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HomeMy WebLinkAboutOrdinances - ORD-11-1542 - 06/27/2011 - AUTHORIZE THRID AMENTMENT REDEVEL AGMT RIVERWALK CORDINANCE NO. ORD-11-1542 AN ORDINANCE AUTHORIZING THE EXECUTION OF A THIRD AMENDMENT ("THIRD AMENDMENT") TO A REDEVELOPMENT AGREEMENT BETWEEN THE CITY OF MCH:ENRY, AN ILLINOIS MUNCIPAL CORPORATION ("CITY"), 1110 GREEN LLC, AN ILLINOIS LIABILITY COMPANY ("THIRD DEVELOPER") AND FIRST MIDWEST BANK N.A. FOR THE PROPERTY LOCATED AT THE NORTHEAST CORNER OF GREEN STREET AND WAUKEGAN ROAD AND COMMONLY KNOWN AS 1110 N GREEN STREET, MCHENRY, ILLINOIS 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 execution of this agreement constitutes an exercise of the City's home rule powers and functions as granted in the Constitution of the State of Illinois; and WHEREAS, the City has the authority to adopt ordinances and to promulgate rules and regulations that pertain to its government and affairs and that protect the public health, safety, and welfare of its citizens; and WHEREAS, On or about March 5, 2007, the City entered into a Redevelopment Agreement for the: property commonly known as 1 110 N Green Street, McHenry, Illinois (the "Original Agreement") with Curtis Commercial, Inc. ("Original Developer"); and WHEREAS, On or about December 14, 2009, the parties to the Original Agreement and McHenry Riverwalk Center, LLC ("Second Developer") executed a Second Amendment to Redevelopment Agreement ("Second Amendment") which provided in part that all of Original Developer's right, title and interest in and to the Original Agreement was assigned to the Second Developer; and WHEREAS, On or about June 30, 2011, the Second Developer conveyed to First Midwest Bank, N.A., by a deed in lieu of foreclosure, all of its right, title and interest in the property commonly known as I I10 N Green Street, McHenry, Illinois (the "Redevelopment Property"), and all, its interest in the Redevelopment Agreement, as amended; and WHEREAS, The Third Developer ("Third Developer") has entered into an agreement with First Midwest Bank, N.A., to purchase the Redevelopment Property; and WHEREAS, the Corporate Authorities of the City of McHenry have found that entry into said Third Amendment ("Third Amendment") is in the best interest of the City. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF MCHENRY, MCHENRY COUNTY, ILLINOIS, AS FOLLOWS: SECTION 1: The Mayor and City Clerk are hereby authorized to execute the Third Amendment (attached hereto as Exhibit A and made a part hereof). SECTION 2: All ordinances or parts thereof in conflict with the terms and provisions hereof be and the same are hereby repealed to the extent of such conflict. SECTION 3: This Ordinance shall be published in pamphlet form by and under the authority of the corporate authorities of the City of McHenry, Illinois. SECTION 4: This Ordinance shall be in full force and effect from and after its passage, approval and publication, as provided by law. PASSED and APPROVED this 271" day of June, 2011. Voting Aye: Blake, Wimmer, Peterson, Condon. Voting Nay: Santi, Glab, Schaefer. Not Voting: None. Abstained: None. i� Absent: None. G?i-74! ,/_ / ayor ATTEST: �. t . City Cle EXHIBIT A THIRD AMENDMENT TO THE REDEVELOPMENT AGREEMENT THIRD AMENDMENT TO REDEVELOPMENT AGREEMENT This Third Amendment to Redevelopment Agreement ("Third Amendment") is entered into this 27th day of June, 2011, between the CITY OF MCHENRY, an Illinois municipal corporation ("City"), 1110 GREEN LLC, a Delaware limited liability company ("Third Developer"); Synergy Property Holdings, LLC ("Titleholder") and First Midwest Bank, an Illinois banking corporation ("First Midwest"). RECITALS A. On or about March 5, 2007, the City entered into a Redevelopment Agreement for the property commonly known as 1110 N. Green Street, McHenry, Illinois (the "Original Agreement") with Curtis Commercial, Inc. ("Original Developer"). B. On or about April 7, 2008, the parties to the Original Agreement executed a First Amendment to Redevelopment Agreement ("First Amendment"). C. On or about December 14, 2009, the parties to the Original Agreement and McHenry Riverwalk Center, LLC ("Second Developer") executed a Second Amendment to Redevelopment Agreement ("Second Amendment") which provided in part that all of Original Developer's right, title and interest in and to the Original Agreement was assigned to the Second Developer. The Original Agreement amended by the First Amendment and the Second Amendment is hereafter referred to as the "Redevelopment Agreement, as amended." D. On or about February 18, 2011, the Second Developer conveyed to the Titleholder, by a deed in lieu of foreclosure, all of its right, title and interest to the property commonly known as 1110 N. Green Street, McHenry, Illinois (the "Redevelopment Property"), and all its interest in the Redevelopment Agreement, as amended. E. The Third Developer has entered into an agreement with Titleholder, a wholly owned subsidiary of the parent company of First Midwest, to purchase the Redevelopment Property and the parties hereto desire to sign this agreement in order to move completion of the Redevelopment Property forward. NOW, THEREFORE, the parties, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, agree as follows: 1. All of the recitals contained in this Third Amendment are true and correct and are hereby incorporated into this Third Amendment as though they were fully set forth in this Section 1. This Third Amendment shall be deemed effective as of June 27, 2011. 