HomeMy WebLinkAbout03-157 Resolution No. 03 -157
RESOLUTION
AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT WITH
KIMBALL-ELGIN, L.L. C . FOR THE
DEVELOPMENT OF 252 DOUGLAS 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 Kimball-Elgin, L.L.C.
for the development of residential townhomes on the property
located at 252 Douglas Avenue, a copy of which is attached hereto
and made a part hereof by reference .
s/Ed Schock
Ed Schack, Mayor
Presented: June 11, 2003
Adopted: June 11, 2003
Vote : Yeas 4 Nays 3
Attest :
s/Dolonna Mecum
Dolonna Mecum, City Clerk
DRAFT 5/21/03
DEVELOPMENT AGREEMENT
THIS AGREEMENT made and entered into this llth day of June,
2003 , by and between the CITY OF ELGIN, an Illinois municipal
corporation (hereinafter referred to as the "City" ) ; and KIMBALL-
ELGIN, L.L.C. , an Illinois limited liability company (hereinafter
referred to as "Developer" ) .
WHEREAS, the City Council of the City of Elgin has adopted
Ordinance Nos . S6-99, S1-02 , 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 City is the owner of the property commonly known
as 252 Douglas Avenue, Elgin, Kane County, Illinois, such property
being legally described in Exhibit A attached hereto, (hereinafter
referred to as the "Subject Property" ) ; and
WHEREAS, the Subject Property is located within the Elgin
Central Area Redevelopment Project Area; and
WHEREAS, the Subject Property is currently vacant and
undeveloped; and
WHEREAS, the Developer has submitted to the City a proposal
for the redevelopment of the Subject Property providing for eight
residential townhomes to be developed on the Subject Property as
hereinafter described; and
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WHEREAS, the City Council of the City has determined that
Developer' s proposed redevelopment of the Subject Property as
hereinafter described will further the goals and objectives of the
Elgin Central Area Tax Increment Financing Redevelopment Plan and
Project ; and
WHEREAS, Developer' s proposal for the redevelopment of the
Subject Property will result in an increase in the City' s tax
revenues; and
WHEREAS, it is unlikely that the proposed redevelopment of the
Subject Property will occur in the absence of limited development
assistance from the City; and
WHEREAS, in order to provide for the proposed redevelopment of
the Subject Property as hereinafter described 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 and perform any function pertaining 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' s tax base are matters within
the government and affairs of the City; and
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WHEREAS, the City desires to convey and the Developer desires
to acquire the Subject Property in accordance with the terms and
conditions provided herein.
NOW, THEREFORE, for and in consideration of the mutual
undertakings as set forth herein, and other good and valuable
consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows :
1 . Recitals. The foregoing recitals are incorporated into
this agreement in their entirety.
2 . Feasibility. Developer shall have up to sixty (60) days
after the execution of this agreement to conduct and complete
investigations to determine the feasibility in developing the
Subject Property to determine whether or not the Subject Property
is reasonably suitable for the purposes described in Developer' s
proposal to the City. Such investigations may include, but not be
limited to, preliminary engineering, soil testing, environmental
audits and market studies . Within thirty (30) days following the
execution of this agreement, the City shall deliver or cause to be
delivered to Developer copies of all reports in the City' s
possession with respect to the Subject Property including
geological studies, environmental assessments, soil or other test
results and existing surveys . In the event the Developer
determines based upon such investigations that the Subject Property
is not reasonably suitable for the purposes described in
Developer' s proposal Developer shall notify the City in writing of
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such finding prior to the expiration of such sixty (60) day
feasibility period. If the City is so notified in writing by
Developer prior to the expiration of such sixty (60) day
feasibility period, then this agreement shall be cancelled and null
and void with no further liability of either party hereunder. In
such event, Developer shall also provide to the City copies of all
documents obtained or generated by the Developer resulting from the
feasibility study undertaken by the Developer. The studies and
other information are not intended or represented to be suitable
for reuse by the City and any such reuse shall be at the sole risk
of the City and Developer shall have no liability to the City or
any other persons utilizing the information contained therein for
accuracy or appropriateness . In the absence of written notice from
the Developer to the City prior to the expiration of such sixty
(60) day feasibility period advising that the Subject Property is
not reasonably suitable for the purposes described in Developer' s
proposal , or in the event Developer provides the City written
notice within such sixty (60) day feasibility period that Developer
is waiving its rights to cancel this Agreement pursuant to the
provisions of this paragraph, Developer' s rights to cancel this
Agreement pursuant to the provisions of this paragraph shall be
deemed waived by all parties hereto, and this Agreement shall be in
full force and effect .
