electors residing thereon and is presently zoned "A-1" Agriculture District, pursuant to the McHenry County Zoning Ordinance. D. The Property constitutes territory which may be annexed to the City as provided for in 65 ILCS 517-1-1, et seq. E. The Owners desire to have the Property annexed to the City upon the terms and conditions provided herein and the City, after due and careful consideration, has concluded that the annexation of the Property to the City, under the terms and conditions hereafter set forth, will further the growth of the City, enable the City to control the development of the area and serve the best interests of the City. F. Pursuant to 65 ILCS 5/11-15.1-1, et seq., a proposed annexation agreement was submitted to the City, and a public hearing was held thereon. G. The Property is located within the McHenry Township Fire Protection District and the Nunda Township Road District. The trustees of the districts and the Nunda Township highway commissioner and supervisor were notified according to law. An affidavit confirming the required notices were served in accordance with the application has been filed with the City and the McHenry County Recorder of Deeds. H. Prior to the date of this Agreement, public hearings were held upon proper notice pursuant to the City's zoning ordinance and to provide for execution of this Agreement and no further action needs to be taken by the Owners to cause the Property to be annexed to the City and classified in accordance with the terms of this Agreement. NOW THEREFORE, in consideration of the covenants and conditions herein contained, it is hereby agreed as follows: I. ANNEXATION Upon execution of this Agreement, the City shall enact a proper ordinance annexing the Property legally described on Exhibit A. A copy of said ordinance shall be filed in the Office of the County Clerk of McHenry County and recorded in the McHenry County Recorder of Deed's Office. This Agreement in its entirety, together with the aforesaid Petition for Annexation, shall be null, void and of no force and effect unless the Property is zoned and classified as provided in this Agreement by the adoption of ordinances by the City immediately following execution of this Agreement. II. ZONINGIPRELIMINARY PLAT Immediately upon the annexation of the Property, the City shall adopt an ordinance Rezoning the Property RA-1, Attached Residential, and granting a variance to allow more than one building on a lot, and shall also approve the preliminary plat of subdivision of the Property, entitled Kresswood Townhomes, prepared by Ennis Engineering, Ltd., dated June, 1998, and last revised on , attached hereto as Exhibit B. Ill. SEWER AND WATER A. The Property is located within the City's Facility Planning Area as determined by the Northern Illinois Planning Commission and the Illinois Environmental Protection Agency. At the time of development, the Property shall be developed with municipal sewer and water. B. The City makes no representation or warranty that there will be any municipal sanitary sewer treatment plant or sanitary sewer main capacity or municipal water available to serve the Property at any time during the term of this Agreement. No action of the City regarding application to the Illinois or U.S. Environmental Protection Agency for permission to construct sewer lines on any part of the Property shall be construed to constitute any representation, warranty or reservation by the City to Owners that municipal sanitary sewer treatment plat or sanitary sewer main capacity or water will be available to service the Property when Owners apply to the City for individual sewer or water service connection permits. 2 C. Owners shall be obligated to pay all applicable fees and costs associated with sanitary sewer service and potable water imposed by City ordinances, as amended from time to time. D. The extension of the water main from Cross Trail through the Property, east along Bull Valley Road to connect with the existing water main at Ridgeview Drive shall be made part of the final engineering plans for the first phase of development, prior to final plat approval. This water main extension shall be located and designed subject to the approval of the City. These improvements shall be installed by and at the sole cost and expense of the Owners. E. Owners acknowledge that the Property is subject to existing sanitary sewer reimbursement or "recapture" agreements with Nimed Corp. and Amoco Oil Co. Owners shall pay the required recapture amounts due under said agreements prior to connection of any townhouse constructed on the Property to the City's sanitary sewer system. IV. PUBLIC IMPROVEMENT REIMBURSEMENT A. Upon request by the City, Owners shall construct additional, expanded or oversized municipal sanitary sewer mains and/or lift stations and water mains (the foregoing improvements are collectively referred to as "Municipal Improvements") for purposes of this paragraph and its subparagraph(s) which benefit not only the Property, but also other properties being or to be developed in the relevant service areas for such utilities. In the event such Municipal Improvements are made by Owners, the following provisions shall apply: 1. The properties which will benefit directly or indirectly from the construction and/or installation of such Municipal Improvements ("Benefitted Property") will be determined by the City Engineer at the time such Municipal Improvements are constructed. The Benefitted Property shall include the Property subject to this Agreement. 