HomeMy WebLinkAbout08-214 Resolution No. 08-214
RESOLUTION
AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT WITH
KRYSTAL ENTERPRISES, L.L.C. FOR DEVELOPMENT OF A
NEW BEEF VILLA RESTAURANT
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that
Ed Schock,Mayor, and Diane Robertson, City Clerk,be and are hereby authorized and directed to
execute a development agreement on behalf of the City of Elgin with Krystal Enterprises,L.L.C.for
development of a new Beef Villa Restaurant, a copy of which is attached hereto and made a part
hereof by reference.
s/Ed Schock
Ed Schock, Mayor
Presented: September 10, 2008
Adopted: September 10, 2008
Omnibus Vote: Yeas: 6 Nays: 0
Attest:
s/Diane Robertson
Diane Robertson, City Clerk
Resolution No.08-214
RESOLUTION
AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT WITH
KRYSTAL ENTERPRISES, L.L.C.FOR DEVELOPME T OF A
NEW BEEF VILLA RESTAURANT
BE OLVED BY THE CITY COUNCIL OF THE CI OF ELGIN,ILLINOIS,that
Ed Schock,Mayo , and Diane Robertson, City Clerk,be and are •reby authorized and directed to
to a dev ment agreement on behalf of the City of Elgin th Krystal Enterprises,L.L.C.for
development of a new Beef Villa Restaurant, a copy of whic/ is attached hereto and made a part
hereof by reference.
Ed :chock,Mayor
Presented: September 10, 2008
Adopted:
Vote: Yeas Nays
Recorded:
Attest:
o ) 3 oLi
Diane Robertson, City Clerk
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)2/
8/26/08
DEVELOPMENT AGREEMENT _/�
THIS AGREEMENT made and entered into this lablday of t? , 2008, by and
between the City of Elgin, an Illinois municipal corporation (herei er referred to as the
"City"), and Krystal Enterprises, L.L.C., an Illinois limited liability company (hereinafter
referred to as the "Krystal Enterprises").
WITNESSETH:
WHEREAS, the City is the owner of record of certain real estate commonly known as
1337 Dundee Avenue and 1341 Dundee Avenue, Elgin, Kane County, Illinois 60120, such
property being depicted and legally described in Exhibits A and B attached hereto (hereinafter
collectively referred to as the "City Parcel"); and
WHEREAS, Krystal Enterprises is the owner of record of certain real estate commonly
known as 1055 Dundee Avenue, Elgin, Kane County, Illinois 60120, such property being
depicted and legally described in Exhibit C attached hereto (such property being hereinafter
referred to as the "Krystal Enterprises Parcel"); and
WHEREAS, Krystal Enterprises operates its Beef Villa Restaurant on the Krystal
Enterprises Parcel; and
WHEREAS, Krystal Enterprises leases to its affiliated company Beef Villa, Inc. the Beef
Villa Restaurant operated on the Krystal Enterprises Parcel, but in the leaseback hereinafter
referred to Beef Villa, Inc. will lease directly from the City; and
WHEREAS, the City is desirous of conveying to Krystal Enterprises the City Parcel for
the use by Krystal Enterprises for the development of a New Restaurant (hereinafter defined) in
consideration of Krystal Enterprises conveying the Krystal Enterprises Parcel to the City; and
WHEREAS, Krystal Enterprises is desirous of conveying to the City the Krystal
Enterprises Parcel in consideration of the City conveying the City Parcel to Krystal Enterprises;
and
WHEREAS, the City and Krystal Enterprises desire to complete the conveyances to one
another of the City Parcel and Krystal Enterprises Parcel pursuant to the terms and conditions of
this Agreement.
NOW, THEREFORE, for and in consideration of the mutual undertakings 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. Conveyance of City Parcel. The City agrees to convey to Krystal Enterprises at
closing the City Parcel. The conveyance by the City to Krystal Enterprises of the City Parcel
shall be by recordable special warranty deed subject only to: (a) general real estate taxes not yet
due and payable at closing; (b) easements of record; (c) zoning laws, statutes and ordinances;
(d)covenants, conditions and restrictions of record, if any, none of which shall prohibit Krystal
Enterprises' intended use of the City Parcel for a restaurant; and (e) the terms and provisions of
this Development Agreement.
3. Conveyance of Krystal Enterprises Parcel. Krystal Enterprises shall convey to the
City at closing the Krystal Enterprises Parcel. The conveyance by Krystal Enterprises to the City
of the Krystal Enterprises Parcel shall be by recorded special warranty deed subject only to: (a)
general real estate taxes not yet due and payable at closing; (b) easements of record; (c) zoning
laws, statutes and ordinances; and (d) covenants, conditions and restrictions of record, if any,
none of which shall prohibit the City's intended use of Krystal Enterprises Parcel as public open
space.
