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HomeMy WebLinkAbout03-134 Resolution No. 03-134 RESOLUTION AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT WITH CVS PHARMACY, INC. FOR THE DEVELOPMENT OF 500 DUNDEE AVENUE 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 Development Agreement on behalf of the City of Elgin with CVS Pharmacy, Inc. for the construction of a pharmacy at the property located at 500 Dundee Avenue, a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: May 14, 2003 Adopted: May 14 , 2003 Omnibus Vote : Yeas : 6 Nays : 0 Attest : s/Dolonna Mecum Dolonna Mecum, City Clerk May 16, 2003 Mr. Peter C. Bazos Attorney at Law 1250 Larkin Avenue, Suite 100 Elgin, IL 60123 Re: CVS Pharmacy, 500 Dundee Avenue Dear Peter: I am enclosing a fully executed copy of the Development Agreement between the City of Elgin and CVS Pharmacy, Inc. Please contact me when you have determined what the requirements are regarding recording and the other matters we discussed yesterday. Thank you very much for your assistance in this matter. Sincerely, Dolonna"Loni"Mecum dkm Enclosure DEVELOPMENT AGREEMENT This Development Agreement is made and entered into this/577-1 day of May,2003,by and between the CITY OF ELGIN, an Illinois municipal corporation, (hereinafter referred to as the "City") and CVS PHARMACY,INC.,a Rhode Island corporation,registered to do business in Illinois(hereinafter referred to as "Developer"). WITNESSETH WHEREAS, Developer intends to purchase the property commonly known as 500 Dundee Avenue, Elgin,Kane County, Illinois,and legally described on Exhibit A attached hereto (such property is hereinafter referred to as the "Subject Property"); and WHEREAS, Developer intends to develop the Subject Property by constructing thereon a CVS Pharmacy facility of approximately 10,880 square feet together with site improvements,all as more particularly described in the Development Application filed by GB Illinois 1, LLC and bearing City of Elgin petition number 68-02 (the "Petition" with such proposed development and proposed pharmacy use of the Subject Property is hereinafter referred to as the"Subject Development"); and WHEREAS, the City Council of the City of Elgin has adopted Ordinance Nos. S6-99, S 1-02, S2-02, S3-02 and S4-02 proposing, approving and creating the Elgin Central Area Tax Increment Financing Redevelopment Plan and Project pursuant to the Tax Increment Allocation Redevelopment Act at 65 ILCS 5/11-74.4-1, et seq.; and WHEREAS, the Subject Property is located within the Elgin Central Area Redevelopment Project Area; and WHEREAS, the Subject Property is currently vacant and unused; and WHEREAS, Developer, after consultations and negotiations with the City concerning certain development assistance has determined to proceed with the Subject Development of the Subject Property;and WHEREAS, the Subject Development of the Subject Property is currently estimated to represent a sizable investment by the Developer in land, building improvements and equipment,is expected to result in C:\Documents and Settings\tekramer\Local Settings\Temporary Internet Files\OLK71\Development Agreement-v9.doc 1 the creation of a substantial number of new, full-time jobs in the City of Elgin, and is expected to generate substantial sales tax revenue for the City; and WHEREAS,it is unlikely that the same quality of development of the Subject Property with the same expected level of economic benefit to the City will occur in the absence of limited economic assistance; and WHEREAS,the City,by providing development assistance to Developer for the Subject Development, will