2. The City shall endeavor to collect a pro rata sum of money from the Owners of the Benefitted Property as a pre -condition to said Owners being granted a permit to connect the Benefitted Property to any of the Municipal Improvements. The total cost of improvements will be spread over the Benefitted Property pro rated. The total sum subject to reimbursement to Owners, as well as the pro rata sum to be collected from the Benefitted Property owners, shall be determined by the City's consulting engineer taking into account the following factors: total construction and easement costs; professional fees; and testing and analysis fees. Any legal and administrative expense shall not be considered. The pro rata sum calculated shall be based upon the ratio of acreage that the particular Benefitted Property bears to the acreage of the entire Benefitted Property. In addition, interest shall be collected from the commencement date of this reimbursement provision, calculated annually at nine percent (9%) per annum, not to exceed ten (10) years from the date of this Agreement. Any reimbursement provision shall have a commencement date when the public improvements which are the subject of the reimbursement agreement are placed into 3 service and shall end on the date of the termination of this Agreement. The sum collected shall be paid to Owners after deduction of two percent (2%) for administrative charges due to the City. In the event that any state statute shall determine an interest rate other than set forth in this paragraph, the state interest rate shall prevail. 3. Subject to a non -appealable final court order directing City to act otherwise, City shall not issue any connection permits until the Benefitted Property owner either pays the reimbursement charge set forth in this paragraph or adequately assures the City that the payment will be made. 4. The City will use its best efforts to collect the costs provided herein from the Benefitted Property owners but shall not be liable to Owners if the City is, for any reason, unable to collect said costs The City's liability to reimburse Owners shall be limited to payment from funds actually collected from Benefitted Property owners. 5. City shall file this Agreement with the McHenry County Recorder of Deeds and notify the owners of the Benefitted Property of the terms of this reimbursement provision. 6. Owners shall furnish to the City all permits required for improvements referred to in this Agreement including, but not limited to, the Illinois Historical Agency, U.S. Army Corps. of Engineers, McHenry County Highway Department, McHenry County Soil and Water Conservation District, Illinois Department of Conservation and the Illinois Department of Transportation, Division of Water Resources. 7. Owners shall reimburse and indemnify City for all costs, engineering and attorney's fees and liability incurred by the City with regard to the drafting and implementation of the Reimbursement Agreement contemplated under this Article IV. B. The City shall cooperate with Owners in obtaining such permits as may be necessary from time to time by both Federal and State law, including, but not limited to, the Illinois Environmental Protection Agency, to permit the development of the Property. Further, the City agrees to execute when and where required all necessary applications for permits to the Environmental Protection Agency and U.S. Army Corps. of Engineers for road access and the construction and use of the sewer and water mains described herein as well as the construction of roadways and the storm water detention areas located within wetlands, if any, on the Property. No action of the City regarding applications to the Illinois or U.S. Environmental Agency for permission to construct sanitary sewer lines on any part of the Property shall be construed to constitute any representation, warranty or reservation by the City to the Owners that municipal sanitary sewer treatment plant or sanitary sewer main capacity or water will be available to service the Property when Owners apply to the City for individual sewer or water service connection permits. C. The City shall exercise its power of eminent domain, if necessary, to assist Owners in obtaining all necessary easements, not already in existence, to enable the installation of the aforesaid improvements. Owners shall pay for all of the eminent domain 4 costs and expenses incurred by the City, including but not limited to attorney's fees, title charges, appraisals, survey cost, deposition cost, witness fees, litigation expenses and judgments in the acquisition of any easement. Such costs and expenses of acquisition by eminent domain shall be includable in the costs and expenses that are subject to recapture by Owners from Benefiting Parties. V. DEVELOPMENT IN PHASES - SECURITY The City shall permit the Owners to subdivide the Property with one (1) preliminary subdivision plat and no more than two (2) final plats of subdivision or "phases." To secure Owners' completion of on -site and off -site public improvements, including those referenced in paragraph VI.D.1 and other subdivision public improvements, including sidewalks, public streets, sanitary sewer mains, water mains, off -site and on -site storm drainage improvements, the Owners shall, prior to the recording of each final subdivision plat, file with the City a letter of credit in a form, amount and drawn upon an institution approved by the City. Each final plat of subdivision relating to the Property will be reviewed by the City, but not executed prior to delivery of all applicable letters of credit by the Owners to the City. Owners shall be permitted no more than one (1) reductions in the letters of credit filed with the City and the last reduction shall not leave a balance securing public improvements in an amount less than $50,000.00. VI. SCHEDULE OF DEVELOPMENT Owners shall submit to the City a schedule of development encompassing the Property on a semi-annual basis so the City can adequately plan for and provide municipal services to the Property. The first schedule shall be submitted within one hundred ninety (190) days following annexation of the Property, and shall include work to be completed in the then current and following calendar year. It is acknowledged that said schedules are anticipatory in nature and will change from time to time as circumstances change and shall represent Owners' best reasonable estimate at the time of its intended schedule of development. Owners understand that timely schedules are in the best interest of all parties to this Agreement. VII. DONATIONS, CONTRIBUTIONS AND FEES Owners acknowledge that the development of the Property will impact on schools, parks, the library and fire protection districts and other public services within the City. To reduce this impact, and as a condition of this Agreement, Owners shall be jointly and severally obligated to pay and/or donate, or cause to be donated to the City, or provide improvements for the benefit of the City as follows: A. Annexation Fees. Owners shall pay to the City annexation fees in addition to fees otherwise referred to in this Agreement as follows: 5 1. The lump sum of $20,000, representing $1,000 per acre of the Property, shall be paid within sixty (60) days following annexation of the Property to the City. 2. The sum of $530 per individual townhouse unit shall be paid to the City upon issuance of each building permit relating to each townhouse building, which may include four (4) or six (6) individual townhouse units. 3. The sum of $1,683 per townhouse unit ($954 to School District 15, $673 to School District 156 and $56 to the Library District) shall be paid to the City upon issuance of each occupancy permit. Provided however, on or before the end of the thirty- sixth (36t') month after the City's execution of each final plat of subdivision, the payment obligation in this paragraph shall accelerate, if not already paid in full, and Owners shall pay to the City the balance then due and owing in one lump sum for that plat. That portion of these funds to be distributed to the schools, as determined exclusively by the City, may be distributed for the benefit of some or all schools within School Districts 15 and 156, at the discretion of the City Council. To the extent any of these funds are distributed to said school districts, they shall be used for operating expenses at those schools, within School Districts 15 and 156, as directed by the City Council, at the time of distribution. In the event a distribution agreement, in a form approved by the City, is not executed by the school districts prior to distribution of said funds to the school districts, the City may retain the entire amount paid pursuant to this paragraph 3 for City use. Nothing herein is intended to create third party beneficiary rights in School District Nos. 15 and 156 or the Library District. 4. At the end of each one-year period, with the first one year period beginning on May 1, 1999, the fees referenced in the preceding paragraph numbers 2 and 3 shall be adjusted upward, by the percent which the Chicago Area Consumer Price Index has moved upwards since December 31, 1998, and every December 31 thereafter. For purposes of this paragraph, the price index to be used for comparative purposes shall be that index published for the annual average Chicago area CPI-U, as published by the United States Department of Labor, Bureau of Labor Statistics. 5. Owners hereby release the city from any liability or damage to Owners and waive any right to challenge, by lawsuit or otherwise, the legality or validity of the fees chargeable to Owners or purpose for which the money is spent herein, provided, however, if at any time the aforementioned school districts are able to impose their own fees on a developer, any such fees imposed by such school districts will be used to off -set the aforementioned fees described herein. B. Cash Donations. 