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HomeMy WebLinkAbout15-63 Resolution No. 15-63 RESOLUTION AUTHORIZING EXECUTION OF FIRST AMENDMENT AGREEMENT TO REDEVELOPMENT AGREEMENT WITH CAPSTONE DEVELOPMENT GROUP, LLC (100 E. Chicago Street) 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 first amendment agreement to redevelopment agreement on behalf of the City of Elgin with Capstone Development Group,LLC,a copy of which is attached hereto and made a part hereof by reference. s/David J. Kaptain David J. Kaptain, Mayor Presented: April 22, 2015 Adopted: April 22, 2015 Vote: Yeas: 7 Nays: 0 Abstain: 1 Attest: s/Kimberly Dewis Kimberly Dewis, City Clerk FIRST AMENDMENT AGREEMENT This First Amendment Agreement ("First Amendment Agreement") is made and entered into as of the 22"d day of April, 2015, by and between the City of Elgin, an Illinois municipal corporation (hereinafter referred to as the "City"); and Capstone Development Group, LLC, a Missouri limited liability company (hereinafter referred to as "Developer"). WHEREAS, the City and the Developer have previously entered into a redevelopment agreement dated October 8, 2014, relating to the redevelopment of the Elgin Tower Building on the property commonly known as 100 E. Chicago Street, Elgin, Illinois (such redevelopment agreement dated October 8, 2014, is hereinafter referred to as "Subject Redevelopment Agreement"); and WHEREAS, the parties wish to enter into this First Amendment Agreement to provide for certain amendments to the Subject Redevelopment Agreement. NOW, THEREFORE, for and in consideration of the mutual undertakings as set forth herein, and the mutual undertakings as set forth in the Subject Redevelopment Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. That Section 3(b) of the Subject Redevelopment Agreement be and is hereby amended to read as follows: "(b) Developer shall, within seven (7) days following the entry into this First Amendment Agreement commence work on all plans, specifications and permit drawings (hereinafter collectively the "Permit Drawings") necessary for the Required Permits (hereinafter defined). Developer shall, within sixty (60) days of the entry into this First Amendment Agreement, submit to the City and to all other governmental bodies or agencies thereof having jurisdiction over the Subject Redevelopment (if any) applications for all permits required to perform the Subject Redevelopment in accordance with the Subject Redevelopment Plans approved by the City (collectively the "Required Permits"). In the event the Developer is prevented from (i) acquiring merchantable fee simple title to the Subject Property satisfactory to the Developer or its lenders in either of their reasonable discretion and / or (ii) prevented from procuring commercial financing, tax credits and investor equity for the Subject Redevelopment of the Subject Property on terms acceptable to the Developer (collectively "Acceptable Title and Financing") as a result of lawsuit(s) brought by any third party, the Developer shall provide the City written notice thereof on or before September 1, 2015 detailing the circumstances thereof, whereupon, absent any written agreement between the parties to further extend such written notice deadline, the Title Acquisition Deadline and the Construction Commencement Deadline, either party shall have the right, by written notice to the other, to terminate this Agreement, whereupon this Agreement shall be deemed canceled and null and void with no further liability of either party hereunder except for the City's reimbursement obligation for Permit Drawings and the Developer's obligations to convey and assign such Permit Drawings to the City as provided for in the remainder of this Section 3(b). In the event the Developer is prevented from acquiring Acceptable Title and Financing as a result of lawsuit(s) brought by any third party and Developer provides the City timely written notice thereof and this Agreement is terminated as a result thereof as provided in this Section 3(b), the City agrees to reimburse the Developer the costs to prepare the Permit Drawings in the total amount not to exceed $121,600 consisting of engineering costs of approximately $41,600, structural engineering costs of approximately $25,000 and architecture fees of approximately $55,000. In the event of such reimbursement by the City to the Developer for the costs to prepare the Permit Drawings, the Developer shall convey and assign to the City all right, title and interest to the Permit Drawings and such Permit Drawings shall be available for use by the City in connection with the redevelopment of the Subject Property at no additional cost to the City. Paper and electronic copies of the Permit Drawings shall be provided to the City upon such an assignment to the City of the Permit Drawings at no additional cost to the City. The City shall have the right either on its own or through such other consultants as determined by the City to utilize and/or amend such Permit Drawings. Developer's agreements with the persons or entities preparing the Permit Drawings shall include a provision which allows such assignment to and use of the Permit Drawings by the City and for the cooperation of such persons or entities in providing copies of such Permit Drawings to the City at no additional cost to the City." 2. That in the event of any conflict with the terms of this First Amendment Agreement and the terms of the Subject Redevelopment Agreement, the terms of this First Amendment Agreement shall supersede and control. 2 3. That except as specifically and expressly amended in this First Amendment Agreement, the terms of the Subject Redevelopment Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have entered into and executed this First Amendment Agreement as of the date and year first written above. CITY OF ELGIN, a municipal CAPSTONE DEVELOPMENT GROUP, L.L.C. Corporation A Missouri limited liability company By ki/wt_ ,! f, iA By: or Name: William L. Luchini Title: Member Attest: 4.41(1/. ity Clerk F:\Legal Dept\Agreement\First Amendment to Redevelopment Agr-Capstone Development-4-15-15.docx 3