4. Title Commitment for City Parcel. Not less than thirty (30) days prior to the
closing date contemplated in this agreement, the City shall, at its own expense, furnish Krystal
Enterprises a title commitment for a 1970 ALTA owners title insurance policy issued by Chicago
Title Insurance Company (the "Title Company") in the minimum amount of insurance covering
title to the City Parcel on or after the date of this Agreement. Such commitment shall show title
to the City subject only to: (a) title exceptions set forth in Section 2 of this Agreement; (b) title
exceptions pertaining to liens of a definite or ascertainable amount which may be so removed by
the payment of money at the time of closing and which the City shall remove at that time; (c)
other matters of title over which the Title Company is willing to insure without cost to Krystal
Enterprises. At closing, the City shall also furnish to Krystal Enterprises (i) an Affidavit of Title
in customary form covering the date of closing and showing title in the City subject only to
permitted exceptions, (ii) a Plat Act Affidavit and (iii) such other documents as are customary to
complete the closings contemplated in this Agreement.
5. Title Commitment for the Krystal Enterprises Parcel. Not less than thirty (30)
days prior to the closing date contemplated in this agreement, the City shall, at its own expense,
obtain a title commitment for a 1970 ALTA owners title insurance policy issued by Chicago
Title Insurance Company (the "Title Company") in the minimum amount of insurance covering
title to the Krystal Enterprises Parcel on or after the date of this Agreement. Such commitment
shall show title to the Krystal Enterprises subject only to: (a) title exceptions set forth in Section
3 of this Agreement; (b) title exceptions pertaining to liens of a definite or ascertainable amount
which may be so removed by the payment of money at the time of closing and which Krystal
Enterprises shall remove at that time; (c) other matters of title over which the Title Company is
willing to insure without cost to the City. At closing, Krystal Enterprises shall also furnish to the
City (i) an Affidavit of Title in customary form covering the ate of closing and showing title in
Krystal Enterprises subject only to permitted exceptions, (ii) a Plat Act Affidavit and (iii) such
other documents as are customary to complete the closings contemplated in this Agreement.
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6. Title Clearance. If the title commitments to be provided pursuant to Sections 4
and 5 of this Agreement disclose either unpermitted exceptions that render the title not in
conformance with the provisions of this Agreement, the intended Grantor, either the City or
Krystal Enterprises as the case may be, shall have thirty (30) days from the date of delivery
thereof to have the exceptions removed from the commitment, or to have the Title Company
commit to insure against loss or damage that may be associated by such exceptions and, in such
event, the time of closing shall be thirty (30) days after the delivery of the commitment or the
time expressly specified in Section 8 hereof, whichever is later. If the intended Grantor, either
the City or Krystal Enterprises as the case may be, fails to have the exceptions removed, or in the
alternative, to obtain the commitment for title insurance specified above as to such exceptions,
the intended Grantee, either the City or Krystal Enterprises as the case may be, may terminate
this Agreement or may elect, upon notice to the other party within ten (10) days after the
expiration of the thirty (30) day period, to take title as it then is. If the intended Grantee, either
the City or Krystal Enterprises, does not so elect,this Agreement shall be deemed terminated and
null and void with no further liability of either party hereunder.
7. Survey. Not later than thirty (30) days prior to closing, the City at its own
expense, shall obtain, and provide a copy to Krystal Enterprises, a plat of survey of the City
Parcel prepared by a licensed land surveyor dated not more than (6) months prior to the Closing
Date, made and so certified by the surveyor to Krystal Enterprises, or other person designated by
Krystal Enterprises, 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,
without Table A items. The survey shall also include a certification by the surveyor as to the
square footage of the City Parcel (excluding any portion thereof lying in a public right-of-way).
Such survey shall further indicate all applicable easements and rights-of-way. Not less than
thirty (30) days prior to closing, the City, at its own expense, shall also obtain, and provide a
copy to Krystal Enterprises, a plat of survey of the Krystal Enterprises Parcel dated not more
than six (6) months prior to the Closing Date, made and so certified by the surveyor to the City,
or other person designated by the City, and the title company as having been in accordance with
the minimum standard detail requirements for ALTA-ASCM land title surveys and mapping,
1992, without Table A items. The survey shall also include a certification by the surveyor as to
the square footage of the Krystal Enterprises Parcel (excluding any portion thereof lying in a
public right-of-way). Such survey shall further indicate all applicable easements and rights-of-
way.
8. Closing. The closing shall take place at Chicago Title Insurance Company office
in Elgin, Illinois, within thirty (30) days after the adoption of the planned development ordinance
for the City Parcel as referred to in Section 9 hereof. At closing, the City shall pay the standard
closing costs of the Title Company; real estate taxes shall be prorated to the Closing Date, based
upon the last ascertainable assessment and rate applicable to each parcel. Each party shall be
responsible for its own attorney's fees.