1. Owners shall be obligated to pay to the City certain cash donations per individual townhouse unit developed on the Property. These cash donations shall be paid to the City upon issuance of each building permit relating to each townhouse building, which may include four (4) or six (6) individual townhouse units, and calculated in accordance with this paragraph. During the term of this Agreement, the Owners shall be required to pay the cash donations referred to herein. The cash donations payable by the Owners to the City 1.1 shall be calculated as follows: Fire Schools Park Library District Total/Unit 2 Bedrooms $1,618 $1,124 $240 $240 $3,222 3 Bedrooms $1,832 $1,289 $240 $240 $3,601 4 Bedrooms $4,410 $1,808 $240 $240 $6,698 The cash donations referred to in this chart shall collectively be referenced as"Minimum Cash Contribution Amounts." At the end of each one-year period, with the first one year period beginning on May 1, 1999, these Minimum Cash Contribution Amounts shall be adjusted upward by the percent which the Chicago Area Consumer Price Index has moved upwards since December 31, 1998, and every December 31 thereafter. For purposes of this paragraph, the price index to be used for comparative purposes shall be that index published for the annual average Chicago area CPI-U, as published by the United States Department of Labor, Bureau of Labor Statistics. In the event the Minimum Cash Contribution Amount, as calculated above, is less than the cash contribution amounts set forth in the City's cash contribution ordinance for schools, parks, libraries and fire districts, as amended from time to time, an amount equal to the amounts specified in the City's cash contribution ordinance shall be paid, rather than the Minimum Cash Contribution Amount provided in this Agreement. In the event the City's cash contribution ordinance, or any other ordinance of the City relating to developer cash contributions for schools, libraries, parks and fire districts, is repealed or declared by a court of law to be found unenforceable and all appeals have been exhausted, Owners agree to pay, subsequent to such final court action, the Minimum Cash Contribution Amount set forth in this Agreement. In the event such a final court order requires the City or school districts to return or refund monies paid by the Owners pursuant to the City's ordinances, Owners expressly agree that they will allow the City or school districts to retain the Minimum Cash Contribution Amount previously paid by Owners. It is the express intent of the Owners to release the City and school districts from any liability or obligation to refund the Minimum Cash Contribution Amount paid pursuant to this paragraph under any circumstances. 2. Owners hereby release the City from any and all liability or damage to Owners and waive any right to challenge, by lawsuit or otherwise, the validity, legality or enforce ability of the cash donation provision set forth herein or the purpose for which the money is spent. VA C. Donations Distinguished from Fees. Other than the donations specified in the foregoing paragraphs, during the term of this Agreement, and irrespective of any existing, new or revised donation ordinances of the City, Owners shall not be required to donate any land or money to the City or, by action of the City, to any other governmental body. Building permit fees, water and sewer connection or tap -on fees and other similar fees (which are charged for specific services provided by the City) shall be payable in accordance with City Ordinances in existence and as amended from time to time, except as specifically provided for in this Agreement. D. Roads. 1. An eastbound left -turn lane and a westbound deceleration lane on Bull Valley road shall be made part of the final engineering plans for the first phase of development, prior to final plat approval. These lanes shall be located and designed subject to the approval of the McHenry County Highway Department, and include a final overlay to cover the entire width of Bull Valley Road and thermo-plastic striping. These traffic lane improvements shall be installed by and at the sole cost and expense of the Owners. The Owners shall provide to the City or County at no cost, any easements or rights -of -way needed to accommodate these lane improvements. 2. After installation of all the roads and streets in a particular phase, the City agrees, subject to bonding requirements set forth in its ordinances, to accept the dedication and snowplowing responsibility of all streets in said phase at the time townhomes in such phase become eligible for occupancy permits and provided manhole covers are protected. 3. Upon request of the City, but in any event upon application of the final lift and acceptance by the City, Owners shall convey title to all roads located on the Property to the City for public street purposes. Title to such roads shall be conveyed free and clear of all liens and encumbrances and any easements, covenants, or restrictions that would limit or prohibit the use of such property as public roads. Evidence as to the condition of title shall be provided in the form of a title commitment acceptable to the City at the time of the conveyance. 4. There shall be no private streets in the Property. All streets are minor residential streets to be built in accordance with the City's subdivision control ordinance. 