bring about a substantial increase in the City's tax base and provide new and additional employment opportunities in the City of Elgin; and WHEREAS, the City Council of the City has determined that Developer's proposed redevelopment of the Subject Property as described herein will further the goals and objectives of the Elgin Central Area Tax Increment Financing Redevelopment Plan and Project; and WHEREAS, in order to provide for the proposed redevelopment of the Subject Property as described herein which will further the goals and objectives of the Elgin Central Area Tax Increment Financing Redevelopment Plan and Project and which will result in increases in the City's tax base the City has agreed to provide certain development assistance as hereinafter described; and WHEREAS, the City of Elgin is a home rule unit authorized to exercise any power or perform any function relating to its government and affairs; and WHEREAS, this Development Agreement resulting in furthering and achieving the goals and objectives of the Elgin Central Area Tax Increment Financing Redevelopment Plan and Project and resulting in increases in the City of Elgin's tax base 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 develop the Subject Property with the Subject Development according to the site plan,elevations and other development materials submitted with the Petition and approved by the City pursuant to its Ordinance G41-03. C:\Documents and Settings\tekramer\L.ocal Settings\Temporary Internet Files\OLK7I\Development Agreement-v9.doc 2 3. That the accomplishment by the Developer of the following work shall, for purposes of this Agreement, be characterized as follows: "Milestone 1":when the existing structure (the former Elgin State Bank building) on the Subject Property has been demolished; Milestone 2: when the Subject Development is substantially complete and the City has issued its temporary or final certificate of occupancy with respect to the Subject Development, and the CVS Pharmacy has occupied and commenced operations of the Subject Development on the Subject Property. 4. That, subject to the provisions of paragraph 4 below,the City shall pay to the Developer(or its nominee)the following sums(hereinafter collectively called"Development Incentive Payments"at the following times: (a) Following the achievement of Milestone 1, the sum of One Hundred Fifty Thousand dollars ($150,000.00); (b) Following the achievement of Milestone 2, the additional sum of One Hundred Fifty Thousand dollars ($150,000.00) 5. That the Developer shall make written application ("Payment Application") for such Development Incentive Payments, and the City shall, within thirty (30) days following receipt of each such Payment Application, pay to the Developer the Development Incentive Payment as specified in paragraph 4 above. 6. That it is further expressly understood and agreed by the parties hereto that the City's sole and only financial contribution for the Subject Development on the Subject Property shall be the Development Incentive Funds as described in paragraph 4 above,and that the City shall have no other responsibility for any other costs or expenses relating to the Subject Development of the Subject Property. 