9. Development Application. Not later than sixty (60) days after the entry into this
agreement Krystal Enterprises shall file with the City an application (the "Development
Application") for the approval by the City of a planned development ordinance and such other
approval as may be required or otherwise sought so as to authorize and facilitate the
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improvement of the City Parcel with the New Restaurant (hereinafter defined). All costs and
expenses relating to the preparation of the Development Application shall be the responsibility of
and shall be paid for by Krystal Enterprises with the exception of the engineering services and
land planning services to be paid by the City referred to in Section 24 hereof. The Development
Application to be submitted by Krystal Enterprises to the City shall include all materials and
documents customarily required by the City for such development applications and zoning
petitions and shall also include architectural elevations of the building to be constructed on the
City Parcel showing and describing the architectural styling materials of such building, the floor
plans for the building, renderings of the interior of the building, preliminary engineering plans,
landscape plans, lighting plans, signage plans, a site plan, and such other materials and
documentations as may be reasonably required by the City. This agreement and all of the parties'
obligations hereunder are especially subject to and contingent on the city council of the City
adopting an ordinance or ordinances which provide for the approval of the proposed rezoning
and planned development ordinance for the City Parcel which authorizes the improvement of the
City Parcel with the subject restaurant. In the event the city council does not, in its sole and
exclusive discretion, adopt an ordinance to provide for such rezoning and planned development
ordinance authorizing the New Restaurant on the City property on or before one hundred and
eighty (180) days after the entry into this agreement, then either party shall have the right, by
written notice to the other party, to terminate this agreement whereupon this agreement shall be
canceled and null and void with no further liability of either party hereunder. In the event of any
conflict between the terms and provisions of the plans attached to this agreement and the terms
and provisions of the planned development ordinance for the City Parcel as may hereinafter be
adopted by the city council, the terms and provisions of such planned development ordinance
shall control.
10. Redevelopment of City Parcel for New Restaurant.
A. It is agreed and understood that the City Parcel is being conveyed by the City to
Krystal Enterprises for the sole purpose of Krystal Enterprises redeveloping the City Parcel and
constructing thereon a New Restaurant in conformance with the Beef Villa Relocation Plans
prepared by Land Vision, Inc., dated August 11, 2008, consisting of five (5) sheets including the
preliminary plan, architectural exhibit, landscape plan and landscape notes, attached hereto as
Exhibit D (such Beef Villa Relocation Plans are hereby incorporated in this Agreement in their
entirety by this reference and are hereinafter collectively referred to as the "New Restaurant
Plans") and in conformance with the planned development ordinance for the City Parcel as
hereinafter may be adopted by the City Council of the City of Elgin (such planned development
ordinance for the City Parcel is hereinafter referred to as the "Subject Planned Development
Ordinance" and such redevelopment of the City Parcel in conformance with the New Restaurant
Plans and in conformance with the Subject Planned Development Ordinance is referred to as the
"New Restaurant"). In the event of any conflict between the terms and provisions of the New
Restaurant Plans and the terms and provisions of the Subject Planned Development Ordinance as
may be hereinafter adopted by the City Council of the City of Elgin, the terms and provisions of
the Subject Planned Development Ordinance shall control. The redevelopment of the City Parcel
by Krystal Enterprises shall conform in all respects with the Subject Planned Development
Ordinance, final engineering plans as approved by the City Engineer, the terms of this
development agreement, or as directed by the City as is necessary to comply with ordinances,
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building codes or other requirements of law. Krystal Enterprises shall also cause all work
performed in connection with the redevelopment of the City Parcel for the New Restaurant to be
performed in a workmanlike manner. Except as otherwise provided in this agreement, all costs
and expenses relating to the redevelopment of the City Parcel including, without limitation, the
construction of the New Restaurant thereon, the public improvements, and all appurtenances
relating thereto, shall be the responsibility of and should be paid for by Krystal Enterprises.
B. Krystal Enterprises shall commence with the construction of the New Restaurant
on the City Parcel within ninety (90) days following the closing. Krystal Enterprises shall be
deemed to have commenced construction of the New Restaurant on the City Parcel upon
commencement of the pouring of the foundation for such New Restaurant. Upon Krystal
Enterprises commencing construction of the New Restaurant on the City Parcel Krystal
Enterprises shall continue with such construction in as expeditious a manner as is reasonably
practicable and shall complete and occupy such New Restaurant on the City Parcel no later than
twelve (12) months following the closing.
