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Home My WebLink About01-108 Resolution No. 01-108 RESOLUTION AUTHORIZING EXECUTION OF A FIRST AMENDMENT TO GROUND LEASE AND OPTION AGREEMENT WITH ELGIN RIVERBOAT RESORT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Ed Schock, Mayor, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute a First Amendment to Ground Lease and Option Agreement on behalf of the City of Elgin with Elgin Riverboat Resort for the riverboat gaming facility, a copy of which is attached hereto and made a part hereof by reference . s/ Ed Schock Ed Schock, Mayor Presented: April 25, 2001 Adopted: April 25, 2001 Omnibus Vote : Yeas 5 Nays : 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk FIRST AMENDMENT TO GROUND LEASE AND OPTION AGREEMENT THIS AGREEMENT is made and entered into this 19th day of April , 2001, by and between the CITY OF ELGIN, Illinois , an Illinois municipal corporation (hereinafter referred to as the "Landlord" ) , and ELGIN RIVERBOAT RESORT, an Illinois joint venture consisting of Nevada Landing Partnership and RBG, L. P. , as its joint venture partners (hereinafter referred to as the "Tenant" ) ; WHEREAS, Lanaiord is the owner of that certain real property legally described in Exhibit A attached hereto and made a part hereof , located in Kane County, Illinois (hereinafter referred to as the "East Parcel" ) ; and WHEREAS, Landlord and Tenant have heretofore entered into a certain Ground Lease and Option Agreement dated December 2 , 1998 (hereinafter referred to as the "Ground Lease and Option Agreement") ; and WHEREAS, the Ground Lease and Option Agreement provided for the lease of the East Parcel from the Landlord to the Tenant for the term commencing on January 1, 1995 and terminating on December 31, 1999; and WHEREAS, the Ground Lease and Option Agreement also provided Tenant certain options to purchase the East Parcel and other property of the Landlord identified therein as the West Parcel , all on the terms and provisions therein provided; and WHEREAS , all of Tenant ' s options to purchase the East Parcel or the West Parcel have expired with the exception of Tenant ' s right to purchase the East Parcel as provided for in Section 33F of the Ground Lease and Option Agreement ; and WHEREAS, Landlord and Tenant have determined that it is in their mutual benefit to amend the Ground Lease and Option Agreement by deleting Section 33F therefrom relating to Tenant ' s remaining right to purchase the East Parcel described therein. NOW, THEREFORE, for and in consideration of Ten Dollars ($10 . 00) in hand paid to Tenant, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows : 1 . That the Ground Lease and Option Agreement be and is hereby amended by amending Section 33 entitled "Option to Purchase East Parcel" by deleting therefrom the entirety of Subparagraph F thereof which reads as follows : "F. In addition to Tenant ' s East Parcel Option under subsection (A) above, if, prior to the purchase of the Demised Premises by Tenant pursuant to the exercise of its East Parcel Option, but within five (5) years after expiration of the Option Term, Landlord proposes to construct, or permit to be constructed, any building or other improvement on the Demised Premises, or any portion thereof, the Landlord shall first notify Tenant thereof in writing setting forth the nature of the proposed development, and the portion of the Demised Premises to be so developed. Upon receiving such notice, Tenant shall have thirty (30) days in which to notify Landlord in writing of its intention to purchase that portion of the Demised Premises which Landlord proposes to develop, and, if Tenant exercises its right to purchase as herein provided, the delivery of its said notice shall constitute a binding contract between the Landlord and Tenant for the purchase of the portion of the Demised Premises proposed to be developed at a price equal to fair market value thereof, to be determined in accordance with the appraisal procedures applicable to the East Parcel Option referred to above, and subject to the -2- reverter provisions set forth above but otherwise in