7. That the City agrees to issue permits for the construction of the Subject Development on the Subject Property in accordance with the City's ordinances and, additionally, to issue (if requested by Developer) a demolition and foundation permit while the City may otherwise continue to review the C:\Documents and Settings\tekramer\Local Settings\Temporary Internet Files\OLK7 1\Development Agreement-v9.doc 3 architectural and engineering plans for the new building to be constructed on the Subject Property. Upon receipt of completed and sufficient applications and plans,and based upon the then-current workloads of City staff,the City will issue permits or provide comments on applications and plans within seven(7)business days of the receipt of applications for grading permits and within seven(7)business days of receipt of applications for building permits. In any event the City agrees that it will not unreasonably withhold,condition or delay its issuance of such permits. 8. That if the Developer or its successors shall discontinue the Subject Development on the Subject Property prior to the fifth(5th)anniversary of the achievement of Milestone 2 the Developer shall be obligated to repay the City the following percentage of the Development Incentive Payments previously paid by the City to the Developer: If the Subject Development is The following percentage of the discontinued prior to the Development Incentive Payments following anniversary of the date of previously paid to the Developer shall achievement of Milestone 2: be refunded to the City: 1st 100% 2nd 80% 3rd 60% 4th 40% 5th 20% After the 5th 0% 9. That the parties understand and agree that the economic development assistance being provided by the City to Developer as set forth herein is expressly contingent upon Developer's development of the Subject Development on the Subject Property as set forth herein. In the event Developer fails to complete, occupy and commence operations of the Subject Development on the Subject Property on or before December 31, 2004, the parties understand and agree that the City will not be providing any economic development assistance to Developer for the Subject Development pursuant to this Agreement or otherwise, and that the Developer shall reimburse the City in full any funds already distributed to the Developer under the terms hereof. C:\Documents and Settings\tekramer\Local Settings\Temporary Internet Files\OLK7I\Development Agreement-v9.doc 4 10. That this Agreement shall not be deemed or construed to create an employment,joint venture, partnership, or other agency relationship between the parties hereto. 11. 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: TO THE DEVELOPER: City of Elgin CVS Pharmacy, Inc. 150 Dexter Court 641 West Lake Street, Suite 404 Elgin, IL 60120-5555 Chicago, Illinois 60661 Attention: City Manager Attention: Michele Dodd, Regional Director with copy to: Peter C. Bazos, Esq. 1250 Larkin Ave., Suite 100 Elgin, Illinois 60123 12. 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. 13. 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. 14. 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. 15. 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. C:\Documents and Settings\tek ramer\Local Settings\Temporary Internet Files\OLK71\Development Agreement-v9.doc 5 16. 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. 17. 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. 18. 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. With the sole exception of an action to recover the monies the City has agreed to pay pursuant to the provisions hereof, and notwithstanding anything else to the contrary in this Agreement, no action shall be commenced by the Developer against the City for monetary damages. 19. 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. Notwithstanding the foregoing, the City understands and agrees that (i) the Developer may transfer the ownership of the Subject Property to a third party ("Transferee") and (ii) so long as the Subject Development continues to be a CVS Pharmacy store the City shall give its consent to the Assignment by CVS of its rights and obligations under this Agreement to such Transferee. 