5. In lieu of constructing Brookwood Drive, as depicted on the preliminary plat, Owners shall contribute to the City an amount equal to the cost of constructing such road, with said amount to be reviewed and approved by the City Engineer, within sixty (60) days following approval of the Final Plat that includes the Brookwood Drive right-of-way. E. Underground Utilities. Owners shall install all electricity, gas, telephone lines and any other utility or cable devices, lines or conduits underground. F. Easements. Upon request by the City, Owners shall execute such easements as are necessary to effectuate the terms and conditions of this Agreement and as may be necessary in connection with the completing of the final plat of subdivision of the Property. The form of the easement shall be as approved by the City engineer and/or City Attorney. The form of the easement may be that noted on the plat of subdivision or such other format as the City Engineer or City attorney deems appropriate. G. Environmental Matters. It is understood that the City has the responsibility for water quality which encompasses erosion and sedimentation control, surface water drainage control and ground water protection, all of which are regulated pursuant to existing ordinances of the City. Such ordinances shall regulate the development of the Property. Owners shall provide erosion and sedimentation controls in compliance with the Illinois EPA Standards and all applicable City ordinances or regulations. H. Wetland Protection. Owners shall not disturb any areas of the property designated as wetlands by any governmental agency without the consent of the appropriate governmental agency. Development Concerns. 1. The City agrees that after the applicable letter of credit is delivered to the City and a final plat of subdivision is recorded, the Owner shall not be required to construct all on -site and off -site improvements prior to issuance of a building permit for buildings or improvements on any portion of the Property. Rather, the Owners shall be allowed to construct the required off -site and on -site improvements simultaneously with the issuance of building permits for individual lots and/or buildings. In no instance, however, shall a building permit be issued where a gravel road base does not exist within 200 feet of the frontage for which the permit is requested. All off -site and on -site improvements (except the final lift of bituminous asphalt surface on roads and landscaping), serving any phase shall be installed by Owners and approved by the City before an occupancy permit is issued for said lot or building. 2. Upon the annexation and approval of the Owners' first final plat or engineering approval, the Owners shall be permitted, at the Owners' sole risk, to construct, maintain and occupy model units in one or more product lines being offered by the Owners in said phase so approved. Provided, however, model construction shall comply with the City's building codes, shall require approval of the Community Development Department prior to use and shall comply with health department standards for model home sales E offices. No residential occupancy permit will be issued for such models until said models are ready to be sold and the models will not be served by private well or septic system. The models may contain a sales office, however, only sales of homes in the Property's subdivision shall be conducted in this sales office. Upon the sale of all units on the last final plat, the sales office shall be removed from the model and abandoned by the Owners. Sales trailers shall be allowed on the Property as approved by the City Council. 3. Construction trailers used to build the townhomes on the Property shall be allowed in each phase of the development. Provided, however, upon the sale of 75% of all the units in each phase, all construction trailers shall be removed from that phase of development. Prior to reaching 75% of development, construction trailers shall be located on the Property as approved by the City. 4. Any construction traffic generated by the development shall only access the Property from Bull Valley Road, and shall not enter or leave the Property from the north by using the existing Cross Trail Street. The Owners shall monitor and clean public streets on a daily basis, or more often as needed so that same are kept free of dirt and debris generated by construction traffic. 5. Owner agrees that a minimum of fifty percent (50%) of the exterior walls of all structures shall be faced with standard width brick, brick veneer, natural or cast stone, or other masonry materials ("Brick"). For the purposes of this paragraph, brick veneer shall not include thin brick or any masonry material nailed or otherwise fastened to a wall. In addition, all exterior chimneys shall be Brick. 6. Owners shall be permitted to install and maintain one development entrance sign in the center median of the access road off Bull Valley Road. This sign shall be a maximum of eight (8) feet in height and sixty (60) square feet in area, and located where it does not interfere with traffic visibility, as determined by the City. Provisions for the continued maintenance of this sign shall be incorporated into the Declaration of Protective Covenants, as required in this Agreement. 7. Prior to issuance of any occupancy permits Owners shall install and maintain a berm and landscaping on private property along Bull Valley Road in accordance with the Landscape Plan prepared by GBL, Land Development Services, dated October 23, 1998. Provisions for the continued maintenance of this berm and landscaping shall be incorporated into the Declaration of Protective Covenants, as required in this Agreement. 