3 . Conveyance of Subject Property to Developer. In the
event the Developer does not cancel this agreement during the
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feasibility period referred to in the preceding section hereof, or
in the event the Developer notifies the City in writing that it is
waiving its rights to cancel this Agreement during the feasibility
period referred to in the preceding section hereof, the City shall
thereafter convey to the Developer title to the Subject Property by
recordable special warranty deed, subject only to real estate taxes
not then due and payable, for the year of closing and subsequent
years; public utility easements so long as same do not prohibit
Developer' s intended use of the Subject Property as herein
described; public rights-of-way; covenants, conditions,
encroachments and restrictions of record as long as same do not
prohibit Developer' s intended use of the Subject Property as
hereinafter described; zoning laws, statutes and ordinances,
including, but not limited to, matters relating to the Tax
Increment Allocation Redevelopment Act, the Elgin Central Area Tax
Increment Financing Redevelopment Plan and Project, the Elgin
Historic Preservation Ordinance and City of Elgin Ordinance
No. G11-96 designating the Spring/Douglas Historic District ; and
the terms and obligations of this Development Agreement . The
purchase price to be paid by the Developer to the City for the
Subject Property shall be zero dollars ($ . 0) , it be agreed and
understood that the City is conveying the Subject Property to the
Developer without a monetary purchase price as a development
incentive to the Developer as partial consideration for Developer' s
redevelopment of the Subject Property as provided for in this
agreement .
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4 . Survey. Not later than ten days prior to closing, the
City at its own expense, shall furnish the Developer a plat of
survey for the Subject Property prepared by a licensed land
surveyor dated not more than sixty (60) days prior to the closing
date, made and so certified by the surveyor to the Developer, or
other person designated by Developer, and the title company as
having been made in accordance with the minimum standard detail
requirements for ALTA-ASCM Land Title Surveys and Mapping, 1992 ,
including, without limitation, all items (except for Items 5, 7, 9,
10 and 12 in Table A thereof with accuracy standards appropriate to
suburban settings and for Developer' s intended use of the real
estate) . The survey shall also include a certification by the
surveyor as to the square footage of the Subject Property
(excluding any portion thereof lying in a public right-of-way) .
Such survey shall further indicate all applicable easements and
rights-of-way.
5 . Closing. The time of closing for the Subject Property
shall be within thirty (30) days following the earlier of the
expiration of the feasibility period referred to in Section 2
hereof or the receipt by the City of Developer' s written notice
notifying the City that Developer is waiving its rights to cancel
the agreement during the sixty (60) day feasibility period referred
to in Section 2 hereof, or such other date as may hereinafter be
agreed to. Unless subsequently mutually agreed otherwise, closing
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shall take place at the office of Chicago Title Insurance Company
providing title is shown to be good or is accepted by Developer.
6 . No Brokers or Agents Involved in this Transaction. The
City and Developer each warrant to the other that they have dealt
with no brokers or agents in connection with this transaction.
Each party agrees to indemnify, hold harmless and defend the other
party from any loss, cause, damages or expenses (including
reasonable attorney' s fees) arising out of a breach of the warranty
contained in this section.
7 . Title. Not less than ten (10) days prior to closing, the
City at its own expense, shall deliver or cause to be delivered to
Developer or Developer' s agent a title commitment for a 1970 ALTA
Owner Title Insurance Policy issued by Chicago Title Insurance
Company (the "Title Company" ) in the minimum amount of insurance
covering title to the Subject Property on or after the date herein,
showing title in the City of Elgin subject only to : (a) title
exceptions set forth in Section 3 above, (b) title exceptions
pertaining to liens or encumbrances of a definite or ascertainable
amount which may be removed by the payment of money at the time of
closing and which the City shall so remove at that time, (c) acts
of the Developer and all parties through or for the Developer,
(d) zoning laws, statutes and ordinances, including, but not
limited to matters relating to the Tax Increment Act, the Elgin
Central Area Tax Increment Redevelopment Plan and Project and the
Elgin Historic Preservation Ordinance, and (e) other matters of
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title over which the Title Company is willing to insure without
cost to Developer. At closing, the City shall also furnish to
Developer an affidavit of title in customary form covering the date
of closing and showing title in the City subject only to the
permitted exceptions and such other documents as are customary to
complete the closing of this transaction.