C. The deed of conveyance conveying the City Parcel to Krystal Enterprises shall
contain a provision making such conveyance subject to the terms and obligations of this
development agreement. In the event Krystal Enterprises shall have failed to commence
construction of the New Restaurant on the City Parcel or to complete such New Restaurant and
occupy same 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 Krystal
Enterprises has so breached this agreement and may then pursue any and all available remedies
at law, equity or otherwise. Such remedies may include requiring the conveyance back to the
City of Krystal Enterprises' rights, title and/or interests in or to the City Parcel free and clear of
all rights of Krystal Enterprises or any third party and free and clear of any mortgages, liens or
other indebtedness. In the event of such reconveyance back to the City of the City Parcel, the
City shall also reconvey back to Krystal Enterprises the Krystal Enterprises Parcel.
11. Compliance with Laws. Notwithstanding any other provisions of this agreement
it is expressly agreed and understood by the City and Krystal Enterprises that in connection with
the performance of this agreement and the redevelopment of the City Parcel by Krystal
Enterprises with the New Restaurant, that Krystal Enterprises shall comply with all applicable
federal, state, city and other requirements of law. Krystal Enterprises shall also at its expense
secure all permits and licenses, pay all charges and fees and give all notices necessary and instant
to the due and lawful prosecution of the work necessary to provide for the redevelopment of the
City Parcel with the New Restaurant as described in this agreement.
12. 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 survive the closing, and the
remedies for breach thereof shall survive the closing and should not be merged into the closing
documents.
13. Default. The City and Krystal Enterprises 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,
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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-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.
14. 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 otherwise available at law, equity or otherwise. Venue for
the enforcement of any rights and the resolution of any disputes arising out of or in connection
with the provisions or performance of this agreement shall only be in the Circuit Court of Kane
County, Illinois.
15. Relationship of the Parties. This Agreement shall not be deemed or construed so
as to create a joint venture, employment, partnership or other agency relationship between the
parties hereto.
16. 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.
17. Amendments. This agreement may be modified or amended only in writing and
signed by both parties hereto, or their permitted successors or assigns as the case may be.
18. 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 have been merged herein and extinguished hereby.
19. Joint and Collective Work Product. This agreement is and shall be deemed and
construed to be a joint and collective work product of the City and Krystal Enterprises, 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.
20. Interpretation. This agreement shall be construed, and the rights and obligations
of the City and Krystal Enterprises hereunder shall be determined in accordance with the laws of
the State of Illinois without reference.
21. No Conflicting Interest. Krystal Enterprises hereby represents and warrants that
Krystal Enterprises, nor any associated person or organization, presently owns or has any
beneficial interest in the City Parcel being conveyed to Krystal Enterprises or entitled to receive
any income from the City Parcel. In compliance with 50 ILCS 105/3.1, Krystal Enterprises 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 Krystal Enterprises and every shareholder entitled to receive more than seven
and one-half percent (7 '/2%) of the total distributable income of any corporation which will have
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an interest, real or personal, in such property upon the acquisition of any interest by Krystal
Enterprises in the City Parcel.
22. "As Is" Condition. This agreement is for the exchange of the City Parcel and
Krystal Enterprises Parcel in their "as is" condition as of the date of this agreement. The City
and Krystal Enterprises each acknowledge that no representations, warranties or guarantees with
respect to the condition of the City Parcel or the Krystal Enterprises Parcel, or any personal
property,have been made by the City or Krystal Enterprises.
23. Inspections.
A. The parties hereto acknowledge that the City has previously provided to Krystal
Enterprises copies of the Phase I Environmental Site Assessment dated November 7, 2007 and
the Limited Site Investigation dated November 27, 2007 prepared by Terracon Consultants for
1337 Dundee Avenue and the Phase I Environmental Assessment dated February 27, 2008 and
the Limited Site Investigation dated March 3, 2008 prepared by Terracon Consultants for 1341
Dundee Avenue. Krystal Enterprises shall have sixty(60) days from the entry into and execution
of this Agreement to perform any investigations of the City Parcel that it elects to perform and
shall complete same within such sixty (60) day period from the entry into and execution of this
Agreement. The City hereby agrees to allow Krystal Enterprises and its agents and contractors
reasonable access to the City Parcel to conduct such environmental inspections including, but not
limited to, subsurface investigations. Krystal Enterprises agrees to reasonably restore the real
estate after the environmental inspections, remove any waste generated in such inspection
process and indemnify, defend and hold the City harmless from any liability, loss, claim, cost or
expense pertaining to any bodily injury or property damage arising out of Krystal Enterprises'
performance of the environmental inspections of the City Parcel. A full and complete copy of
any reports or other documents received by Krystal Enterprises and containing the test data,
findings, conclusions and recommendation of the party performing such environmental
inspections of the City Parcel shall be promptly provide by Krystal Enterprises to the City. If
Krystal Enterprises determines, in its sole discretion, that the City Parcel is unsuitable for
acquisition by Krystal Enterprises, Krystal Enterprises may, at its written election delivered to
the City not later than sixty (60) days after the entry into and execution of this Agreement,
declare this Agreement null and void and whereupon this Agreement shall be deemed
terminated, null and void, and without further obligation of the parties hereto. If such written
notice is not served within the time specified, Krystal Enterprises shall be deemed to have
waived this contingency and Krystal Enterprises shall be deemed to have elected to proceed with
the acquisition of the City Parcel pursuant to the terms of this Agreement and this Agreement
shall remain in full force and effect.
