Loading...
HomeMy WebLinkAbout01-103 Resolution No. 01-103 RESOLUTION AUTHORIZING EXECUTION OF A REDEVELOPMENT AGREEMENT WITH ROCK SOLID LLC FOR THE PRAIRIE ROCK MICROBREWERY AND RESTAURANT 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 Redevelopment Agreement on behalf of the City of Elgin with Rock Solid LLC for development assistance for the Prairie Rock Microbrewery and Restaurant located at 127 South Grove Avenue, a copy of which is attached hereto and made a part hereof by reference . s/ Ed Schock Ed Schock, Mayor Presented: April 11, 2001 Adopted: April 11, 2001 Omnibus Vote : Yeas 7 Nays 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk RAGREE/PRAIRIE .RDA DRAFT 4/5/01 REDEVELOPMENT AGREEMENT This agreement made and entered into this 11,�LLf day of April, 2001, by and between the CITY OF ELGIN, an Illinois municipal corporation, (hereinafter referred to as the "City" ) , and ROCK SOLID LLC, an Illinois limited liability company, (hereinafter referred to as "Developer" ) . WITNESSETH WHEREAS, Developer is the owner of the property consisting of the existing Prairie Rock Microbrewery and Restaurant located at 127 South Grove Avenue, Elgin, Illinois, such property being legally described in Exhibit A attached hereto (hereinafter referred to as the "Subject Property" ) ; and WHEREAS, Developer, after consultations and negotiations with the City concerning certain development assistance, has determined to proceed with the redevelopment of the Subject Property which in general would provide for the creation of the Prairie Rock Bar and Grill in the existing lounge area and adjacent areas and the creation of a banquet facility in the existing main dining room area; and WHEREAS, it is unlikely that such redevelopment of the Subject Property will occur in the absence of limited economic assistance; and WHEREAS, in order to provide for the continued redevelopment of the City including the redevelopment of the Subject Property and the ongoing redevelopment of the center city area the City has agreed to provide certain development assistance; and WHEREAS, the redevelopment of the Subject Property will result in an increase in the City' s tax revenues and an increase in the tax revenues to other local taxing districts; and WHEREAS, the Subject Property is one of the predominate sites in the center city area and the redevelopment of the Subject Property will likely result in the stimulation of further redevelopment and improvements in the center city area; and WHEREAS, the redevelopment of the Subject Property will result in approximately 15-20 new employment opportunities and the retention of approximately 65 existing jobs in the center city area; and WHEREAS, the City of Elgin is a home rule unit authorized to exercise any power and perform any function relating to its government and affairs; and WHEREAS, development assistance resulting in increases in the City' s tax base, spurring additional redevelopment in the center city area, creating additional employment opportunities in the center city area and retaining existing employment in the center city area 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 -2- of which are hereby acknowledged, the parties hereto agree as follows : 1 . That the foregoing recitals are incorporated in this agreement in their entirety. 2 . That the Developer agrees to and shall redevelop the Subject Property so as to provide for the creation of the Prairie Rock Bar and Grill in the existing lounge area and adjacent areas and the creation of a banquet facility in the existing main dining room area, all according to and pursuant to the plans and specifications previously submitted to the City of Elgin Department of Code Administration and Development Services originally dated February 22 , 1995 which have been marked up/highlighted with the remodeling revisions and accompanied with structural plans dated March 30, 2001 provided by Crossroads Design Inc . and stamped and signed by Jonathan A. Stuck licensed architect are hereinafter collectively referred to as the "Plans" and such Redevelopment of the Subject Property according to and pursuant to such Plans is hereinafter referred to as the "Redevelopment of the Subject Property" ) . Developer has commenced the Redevelopment of the Subject Property and shall complete such Redevelopment of the Subject Property no later than July 1, 2001 (hereinafter referred to as the "Completion Date" ) . Such Completion Date for the Redevelopment of the Subject Property shall be extended for one day for each of which construction is delayed or stopped due to accident, strikes, shortages of material , extreme weather, acts of God, or other causes not -3- within Developer ' s reasonable control . The Plans for the Redevelopment of the Subject Property shall be amended as directed by the City is necessary to comply with ordinances, building codes or other requirements of law. 3 . That upon Developer' s having obtained all required permits for and thereafter commencing with the Redevelopment of the Subject Property as provided for in paragraph 2 hereof, the City shall pay to the Developer the sum of $134 , 970 to be used by the Developer towards the costs incurred by the Developer in the Redevelopment of the Subject Property including, without limitation, the costs of the installation of a limited use/limited application low rise elevator on the Subject Property as set forth in the Plans . 4 . That the parties understand and agree that the economic development assistance being provided by the City to the Developer as set forth in paragraph 3 hereof is expressly contingent upon Developer ' s completing the Redevelopment of the Subject Property as set forth herein. In the event Developer fails to complete the Redevelopment of the Subject Property and occupy and commence operations on the Subject Property on or before the Completion Date, as such date may be extended pursuant to paragraph 2 hereof, the parties understand and agree that the City will not be providing any development assistance to Developer for the Redevelopment of the Subject Property pursuant to this agreement or otherwise, and the Developer shall reimburse the City in full any funds -4- distributed to the Developer under the development assistance provided for in paragraph 3 hereof . 