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HomeMy WebLinkAbout14-8 Resolution No. 14-8 RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH DAVID HUANG REGARDING THE ALFT LANE EXTENSION AND MASON ROAD IMPROVEMENTS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that David J. Kaptain, Mayor, and Kimberly A. Dewis, City Clerk, be and are hereby authorized and directed to execute an Agreement on behalf of the City of Elgin with David Huang regarding the Alft Lane extension and Mason Road improvements, a copy of which is attached hereto and made a part hereof by reference. s/David J. Kaptain David J. Kaptain, Mayor Presented: January 22, 2014 Adopted: January 22, 2014 Vote: Yeas: 9 Nays: 0 Attest: s/Kimberly Dewis Kimberly Dewis, City Clerk AGREEMENT N s^ This Agreement is made and entered into this `Z day of January, 2014, by and between the CITY OF ELGIN, an Illinois municipal corporation, (hereinafter referred to as the "City") and DAVID HUANG, whose principle place of business is 2505 Bath Rd, Elgin, IL. 60124 (hereinafter referred to as "Developer"). WITNESSETH WHEREAS, Developer is the contract purchaser of the property in an unincorporated area contiguous to the Elgin corporate limits consisting of approximately Fifty Nine (59+/-) acres adjoining Mason Road on the north and Alft Lane on the south, and legally described on Exhibit A attached hereto (such property is hereinafter referred to as the"Subject Property"); and WHEREAS, Developer intends to annex the Subject Property into the City of Elgin and to develop the Subject Property by (1) providing for the full reconstruction of Mason Road from its current terminus westerly to the westerly line of the so-called Plote parcel, for the extension of Alft Lane from its current terminus northerly to the intersection of the extended Mason Road, and for the construction of sanitary sewer, water main and storm sewer improvements through and along such roadways, all pursuant to engineering plans and specifications approved by the City (collectively the "Roadway Improvements"), and (2) subdividing the Subject Property for the proposed future construction thereon of a Class A development of industrial and office space appropriate within the PORI Zoning Classification; and WHEREAS, the development of the Subject Property is currently estimated to represent a $5,000,000 investment in land, and a$1,400,000 investment in the Roadway Improvements in the City of Elgin; and WHEREAS, in consideration of the Developer's purchase of the Subject Property and the annexation and development of the Subject Property in the City, including Developer's agreement to provide for the Roadway Improvements as described herein, Developer has requested that the City agree to waive a roadway recapture against the Subject Property previously imposed by the 1 City and allow the Developer to recapture from benefited properties a portion of its costs for the proposed Roadway Improvements; and WHEREAS, it is unlikely the development of the Subject Property will occur at this time with the imposition of the prior roadway recapture fee against the Subject Property and without allowing the Developer to recapture from benefited properties a portion of its costs for the proposed Roadway Improvements; and WHEREAS, the resulting annexation and development of the Subject Property in the City will result in an increase in the land available for immediate development, increase the City's tax base and provide new and additional employment opportunities in the City of Elgin; and WHEREAS, the Developer has requested the City enter in to this agreement to provide the Developer certain assurances with respect to recapture fees in advance of the Developer's closing on the purchase of the Subject Property and in anticipation of a subsequent annexation agreement and the annexation of the Subject Property into the City of Elgin; and WHEREAS, the City of Elgin is a home rule unit authorized to exercise or perform any function relating to its government and affairs; and WHEREAS, the undertakings of the City as provided herein and resulting in significant increases in the City of Elgin's tax base and employment opportunities within the City of Elgin are matters within the government and affairs of the City of Elgin. NOW, THEREFORE, for and in consideration of the mutual promises and undertakings contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. That the foregoing recitals are incorporated into this agreement in their entirety. 