2. Any reference to the term "multi -family residential housing condominium," "condominium homes," "owner -occupied" units or similar term evidencing the intent of the parties that the residential units which are a part of the Redevelopment Property shall be owner occupied, in the Original Agreement, attached exhibits, or amendments thereto, or in the Site Development Plan referenced in the Original Agreement or amendments thereto, is hereby amended to include the term "rental apartment units leased by the Third Developer" as being permitted by the Cite. The Third Developer is permitted to rent the residential units, which are a part of the Redevelopment Property to third parties or convert all of said units to individual, residential condominiums pursuant to the Illinois Condominium Property Act by filing a condominium declaration and subdividing the residential portion of the Redevelopment property into individual units ("Total Condominium Conversion"). 3. Each residential rental unit within the Redevelopment Property (the "residential rental units") shall be subject to an occupancy limitation based solely upon each unit's size and the City of McHenry Building Code, Section 404.4 and Table 404.5, a copy of which is attached hereto as "Exhibit A". The maximum occupancy for each residential rental unit, based upon the square footage of each such unit is set forth on the Riverwalk Information sheet which is attached hereto as "Exhibit B". The tenants of each residential rental unit shall be subject to rules and regulations for the Redevelopment Property, a copy of which is attached hereto as Exhibit C. The City shall have the right, but not the obligation, to enforce the terms of Exhibit C, which shall not be amended without the written consent of the City, which consent shall not be unreasonable wiheld, delayed or conditioned. The City shall not exercise its right to enforce Exhibit C without providing the Third Developer with written notice to cure in accordance with provisions within the Original Agreement. In addition, the Third Developer shall strictly comply with phase I and phase II of the City of McHenry Police Department's Crime Free McHenry Housing Program, as amended from time to time. Provided, however, the Third Developer shall not be required to post signs on the property regarding said program. In the event the City exercises its right to enforce Exhibit C, the Third Developer shall reimburse the City for all of its costs incurred including reasonable attorney fees and costs. 4. Promptly following the date on which the Third Developer closes on its purchase of the Redevelopment Property from Titleholder, the Boat Slip Access Easement and Assignment agreement, dated October 28, 2008, and recorded on December 30, 2008 in the McHenry County Recorder of Deeds office as Document Number 2008R0063234 ("Boat Slip Agreement") shall be amended to provide, inter-alia: a) that the easement, revocable license area, and boat slips referenced therein may be used by the Third Developer and the tenants of the residential rental units within the Redevelopment Property; and b) that the Right of First Offer referenced therein (paragraph 3 of the Boat Slip Agreement) shall apply to the eight (8) slips at the amount agreed upon between the Third Developer and a good faith third party buyer; and c) that the Third Developer shall be entitled to transfer all of its remaining boat slips to any third party who purchases all of the Third Developer's interest in the Redevelopment Property without the requirement that said slips be first offered to the City for purchase. 5. The Third Developer shall be permitted three (3) temporary banners, for a period not -to -exceed two hundred and ten (210) days from the date the Third Developer closes its purchase of the Redevelopment Property from Titleholder, not to exceed 64 square feet each. The Third Developer shall also be entitled to the use of two sandwich board open house signs, 10 square feet each, placed so as not to impede pedestrian traffic during its business hours. The 2 Third Developer shall also have the option of seeking permanent sign variances before the City Council if deemed necessary. 6. Section 7 (iii) of the Original Agreement shall be amended by deleting the reference to "Developer" and substituting in its place the words "Third Developer." 7. The Third Developer hereby guarantees and assumes all of the obligations of McHenry Riverwalk. Center, LLC relative to a Third Party Beneficiary and Indemnification Agreement dated August 301h, 2010, a copy of which is attached hereto as "Exhibit D". 8. Section 8.b.c.d. and Exhibit F of the Original Agreement shall be amended by deleting any reference to "Developer" and substituting in its place "Third Developer". By virtue of this Third Amendment, the parties acknowledge that, subject to the Parking and Completion Requirement restrictions referenced herein, the Third Developer shall receive a maximum reimbursement from the City of the Redevelopment Project Costs, of $624,028.00, "Maximum TIF Reimbursement Amount") as if it were the party which advanced the funds and costs necessary to develop the Development as set forth in the Redevelopment Agreement and any amendments thereto. 