B. The City shall have sixty (60) days from the entry into and execution of this
Agreement to perform any environmental inspections of the Krystal Enterprises Parcel that it
elects to perform and shall complete same within such sixty (60) days from the entry into and
execution of this Agreement. Krystal Enterprises hereby agrees to allow the City and its agents
and contractors reasonable access to the Krystal Enterprises Parcel to conduct such
environmental inspections including, but not limited to, subsurface investigations. The City
agrees to reasonable restore the Krystal Enterprises Parcel after the environmental inspections,
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remove any waste generated in such inspection process and indemnify, defend and hold Krystal
Enterprises harmless from any liability, loss, claim, cost or expense pertaining to any bodily
injury or property damage arising out of the City's performance of the environmental inspections
of the Krystal Enterprises Parcel. A full and complete copy of any reports or other documents
received by the City and containing the test data, findings, conclusion and recommendation of
the party performing such environmental inspections of the real estate shall be promptly
provided by the City to Krystal Enterprises. If the City determines, in its sole discretion, the
Krystal Enterprises Parcel is unsuitable for acquisition by the City, the City may, at its written
election, delivered to Krystal Enterprises not later than sixty (60) days after the entry into and
execution of this Agreement, declare this Agreement null and void whereupon this Agreement
shall be deemed terminated, null and void without further obligation of the parties hereto. If
such written notice is not served within the time specified, the City shall be deemed to have
waived this contingency and the City shall be deemed to have elected to proceed with the
acquisition of the Krystal Enterprises Parcel pursuant to the terms of this Agreement and this
Agreement shall remain in full force and effect.
24. City to Pay Land Planning Fees and Engineering Fees. The City agrees to pay the
land planning fees of LandVision not to exceed the total amount of Fifty Thousand Dollars
($50,000) and the engineering fees of Cowhey Gudmundson Leder, Ltd. not to exceed the total
amount of Twenty Thousand Dollars ($20,000) in connection with land planning services and
engineering services for the New Restaurant to be conducted by Krystal Enterprises on the City
Parcel.
25. Financing for New Restaurant. This Agreement is subject to and contingent upon
Krystal Enterprises obtaining an unconditional commitment for the financing necessary to
provide for Krystal Enterprises's construction of the New Restaurant on the City Parcel. Krystal
Enterprises shall provide the City written evidence to the City of the financing necessary to
provide for Krystal Enterprises' construction of the New Restaurant no later than sixty (60) days
after the entry into and execution of this Agreement. In the event Krystal Enterprises fails to
provide the City written evidence of the financing necessary to provide for the construction of
the new restaurant on the City Parcel within such sixty (60) day period the City may, upon
written notice to Krystal Enterprises, declare this Agreement null and void and whereupon this
Agreement shall be deemed terminated, null and void without further obligation of the parties
hereto.
26. Representations, Warranties and Covenants. Without limitation of any other
provision of this Agreement and as a material inducement to each party's entering into this
Agreement, each party represents, warrants, and covenants with respect to such party's parcel to
the other party that:
A. From and after the date hereof, each party agrees not to (a) sell, transfer,
convey, or encumber or cause to be sold, transferred, conveyed, or encumbered, that
party's property or any part thereof, or (b) alter or amend the zoning classification of such
property, except as requested by the intended grantee to permit its intended use of such
property, or (c) otherwise perform or permit any act or deed which shall diminish,
encumber, or affect the intended grantee's rights in and to the applicable parcel or
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prevent Grantor from performing fully his obligations hereunder, in each case without the
express written consent of the intended grantee.
B. To each party's knowledge and belief, there are, and as of the Closing
Date there will be no violations of any federal, state, county, or municipal statutes, laws,
codes, ordinances, rules, regulations, orders, decrees, and directives relating to the use
and condition of such party's parcel of which it has notice. Each party covenants and
warrants that it shall notify the other party in writing with respect to matters of which it
has notice on or before the closing and shall take such action as may be necessary to
comply with such statutes, laws, regulations, codes, ordinances, rules, orders, decrees,
and directives relating to the use or condition of the applicable parcel prior to the closing.