accordance with the terms and provisions of the Contract . If Tenant fails to exercise its right to purchase as herein provided, Landlord may develop that portion of the Demised Premises which it had originally proposed to develop free of any remaining rights of Tenant with respect thereto (including any rights under the East Parcel Option set forth in subsect.on (A) above) . " 2 . That it is acknowledged and agreed by the • parties hereto that upon execution of this Agreement that Tenant shall have no further rights with respect to the East Parcel or any portion thereof including but not limited to no further right or option to purchase the East Parcel or any portion thereof . IN WITNESS WHEREOF, the parties have caused this agreement to be executed on the date and year first written above. CITY OF ELGIN, a municipal ELGIN RIVERBOAT RESORT, an corporation Illinois partnership By By RBG, L.F. , Mayor One of its general partners By HC •,.rporation, Attest : Its g1ne n1 partner By A City Clerk 'f c'!' d . Schulze RAGREE/RIVERBT.A#1 -3- EXHIBIT A EAST PARCEL • THAT PART OF THE SOUTHWEST QUARTER OF SECTION 13 , TOWNSHIP 41 NORTH, RANGE 3 EAST CF THE THIRD PRINCIPAL MERIDIAN DESCRIBED AS FOLLOWS : LOTS 3 THROUGH 18, BOTH INCLUSIVE, IN BLOCK 1 OF 0. DAVIDSON' S ADDITION TO ELGIN, IN THE CITY OF ELGIN, KANE COUNTY, ILLINOIS . ALSO • LOTS 1 THROUGH 16, BOTH INCLUSIVE, IN BLOCK "A" OF DAVIDSON' S GROVE AVENUE SUBDIVISION, IN THE CITY OF ELGIN, KANE COUNTY, ILLINOIS . PERMANENT INDEX NO. 06-13-352-038 c:\$oS21\11942\LAS?mc Committee of the Whole Meeting December 13 , 2000 Page 4 and economic development projects . He stated that the rate of growth in the equalized assessed value of the entire City of Elgin for the period from 1994 to 1999 was 4 . 5% and the rate of growth of the originally proposed project area was 2 . 1% . Although the original area, with some exceptions, would qualify for inclusion in a TIF district, staff looked at four options of what area should be included and made comparisons . It is staff ' s recommendation that the option designated as Mixed Use Modified be pursued. This would create a district with an equalized assess valuation that is approximately one-half of that found with the Mixed Use Original option. This district would include the downtown and riverfront areas, the Dundee Avenue corridor, and the closer-in neighborhoods bordering the center city. Staff is also recommending a 23-year term, which could generate approximately $50 . 6 million to the City. An approach which could be utilized to address the impact a 23-year term would have on other taxing districts would be to consider appropriate agreements with other taxing districts for capital costs necessarily incurred or to be incurred by such taxing plan and project . Guidelines would have to be developed for using funds for other taxing district capital projects . Councilman Gilliam arrived at 6 :45 p.m. Councilman Wasilowski made a motion, seconded by Councilwoman Munson, to approve the recommendation to authorize staff and the City' s consultants to a) proceed with the additional work required toward adoption of the Mixed Use Modified option with a 23-year term, and b) establish guidelines to identify qualified capital projects with other taxing districts and the amount of TIF funds to be utilized to support the projects . Upon a roll call vote : Yeas : Councilmembers Figueroa, Gilliam, Munson, Walters, Wasilowski and Mayor Schock. Nays : None . Consideration of a Request For Proposals for a South Grove Avenue Residential Commercial Development Councilman Walters made a motion, seconded by Councilman Wasilowski, to authorize the distribution of RFP' s for the South Grove Avenue Residential/Commercial Redevelopment proposals following the receipt of the release of purchase option held by the Riverboat Partnership. Upon a roll call vote : Yeas : Councilmembers Figueroa, Gilliam, Munson, Walters, Wasilowski and Mayor Schock. Nays : None. Adjournment Councilman Wasilowski made a motion, seconded by Councilwoman Munson, to adjourn and go into Executive Session for the purpose of discussing the following matters :