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HomeMy WebLinkAboutOrdinances - ORD-13-1630 - 06/17/2013 - AUTHORIZE EXECUTION OF A REDEVELOPMENT AGREEMENT WDepartment of Community & Economic Development Doug Martin, Deputy City Administrator McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 dmartin@ci.mchenry.il.us www.ci.mchenry.il.us ORD-13-1630 AN ORDINANCE AUTHORIZING THE EXECUTION OF A REDEVELOPMENT AGREEMENT WITH CURT AMES DBA CHAIN O'LAKES BREWING COMPANY FOR THE REDEVELOPMENT OF AN APPROXIMATELY ACRE PARCEL LOCATED AT THE SOUTHEAST CORNER OF GREEN STREET AND PEARL STREET IN THE CITY OF MCHENRY, MCHENRY COUNTY ILLINOIS BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF MCHENRY, MCHENRY COUNTY, ILLINOIS, AS FOLLOWS: SECTION 1: The City of McHenry, McHenry County, Illinois, is a home rule municipality as contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the passage of this Ordinance constitutes an exercise of the City's home rule powers and functions as granted in the Constitution of the State of Illinois; and SECTION 2: The Redevelopment Agreement bearing the date of June 17, 2013 between the City of McHenry, a Municipal Corporation in the State of Illinois, and Curt Ames dba Chain O'Lakes Brewing Company, be and the same is hereby approved. A complete and accurate copy of said Agreement, labeled "Redevelopment Agreement," is attached to this ordinance and incorporated herein by reference. SECTION 3: The Mayor and City Clerk are hereby authorized to affix their signatures as Mayor and City Clerk to said Redevelopment Agreement for the uses and purposes therein set forth. SECTION 4: All ordinances or parts thereof in conflict with the terms and provisions hereof are hereby repealed to the extent of such conflict. SECTION 5: 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 6: This ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form as provided by law. Department of Community & Economic Development Doug Martin, Deputy City Administrator McHenry Municipal Center 333 Green Street McHenry, Illinois 60050 Phone: (815) 363-2170 Fax: (815) 363-2173 dmartin@ci.mchenry.il.us www.ci.mchenry.il.us PASSED and APPROVED this 17th day of June, 2013. Voting Aye: Santi, Schaefer, Blake, Wirnmer, Peterson, Condon Voting Nay: Glab NotVoting: None Abstained: None Absent: None Iq M`ayor ATTEST: City C rk REDEVELOPMENT AGREEMENT THIS AGREEMENT ("Agreement") is entered into this 17th day of June, 2013, between the City of McHenry, an Illinois municipal corporation ("City") and Curt Ames d/b/a Chain O'Lakes Brewing Company ("Developer'). RECITALS A. In a certain Redevelopment Project Area defined below, the City has identified a severe need for the location and development of adequate and available commercial development, to provide a mix of community activities including business, entertainment, recreation and civic gatherings to residents thereby retaining current residents and attracting new residents to the City; B. Pursuant to the Tax Increment Allocation Redevelopment Act of the State of Illinois, 65 ILCS 5/11-74.4-1, et seq., as from time to time amended ("TIFAct"), the Mayor and City Council ("Corporate Authorities") approved a redevelopment plan and project for the Downtown McHenry Tax Increment Redevelopment Project Area ("Redevelopment Project Area") as set forth in the document entitled "Downtown McHenry Tax Increment Redevelopment Project and Plan" ("Redevelopment Plan"), dated January 25, 2002. The Redevelopment Plan sets forth a plan for the redevelopment and revitalization of the Redevelopment Project Area; C. The Corporate Authorities adopted tax increment allocation financing for the purpose of implementing the Redevelopment Plan for the Redevelopment Project Area; D. The Corporate Authorities have determined that the presence of certain blighting factors described in the Redevelopment Plan are detrimental to the public and impair development and growth in the Redevelopment Project Area, with the result that it is necessary to incur extraordinary costs in order to develop the Redevelopment Project Area. The presence of blighting factors in the Redevelopment Project Area will continue to impair growth and development but for the use of tax increment allocation financing to undertake certain obligations as hereinafter provided to pay Redevelopment Project Costs (as defined in the TIF Act and in this Agreement) which necessarily must be incurred to implement the aforesaid program of redevelopment; E. The Developer proposes to develop an approximately 3,590 square foot microbrewery to be marketed as Chain 0' Lakes Brewing Company (the "Development") on certain property within the Redevelopment Project Area located at 3425 Pearl St., McHenry, Illinois ("Subject Property"); F. The Corporate Authorities have determined that the certain aspects of the Development on the Subject Property is consistent with the Redevelopment Plan and is located within the Redevelopment Project Area; G. The City is authorized under the TIF Act to incur Redevelopment Project Costs and to make and enter into all contracts necessary or incidental to the implementation of its Redevelopment Plan; H. In order to induce the Developer to undertake Development of the Subject Property, the Corporate Authorities have determined that it is in the best interest of the City and the health, safety, morals and welfare of the residents of the City for the City to reimburse the Developer for certain eligible Redevelopment Project Costs incurred by the Developer, i.e., construction of a handicap accessible ramp in accordance with the terms of this Agreement; 1. The Corporate Authorities have determined that the provision by the City to the Developer of the benefits described herein and the Development on the Subject Property pursuant to this Agreement are in the best interests of the City and the health, safety, morals and welfare of its residents and taxpayers and will be in furtherance of the Redevelopment Plan and thereby help provide for economic development for the inhabitants of the City, enhance the tax base of the City and other taxing districts and add to the welfare and prosperity of the City and its inhabitants. NOW, THEREFORE, the parties, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, agree as follows: 1 . Incorporation of Recitals. All of the recitals contained in this Agreement are true and correct and are hereby incorporated into this Agreement as though they were fully set forth in this Section 1. 