8 . Title Clearance. If the title commitment or plat of
survey discloses either unpermitted exceptions or survey matters
that render the title not in conformance with the provisions of
this agreement (hereinafter referred to as "Survey Defects" ) the
City shall have thirty (30) days from the date of delivery thereof
to have the exceptions removed from the commitment or to correct
such Survey Defects or to have the title company commit to insure
against loss or damage that may be associated by such exceptions or
Survey Defects, and, in such event, the time of closing shall be
thirty (30) days after the deliver of the commitment or the time
expressly specified in Section 5 hereof, whichever is later. If
the City fails to have the exceptions removed or correct any Survey
Defects, or in the alternative, to obtain the commitment for title
insurance specified above as to such exceptions or survey defects
within the specified time, Developer may terminate this agreement
or may elect, upon notice to the City within ten (10) days after
the expiration of the thirty (30) day period, to take title as it
then is . If Developer does not so elect, this agreement shall be
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deemed cancelled and null and void with no further liability of
either party hereunder.
9 . Prorations. General taxes shall be adjusted ratably as
of the time of closing. If the amount of current general taxes is
not then as ascertainable, the adjustment thereof shall be made on
the basis of the amount of the most recent ascertainable taxes .
The City shall pay the amount of any stamp tax imposed by state or
county law or local ordinance on the transfer of title, if any, and
furnish a completed real estate transfer declaration signed by the
City or the City' s agent in the form required pursuant to the Real
Estate Transfer Tax Act of the State of Illinois and shall furnish
any declaration signed by the City or the City' s agent or meet
other requirements as established by any county or local ordinance
with regard to a transfer or transaction tax.
10 . Redevelopment for Residential Townhome Redevelopment.
A. It is agreed and understood that the Subject
Property is being conveyed by the City to the Developer for the
sole purpose of Developer redeveloping the Subject Property and
constructing thereon eight residential townhomes in conformance
with Developer' s proposal entitled "Rowhomes at Kimball and
Douglas, Elgin, Illinois" dated May, 2003 , attached hereto as
Exhibit B and in conformance with the planned development ordinance
for the Subject Property, Ordinance Number G43-03 , adopted by the
City Council of the City on June 11, 2003 , (such Ordinance
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Number G43-03 is hereinafter referred to as the "Subject Planned
Development Ordinance" and such redevelopment of the Subject
Property in conformance with Exhibit B and Subject Planned
Development Ordinance is hereinafter referred to as the "Subject
Residential Townhome Redevelopment" ) . In the event of any conflict
between the terms and provisions of Exhibit B and the terms and
provisions of the Subject Planned Development Ordinance the terms
and provisions of the Subject Planned Development Ordinance shall
control . The redevelopment of the Subject Property shall conform
in all respects with the Subject Planned Development Ordinance or
as directed by the City as is necessary to comply with ordinances,
building codes or other requirements of law. Developer shall also
cause all work performed in connection with the redevelopment of
the Subject Property to be performed in a workmanlike manner.
Except as otherwise provided in this agreement, all costs and
expenses relating to the redevelopment of the Subject Property
including without limitation, the construction of the Subject
Residential Townhome Redevelopment on the Subject Property, shall
be the responsibility of and shall be paid for by the Developer.
B. Developer shall commence construction of the Subject
Residential Townhome Redevelopment on the Subject Property within
ninety (90) days following the closing. Developer shall be deemed
to have commenced construction of the Subject Residential Townhome
Redevelopment on the Subject Property upon the commencement of the
construction of foundations for the townhomes to be constructed on
the Subject Property. Upon Developer commencing construction of
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the Subject Residential Townhome Redevelopment on the Subject
Property Developer shall continue with such construction in as
expeditious a manner as is reasonably practicable . Developer shall
complete the Subject Residential Townhome Redevelopment on the
Subject Property no later than twenty-four (24) months following
the closing (hereinafter referred to as the "Completion Date" ) ,
provided, however, that such Completion Date for the redevelopment
of the Subject Property shall be extended by one day for each day
of which construction is delayed or stopped due to accident ,
strikes, shortage of materials, extreme weather, acts of God or
other causes not within Developer' s reasonable control . In the
event Developer requires any further extension of the Completion
Date for the redevelopment of the Subject Property any such
requests shall be submitted to the City in writing specifying the
reasons for such an extension and the amount of additional time
being requested. Any agreement by the City to further extend the
Completion Date for the redevelopment of the Subject Property shall
be at the sole discretion of the City Council of the City. The
Subject Residential Townhome Redevelopment of the Subject Property
shall be deemed completed when Developer has completed its
construction of all buildings and site improvements for the Subject
Residential Townhome Redevelopment and has obtained final occupancy
permits for all eight townhomes to be constructed on the Subject
Property. The City shall not withhold a final occupancy permit for
any building within the Subject Residential Townhome Redevelopment
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that otherwise complies with all City codes, ordinances and other
requirements of law as to such townhome .