20. That time is of the essence of this Agreement. C:\Documents and Settings\tekramer\Local Settings\Temporary Internet Files\OLK7I\Development Agreement-v9.doc 6 21. That this Agreement may be executed in multiple counterparts, all of which, together, shall constitute one and the same agreement. Further,photocopies,facsimile transmissions and other reproductions of this Agreement and/or the signatures hereon shall be the equivalent of originals. [signature page follows] C:\Documents and Settings\telvamer\Local Settings\Temporary Internet Files\OLK71\Development Agreement-v9.doc 7 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 CVS PHARMACY, INC., corporation a Rhode Island corporation By By CC Ed` choc , Title: TIMOTHY . KRA?4MER Attest: .ASST.SEC'YJS"+i;OR LEGAL COUNSEL Dolonna Mecum, ity Clerk C:\Documents and Settings\tekramer\Local Settings\Temporary Internet Files\OLK71\Development Agreement-v9.doc 8 Exhibit 1 Legal Description of Subject Property PARCEL 1 : THAT PART OF LOT 1 IN BLOCK 26 OF P.J. KIMBALL JR' S . THIRD ADDITION TO ELGIN, DESCRIBED AS FOLLOWS : BEGINNING ON THE WESTERLY LINE OF DUNDEE AVENUE, 173 . 65 FEET NORTHEASTERLY FROM THE SOUTHEAST CORNER OF SAID LOT; THENCE NORTHEASTERLY FROM THE SOUTHEAST CORNER OF SAID LOT, THENCE NORTHEASTERLY ALONG SAID WESTERLY LINE, 14 . 85 FEET; THENCE WEST PARALLEL WITH THE NORTH LINE OF SUMMIT STREET, 106 . 7 FEET; THENCE SOUTH AT RIGHT ANGLES 12 .375 FEET; THENCE EAST PARALLEL WITH THE NORTH LINE OF SUMMIT STREET 98 . 15 FEET TO THE POINT OF BEGINNING IN THE CITY OF ELGIN KANE COUNTY ILLINOIS . PARCEL 2 : THAT PART OF LOT 1 IN BLOCK 26 OF P.J. KIMBALL JR' S . THIRD ADDITION TO ELGIN DESCRIBED AS FOLLOWS : COMMENCING AT THE SOUTHWEST CORNER OF SAID LOT; THENCE EAST ALONG THE SOUTH LINE OF SAID LOT, 323 . 5 FEET; THENCE NORTH PARALLEL WITH THE WEST LINE OF SAID LOT, 224 . 8 FEET TO THE SOUTH LINE OF A TRACT OF LAND CONVEYED TO BLANCHE L. HOGOPEAN BY DEED DATED APRIL 26, 1911 AND RECORDED MAY 8, 1911 IN BOOK 528 PAGE 470 AS DOCUMENT 116529 FOR THE POINT OF BEGINNING; THENCE SOUTH PARALLEL WITH THE WEST LINE OF SAID LOT, 92 . 8 FEET TO A LINE DRAWN PARALLEL WITH AND 132 FEET NORTH OF THE SOUTH LINE OF SAID LOT; THENCE EAST ALONG SAID PARALLEL LINE 61 . 5 FEET; THENCE NORTH PARALLEL WITH THE WEST LINE OF SAID LOT 12 . 375 FEET; THENCE EAST ALONG A LINE, IF EXTENDED WOULD INTERSECT THE WESTERLY LINE OF DUNDEE AVENUE AT A POINT 173 . 65 FEET NORTHERLY OF THE SOUTHEAST CORNER OF SAID LOT 178 . 91 FEET TO THE WEST LINE, EXTENDED SOUTH OF A TRACT OF LAND CONVEYED TO FRANK P. DITTER AND WIFE BY DEED DATED MAY 18, 1922 AND RECORDED JULY 17, 1922 IN BOOK 661 PAGE 302 AS DOCUMENT 210231; THENCE NORTH ALONG THE EXTENSION OF AND THE WEST LINE OF SAID DITTER TRACT AND ALONG THE WEST LINE OF A TRACT OF LAND CONVEYED TO CLARENCE H. STARK AND WIFE BY DEED DATED MARCH 21, 1924 AND RECORDED MARCH 26, 1924 IN BOOK 732 PAGE 319 AS DOCUMENT 234344 87 . 375 FEET TO THE SOUTH LINE EXTENDED EAST, OF SAID HOGOPEAN TRACT; THENCE WEST ALONG THE EXTENSION OF AND THE SOUTH LINE OF SAID HOGOPEAN TRACT, 230 . 7 FEET TO THE POINT OF BEGINNING IN THE CITY OF ELGIN, KANE COUNTY ILLINOIS PARCEL 3 : THAT PART OF LOT 1 IN BLOCK 26 IN P.J. KIMBALL JR. ' S THIRD ADDITION TO ELGIN DESCRIBED AS FOLLOWS : COMMENCING AT A POINT IN THE WEST LINE OF DUNDEE AVENUE, WHICH IS 188 . 