9. In the event Total Condominium Conversion has not occurred on or before July 1, 2019, First Midwest: shall pay to the City the sum of $55,000, on July 15`h of each year for six (6) consecutive years thereafter, commencing on July 15, 2019 ("Conversion Years") or until Total Condominium Conversion shall have occurred, whichever first occurs ("First Midwest Obligation'). Payment to the City of $55,000 in each of the Conversion Years shall be non- refundable. To secure the First Midwest Obligation, upon execution of this Agreement, First Midwest shall file with the City and continue to renew a clean irrevocable letter of credit issued by First Midwest, in a form and substance, reasonably approved by the City Attorney. The amount of the letter of credit shall be $330,000. The letter of credit shall remain in force until the earlier of full Condominium Conversion or July 20, 2024. The terms of the letter of credit shall include, but not be limited to provisions that it will not expire without 45 days prior written notice to the City and may be drawn upon (i) on July 151h (or the next business day thereafter if such date is not a business day) of each Conversion Year if Total Condominium Conversion has not occurred prior to such date or (ii) if the letter of credit is scheduled to expire and has not been renewed in conformance with the terms of this Agreement. Once Total Condominium Conversion has occurred, all obligations of First Midwest under this Paragraph 9 shall terminate, the letter of credit shall for all purposes be deemed to have expired and the original thereof shall promptly be returned to First Midwest. Notwithstanding the foregoing, First Midwest shall have no obligation under this Paragraph 9 (and the City shall have not right to draw upon the aforesaid letter of credit) to pay the City in any Conversion Year unless the City has paid to the Third Developer prior to the first Conversion Year an aggregate TIF Reimbursement Amount of not less than $330,000. 10. The first sentence of Section 5 of the Second Amendment to Redevelopment Agreement is deleted in its entirety and the following substituted in its stead: "Prior to the sale of any residential dwelling units, Third Developer have caused Total Condominium Conversion to have occurred. 11. No later than one hundred and eighty (180) days from the date the Third Developer closes its purchase of the Redevelopment Property from Titleholder, Third Developer shall, at its sole cost .and expense, reconstruct the parking lot referenced in Section 4 of the Second Amendment (the "WAHL parking lot"). The specifications of said reconstruction shall be those referenced in Table T1-3, Structural Requirements, for a Bituminous Residential Collector as listed in the Technical Specifications Manual and Standard Details as part of the City's Subdivision Control and Development Ordinance adopted January 19, 2004 by Ordinance No. MC-04-941 and amended August 6, 2007 by Ordinance No. MC-07-926 by the McHenry City Council. In addition, no later than three hundred (300) days from the date the Third Developer closes its purchase of the Redevelopment Property from Titleholder, the Third Developer shall, at its sole cost and expense, complete interior construction, renovation, rehabilitation, alteration and other cosmetic improvements in all twenty-seven (27) residential dwelling units, in strict accordance with the interior residential dwelling unit build -out exhibits, depicting countertop, flooring, cabinetry and appliance specifications and finish materials and attached hereto and incorporated herein as Exhibit E and obtain all 27 certificates of occupancy for the residential units, within said three hundred (300) days of the date that the Third Developer closes its purchase of the Redevelopment Property from Titleholder. The city shall not unreasonably withhold, delay or condition the issuance of said occupancy permits. The parking lot reconstruction and completion of the residential rental units shall collectively be referred to as, "Parking and Completion Requirements". Other than meeting the Parking and Completion Requirements, the Third Developer shall not be required to obtain any building or other permits from the City or pay any fee or cost to the City as a condition of allowing it to complete the interior of any of the residential units. In order to secure timely compliance with the Parking and Completion Requirements, any TIF distributions otherwise payable by the City in 2011 shall be withheld until the Third Developer has met the obligations of the Parking and Completion Requirements. 12. The City represents and warrants to the Third Developer as follows: a. That, with respect to the Redevelopment Agreement, as amended, and the Redevelopment Property, all of the Developer's financial obligations, with the exception of obligations referenced in this Third Amendment have been fully performed and accepted by the City. b. That the Third Developer shall be allowed to construct additional physical amenities to the Redevelopment Property including but not limited to a gym area, business center and/or common roof top sun deck, subject to the provisions of the applicable City ordinances. C. That all parking requirements for the Redevelopment Property have been met, with the exception of the re -construction of the WAHL parking lot. d. That there are no major outstanding building code, zoning ordinance, or any other City of McHenry code violation with respect to or affecting the Redevelopment Property. e. That the Redevelopment Property is zoned C-4 Commercial District by the City of McHenry Zoning Ordinance and that there are no minimum parking requirements for any permitted uses in said zoning district. 