C. The deed of conveyance conveying the Subject
Property to Developer shall contain a provision making such
conveyance subject to the terms and obligations of this Development
Agreement . In the event Developer shall have failed to commence
construction of the Subject Residential Townhome Redevelopment on
the Subject Property on the date specified in this agreement the
City may file suit within the Circuit Court for the Sixteenth
Judicial Circuit , Kane County, Illinois for a determination that
Developer has so breached this agreement and may then pursue any
and all available remedies at law, equity or otherwise including
but not limited to providing for a judgment and order terminating
the Developer' s rights in and to the Subject Property and require
the conveyance back to the City of Developer' s rights, title and/or
interests in or to the Subject Property free and clear of all
rights of the Developer. In the event the Developer fails to
complete the Subject Residential Townhome Redevelopment on the
Subject Property by the Completion Date, as such date may be
extended pursuant to Section l0B hereof, or Developer is otherwise
in default of a material term or condition of this agreement, the
City may file suit within the Circuit Court for the Sixteenth
Judicial Circuit , Kane County, Illinois, for a determination that
Developer has so breached this agreement and therein may pursue any
legal remedies at law or equity against the Developer but not
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including any remedy of conveyance or reversion of all or part of
the Subject Property to the City.
11 . Declaration of Easements, Restrictions, Covenants and Bi-
laws. Within ninety (90) days of the closing the Developer shall
submit to the City for the City' s review and approval a draft
declaration for a homeowners association or for condominium
ownership which provides for easements, restrictions and covenants
and by-laws for the Subject Residential Townhome Redevelopment of
the Subject Property (hereinafter referred to as the
"Declaration" ) . The Declaration shall comply with all applicable
provisions of law including the Illinois Condominium Property Act
and shall include, among other matters, provisions relating to
easements, the maintenance of common elements, limited common
elements and common areas and limitations or requirements relating
to the type and number of buildings, building elevations, building
design, building materials, the number of townhome units and the
use of the Subject Property. The Declaration shall also comply
with the terms and provisions of Exhibits B hereto and the Subject
Planned Development Ordinance. Upon approval of the Declaration by
the City Council of the City the Developer shall record such
Declaration simultaneously with the recording of a final plat of
subdivision of the Subject Property and prior to the closing of the
sale of any of the residential townhome units on the Subject
Property. The Declaration may be modified or amended by the
Developer or Developer' s successors in interest, but the
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Declaration shall provide that as to amendments or revisions
effecting the types of buildings, building elevations, building
design, building materials, the number of townhomes or the use of
the Subject Property, such amendments or revisions shall require
the prior approval of the City Council of the City of Elgin.
12 . Development Assistance.
A. In addition to the City conveying the Subject
Property to the Developer without a monetary purchase price as a
development incentive to the Developer, and in consideration of
Developer completing the redevelopment of the Subject Property with
the Subject Residential Townhome Redevelopment on or before the
Completion Date as set forth in this agreement, the City agrees to
provide the development assistance to Developer as set forth in
this Paragraph 12 . In the event of Developer' s completion of the
Subject Residential Townhome Redevelopment on the Subject Property
and the issuance of the final certificate of occupancy for each of
the eight residential townhome units to be constructed on the
Subject Property on or before the Completion Date the City agrees
to provide to the Developer monetary development assistance not to
exceed the total amount of $206, 620 . The City shall pay such total
amount of $206, 620 of monetary development assistance to Developer
in eight (8) equal installments of $25, 827 . 50 by paying to
Developer installments in the amount of $25 , 827 . 50 upon the
completion of and the issuance of the final certificate of
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occupancy for each of the eight residential townhome units to be
constructed on the Subject Property.
B. The City agrees that the payment of impact fees provided
for in Title 17 of the Elgin Municipal Code for the Subject
Residential Townhome Redevelopment on the Subject Property may be
deferred from being paid prior to the issuance of building permits
for each of the eight (8) Residential Townhomes to be constructed
on the Subject Property until prior to the issuance of either a
temporary or final certificate of occupancy for each of the eight
Residential Townhomes to be constructed on the Subject Property.
C. The parties understand and agree that the development
assistance being provided by the City to the Developer as set forth
in this paragraph 12 is expressly contingent upon Developer' s
development of the Subject Residential Townhome Redevelopment on
the Subject Property as provided in this agreement . In the event
the Developer fails to commence and complete the Subject
Residential Townhome Redevelopment on the Subject Property as
required in this agreement the parties understand and agree that
the City will not be providing any development assistance to the
Developer for the Subject Residential Townhome Redevelopment
pursuant to this agreement or otherwise . It is further expressly
agreed and understood by the parties hereto that the City' s sole
and only monetary and/or financial assistance or contribution for
the Subject Residential Townhome Redevelopment on the Subject
Property shall be the conveyance of title of the Subject Property
to the Developer as provided in this agreement and the monetary
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assistance not to exceed $206, 620 as described in this Paragraph 12
and that the City shall have no other responsibility for any other
costs or expenses relating to the Subject Residential Townhome
Redevelopment on the Subject Property.