8. Prior to the approval of the last final plat, Owners shall, at their sole cost and expense, construct a ten (10) foot wide asphalt bike path, in lieu of a public sidewalk, along the entire Property frontage on Bull Valley Road to connect to the McHenry County Conservation District bike path currently under construction at the east edge of the Property. This path shall be located and designed subject to the approval of the McHenry County Highway Department. The Owners shall provide to the City or County at no cost, any easements or rights -of -way needed to accommodate this path. 10 9. A minimum building setback of fifty (50) feet shall be maintained from Bull Valley Road. 10. Owners shall install and maintain a sign at the western terminus of "Brookwood Drive", as depicted on the preliminary plat, indicating that this road will be extended to the west to connect with the adjacent development. 11. Owners and City agree that a provision requiring the use of the City of McHenry's approved waste hauler, and participation in the City's refuse and recycling program shall be included in the Declaration of Protective Covenants, as required under this Agreement. 12. Owners shall be permitted to construct one hundred twenty (120) units on the Property, subject to engineering approval, and each unit shall have a two -car garage. 13. Notwithstanding the City's Subdivision Ordinance, the City agrees that the Owners may develop the Property in phases and shall be under no obligation to construct or dedicate any subdivision roads, parklands, sewer and water improvements, or dedicate any subdivision easements to the City or County until a final plat of subdivision encompassing the subject area in which the roads, dedications, or improvements are located has been approved by the Corporate Authorities. Upon such approval, roads, sewer and water improvements and dedications included in the final plat shall be constructed by the Owners, their successors, grantees or assigns as hereinafter provided. 14. The City agrees that the Owners shall be under no obligation to extend the existing municipal sewer and water mains from their present termini to serve the Property until a final plat of subdivision has been approved by the Corporate Authorities. Upon such approval, Owners agree to extend the existing municipal water main and sanitary sewer line from their present termini to serve that portion of the development of the Property encompassed by said plat. 15. The City agrees to cooperate in the procurement of the necessary permits from the appropriate governmental bodies to allow one (1) access point to Bull Valley Road for the development proposed on the Property, as well as for all required permits from the Illinois or U.S. EPA and Army Corps of Engineers, IDNR, or other regulatory agencies. 16. The City agrees to approve final plats of subdivision for Kresswood Trails that are in conformance with the City's Subdivision Ordinance, and with the preliminary plat approved concurrent with this agreement. J. Protective Covenants. 1. Owners shall, not later than the time it presents its first final plat of subdivision to the City for review and approval, execute and deliver to the City a document entitled Declaration of Protective Covenants for the Kresswood Trails Townhomes 11 containing restrictions and other provisions necessary for the subdivision to conform to the terms of this Agreement. 2. After final approval, execution and certification of its first final plat of subdivision by the City, the Owner shall promptly cause the Declaration to be properly recorded with the McHenry County Recorder of Deeds. VII1. COMPLIANCE AND AMENDMENTS A. More Restrictive Requirements. Except as otherwise specified herein, all City ordinances shall apply to the Property, Owners and all successors and assigns in title. If, during the terms of this Agreement, the provisions of the existing ordinances and regulations which may relate to the development, construction of improvements, buildings, appurtenances and all other development of any kind and character of the Property, are amended or modified in any manner so as to impose more stringent requirements shall unless otherwise excepted herein, be effective as applied to the Property so long as such amendments or modifications are non-discriminatory in their application and effect throughout the City (excepting those developments in the City having annexation agreements - past, present, or future - providing otherwise). B. Less Restrictive Requirements. If, during the term of this Agreement, except as otherwise specifically agreed upon in this Agreement, any existing, amended, modified or new ordinances, codes or regulations affecting the zoning, subdivision development, construction of improvements, buildings or appurtenances, or any other development of any kind or character upon the Property, are amended or modified in a manner to impose less restrictive requirements on development of, or construction upon, properties in similarly zoned or developed parcels within the City, then the benefit of such less restrictive requirements shall inure to the benefit of the Owners and, the Owners may elect to proceed with respect to the development of, or construction upon, the Property with the less restrictive amendment or modification so long as such amendments or modifications are non-discriminatory in their application and effect throughout the City and are applicable generally to similarly zoned or developed parcels within the City (excepting those developments in the City having annexation agreements - past, present or future - providing otherwise). IX. OBLIGATIONS A. All obligations of the Owners