5 FEET NORTHERLY ALONG SAID WEST LINE FROM THE NORTH LINE OF SUMMIT STREET FOR THE PLACE OF BEGINNING; THENCE WESTERLY PARALLEL WITH THIS NORTH LINE OF SUMMIT STREET; 106 . 7 FEET; THENCE NORTHERLY AT RIGHT ANGLES TO THE LAST MENTIONED LINE 39 . 8 FEET; THENCE EASTERLY PARALLEL WITH THE NORTH LINE OF SUMMIT STREET 133 . 6 FEET TO THE WESTERLY LINE OF DUNDEE AVENUE; THENCE SOUTHERLY ALONG SAID WESTERLY LINE 47 . 7 FEET TO THE POINT OF BEGINNING IN THE CITY OF ELGIN, KANE COUNTY ILLINOIS PARCEL 4 : THAT PART OF LOT 1 IN BLOCK 26 IN P.J. KIMBALL JR' S . THIRD ADDITION TO ELGIN DESCRIBED AS FOLLOWS : BEGINNING AT A POINT ON THE EASTERLY LINE OF SAID LOT 282 . 9 FEET NORTHEASTERLY FROM THE SOUTHEAST CORNER OF SAID LOT; THENCE SOUTH 87 DEGREES 05 MINUTES 0 SECONDS WEST 160 .4 FEET; THENCE SOUTH PARALLEL WITH THE EAST LINE OF ST. JOHN STREET 35 . 2 FEET TO THIS NORTHWEST CORNER OF THE PREMISES TO FRANK P. DITTER AND AMANDA DITTER BY DEED DATED MAY 18, 1922 AND RECORDED JULY 17, 1922 AS DOCUMENT 210231 IN BOOK 661 PAGE 302 THENCE NORTH 87 DEGREES 05 MINUTES 0 SECONDS EAST ALONG THE NORTH LINE OF SAID PREMISES 133 . 6 FEET TO THE EASTERLY LINE OF SAID LOT 1 ; THENCE NORTHEASTERLY ALONG THE EASTERN LINE OF SAID PREMISES 46 . 7 FEET TO THE POINT OF BEGINNING, IN THE CITY OF ELGIN, KANE COUNTY ILLINOIS PARCEL 5 : THAT PART OF LOT 1 IN BLOCK 26 IN P.J. KIMBALL JR' S . THIRD ADDITION TO ELGIN DESCRIBED AS FOLLOWS : BEGINNING AT A POINT IN THE SOUTH LINE OF SAID 323 . 5 FEET EAST OF THE SOUTHEAST CORNER THEREOF; THENCE NORTH PARALLEL WITH THE WEST LINE OF SAID LOT, 132 FEET; THENCE EAST PARALLEL WITH THE SOUTH LINE OF SAID LOT, 61 . 5 FEET; THENCE SOUTH PARALLEL WITH THE WEST LINE OF SAID LOT, 132 FEET PARALLEL TO THE SOUTH LINE OF SAID LOT; THENCE WEST ALONG SAID SOUTH LINE 61 . 5 FEET TO THE POINT OF BEGINNING IN THE CITY OF ELGIN, KANE COUNTY ILLINOIS PARCEL 6 : THAT PART OF LOT 1 IN BLOCK 26 IN P.J. KIMBALL JR' S . THIRD ADDITION TO ELGIN DESCRIBED AS FOLLOWS : COMMENCING AT THE SOUTHWEST CORNER OF SAID LOT; THENCE EAST ALONG THE SOUTH LINE OF SAID LOT, 365 FEET FOR THE POINT OF BEGINNING; THENCE NORTH PARALLEL WITH THE WEST LINE OF SAID LOT 144 . 375 FEET; THENCE EAST 277 . 06 FEET TO A POINT ON THE WESTERLY LINE OF DUNDEE AVENUE 173 . 65 FEET NORTHERLY OF THE SOUTHWEST CORNER OF SAID LOT; THENCE SOUTHWESTERLY ALONG THE WESTERLY LINE 173 . 65 FEET TO THE SOUTHEAST CORNER OF SAID LOT; THENCE WEST ALONG THE SOUTH LINE OF SAID LOT, 170 . 6 FEET TO THE POINT OF BEGINNING IN THE CITY OF ELGIN KANE COUNTY ILLINOIS ALSO KNOWN AS AND MORE PARTICULARLY BOUNDED AND DESCRIBED AS FOLLOWS, TO WIT: BEGINNING AT THE SOUTHEAST CORNER OF SAID LOT 1; THENCE NORTH 33E51 ' 20" EAST, ALONG THE WESTERLY RIGHT-OF-WAY LINE OF DUNDEE AVENUE, A DISTANCE OF 282 . 76 FEET TO THE SOUTHERLY RIGHT-OF-WAY LINE OF PLUM STREET; THENCE SOUTH 88E27 ' 53 " WEST, ALONG SAID SOUTHERLY RIGHT-OF-WAY LINE OF PLUM STREET AND SAID LINE EXTENDED WESTERLY, A DISTANCE OF 390 . 84 FEET; THENCE SOUTH 00E17 ' 04" EAST, A DISTANCE OF 224 . 58 FEET TO THE NORTHERLY RIGHT-OF-WAY LINE OF SUMMIT STREET; THENCE NORTH 89E56 ' 34" EAST, ALONG SAID NORTHERLY RIGHT-OF-WAY LINE OF SUMMIT STREET, A DISTANCE OF 232 . 06 FEET TO THE POINT OF BEGINNING, CONTAINING 1 . 632 ACRES (71, 103 SQUARE FEET) , MORE OR LESS, ALL BEING SITUATED IN THE CITY OF ELGIN, COUNTY OF KANE AND STATE OF ILLINOIS (PROPERTY COMMONLY KNOWN AS 500 DUNDEE AVENUE) . 