C. To each party's knowledge and belief(i) each party, or any agent thereof,
has not received any notice from any governmental or quasi-governmental body or
agency or from any person or entity with respect to, and does not know of, any actual or
threatened taking of, the applicable parcel or any portion thereof for any public or quasi-
public purpose by the exercise of the right of condemnation or eminent domain and (ii)
there is no claim, litigation, proceeding, or governmental investigation pending or
threatened against or relating to the applicable parcel or any portion thereof, or against
the transactions contemplated by this Agreement, or against the intended grantor which
affects the intended grantor's ownership of the applicable parcel, this transaction, or the
ability of the intended grantor to perform hereunder;
D. To each party's knowledge and belief, neither the execution nor delivery
of this Agreement, consummation of the transactions contemplated hereby, nor
fulfillment of or compliance with the terms and conditions hereof conflicts with or will
result in a breach of any of the terms, conditions, or provisions of any agreement or
instrument to which such party is a party or by which it is bound, or constitutes a default
under any of the foregoing, or results in the creation of a lien, claim, charge, or
encumbrance on the applicable parcel other than those matters approved by the intended
grantee pursuant to the terms hereof; and this Agreement and all documents to be
executed pursuant hereto by the intended grantor are and shall be binding upon and
enforceable there against in accordance with their respective terms.
E. To each party's knowledge and belief, no labor, material, or services have
been furnished by or at the direction of the intended grantor in, on, or about the
applicable parcel, or any part thereof, as a result of which any mechanics', laborer's, or
materialmen's liens or claims thereof might arise. No person has any right of first refusal
or any option to acquire title to the intended grantor's parcel or any part thereof.
F. To each party's knowledge and belief, there are no underground storage
tanks on the intended grantor's parcel and the intended grantor's parcel complies with
any applicable governmental law, regulation or requirement relating to environmental
and occupational health and safety matters and hazardous materials or substances.
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G. There are no existing leases affecting the intended grantor's parcel, there
are no existing contracts or options to purchase the intended grantor's parcel, there exists
no management agreement of any kind relative to the intended grantor's parcel that will
continue in force beyond the Closing Date, and as of the Closing Date, the intended
grantor's parcel will be vacant and unoccupied.
H. In the event of any of the foregoing representations, covenants, and
warranties are not true and accurate and the applicable party cannot or does not correct
said representations, covenants, and warranties and accept liability for any damages
incurred by the other party as a result of the inaccuracy thereof, the aggrieved party shall
have the right to rescind this Agreement prior to or at the Closing.
27. Prohibited Transactions. From and after the date hereof, neither party shall, and
shall not permit any third party to, without the express written consent of the intended grantee:
(a) enter into any lease, contract, or agreement or grant any rights (including licenses and
easements) respecting the applicable parcel or any portion thereof; (b) create or suffer any right,
claim, lien, or encumbrance of any kind or nature whatsoever on the applicable parcel or any
portion thereof; or (c) add or remove soil from the applicable parcel or otherwise dump or
abandon any property, materials, or chemicals thereon. If any third party shall add or remove
soil from any parcel or otherwise dump or abandon any property, materials, or chemicals
thereon, the intended grantor shall cause said third party to remove anything dumped or
abandoned thereon and restore such parcel to its condition prior to such dumping or
abandonment, and if such third party shall fail to do so, the aggrieved party shall have the right to
rescind this Agreement prior to or at the Closing.
28. Brokers. The parties represent and warrant to each other that neither dealt with a
broker or finder with respect to the transaction contemplated hereunder, and each party hereby
indemnifies and agrees to save, defend, and hold the other party harmless from and against any
loss, cost, damage, claim, liability, or expense, including but not limited to reasonable attorneys'
fees and litigation costs suffered or incurred by such other party as a result of a breach of the
foregoing warranty.
29. Assurances of Cooperation. The parties hereby covenant and agree that they will
at all times prior to or after the Closing, and from time to time do, execute, acknowledge, and
deliver or will cause to be done, executed, acknowledged, and delivered all such further acts,
documents, and instruments as may reasonably be required by the other party, and following
reasonable approved by counsel for the party to perform, in order to carry out fully and
effectuate the transaction herein contemplated in accordance with the provisions of this
Agreement.
30. Possession. The City shall deliver possession of the City Parcel to Krystal
Enterprises at Closing. In order to allow Krystal Enterprises the necessary time to complete the
construction of the New Restaurant on the City Parcel and to relocate its operations from the
Krystal Enterprises Parcel to the City Parcel, the City and Krystal Enterprises' affiliated
company Beef Villa, Inc. will enter into at the Closing the Lease Agreement attached hereto as
Exhibit E whereby the City will lease back to Krystal Enterprises' affiliated company Beef Villa,
10
Inc. the Krystal Enterprises Parcel for a lease term not to exceed twelve (12) months. At the
Closing the Lease Agreement attached hereto as Exhibit E shall be completed by inserting the
date of the Closing in the introductory paragraph as the date of the Lease, by inserting the term
of the Lease in Section 5 commencing on the closing date and terminating twelve (12) months
later, and by the parties executing such lease.