in this Agreement, including monetary obligations in existence now, as well as those which may come to exist in the future, as a result of this Agreement, shall be joint and several obligations of the Owners and constitute covenants running with the land and such monetary obligations shall also be liens upon the 12 land. Owners hereby consent to the filing of a lien on the Property for which the obligations are owed when any obligations are more than thirty (30) days overdue. Provided, however, to the extent that any portion of the Property has been conveyed to a purchaser of a townhome constructed hereon prior to the filing of a lien, any such lien shall be deemed released with respect to such residential unit. Monetary obligations as used herein shall include professional fees incurred by the City to monitor and/or litigate this Agreement. B. It is specifically understood and agreed that the Owners shall have the right to sell, transfer, mortgage and assign all or any part of the Property and the improvements thereon to other persons, trusts, partnerships, firms or corporations for investment, building, financing, developing and all such purposes, and that said persons, trusts, partnerships, firms or corporations shall be entitled to the same rights and privileges and shall have the same obligations as the Owners have under this Agreement and upon such transfer, such obligations shall be the sole obligations of the transferee, except for any bonds or guarantees posted by Owners on any subdivided or unimproved property for which an acceptable substitute letter of credit has not been submitted to the City; such obligations as to any vacant, unsubdivided land shall be the sole obligation of the transferee. The foregoing rights shall apply to any and all successors and assigns of the Owners. C. Upon any sale or conveyance of any part of the Property by Owners or their successors or assigns and upon each said sale and conveyance, the purchaser shall be bound by and entitled to the benefits and obligations of this Agreement with respect to that part of the Property sold or conveyed. When any such purchaser agrees to assume Owners' obligations hereunder, and when the City is notified of such purchaser and such agreement of assumption, the City hereby covenants and agrees it shall consent to such assumption and it shall release Owners from their obligations hereunder with respect to that part of that Property sold or conveyed. A selling owner however, may only be released where: (a) provision has been made that all public improvements required by this Agreement or applicable City Ordinance for the development of any parcel currently under development and being sold will be installed and guaranteed in accordance with this Agreement and the ordinances of the City; (b) all monetary obligations of the Owners then due to the City as of the time of conveyance and attributable to the Property being conveyed have been satisfied in full; and (c) the purchaser will assume all of the obligations of the selling owner as to the portion of the Property being conveyed. X. PARTIAL INVALIDITY OF AGREEMENT A. If any provision of this Agreement (except those provisions relating to the requested rezoning of the Property identified herein and the ordinances adopted in connection therewith), or its application to any person, entity or property is held invalid, such provision shall be deemed to be excised here from and the invalidity thereof shall not affect the application or validity of any other terms, conditions or provisions of this Agreement and, to that end, any terms, conditions and provisions of this Agreement are declared to be severable. `K3 B. If, for any reason during the terms of this Agreement, any approval or permission granted hereunder regarding plans or plats of subdivision or zoning are declared invalid, the City agrees to take whatever action is necessary to reconfirm such plans and zoning ordinances effectuating the zoning, variances and plat approvals proposed herein. XI. BINDING EFFECT AND TERM This Agreement shall be binding upon and inure to the benefit of the parties hereto, their successors and assigns including, but not limited to, successor owners of record, successor developers, lessees and successor lessees, and upon any successor municipal authority of the City and successor municipalities for a period of ten (10) years form the date of the execution hereof. It is agreed that in the event that the annexation of the Property or the terms of this Agreement are challenged in any court proceeding, the period of time during which such litigation is pending shall not be included in the calculation of said ten (10) year period. XII. AGRICULTURAL USE OF PROPERTY The parties hereto agree that the Property, or so much thereof that is not under development, may continue to be used for the agricultural use of crop farming and that said uses shall survive the termination of this Agreement as provided by statute; in addition thereto, all said agricultural use shall be considered a legal, non -conforming use. XIII. NOTICES AND REMEDIES A. Upon a breach of this Agreement, any of the parties, by any action or proceeding at law or in equity, may exercise any remedy available at law or in equity. The remedies of the City shall include, but not be limited to, the right to stop construction of the development and refuse