13. The City hereby consents to the assignment of the right, title, and interest in and to the Redevelopment Agreement, as amended from the Second Developer to the Third Developer. This Third Amendment shall run with the land, be filed in the office of the McHenry County Recorder of Deeds and be binding upon the parties hereto and their successors and assigns. Third Developer may also collaterally assign all of its rights hereunder to Third Developer's lender without any further action and without consent of the City and to any third party, without any farther action and without consent of the City as long as such lender agrees to be bound to the terms and provisions of the Redevelopment Agreement, as amended, and this Third Amendment. 14. In the event the terms of this Third Amendment conflict with the terms of the Redevelopment Agreement, as previously amended, the terms of this Third Amendment shall govern. Except as specifically provided herein, the Redevelopment Agreement, as previously amended, shall remain in full force and effect. 15. All notices, demands, requests, consents, approvals, or other instruments required or permitted by this Amendment and the Redevelopment Agreement, as amended, shall be in writing and shall be executed by the party or an officer, agent, or attorney of the party, and shall be deemed to have been effective as of the date of actual delivery, if delivered personally, or as of the third (3rd) day from and including the date of posting, if mailed by registered or certified mail, return receipt requested, with postage prepaid, addressed as follows: To the Third Developer: Roy Blavvise 1110 Green LLC 655 Irving Park Road, Suite 105 Chicago, IL 60613 With a copy, to: Steven J. Cuda Hamer, Schuh & Cuda 101 Van Buren Street Woodstock, IL 60098 To the City: City Administrator City of McHenry 333 South Green Street McHenry, IL 60050 With a copy, to: David W. McArdle Zukowski, Rogers, Flood & McArdle 50 Virginia Street Crystal Lake, IL 60014 5 With a copy to: First Midwest Bank 770 W. Dundee Road Arlington Heights, IL 60004 Attn: Edward J. Melton With a copy to: Aronberg Goldgehn Davis & Garmisa 330 N. Wabash Avenue — Suite 1700 Chicago, IL 60611 Attn: Bernard A. Schlifke 16. This Third Amendment shall be null and void in the event Third Developer fails to close its purchase: of the Redevelopment Property from Titleholder within one hundred and twenty (120) days of the date hereof. Third Developer shall provide the City with written documentation that it has closed said purchase within fourteen (14) days of the date of closing. 17. No single party shall be deemed to have drafted this Third Amendment or any portion thereof. This Third Amendment is a product of the collaborative efforts of the parties and their attorneys. IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to be executed by their duly authorized officers on the above date in McHenry, Illinois. City of McHenry By: 4�. Its Mayor First Midwest, N.A. 1110 Green, LLC By: Its Manager Synergy Property Holdings, LLC By: B Its �i[,'i ,E� Y,�$` Its r �."o ok Z:\M\McHenryCityof\CurtisDOL\RedevelopmentAgmt 3rdAmendChangesWithCP1.doc rel Exhibit "A" City of McHenry Building Code, Section 404.4 and Table 404.5 00-4647 WOW V91(nU710atMmOCCWAItEYUPIUTAM" th=3fees(914min)betweas�tnimpp cudapf�eesa T+�� W! cmidefrnd µa MiN,...ATRlAREDUIRENENM 40 .3 Minh mo ceIIlug ladgdda Habitable spars[, hallways. =nldort.Innodryareas. bairuoom. mtla rooms aodbabmhle a bao:m,t sass shall have . clear cedwg height of m[ leas tbaa 7 'sal (2134 m_). Escepdoaac L J. one- end m-f.mrly dwellings, beam. or gudars spared not fear than 4 fat (1219 mm) an «mar sad. - pujecii-not mere than 6 inches (152 min) below the MINIMUM AREA IN BgNIIE FW awns. asses - is aaa.aar as I aenN.nra scaamNe I rv.n mamma R'a Yaerecou f.& tA1 Uaka rv.m't' fort to i- 100 RlLLbcu' 30 ill 1 60 BcBaama Sball sansly with 1..d- miqlaured 40l t -Lung beigbL Rx S7. I r4•a• Its» . a1y91 al. ' 7. Basement rooms inN ooand tao•famDy dwellings 5- s 5- striae sot.5 l ru ___. , arl.a seo.dsams man ,pants a-Prad 7 far k-dry, wady a--iiaa iws..d- 10A`ww,.Atvm.a.....wambq e...mav, wamp.q pnposea, having a crfling height of not less than 6 P.M - led 9 is(2Q;3 m chw in) aids ant kes clan 6 fen 4 . tx:bm (1932 min) of rJ= b,cigbt=krbr girt!- 404.51 S11-plug — Tba •niAimi - orcapacy vac so- ea, duets and moilsur abutract air q" by Table 4043 shall not be Included Ss a doclmrg aves g. Room oecvp{ed ettlndvely far leaping, am4Y os a datrsmining the ®rmrm mcupanry sea [or akep- -1 pmpoees nod having a doped odBeg ova all his . M sleeping trees shall comply with Sccoon 4. m pert of the rvo. wish a des cwh g height of at 404 1.9 7 feet (2134 min) awes ant le s than one-third of 40433 c'^^ s•r•--r spent. r...r.• -t b.ug rwaM ad dro• the regtieed in floor area. In calculating the err team Spaces shall comply wish elm regaaemmn of 7 I - door _ea of earn ro®a only It— parlous of the 'bit 404.5 if the total sine It equal to the regocrd for floor uses with a clear ceiling height of 5 fret (1524 sepanmrootas ®d If the Space is located so ar m function as - aunt) or mote shall be included A combmatimliviog roomidiakg room. 141A.4 Bedroom mtjuhrments..Evvy bedroom shall corgAj 404.6 EMdmq ubII. Nothing in this sectum soallprohibit m wI+,thr: mquucmenn a Sections 4C14.4.1 through4044.5. uRieleoxy4vkgunit float mestiogihe fall owing lequuemenL: 1 4t14.i.1 Arco for dapng purptnes. every txtlroam nine• :. A watt oes�srd by not nine Wm rlro.00vpmu shall p:aC by ooe panne shall c.ntam err lend 7o square [net (e, 5 �I.-' ) a ark. flea area of ant leas than 221 aquae [eat err) ref Door area. and arm bcdvom occupied by more ante ; (V 4 c r, A imat arts, bflwn )711 Square tint ( three occ*P-eU LW he" one person shall contain at lout 50 square feet (4.6 m) of-W �lloo29.7 - wen for each aearpanr there.