'OFE� "., ti Agenda Item No. City of Elgin 1 II \^ ��4TEDFE@'' E �. L May 9, 2003 G ; �_, 111 N TO: Mayor and Members of the City Council ' WA. ECONOMIC GROWTH FROM: David M. Dorgan, City Manager Raymond H. Moller, Director of Economic Development and Business Services SUBJECT: Development Agreement with CVS Pharmacy PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to approve a development agreement between CVS Pharmacy and the City of Elgin. BACKGROUND CVS Pharmacy is purchasing property located at 500 Dundee Avenue. The property is currently owned by the Elgin Day Care Center which purchased the property in order to relocate their day care operation. Elgin Day Care has opted not to proceed with the project at the Dundee Avenue site . CVS intends to develop the property by constructing a CVS Pharmacy facility of approximately 10, 880 square feet with site improvements . The development at Dundee Avenue and Summit Street is estimated to represent a significant dollar involvement in land, building improvements, and equipment . The project is expected to result in the creation of new jobs . The site is located within the new Central Area Tax Increment Financing (TIF) District . The CVS project was reviewed and approved by the Zoning Board. Based upon information provided by CVS, the facility will generate $75, 000 per year in City sales tax revenue and $80, 000 per year in TIF property tax increments . Thus, over a ten year period, the City of Elgin could receive $1, 555, 000 in revenue . CVS Development Agreement May 9, 2003 Page 2 During the due diligence process for the site, CVS determined that soil and groundwater environmental contamination are present . Estimated remediation costs are expected to reach $480, 000 . The capital improvements proposed by CVS will result in a significant investment at this location and complement the medical office redevelopment project located in the Dundee/Summit TIF District site. As a result, staff is recommending a $300, 000 development incentive grant to CVS . Distribution of the incentive grant would occur in two phases : 1) Payment of $150, 000 upon demolition of the existing building; 2) Payment of $150 , 000 upon issuance of occupancy permit for the new pharmacy structure . If an occupancy permit is not issued for a new pharmacy at 500 Dundee Avenue, the initial $150, 000 would be reimbursed to the City. Should CVS or its successors discontinue operations prior to the fifth anniversary of the occupancy permit, CVS would refund a percentage portion of the incentive grant based on the number of years they occupy the site . The $300, 000 incentive grant would be recovered by the City within two years given the projection of annual sales and property taxes totaling $155, 000 . COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED The Northeast Neighborhood Association has reviewed the project . FINANCIAL IMPACT Funds for this project were not included in the 2003 budget . However, $300, 000 was budgeted in the Riverboat Fund, account number 275-0000-791 . 92-31, project number 339636, to assist the Elgin Day Care Center with the rehabilitation of the former Elgin State Bank building at 500 Dundee Avenue . These funds are available to be reprogrammed to the CVS project (project number 039560) . CVS Development Agreement May 9, 2003 Page 3 LEGAL IMPACT VA61// A development agreement will be required. ALTERNATIVES 1 . Provide the recommended development assistance to CVS and proceed with the pharmacy project . 2 . Choose not to enter into a development agreement with CVS and allow for the sale of 500 Dundee Avenue to a yet-to-be determined developer. RECOMMENDATION It is recommended that the City Council approve a development agreement with CVS Pharmacy in the amount of $300, 000 to allow for the development of a pharmacy at 500 Dundee Avenue . Respectfully submitted for Council consideration. /cm