31. Authority. The parties represent to each other that each has the power and
authority to enter into this Agreement in the names, titles, and capacities herein stated and on
behalf of entities, persons, estates, or firms represented or purported to be represented by such
person and further represent that all formal requirements necessary or required by any statutes,
laws, ordinances, codes, rules, regulations, orders, decrees, directives, articles of incorporation,
charters,or bylaws for each of them to enter into this Agreement have been complied with.
32. Entire Agreement. This Agreement represents the entire agreement between the
parties hereto and shall not be modified or affected by any offer, proposal, statement, or
representation, oral or written, made by or for either party in connection with the negotiation of
the terms hereof. No future modification, termination, or amendment of this Agreement may be
made, except by written agreement executed by the parties hereto. No failure by the parties
hereto to insist upon the strict performance of any covenant, duty, agreement, or condition of this
Agreement or to exercise any right or remedy upon a breach thereof shall constitute a waiver of
any such right or remedy or any other covenant, agreement, term, or condition. Any party
hereto, by written notice, may, but shall be under no obligation to, waive any of its rights or any
conditions to the obligations hereunder, or any duty, obligation, or covenant of any other party
hereto. No waiver shall affect or alter this Agreement, but each and every covenant, agreement,
term, and condition of this Agreement shall continue in full force and effect with respect to any
other then existing or subsequent breach thereof.
33. Time. Time shall be of the essence of this Agreement and the performance of all
covenants, agreements, and obligations hereunder.
34. Notices. All elections, notices, and other communications to be given hereunder
by either party to the other shall be in writing and sent by (i) facsimile transmission to the other
parry's attorney at the number set forth below with a follow-up via United States mail, (ii)
personal delivery, (iii) overnight courier with evidence of receipt, or (iv) certified or registered
mail,return receipts requested,postage prepaid, addressed:
If to the City: City of Elgin
150 Dexter Court
Elgin, Illinois 60120
Attention: City Clerk
With a copy to: City of Elgin
150 Dexter Court
Elgin, Illinois 60120
Attention: Corporation Counsel
847-931-5665 (facsimile)
11
•
If to Krystal Enterprises: Todd Evanson
Its Member
Krystal Enterprises L.L.C.
1225 West Spring Street
South Elgin, IL 60177
or at such other addresses or fax numbers as the parties may designate to the other by written
notice in the manner herein provided. Any such notice or election shall be effective upon
delivery, if personally delivered, one (1) day after delivery to the overnight courier or two (2)
days after depositing same in the United States mails.
35. Fixtures and Personal Property on Krystal Enterprises Parcel. The parties
understand that it is the City's intention to demolish the improvements on the Krystal Enterprises
Parcel following Krystal Enterprises' relocation from the Krystal Enterprises Parcel to the City
Parcel. The parties therefore agree that all equipment and fixtures on the Krystal Enterprises
Parcel may be retained by Krystal Enterprises and removed from the Krystal Enterprises Parcel
prior to Krystal Enterprises vacating the Krystal Enterprises Parcel.
IN WITNESS WHEREOF, the City and Krystal Enterprises have executed this
Agreement the day and year first above written, intending to be legally bound hereby and
warranting authority to execute the same.
CITY OF ELGIN, ILLINOIS KRYSTAL ENTERPRISES, L.L.C.
By: By: 1 �/ 4
Mayor Its i; a/yla �f
�
Attest: Attest:
By: By: L �
City Clerk Its
F:\Legal Dept\Agreement\Development Agr-Beef Villa-Krystal Enterprises-clean 8-26-08.doc
12
•
EXHIBITS A and B
SURVEY OF CITY PARCEL
13
EXHIBIT C
SURVEY OF KRYSTAL ENTERPRISES PARCEL
14
EXHIBIT D
LAND VISION PLANS FOR NEW RESTAURANT
15
EXHIBIT E
LEASE OF KRYSTAL ENTERPRISES PARCEL
16
EXHIBITS A and B
SURVEY OF CITY PARCEL
13
PLAT OF SURVEY -
OF PROPERTY DESCRIBED AS •
ONE` LOT 4(ERUPT PAR?TAKER IN CASE 7f6D1A58 BY STATE OF ILLINOIS DESCRIBED AS POLIO'S: BECINNIM
SOUYHIIEST CORNER OP SAID LOT 4; TIfEIZ IS FEST NORTHEASTERLY ALOhC THE VEST LINK OP SAID LOT 4: THN:E rrncr cua n
SOUTHEASTERLY TO A POINT ON THE SOUTH LINE OF SAID:LOT r; THENCE 1B PEAT WESTERLY TO THE POINT OF IfV4o0 '0.O( ) oA 'X urR VR2
R YOI IN BLOCK 2 OP TROUT PARK SUBDIVISION, IN THE CITY OF ELGIN. 6ANE COUNTY. ILLINOIS. 1��'- U 1 ►rsf or CRANE+
'V TWO LOT 6/N BLOCK 2 OP TROUT PARK SUBDIVISION, IN THE CITY OP ELCIN, KARS Cq/R7, ILLINOIS. mar END IS 0.7S 50.14/L E•1