[. m'j. These required taus shall l-eslurneof the aces "41.2 Aacea boat Mdraamt m Bedroos shall am wn- �O1 nbe 2 and 3. Sc4utethe only meant of access to other bedrooms arh�r4 2 the unitit shell he provided with a kitchen. nnk, welding able Rama and shall rn ante as die only wlrsrs dfegress applimaand miNgeatio s faaliths, each havtag actw fruit alher habitable species. winking Spare of not leas than 30 mcbes (702 min) in (rant Ught and vuntLdancodcaming to this rodeshall Exception: Units thueonwn fewerthantwobedmoms. be ptovid-A 40443 Vftta closet armd6Nt7. Every bedroom shall 3. The unit shag be proridedwitharepasaemdaoomcotl- f are seem to at least me w= closet and erne favanIty honing a ware closet, lavruuy, etrt baditunor shower. widroet psa®g thmagh moIDecbehoom. Every bedroom 4. Tho m'txinnmt number of oceupean sha0 ba0nen in a dwelling unit shall have access in at lean one water cldetasd l.verocy looted in the tame sway as the bedroom 404.7 Food preparadim. All apace to be occupied for food, or an adjacent Hwy. pmpaldod parpo'O shall contain sadsbk apace and egnip- 4diA4 Prohibited occupancy. Kitchens and sonhabinble. That nine, prepare and sax foods in unitary snrmen 'line Shall Tx edegaate (acilllin and Servi.xa far the sanitary spats Shell out be used for sleeping pucposea disposal of food wawa and mfuw. including facilities for tem- 404A.5Olies rsquftt9reus. Bedroom shalfaomply with pmary Wage. the apphcubhprovldanS o! thktodeSocladkg. but not hm- ded in, the fight vear7anon. room aria. Gaging Might and rot_ width mcf immeaa of this t -ow,, the phambtal fa- cDinc, and water-hzeung facilities regnircntems of OUPW 5; the heating facilities and electrical receptacle mgll F - meeta of Cbspia 6; ad the Smulm detectus =1 amugrory escape requi emnda of chapter 7. 404.5 Omirer—Jssg. Dwelling euita shsltnot be occupied by awe aaupanu dim permeted by the matunam area ropur- menn of 7hhk 4045. 1td14W(71CNN.PROpER1'flgMiFENANGE COON 1td14W(71CNN.PROpER1'flgMiFENANGE COON war-4t4.y than 3 fed (914 one) buwced COsnserlttoO and applinumor comterfimu and waW. 40d3 Ftloimure rotting Leigbta Habimblc apacea, hallwayi . conidon, laundry areas. butuuoms, mile mom and habitable. bacuse&[ areas shall have a clear oeling heght of not 4zt dma 7 feet (2! 34 Cam). easepd.uat UGW. VENTUTWKAtD 0CCIAANGI' LIAM710N0 404-U bleeping art. 7ha -ire ok ocamparmy arcs rc yuind by Tate z_s shell our be 1.0 w n • skryiog wean determining de miniMrm occupancy aura for sleep- ing p ".-.AB alccpmg sons shall comply with Scedod 404.4, 404S.2 Combined spaaa. Canhined hying room said dtw tag room spaxa Wall comply with tha requeeumn of Ta- ble 404.5 H the oral arm It equal an that required for separate toms and if the space is toucd son to function" a combination living ro®rdaldg toms 404A B droam requfrimmua. Every bedroom atali codtpl/ 404.E RMdeaey unit. Nothing in this section dsdl prohibit an with the mquuca=u of Saaoas 4044.1 though 4044 S effdeMlini, dou fromrneenag 0m following requirements: TABLE Ur 8 FrNMM AREA REQUIREMENTS__ - ■WMUM AREA IM a.'1War FEET Sae... prom's INo reywnva-, [7o ISO Dmta mraot0INo roe m:ero so 100 L In on> and twvfaunly dwellings, beams a iZa goY s - I 30 30 60 -11 apamd ant Ica: toad 4 lea (t319 Cam) om eew� Fob proicCmg mtttrmrthan6iabes(I52 mm)helawdm Aedrearo 9mO crm.pW with secdm 4044 required aedmg WOO tiro a 2. Eeaemem MOMS in ane add tw,-famdly dve0lap A. sm a.a, e 13 rRr I and Owls, moav&W, eaea fin Orrnpird e:tcluitvely for laundry, Mdy M recreation a A- S— 401! t re'b-"use.-A-"umseo ad'd'- Ms, FinWan his . oealaog height M doe Iax eve 4 .m (+1rMa some+ feet A iochra CM3 Cam) with ant Ian than 6 feet, facbes (1932 mm) of clear height dodo brame, gird, w. ducts and atmilar dbaru t ins. 3, Booms occupied eacYmivefy for alespiog, study or sima7a pl.— .I having • sloped calling u. s all or parr of mu Mom, with a dear ceding log of u ' lose. 7 feet (2134 man) star not Ian than roe-Ihird of the requited rtriormsne Una area }n calcnlahOg the Hoar area of Mrs roamm only ttoce portions of the Aoee ears with • aLar ceiling height of S fi.t (16'14 mm) a more shill be indaded. 404A.1 Area fur wimplog purposes. Every bukoom =¢- pled by do, peson LMI contain at least 70 Square yen W.1 'mh1 of Bur son. and retry bedroom mmpred by mc. Wnn r: nine. feratm ths0 contain at leant SO square feel (4 6 anal of ;!loot aca for tack occupant tb rmOf. 404A2 Acme from bedroom& Bedrooms shall LW Cars' Stimeethe only mean of scow to other brdMomS or habit- able garo and shall ant Urn "the Only mum of arrmw hams other ha6ltabte epsoes. L=tpd=: Units thucanmiafewtrthan two bOdMO s. 4NAJ water dolt arc fultilty. !:wary bedroom "a have =can to at last one water claret and one IAMM aithont pucmg through annthn be avant. Every badreaM in a dummag unit shall have aoaa m at teat one astir etoatxaad lavatory lacsaedin the sane day as the bedroom or row sdjanart sorry. 404A4 Prohfblsed e"ups ecy. Kitchen androa-limble spaces shall ant be avd fa daeping purposes, 404,45 other mpefnmeelt Bedrooms sha¢tomply aith the uNlicahk ptovidooa of thiscode,including. but not Limo- had in, the Bghi, ymlilufao, room amu mlingllerght and romm width requa mcau of this cmp m-, the plumbing fa- cdrtieand wuetheadng h l tin regaire came; ofClmlrer S; the heating faeittfies and electrical reeepuele require- ments of meter 6; And the smoke deberm, and emagracy "cape mq=mema of ❑mpmr 7. 4043 ()vetrrowdbtg. Dwelling units shag am be occupied by soon roc apao. I.