2. Construction of Improvements -Handicap Accessible Ramp. Construction of the handicap accessible ramp was previously paid for at the Developer's expense and the costs associated therewith shall be subj ect to reimbursement from any TIF tax increment received from the Subject Property in the future pursuant to the terms of this Agreement. 3. Reimbursement for Redevelopment Project Costs. The City shall reimburse Developer for an amount not to exceed $17,585.00 relating to the costs of construction of ahandicap accessible ("Maximum Total Payment Obligation"). Contemporaneously upon the execution of this Agreement Developer shall submit to the City sufficient evidence of the Redevelopment Project Costs. The City shall have thirty (30) days after receipt of said evidence to provide the Developer in writing (a) confirmation of the approved Redevelopment Project Costs eligible for reimbursement hereunder; or (b) an explanation as to why the evidence submitted is insufficient. Upon receipt of such notice of insufficiency, additional evidence shall be submitted by the Developer until the City is reasonably satisfied. Reimbursement of the approved Redevelopment Project Costs, shall be paid by the City to the Developer annually and solely out of TIF tax increment funds generated in the future from the Subject Property during the stated Term of this Agreement. Payments shall be made no later than December 3 1 st each year, or if no payment is due then notice of such will be sent to the Developer. No interest shall accrue on all Redevelopment Project Costs payable by the City. 4. Term. This Agreement shall be in effect for a term commencing on the Effective Date of this Agreement and ending on the earlier to occur of. (a) the City's Maximum Total Payment Obligation being made to the Developer; (b) the Permanent Closure of Developer's business prior to Developer's receipt of the Maximum Total Payment Obligation; or (c) the end of the applicable TIF District. For purposes of this Agreement, Developer shall be deemed to have closed permanently if it is closed and the Subject Property remains either vacant or unoccupied by a Successor Tenant for a period of twelve (12) or more consecutive months. 5. No Liability of City to Others for Developer's Expenses. The City shall have no obligations to pay costs of the Development or to make any payments to any person other than to the Developer, as provided for in this Agreement, nor shall the City be obligated to pay any contractor, subcontractor, mechanic, or material man providing services or materials to the Developer for the Development of the Subject Property. 6. Assignment. This Agreement may not be assigned by the Developer without written amendment of this Agreement. 7. No Recourse. No recourse under or upon any obligation, covenant or provision of this Agreement, or for any claim based thereon or otherwise in respect thereof shall be had against the City, its officers, agents and employees, in any amount or in excess of any specific sum agreed by the City to be paid to the Developer or anyone of them, hereunder, subject to the terms and conditions herein; and no liability, right or claim at law or in equity shall attach to or shall be incurred by the City, its officers, agents, and employees in excess of such amounts; and all and any such rights or claims against the City, its officers, agents and employees are hereby expressly waived and released as a condition of and as consideration for the execution of this Agreement by the City. 8. Waiver. Any party to this Agreement may elect to waive any remedy it may enjoy hereunder, provided that no such waiver shall be deemed to exist unless the party waiving such right or remedy does so in writing. No such waiver shall obligate such party to waive any right or remedy hereunder, or shall be deemed to constitute a waiver of other rights and remedies provided said party pursuant to this Agreement. 9. Severability. If any section, subsection, term or provision of this Agreement or the application thereof to any party or circumstance shall, to any extent, be invalid or unenforceable, the remainder of said section, subsection, term or provision of this Agreement or the application of same to parties or circumstances other than those to which it is held invalid or unenforceable, shall not be affected thereby. 10. Notices. All notices, demands, requests, consents, approvals or other instruments required or permitted by this Agreement 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 (3d) day from and including the date of posting, if mailed by registered or certified mail, return receipt requested, with postage prepaid, addressed as follows: 3 To the Developer: Curt Ames Chain 0 Lakes Brewing Company 3425 Pearl Street McHenry, U- 60050 To the City: City Administrator City of McHenry 333 South Green Street McHenry, Illinois 60050-5494 11. Successors in Interest. This Agreement shall be binding upon and inure to the benefit of the parties to this Agreement and their respective successors and assigns. 12. No Joint Venture, Agency or Partnership Created; No Recourse. Neither anything in this Agreement nor any acts of the parties to this Agreement shall be construed by the parties or any third person to create the relationship of a partnership, agency, or joint venture between or among such parties. 13. Amendment. This Agreement may be amended only in writing signed by all the parties with the adoption of any ordinance or resolution of the City approving said amendment, as provided by law, and by execution of said amendment by the parties or their successors in interest. Except as otherwise expressly provided herein, this Agreement supersedes all prior agreements, negotiations and discussions relative to the subject matter hereof. 14. Counterparts. This Agreement maybe executed in two counterparts, each of which shall be deemed an original but of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized officers on the above date at McHenry, Illinois. City of McHenry By:—JZd�� //"gusan E. Low, Mayor In Developer By: Curt Ames