13 . Redevelopment to Remain on Subject Property. The
Developer agrees that except as otherwise agreed to by the City the
Subject Residential Townhome Redevelopment on the Subject Property
shall be maintained and remain on the Subject Property for a period
of not less than twenty-five (25) years following the date of this
agreement .
14 . Assessment of Subject Property. The City and the
Developer agree that the Subject Residential Townhome Redevelopment
of the Subject Property should be assessed for general real estate
taxes in the manner provided by Illinois Compiled Statutes as they
may be amended from time to time . This provision shall not be
deemed to prevent Developer or its successors or permitted assigns
from appealing or challenging assessments against the Subject
Residential Townhome Redevelopment on the Subject Property which
Developer or its successors or permitted assigns consider to be
contrary to law. The Developer agrees that for a period of twenty-
five (25) years following the date of this agreement that the
Developer and no person affiliated with the Developer or any
successor or permitted assign of the Developer shall do any of the
following:
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A. Seek to reduce the total equalized assessed
valuation of the Subject Residential Townhome Redevelopment on the
Subject Property below a total of $600 , 000 upon completion of the
redevelopment improvements; or
B. Request a full or partial exemption for general real
estate taxes for any portion of the redevelopment property; or
C. Request an assessment at a value not otherwise
permitted by law.
15 . Compliance with Laws. Notwithstanding any other
provisions of this agreement it is expressly agreed and understood
by Developer and the City that in connection with the performance
of this agreement and the redevelopment of the Subject Property
with the residential townhome redevelopment, including without
limitation, Developer' s construction of townhomes on the Subject
Property, that Developer shall comply with all applicable federal,
state, city and other requirements of law. Developer shall also at
its expense secure all permits and licenses, pay all charges and
fees and give all notices necessary and incident to the due and
lawful prosecution of the work necessary to provide for the
redevelopment of the Subject Property as described in this
agreement .
16 . Survival. All representations, warranties, indemnities
and covenants made by the parties under this agreement, the terms
of this agreement and the obligations of the parties under this
agreement shall be deemed remade as of the closing and shall
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survive the closing, and the remedies for breach thereof shall
survive the closing and shall not be merged into the closing
documents .
17 . Default. 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 actions 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)
days 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 .
18 . Remedies. If either party fails or refuses to carry out
any of the material covenants or obligations hereunder, the other
party shall be entitled to pursue any and all available remedies as
specified herein or otherwise available at law, equity or
otherwise . Notwithstanding the foregoing or anything else to the
contrary in this agreement, with the sole exception of an action to
recover the monies the City has agreed to pay pursuant to the
preceding Paragraph 12 hereof, no action shall be commenced by the
Developer against the City for monetary damages . 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 .
19 . Time. Time is of the essence of this agreement .
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20 . Notices. All notices shall be required to be in writing
and shall be served on the parties at the addresses following their
signatures . The mailing of a notice by registered or certified
mail , return receipt requested, or personal delivery by courier
service shall be sufficient service .
21 . Interpretation. This agreement shall be construed, and
the rights and obligations of the City and the Developer hereunder
shall be determined in accordance with the laws of the State of
Illinois without reference to its conflict of laws rules .
22 . Relationship of the Parties. This agreement shall not be
deemed or construed to create an employment, joint venture,
partnership or other agency relationship between the parties
hereto.
23 . Failure to Enforce Provisions. 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.
24 . Amendments . 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 .
25 . Entire Agreement. This agreement contains the entire
agreement and understandings 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.
26 . Joint and Collective Work Product. This agreement is and
shall be deemed and construed to be a joint and collective work
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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 and provisions contained herein.
27 . Assignment. 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.
28 . No Conflicting Interests. Developer hereby represents
and warrants that the Developer, nor any associated person or
organization, presently owns or has any beneficial interest in the
Subject Property being conveyed to Developer or entitled to receive
any income from the Subject Property. In compliance with 50 ILCS
105/3 . 1, Developer shall provide the City with a written statement
subscribed by an owner, authorized trustee, corporate official, or
managing agent, under oath, disclosing the identity of every person
having an interest, real or personal, in the development group and
every shareholder entitled to receive more than seven and one/half
(7h%) percent of the total distributable income of any corporation
which will have an interest, real or personal , in such property
upon the acquisition of any interest by the Developer in the
Subject Property.