-pcmiaal by it. i— sma mgdite- mcma of Table 404.5, L A unit occupied by rot more Chad two oavpana shall to a cur Door sew of nor k- throe 220 q— foot (20A Ms). A unit occupied by three rsccopaau Shall have n dear Boa area d ant less than 320 square feet 29.7 mil. These requited aesa dell be adt,.ive of the are" requited by tmw 2 add 3, 2. 'M ant, dull 1. pro.ided with a kiu:heu ddk. cooking appfuoea Lad mfsig cone. hcBitm, each having Muir oraking space of cot Ian than 30 taxiact (762 mm) in. homL. Llghaaod vendladoe eomFO®ing to this eadesball be providad 3. M. unit d..0 be provided with a roparata bathsoem coo- oiofdg a water Closes, lavatory, and bar btub or shown. 4. ^Ike mariemm emeber of accupaam Shan be done 404.7 Food pr+peraUm. All space tube occupied for food 0 preparation D ipdan shag cocain sutuble apse add a)uip- medt m use, prepare ad eta fee& in s tmtary mwdme Thera fha11 br ad.W2u fwatdes and services for dmeaaatrary dirposd.Efoed wart"aAmf .utcludingfactbueafertem- pantry Moriva. Epg,�,ptsfei4xreNtlNcs moea� Exhibit "B" Riverwalk Information sheet (Residential Unit Occupancy Limitation) VIVERWALK INFORMATION rUNIT NUMBER SQUARE FOOTAGE ItJUMBER OF OCCUPANTS NUMBER OF BEDROOMS If 201 1371 1 4 2 202 1319 4 2 203 1553 4 2 204 1572 4 2 205 _ 1102 2 1 206 1102 2 1 207 1102 2 1 105 1102 2 1 209 2429 4 2 301 1371 4 2 302 1319 4 2 303 1553 4 2 304 3572 4 2 305 1102 2 1 S06 1102 2 1 307 1102 2 1 309 1102 2 1 309 1499 4 2 401 1371 4 2 402 1319 4 2 403 1553 _ 4 2 404 3,72 4 _ 2 405 3102 2 1 406 1102 2 1 407 1302 2 1 404 1102 2 1 409 1489 4 2 "Exhibit C" Rules and Regulations for the Redevelopment Property 1. No dogs, cats or other animals shall be kept or allowed in the Premises except with the Lessor's prior consent and subject to the conditions set forth in any such consent. No animals shall be permitted without a leash in any public areas of the Premises. Assist animals are permitted. 2. No additional locks or other similar devices shall be attached to any door without Lessor's written consent. 3. Lessee shall riot install or operate any machinery, refrigeration or heating devices or use or permit onto the Premises any inflammable fluids or materials which may be hazardous to life or property. 4. Hallways, stairways, and elevators shall not be obstructed or used for any purpose other than ingress and egress for the Building, nor shall children be permitted to play in the common areas, nor shall Lessee place or store any items in the hallways or common areas of the Building. 5. No musical instrument shall be played and no radio or television set shall be operated at any time in such manner as to disturb or annoy other occupants of the Building, nor shall other noises be made which will disturb or annoy any occupants of the Building. Operation of electrical devices which interfere with radio or television reception shall not be permitted. 6. All moving and delivery shall be through the rear entrance, stairway or service elevator at hours designated by Lessor. 7. Lessee shall maintain the smoke detectors and carbon monoxide (CO) detectors, and replace the batteries when necessary. S. Lessee shall inform the Lessor in writing of Lessee's intent to renew not less than forty- five (45) days prior to Lease expiration. 9. Washrooms shall not be used for any purpose other than that for which they are designed, and no rubbish, rags, or injurious items shall be placed in plumbing facilities or receptacles. 10. Lessee shall not place or permit any article or antenna outside of the windows, on the exterior walls, or on the roof of the Building, and shall not throw or drop any article from any window. 11. Lessee shall not place, erect or install any signs or advertisements on the windows, nor on any part of the Building or Premises. 4 12. All garbage or refuse shall be securely wrapped and placed in the incinerator or garbage container. 13. Waterbeds shall not be permitted in the Premises without Lessor's written consent. 14. Lessee shall not interfere in any manner with the heating or lighting or other fixtures in the Building, nor run extension cords or electrical appliances in violation of the Building Code. 15. Lessee shall not solicit, canvas or conduct any door-to-door activities on the Premises. 16. Lessor requires Lessee to provide appropriate renter's insurance for Lessee's personal property. 17. Right of Access to Show Apartments to Prospective Tenants and Purchasers: Lessor shall have the right to show the apartment to all prospective tenants and purchasers, and any of Lessor's other invitees, in accordance with local statutes and/or ordinances. Tenant shall not interfere with Lessor's efforts to lease the apartment or sell the property, and tenant shall be liable: for any damages caused by breach of this provision. 18. Lessor has the right to bar individuals from the Premises. Tenant must inform their guests of all Lease provisions regarding use of the Premises and all rules and regulations. If these provisions are violated by the tenant's guests, the guest may be barred and/or arrested for criminal trespassing, after they have received a barred notice and then have been placed on a barred list by Lessor. If the tenant violates the Lease or any of the rules and regulations, it shall be grounds for termination of tenancy. 19. The outside window covering shall be of a neutral color. 20. If Lessee vacates the apartment prior to the Lease expiration without benefit of any approved sublet or Lease cancellation agreement, the apartment will be placed on the market when vacant and the apartment keys are returned. Lessee shall be responsible for monthly rent until the Lease expires or the apartment is re -leased. 