5 . That the parties further understand and agree that the development assistance being provided by the City to the Developer as set forth in paragraph 3 hereof is further expressly contingent upon the new bar and grill area which is part of the Subject Redevelopment of the Subject Property being open for business to the public seven (7) days a week, with service hours of not less than 11 : 30 a.m. to 12 : 30 a.m. the following day on Mondays through Thursdays inclusive, 11 : 30 a.m. to 1 : 00 a.m. the following day on Fridays and Saturdays inclusive and 12 : 00 p.m. to 9 : 00 p.m. on Sundays, with service to include lunch and dinner each day (hereinafter collectively referred to as the "New Bar and Grill Area Minimum Service" ) . In the event the Developer fails to maintain and provide the New Bar and Grill Area Minimum Service at any time during the one year period following the Redevelopment of the Subject Property, Developer shall immediately reimburse and pay to the City $100 , 000 of the development assistance provided by the City to Developer pursuant to paragraph 3 hereof . Notwithstanding the foregoing, in the event the Developer provides the City ninety (90) days advance written notice of Developer' s intent to discontinue the New Bar and Grill Minimum Service prior to discontinuing the New Bar and Grill Minimum Service during the one year period following the Redevelopment of the Subject Property, then Developer shall immediately reimburse and pay -5- to the City $100 , 000 of the development assistance provided by the City to the Developer pursuant to paragraph 3 hereof on a pro rata basis for the portion of such one year the Developer does not maintain and provide the New Bar and Grill Area Minimum Service . 6 . That in the event the Developer closes or sells the Subject Property after the Redevelopment of the Subject Property it is agreed and understood that all of the new kitchen equipment and the limited use/limited application low rise elevator installed at the Subject Property as part of the Redevelopment of the Subject Property shall remain on the Subject Property. 7 . That in consideration of the development assistance being provided by the City, Developer does hereby covenant and agree to forever waive any right to claim or apply for any so-called "Enterprise Zone" abatement of any portion of the real estate taxes levied against the Subject Property. Developer does hereby further covenant and agree that for a period of three (3) years following the final payout pursuant to this Redevelopment Agreement not to contest, protest, object to or otherwise challenge any real estate taxes levied against the Subject Property including but not limited to the rate thereof or the assessed valuation of the Subject Property. 8 . That in consideration of the development assistance being provided by the City Developer does hereby covenant and agree that the Developer shall not apply for and -6- that the Subject Property shall not be eligible to obtain any further or additional grants or incentives from the City for the redevelopment or maintenance of the Subject Property, pursuant to any of the City' s existing grant or incentive programs, including but not limited to, any grants or incentives pursuant to the City' s Center City Facade Improvement Program, the City' s Center City Special Business Loan Program or the City' s e-elgin Incentive Program. 9 . That this agreement shall not be deemed or construed to create an employment, joint venture, partnership, or other agency relationship between the parties hereto. 10 . That all notices or other communications hereunder shall be made in writing and shall be deemed given if personally delivered 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 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, Illinois 60120-5555 Attn: City Manager TO THE DEVELOPER: Scott Lager, Managing Partner Prairie Rock Microbrewery and Restaurant 127 S . Grove Avenue Elgin, Illinois 60120 11 . 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. -7- 12 . 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 . 13 . 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. 14 . That this agreement is and shall be deemed and construed to be a joint and collective work product of the City and the 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 in order to resolve any inconsistency, ambiguity, vagueness or conflict, if any, in the terms or provisions contained herein. 15 . 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 . 16 . 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. -8- 17 . That 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 attorneys ' fees . 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 ROCK JSALLC corporation _7 By By Schock, Mayor Mich T. O ger, President Attest : � a Dolonna Mecum, City Clerk PRAIRIE.RDA/RAGREE -9- EXHIBIT A PARCEL ONE: Lot 10 and that part of Lot 9 in Block 13 of the Original Plat of Elgin, as laid out by James T. Gifford, lying South of a line described as follows: Beginning at a point in the Westerly line of said Lot, 25 ' 1/2 feet Northerly from the Southwesterly corner thereof and running thence Easterly to a point in the East line of said lot, 65 i/2 feet North of the Southeast corner thereof, in the City of Elgin, Kane County, Illinois_ PARCEL TWO: That part of Lot 6 in Block 13 of the Original Town of Elgin, on the East side of the Fox River, described as follows: Beginning at a point on the East line of said Lot 6 that is 9. 41 feet North of the Southeast corner thereof; thence West 66 feet to a point on the West line of said lot that is 9. 1 feet North of the Southwest corner thereof; thence South along said West line 9.1 feet to the Southwest corner of said lot; thence East on the Sou" I-Ina of said lot, 66 feet to the Southeast corner thereof; thence North on the East line of said lot, 9 .41 feet to the point of beginning, in the City of Elgin, Kane County, Illinois, PARCEL THREE: Easement for ingress and egress created by Deed recorded March 19, 1973 as Document 1257711 made by Joyce L. Bright, Executor of the Last Will and Testament of Marie E. Bodenschatz to Harold T. Seigle and Jerome M. Roth for the benefit of Parcels One and Two over that part of said Lot 6 described as follows: Beginning at a point on the r'asz iine- or Baia Lv� 6 that is 9. 41 feet north of the Southeast corner thereof; thence Westerly a distance of 66 feet to a point on the Wast line of said yot 6 that is 9. 1 feet North of the Southwest corner thereof; thence Northerly along said West line a distance of 3 feet; thence Easterly a distance of .66 feet to a point on the East line of said lot that is 3 feet North of the point of beginning; thence Southerly along said East line a distance of 3 feet to the point of beginning, in the city of Elgin, Kane County, Illinois . Ccmmonly Known As: 127 S. Grove Avenue, Elgin, Illinois 60120