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29 . Indemnification. To the fullest extent permitted by law,
Developer agrees to and shall indemnify, defend and hold harmless,
the City, its officials, officers, employees, attorneys, agents,
boards and commissions from and against any and all claims, suits,
judgments, costs, attorney' s fees, damages or other relief,
including but not limited to workmens' compensation claims, in any
way resulting from or arising out of or alleged to be resulting
from or arising out of negligent actions or omissions of the
Developer in connection herewith, including negligence or omissions
of employees, agents or subcontractors of the Developer arising out
of the performance of this agreement, or in any way resulting from
or arising out of or alleged to be resulting from or arising out of
any violation and/or breach of the terms or provisions of this
agreement by the Developer, including any violation and/or breach
by employees, agents or subcontractors of the Developer. In the
event of any action against the City, its officials, officers,
employees, agents, attorneys, boards or commissions covered by the
foregoing duty to indemnify, defend and hold harmless such action
shall be defended by legal counsel of the City' s choosing. The
provisions of this paragraph shall survive any termination and/or
expiration of this agreement .
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IN WITNESS WHEREOF, the parties hereto have entered into and
executed this agreement on the date and year first written above .
CITY OF ELGIN, a municipal KIMBALL-ELGIN, L.L. C. ,
corporation an Illinois limited
liability company
BYE By
as o ..,,r—
aYo � �� .fi.r�c
Attest : •
City Clerk
City of Elgin KIMBALL-ELGIN, L.L. C .
c/o City Manager 9 Walnut
150 Dexter Court Barrington, Illinois
Elgin, IL 60120-5555
With a Copy of Any Notice to : With a Copy of any Notice to :
William A. Cogley Richard L. Heimberg
Corporation Counsel Brady & Jensen Law Offices
City of Elgin 2425 Royal Boulevard
150 Dexter Court Elgin, IL 60123
Elgin, IL 60120-5555
F:\Legal Dept\Agreement\DevelopmentAgreement-Centre Rowhomes-Douglas & Kimball.doc
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PLAT O SURVEY .
Of prc. ty described as: .„, ,
That part of Lot 52 of P.J. Kimball, Jr's. Second Addition to Elgin, described as This is to certify that a Survey of the above
follows: Beginning at the intersection of the west line of Douglas Avenue with the described property was made under my direction and rthhaet,..:st.::::e7u...pin.lis::h.:::::ereon
north line of Kimball Street; thence North along said west line of Douglas Avenue 77 drawn correctly represents said survey to the best ofmy kowlee and
feet; thence West parallel with the north line of Kimball Street 134 feet; thence North belief.
parallel with said west line of Douglas Avenue 40 feet; thence West parallel with said Dimensions are given in feet and decimalsr
north line of Kimball Street 66.4 feet to the west line of said Lot 52; thence South indicated otherwise.
along said west line 117 feet to the north line of Kimball Street; thence East along
said north line of Kimball Street 200 feet to the point of beginning, in the City of Dated this 12th day of August A.D., 1999. '�Elgin, Kane County, Illinois_ 0 OP •Containing 0.411 acre, more or less. (198') 1, AJ ';
0
p0.54' N I FSHEOE ,* Dale A. Terry - Profe Tonal is:111.:76541...: sIllinoisLandSurveyorNo. 2533
N 89'5
7'48" W I e
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3 LEGEND
SCALE: 1"=20' vi
w b o ® INDICATES BOUNDARY OF
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0.97 W CONCRETE WALK Land Surveyors
0.85' S S 89'57'48" E 0
P.O.B. 380 Shepard Drive
/ Account Number Elgin, Illinois 60123-701C
CONCRETE CURB) KIMBALL STREET 2 05 1323(a) 847-697.6700
Exhibit A
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DEVELOPMENT TEAM
Development: Kimball-Elgin L. L.C.
Legal Services: Brady & Jenson
Richard "Bud" Heimburg
Quality Rowhomes at
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, RovpAtion 630+497+0790 05/19/03 02:05P P.002
i Barrington Development Corporation
,
9 Walnut, Barrington, Illinois 60010-9546
847-903-5173 847-381-8845 - email BDCUSA@aol.corn
City of Elgin May 20, 2003
150 Dexter Court
Elgin, II 60120
Attn: Ms Lauren M. Kieck
Ms Kieck,
In response to your inquiry as to finishes we are anticipating for the row homes, the following is
presented. There may be changes to these, but such are not expected to be significant.
Exterior Finishes
Brick will be IGng size, the color to be determined
Exterior window heads and sills will be limestone
Window will be of wood, and probably have exterior clading. If we cannot utilize clad windows, we
will choose vinyl windows to provide for longevity. Windows will include grills.
Exterior doors will be solid doors, and may include sidelights.
Roofing will be flat roofing.
Exterior hardware will be Baldwin, Schlage or equivalent_
Lighting fixtures on front and back are to be determined.