21. -No personal property shall be left in any public area and residents shall not hang towels, laundry, clothing or anything else on patios, balconies or windowsills. 22. --Boxes, trash, or other items shall not be stored outside the apartment doors or on patios or balconies. 23. -Bicycles and motorcycles shall not be stored or kept on patios, balconies or under stairways or in any other areas not designated by Management. 24. No boats, trailers, house trailers, recreational vehicles, vans, trucks and similar type vehicles larger than one-half ton capacity shall be parked or stored in or about the premises without the written consent of Management. --Violation of any of these rules and regulations shall be grounds for immediate termination of this apartment lease. The City of McHenry has the right but not the obligation to enforce these rules and regulations. 3 "Exhibit D" Third Party Beneficiary and Indemnification Agreement dated August 30th, 2010 ORDINANCE NO. ORD-10-1512 AN ORDINANCE AUTHORIZING THE EXECUTION OF A PARKING LOT LEASE AGREEMENT BETWEEN THE CITY OF MCHENRY AND EDWARD J NEUMANN JR., AS TRUSTEE, UNDER THE PROVISIONS OF A TRUST AGREEMENT DATED DUNE 15, 2007, AND KNOWN AS THE EDWARD J. NEUMANN, JR. TRUST, FOR THE PROPERTY LOCATED AT 1111 N GREEN STREET, IN THE CITY OF MCHENRY, MCHENRY COUNTY, ILLINOIS WBEREAS, Edward J Neumann Jr., as Trustee, under the provisions of a Trust Agreement dated June 15, 2007, and (mown as the Edward J. Neumann Jr. Trust, is the legal owner of record and the City of McHenry is the designated lessee of a portion of the real estate which includes two parking lot areas off of Green Street and Waukegan Road located at 1111 N Green Street in the City of McHenry, Illinois. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND Cny COUNCIL OF THE CITY OF MCHENRY, MCHENRY COUNTY, RLINOIS AS FOLLOWS: SECTION I: The Lease Agreement, bearing the daze of August 30, 2010 between Edward J Naumann Jr. Trustee, record owner, and the City of McHenry a Municipal Corporation in the State of Illinois designated lessee be and the same is hereby approved. A complete and accurate copy of said lease agreement is attached to this ordinance and incorporated herein by reference. SECTION 2: The Mayor and City Clerk are hereby authorized to affix their signatures as Mayor and City Clerk to said Lease 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 conf icL SECTION 4: This Ordinance shall be published in pamphlet form by and under the authority of the corporate authorities of the City ofMcHenry, McHenry County, Minis. SECTION 5: This Ordinance shall be in fidl force and effect from and after its passage, approval, and publication in pamphlet form as provided by low. Passed and Approved this 3e day of August, 2010 AYES: Santi, Glab, Schaefer, Blake, Wimmer, Peterson, Condon. NAYS: None ABSTAINED: None ABSENT: None NOT' VOTING: None MAYOR ATTEST: Exhibit E Interior Residential Dwelling Unit Build -out Exhibits, Depicting Countertop, Flooring, Cabinetry and Appliance Specifications and Finish Materials • Granite countertops • 18x18 porcelain file with Mass or stone inserts for kitchen and baths • Berber carpeting • 42" stained wood cabinets with crowri molding • 1 "x1" tiled glass backsplash for kitchen • Stainless steel appliances • Full glass shower doors • Tiled foyer entrance • 2 panel interior wood doors New Lifestyle Amenities k Fitness Center with state-of-the-art equipment Wrap around sun deck overlooking waterfront Business Center,,&rith fast internet connection ... plus all the convenience of dining and high -end retail might inside the building. LEASE AGREEMENT I II I NORTH GREEN STREET, Me ENRY.ILLINOIS This Lease Agreement ("Agreement") is entered into as of this 'O � day of 2010, by and between Edward]. Neumann, Jr., as Trustee, under the provisions of a Il'ust Agreement dated June 15, 2007, and known as the Edward I Neumann, Jr. Trust, property owner ("Lessor and the City of McHenry, an Illinois municipal corporation ('Lessee'l. RECITALS A. Lessor presently owns two parking lots, located on the southerly portion of 11 I North Green Street, McHenry, Illinois; specifically, the lower south lot with access from Omen Street and the upper south lot with access from Waukegan Road, each identified by crosshatching on the aerial photograph attached hereto ("Premises'). The Premises lies within PIN 09-26-380-014. B. Lessor desires to lease to Lessee the right to manage, operate and maintain a public parking facility on the Premises. NOW, THEREFORE, for and in consideration of the foregoing Recitals, the mutual covenants and agreements set forth herein, and other good and valuable consideration, the receipt, adequacy and sufficiency of which we hereby acknowledged and accepted by the Parties hereto, Lessor does hereby grant to Lessee the right to manage, operate and maintain a public parking facility subject to and in accordance with the following: 1. FEE AND TERM. Lessee covenants and agrees to pay Lessor the aum of Five Hundred Dollars and Noll00 ($500.00) per month for the Premises, commencing October 1, 2010, and on a montb-to-month basis thereafter. Payments shall be made by the 10' of esch month. Either party may at any time terminate this Agreement by giving the other party sixty (60) days' prior written notice of its intention to so terminate. 