2. That Developer shall provide at its cost and expense for the construction of the Roadway Improvements through and adjacent to the Subject Property according to the site plan dated September 6, 2013, prepared by Haeger Engineering, attached hereto as Exhibit B. The plans and specifications for such Roadway Improvements, including, but not limited to, the 2 utilities, street lights, sidewalks and other appurtenances relating thereto to be included with such Roadway Improvements, shall be pursuant to engineering plans and specifications approved by the City. Developer shall commence with the construction of such Roadway Improvements on or before June 1, 2014, and shall complete all such Roadway Improvements on or before December 31, 2014, subject to extensions for force majeure. Developer shall request the approval of the Village of Gilberts for the reconstruction of Mason Road for that portion of the to be reconstructed Mason Road which is located within the corporate limits of the Village of Gilberts. The final engineering plans and specifications as approved by the City will reflect such approvals by the Village of Gilberts as to that portion of Mason Road to be reconstructed by the Developer. 3. That in consideration of Developer's acquisition of the Subject Property, the annexation of the Subject Property into the City of Elgin and Developer providing for the development of the Subject Property, including completing the Roadway Improvements, the City agrees to and shall waive the recapture payment due to the City from the Subject Property arising from City of Elgin Ordinance No. G113-06 recorded January 29, 2007 as Document No. 2007KO12459 allocating the costs of certain roadway improvements to benefitted properties. For purposes of clarification, the Subject Property is identified in such Ordinance No. G113-06 as parcel 11 and pursuant to such ordinance has a principal recapture amount of $174,000 plus interest as provided for in such ordinance. 4. That in further consideration of Developer's acquisition of the Subject Property, the annexation of the Subject Property into the City of Elgin and Developer providing for the development of the Subject Property, including completing the Roadway Improvements, the City shall also grant the Developer its usual and customary recapture rights with regard to the engineering and construction expenses of improvements to Alft Lane and Mason Rd. providing access to and from nearby properties and adjacent public roadways. The City has determined that such roadway improvements shall benefit three (3) parcels of land totaling approximately 113 acres in addition to the Subject property as depicted on the attached Exhibit C. The extent of the 3 benefit to Parcels 2 and 3, if any, shall be determined and calculated by the City after the determination of the extent of the reconstruction of Mason Road as to that portion of Mason Road within the corporate limits of the Village of Gilberts. Any obligations under the City under such recapture ordinance shall be non-recourse to the City, and shall provide that the City shall not be responsible in the event there is no development of property contemplated to be benefited by such improvements or the recapture fees or otherwise uncollected by the Developer for any reason. 5. That in the event Developer fails to complete the Roadway Improvements, on or before December 31, 2014, as provided in the preceding Paragraph 2 hereof, the parties understand and agree that the City shall not be obligated to waive the recapture payment due for the Subject Property pursuant to Ordinance No. G113-06 or adopt any recapture ordinance for the benefit of the Developer pursuant to this agreement or otherwise. 6. That this agreement shall not be deemed or construed to create an employment, joint venture,partnership, or other agency relationship between the parties hereto. 7. That all notices or other communications hereunder shall be made in writing and shall be deemed given if personally delivered, sent by overnight courier or mailed by registered or certified mail, return receipt requested, to the parties at the following addresses, or at such other addresses for a party as shall be specified by a like notice and shall be deemed received on the date which said notice is hand delivered or the second business day following the date on which so mailed: TO THE CITY: City of Elgin 150 Dexter Court Elgin, IL 60120-5555 Attention: City Manager TO THE DEVELOPER: David Huang 2505 Bath Rd. Elgin,IL 60124 4 8. That the failure by a party to enforce any provision of this agreement against the other party shall not be deemed a waiver of the right to do so thereafter. 9. That this agreement may be modified or amended only in writing signed by both parties hereto, or their permitted successors or assigns, as the case may be. 10. That this agreement contains the entire agreement and understanding of the parties hereto with respect to the subject matter as set forth herein, all prior agreements and understandings having been merged herein and extinguished hereby. 