Covered entrances will be used at each front entrance
Gables will be used to enhance the front street scape at the roof line.
Bay windows will be used to enhance the appearance of the ends of the building.
Interior Finishes
Cabinets will be raised panel of various solid wood and laminates
Kitchen countertops will be laminate
Bath countertops will be cultured marble
Door hardware will be polished or antique brass lever design
Flooring will be Carpet and ceramic tile
Interior paint will be normally flat white
Door standards will be white Colonist, six panel doors
Interior options
Fireplace
Whirlpool
Paint color choices
Solid core doors •
Hardwood flooring
Granite or similar countertops
Garage door openers
Upgrades in cabinets, flooring, millwork, light fixtures, sinks, shelving, entertainment,
I trust that you will find this responsive.
/ ,
/ / James R. Rapier
v President
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Project Financial Summary
Item Expense Total
Per Unit 8 Units
Land $ 13,125 $ 105,000
Impact Fees $ 3,375 $ 27,000 '
Building Permits/Review Fees $ 3,625 $ 29,000
Site Engineering Fees $ 125 $ 1 ,000
Eng/Arch/Soils/Envi/Legal $ 7,500 $ 60,000
Land Improvements $ 19,195 $ 153,560
Building Cost $ 169,200 $ 1 ,353,600
Construction Mgt/Administrative $ 9,350 $ 74,800
Marketing $ 15,600 $ 124,800
Financing/Interest $ 11 ,500 $ 92,000
Overhead $ 5,000 $ 40,000
Total Expenses $ 257,595 $ 2,060,760
Development Incentive $ 25,828 $ 206,621
Land Incentive $ 13,125 $ 105,000
Total Incentive $ 38,953 $ 311 ,621
Project Total Net Expenses $ 218,642 $ 1 ,749,139
Selling Price $ 230,000 $ 1 ,840,000
Project Total Net Expenses $ 218,642 $ 1 ,749,139
Project Pre-Tax $ 11 ,358 $ 90,861
Quality Rowhomes at
Kimball & Douglas Kimball-Erin 1..L.C.
Prepared May 2003
•
OF 6.4.0'
City of Elgin Agenda Item No.
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May 23 , 2003
N z . .
TO: Mayor and Members of the City Cou il ALIVE DOWNTOWN
'
FROM: David M. Dorgan, City Manager �)
Mark Biernacki, Community Development Manager
Ray Moller, Economic Development/Business Services
Director
SUBJECT: Townhome Development with Kimball-Elgin,
L.L.C. for 252 Douglas Avenue
PURPOSE
The purpose of this memorandum is to present to the Mayor and
members of the Council a development agreement with Kimball-
Elgin, L.L.C. for the construction of eight townhome units at
252 Douglas Avenue .
BACKGROUND
The City of Elgin is the owner of property located at 252
Douglas Avenue . The property was purchased in 1999 for $86, 000 .
Kimball-Elgin, L.L.C. has proposed to develop eight, market rate
townhomes on the site . The Zoning and Subdivision Hearing Board
reviewed the proposed project on July 17, 2002 . The Zoning
board voted 4 to 2 to deny the project . A detailed project
proforma is attached for your review.
Staff has negotiated a proposed development agreement with
Kimball-Elgin, L.L.C. The property is located within the Elgin
Central Area Redevelopment Project area. The total cost of the
townhome development is estimated to be $2 , 060, 760 . The TIF tax
increment is estimated to be $50, 000 per year. If measuring
twenty (20) years of Tax Increment Financing (TIF) tax increment
benefit, the project will produce $1, 000, 000 in TIF proceeds for
the City. The monetary value of the City' s incentive package is
estimated at $311, 621 . 00 . The incentive package of $311, 620 . 00
represents fifteen percent (15%) of the estimated total project
cost . An incentive package equaling fifteen percent (15%) of the
4
Townhome Development at 252 Douglas Ave .
May 23 , 2003
Page 2
total project cost is consistent with other Center City
redevelopment projects .
Included in the $311, 621 . 00 City incentive is the land, which is
valued at $105, 000 . 00 . The city purchased the property in 1999
for $86, 000 . At the time the property was appraised for a
commercial land use at a value of $90, 000 . 00 . The property is
currently zoned RC3 . Recently the property was appraised at
$152 , 000 . 00 if zoned and developed as a PUD with eight (8)
townhouse units and at $56, 000 . 00 if the site retained its
residential land use. N. Steffens and Associates have determined
that the highest and best use for the site is for the
development of townhomes. A compromise land value $105, 000 . 00
was agreed to by the City and the developer. The development
furthers the goals and objectives of the Central Area TIF Plan.