2. ' PURPOSE OF USE The parties agree that the purpose of this Agreement is to mitre that the Premises and all of the improvements, including but not limited to; the parking surface, stairs, handrails, sewer States, light pole and/or lighting futnuea, and walkways are being leased "as is" with no implied warranties or representations. Lessee will make any modifications or improvements to these elements at its sole expense, only after receiving approval for such modifications from Lessor, the approval of which will not be unreasonably withheld. Leasee shall restore the streetlight located between the two parking lots, Lessor, at its cost, will provide the electricity to power the light Lessee acknowledges that ten puling spaces along the wed line of the upper south puking lot with access from Waukegan Road (shown on the attached drawing as "Reserved Spaces') will be available exclusively for Landmark School's usage, on school days only when school is in session, and it will be the school district's responsibility to post and control that restriction. 3. USE BY PUBLIC AND LESSOR During the term of this Agnxmeat, Lessee shall permit and not interfere with or infringe upon the use of the puking facility by the general public or Lessee, its agents or employees, subject to ten puking spares partially reserved in paragraph 2, above. Also, throughout the term of this Agreement, lessor shall be permitted access to the Premises to park an amphibious DUKW in the lower south puking lot, without restriction, for a t=-&y period of Lessoea choosing each calendar year. Lessee shall rake available puking spots necessary to pink such vehicle. 4. MAINLENANCE AND ACCESS. Lessee, at its own cost and expense, shall manage the parking facility and shall be responsible for the performance of "Routine Maintenance" throughout the term of this Agreement. Routine Maintenance shall include, but shall not be limited to snow removal, sweepiog, sealcoating, m-marldng and patching pavement associated with the operation ofthe parking facility. Lessee has no obligation to otherwise repair or reconstruct the parking facility. 5. . SIGNS. Lessee shall be permitted to place sigmage on the Premises, including, but not limited to two that read, "Parking for Gram Street Businesses Only". 6. LEGAL AND INSURANCE. Lessee shall manage, operate, maintain and on the Premises and the parking facility in compliance with the requirements of all local, state and federal otdimrxes, laws, rules and regulations in effect during the term of this Agreement Lessee will provide Lessor with a =tificatc of general liability insurance covering the Premises naming Lessor as an additional insured. 7. LESSOR'S TITLE. Lessor hereby covenants quiet anjoymem of the Premises. Lessor assumes any damages Lessee may sustain as a result of, or in connection with, ®y want or flilure at any time of Lessor's good title to the Premises. E. MLND EICATION. To the odent covered by applicable insurance, the Lessee hereby indemnifies and holds hatniless Lessor from any and all injuries sustained. including death, to any permittees who eater onto the Premises for purposes of this Agreement 9. TAXFS. Lessor shall be responsible for payment of all real estate taxes and special assessments, if any, assessed against the Premises and Premises Puking Facility, including but not limited to real estate taxes assessed 10. NOTICES. All notices sent hereunder shall be sent via first class mail, postage prepaid as follows: Lessee: City of McHenry 333 S. Greet Street McHenry, Illinois 60050 Attention: City Administrator Lessor. Edward J. Neumann, Jr., as Trustey under the provisions of a Trust Agreement dated June 15, 2007, and known as the Edward J. Nero, Jr. Trust 309 Country Club Dr McHenry, IL 60050 11. SEVERABLLIfY. If any provision or any portion thereof; contained in this Agreement is hold unconstitutional, invalid or unenf xceable, the remainder of this Agrpcmeat or a portion thereof shall be deemed severable, shall not be affected and shall remain in force and effect LESSEE' LESSOR Susan E. Low, Mayor 'ward J. Jc,tAastc THIRD PARTY BENEFICIARY AND INDEMMFICATION The undersigned, McHenry Rkverwalk Center, LLC ("Developer") hereby acknowledges that the above -referenced Lease Agreement was entered into, to a large extent, to accommodate current and future needs of the Curtis Commercial Cents located across Green Street from the Premises. As consideration of the City of McHenry ("City") entering into the Lease Agreement, the Developer agrees to hereby indermtify and reimburse the City for each and every obligation and related expenses it has under the terms of saidLeau Agreement. Specifically, Developer shall 1) pay to the City the same payment thp City pays to the Edward J. Neumann, Jr., as Trustee, order the provisions of a Trust Agreement dated June 15, 2007, and known as the Edward J. Neumann, Jr. Trust under the Lease Agreement and at the same time the City's payment is due; 2) restore the streetlight between the two parking lots and 3) at its own expense, perform all Routine Maintenance obligations set forth in the Lease Agreement. In the event the Developer defaults on its obligation to perform Routine Maintenance the City reserves the right, but not the obligation, to perform said Routine Maintenance and the Developer shall reimburse the City upon written request for related expenses. Developer shall maintain liability insumnce on the leaved premises during the term of this lease and the City shall be named an additional insured The limits of liability shall not be leas than $ I million per person and in the aggregate. Evidence of this irsurance coverage shall be provided to the City upon ex lion of t}ua ent and thereafter upon reasonable request. Agreed to thiv� day of 04,3 7 V%M F -g0tyoMlaumr L—AB—Ld. \ Mci{egly Riverwalk °Z..egrter, LLC 11 10