11. That this agreement is and shall be deemed and construed to be a joint and collective work product of the City and Developer and, as such, this agreement shall not be construed against the other party, as the otherwise purported drafter of same, by any court of competent jurisdiction and in order to resolve any inconsistency, ambiguity, vagueness or conflict,if any, in the terms or provisions contained herein. 12. That the City and Developer agree that, in the event of a default by the other party, the other party shall, prior to taking any such action as may be available to it, provide written notice to the defaulting party stating that they are giving the defaulting party thirty (30) days within which to cure such default. If the default shall not be cured within the thirty (30) day period aforesaid, then the party giving such notice shall be permitted to avail itself of remedies to which it may be entitled under this agreement. 13. That notwithstanding any other provision of this agreement it is expressly agreed and understood by the Developer and the City that the development of the Subject Property by the Developer shall be in accordance and compliance with all applicable federal, state, city and other requirements of law. Developer shall also at its expense procure all permits and licenses, pay all charges and fees, and give all other notices necessary and incident to the due and lawful prosecution of the work necessary to provide for the development of the Subject Property as described in this agreement. 5 14. That this agreement is subject to and shall be governed by the laws of the State of Illinois. Venue for the resolution of any disputes or the enforcement of any rights pursuant to this agreement shall be in the Circuit Court of Kane County, Illinois. No action shall be commenced by the Developer against the City for monetary damages. In the event any legal action is brought by the City for the enforcement of any of the obligations of Developer in this agreement and the City is the prevailing party in such action, the City shall also be entitled to recover from Developer reasonable interest and reasonable attorney's fees. 15. That this agreement shall be binding on the parties hereto and their respective successors and permitted assigns. This agreement and the obligations herein may not be assigned without the express written consent of each of the parties hereto which consent may be withheld at the sole discretion of either of the parties hereto. 16. That upon Developer's completion of the construction of the Roadway Improvements as described in preceding Paragraph 2 hereof, Developer shall provide the City reasonable data and records of Developer which documents Developer's compliance with the requirements of the preceding Paragraph 2 and all of the costs thereof. 17. That this agreement is further subject to and contingent upon the parties hereto entering into an annexation agreement upon terms agreeable to the parties providing for the annexation of the Subject Property into the City of Elgin and the annexation of the Subject Property into the City of Elgin on or before June 1, 2014. In the event the parties do not enter into an annexation agreement for the Subject Property and the Subject Property is not annexed into the City of Elgin on or before June 1, 2014,then upon written notice from one party to the other, this agreement may be terminated and thereupon this agreement will be null and void without further obligations of the parties hereto. 18. That time is of the essence of this agreement. 6 IN WITNESS WHEREOF, the parties have entered into and executed this agreement on the date and year first written above. CITY OF ELGIN, a municipal David Huang corporation BY Ma ' By Y Attest: 61re., City Clerk FALegal Dcpt\Agreement\Agreement-David Huang-clean 1-17-14.docx 7 EXHIBITS Exhibit A: Legal Description of Subject Property. Exhibit B: Site Plan depicting Roadway Improvements prepared by Haeger Engineering Exhibit C: Exhibit depicting three parcels benefited by Roadway Improvements. 8 AGREEMENT EXHIBIT A The Northeast % of the Northwest % and the Northwest % of the Northwest (except the North 10.50 chains of said Northwest % of the Northwest %), of Section 31, Township 42 North, Range 8 East of the Third Principal Meridian, in the Township of Dundee, Kane County, Illinois. PIN: 03-31-100-002 a= FULL-WIDTH MASON tC RECONSTRUCTION a�..Fwae-�d,Be.r J6 Cvb d -J i'WM B.dn Ccur» u 5!`'6w Bm.Cwo. G I„I Stew Sewn B Yrew lgFn k=RYJ.Ii.w<,np M t' � y x � W W LAOS� tta CS.i r MLI!QAP.�REN�QN a¢a+ �jI ',J20�+ed 4si C1d 1 3'J--Ease:d,Pae, Q j 36+& Eo:k-k Cwa - S'1NM ce Cov.se o» e.U,AN S7—Ccw» Sty+*Sew Sree�l.py-."n:.2C3i apcm4 D 2� PARCEL AREA PERCENTAGE Q PLOTE:-0330300-007 53«. - -34.6'.'6 BARTELS 03 30-303 009 41 ar 76.A% BARTELS,03-31.100.004 59 ac. 38.6% TOTAL Isi c 100.0% e... 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