Kimball-Elgin, L.L.C. is requesting development incentives from
the City of Elgin. Staff has negotiated the proposed
development agreement with Kimball-Elgin, L.L.C. The agreement
contains the following provisions:
1 . Developer will have a 60-day due diligence period.
2 . The city shall transfer title to the developer at no cost .
3 . Developer must begin construction of the eight townhomes
within 90 days of the closing and complete the project no
later than twenty-four months following the closing.
4 . The city agrees to provide monetary assistance to the
developer in an amount not to exceed $206, 621 . The
monetary assistance will be paid in eight equal
installments of $25, 827 . 50 . Impact fees will be payable
upon issuing an occupancy permit .
5 . The developer agrees that the townhome redevelopment shall
be maintained for not less than 25 years.
6 . Developer agrees to the following items relating to
property taxes :
a) Not seek to reduce the total equalized assessed
valuation for the development below $600, 000 .
b) Not request a full or partial exemption for general
real estate taxes for any portion of the redevelopment
project .
Townhome Development at 252 Douglas Ave .
May 23, 2003
Page 3
c) Request an assessment at a value not otherwise
permitted by law.
TIF statute requires that the City publish a Legal Notice in a
local newspaper indicating that the City is considering moving
forward with the Kimball - Elgin L.L.C. project and that other
interested developers have the opportunity to review the
elements of the proposed plan as well as the proposed
development agreement . The notice was published on March 13 ,
2003 in the Courier News. Interested developers were allowed
twenty-eight days from the date of publication to submit
alternative proposals . No other interested developers contacted
the City during the review period or proposed alternative plans .
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
Hearing before the Zoning and Subdivision Hearing Board.
Developer and city staff met with interested neighbors on July
30, 2002 .
,1\itNINANCIAL IMPACT
The value of the City incentive will total $311, 621 and consist
of a land donation of City owned property valued at $105, 000 and
financial assistance in an amount not to exceed $206, 621 . There
is $346, 000 available in the Riverboat Fund, account number 275-
0000-791 . 92-31, Land, which was budgeted for unanticipated
property purchases . A budget transfer will be made into account
number 276-0000-791 . 80-27, Economic Development Incentives, to
pay for the townhome development incentive. It is estimated by
the developer that the cost of the townhome development will be
$2 , 060, 760 and generate annually $50, 000 in tax increment . Over
a 20 year period, the project could produce $1, 000, 000 in tax
increment .
EGAL IMPACT
MO/
None.
Townhome Development at 252 Douglas Ave.
May 23, 2003
Page 4
ALTERNATIVES
1 . Enter into a development agreement with Kimball-Elgin,
L.L.C.
2 . Choose not to proceed with the townhome redevelopment
project .
RECOMMENDATION
It is recommended that the City Council approve a development
agreement with Kimball-Elgin, L.L.C. for the construction of
eight townhome units at 252 Douglas Avenue . The city' s
participation is valued at $311, 621 for land and cash
incentives.
RHM/cm
Attachment
LAW OFFICES
BRADY & JENSEN
YNE M.JENSEN 2425 ROYAL BOULEVARD WILLIAM W.BRADY 0914.1989)
-HARD L.HEIMBERC
GER K.FRANDSEN ELGIN, ILLINOIS 60123 •ATTORNEY ATI,AW AND
RONALD E.RASMUSSEN TELEPHONE 847-695-2000 CERTIFIED PUBLIC ACCOUNTANT
ALFRED Y.KIRKLAND.IR.
GLEN T.DOBOSZ• FAX 847-695-3243
MICHAEL C.DEUTSCH•
KEITH A.SPONG
MARIOS N.KARAYANNIS Writer's Direct Line
FREDI.BEER•
BRIAN L.NEIMBERG (847)289-3370
PATRICK).CRIMMINS Email Address
rheimbcrg(O bradylaw,com
May 2, 2003
City of Elgin
150 Dexter Court
Elgin, IL 60120
Attn: William E. Cogley, Corporation Counsel
RE: 252 Douglas Avenue
Dear Mr. Cogley:
Please accept this letter as official notification that Charles Gruber has withdrawn from any
participation in the development of the referenced property.
James Rapier, 9 Walnut Street, Barrington,IL 60010 will take over and complete the project.
Mr. Rapier will provide you with the identity of the entity to be the "Developer" in the
Development Agreement to be entered into with the city.
You will be provided a Disclosure Statement in accordance with Paragraph 28 of the
Development Agreement,which will officially disclose the identity of the beneficial owners of
the "Developer."
Please let me know if you have any further questions in this regard.
Very Truly Yours,
Richard ,. Hei lberg
BRADY &JENSEN LAW FFICES
•
RLH/smh
c: Jim Rapier
may2cog.1lr