issuance of further building permits in the event the City deems the terms of this Agreement to have been violated. B. Before any failure of any party to this Agreement to perform its obligations under this Agreement shall be deemed to be a breach of this Agreement, the party claiming such failure shall notify, in writing, by certified mail/return receipt requested, the party alleged to have failed to perform and performance shall be demanded. C. In the event the City chooses to sue in order to enforce the obligations hereunder, Owners shall pay all costs and expenses incurred by the City, including, but not limited to, attorneys' fees and costs and expenses incurred by the City, provided the City substantially prevails. In addition, if the Owners do not pay any fees provided for herein, the City may withhold the issuance of building permits until payment is received, or if the 14 appropriate security is not deposited, withhold approval of plat of subdivision until the appropriate security is delivered. City may use remedies available to it to collect such fees and charges as are due. D. Notice shall be provided at the following addresses: City: City of McHenry 333 South Green Street McHenry, IL 60050 Attn: City Clerk Copy to: City Attorney David W. McArdle Zukowski, Rogers, Flood & McArdle 50 Virginia Street Crystal Lake, IL 60014 Owners: PARKWAY BANK AND TRUST COMPANY, not individually, but as Trustee under Trust Agreement dated October 7, 1993, and known as Trust No. 10693 4800 N. Harlem Road Harwood Heights, IL 60641 LEWIS PACINI and LOIS PACINI 1278 W. Lake Street Roselle, IL 60172 THE PACINI GROUP LLC, an Illinois Limited Liability Company 1278 W. Lake Street Roselle, IL 60172 Copy to: Daniel F. Curran Curran Rausch Gummerson & Dunlop 8600 Route 14, Suite 201 Crystal Lake, IL 60012 XIV. WAIVER The failure of the City to insist, in any one or more instances, upon performance of any terms or conditions of this Agreement, shall not be construed as a waiver of future strict performance of any such term, covenant or condition and the obligations of the Owners shall continue in full force and effect. 15 XV. AMENDMENT This Agreement may only be amended by written instrument executed by all parties hereto. It is understood and agreed that all subsequent amendments of this Agreement as approved by the City, may be obtained for portions of the Property without affecting the rights, duties or obligations of the parties hereunder or their assigns as to the balance of the Property not included in the afore described action, so long as the owners of the affected property consent to such. The approval of Owners of the Property not included in the aforesaid actions shall not be required. XVI. VENUE In the event any legal action arising out of this Agreement is instituted by the parties hereto, the venue for such action shall be restricted to the Circuit Court of the 19th Judicial Circuit, McHenry County, and no action shall be brought by the parties hereto, their successors or assigns, in any Federal Court. PARKWAY BANK AND TRUST COMPANY, not individually, but as Trustee under Trust Agreement dated October 7, 1993, and known as Trust No. 10693 By: G Na Priit" n tans"• sw Its; resident Trust bfffew THE PACINI GROUP LLC, an Illinois Limited L• ity Cn pa y By: Name/Print: ` Its: M A*J A-4 w4- M This Agreement is signed by Parkway Bank & Trust Co.. no di invidually but solely as Trustee under a certain Trust Agreement kn ,.-n as Trust Arc --- IW3--- Said Trust Agreement is hereby made a rart hsrecf a^d any claims cgainst said Trustee which rr; resu't from ttie of It s shell be payal:1e or.i•r cut cf cny trust prcperty which mrty be ; nli ,h;reunder, and T ur c sh ,1 not be per: or•c noni:,r liable fcr the perfermauce of oy cf the terms and conditions s oncf this agreem=_nt or for the va;_;:_ty or condrticn of the talc of scid property or for any agreement with respect thereto. Any and all personal liability of 16 Parkway Bank and Trust Co„ is hereby expressly waived by the parties hereto and their respective successors and maslgue. CITY OF McHENRY By . A�I'OR Attess :__,- , 1, z- 2 CITY CLERK Le Is Pacini Lois Pacini PARKWAY SANK & TRUST COMPANY IS EXECUTING THIS COCL'tr/r�'T LELY;P1IT'S CAPACITYASLANDTRUSTEEWIT!� THE Ali-, :r i; 'N AND DIRECTION OF IT'S EE:�EFIC! Rv AND HAS NO PE,<SCNAL KNOWLEDGE OF ANY OF ItIt FACTS OR STATEMENTS CONTAINED HEREIN NOR TI4E ABiL- ITYTO PERFORMANY OFTHEACTSASSOCLATEDTHEREWWL EXHIBIT A Part of the Northwest Quarter of Government Lot 1 of Section 3, Township 44 North, Range 8, East of the Third Principal Meridian, being described as follows: Beginning at the intersection of the south line of the Northwest Quarter of Government Lot 1 with the Westerly right-of-way line of the Chicago and Northwestern Railway Company; thence South 89 degrees 09 minutes 06 seconds West along the south line of said Northwest Quarter, 1115.12 feet; thence North 0 degrees 50 minutes 44 seconds West, 666.60 feet to the north line of the South 10 chains and 10 links of said Northwest Quarter; thence North 89 degrees 09 minutes 16 seconds East along said north line, 1499.30 feet to the Westerly right-of-way line of the Chicago and Northwestern Railway Company; thence South 29 degrees 07 minutes 01 seconds West along said Westerly right-of-way line, 769.24 feet to the place of beginning, in McHenry County, Illinois. 17