SOODEN Or LOANER N 17 A J - lfri,,-
DOMLIN+
.t. ,Y KNOWN AS: 1337 DUNDEE AVENUE. ELOIN.ILIJIOIS 80130 I
ELMS COMMA is i :•.I 79 EA'D f f.1
0.70 IDS?
AND � SIX/TN or W
°END 1.To ESTr o,CORNER
evr:rP
�T+R .• .a4•D6 Sr*
LAMP STANDARD / r
LO•KArIR WILL.lf ,
o..E►lsI OF -i
FIRE HYDRANT .._ ' . d Ium&o Awo
0-1 OVERHEAD ELECTRIC LINE '.•�•w ip� '1 ,-' `I n
- F WAT£R SERVICE LINE L O T 3 • .�A• 4 .. •• I PI!"
7� pp • PI!"
GAS SERVICE LINE IIww - ..
•
OS
CAS METER . .:., CuuEA T SNEa E
•r �� " r.n EAar or LANE
~ 4�}:':,,l4AL1 'iY?•:�a'r - s soiri.es' =-SI it.
POWER POLE •� fr:S7%►7-1',:!?'.. •yei." •.. • '' ,
-*�' e'' • :0.M�tlME'Y D�- ' •F:•`ii'. •II `IV?
LOENEA/4
.+� ,�lr _ ' r.aC+A+ OF LlNf
BUFFALO BOX i, AfwD t9 ''
"w�j.�;„ .p.,• D.Pa Jnrtrp o,.Levs• irs' i-
METALPOLESFOR '. !_.4: .a"-r+r•. ,• % I x.N !•�. 'gArv+nan
mum,--.... :ikke iron+Nt ,flfl,.... .-1fR'• _ •. . .Lr_c_,_ E rALL •�- f L,-..,._. :Vir Or LNE
CHAIN SECURITY 44 max ►* . . ... ., • - L� ,',` -� -. -'�-� �- _ �•.•• Yl
FENCE Prn r1 f,►� . . .... -`-' .AH 9.LT. T N re'i :'.'.° ..'... x'.•�_ . ' :` •�'..y ,!"`. „ .
s.Do I � :. , • :_Y"',,,g t;•. - PAIBr,El O• �.. `^',.
r/s, mrr.r L.: ;1?,:7lua'. , C_C_„ tor I
COMMERCIAL •`�vldur{/� S. :r. : '-
pa. BUILDINS a. �'. f ?: �s• •'':• :. i....`:':.I v,r.`V
41 I :G :"
w d' II 1:: �y •t:AR1.-i'^4. '.a `, v.:g.', 1. '•.
_I fo. .�.' ':r.
ONE
PARCE�. ..
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vorrro AenrxHJhc I �;:{.. "'•Iy ,d:.,•;..a"%.}.-_...•,t..1 i'T: .•+,..:•=;s! ln_C-.,:.; _
roA,=11Aails ..-.• . to R
EXCEPTION •�� _ -
CVIT=
ICati
SO was., I P A R K iV AY AVENUE
COUNTY OF KANE
STATE OF ILLINOIS SS AS ADVANCED
S ENGINEERING AND SUR
L AoN4 C Ar.NPAra H SIBtI PADO+SMONAL LAND DOAWD1'00 MA06E-RanST JOHN C. AV AMPATO PI
RAr+.Off . -34-•f PSRIORuID TINS+Dav,r.LAD TO aT aerr mu 3CNo 1•.16' G k V4h
AND DELIS?THIS PROESSSIONAL SEDERS COY5DA1@ 10.THE MARINE ILLINOIS 9 .. 9,
MINIMA(STANDARDS�oI�PRACTIC+m+A SOUND ART BOO.sr. Client` NM.FfOI.A9 J.CARTINA @ o
(\jamJ' A Buyer CITY OF ELGIN Q n c rL 386 E. CHICAGO STREET
�. Papa oE-Oi-471.00I * PLIN, 8 60120
F.B 01 nLTua PM l-817-888-E8!)D
IONNC 4VAEPATO °m..n OP ( 4., FAX. 1-847-888-1943
Clrrck.0 JCA QIN.A�M�V
Jab# 33591 JOB NO.: 33591
Mani JnoW FI MIN rl...�... ►.......
/3W 2,un&ia fie,
PLAT OF SURVEY
OF PROPERTY DESCRIBED AS:
LOT 3 IN BLOCK 2 OF TROUT PARK SUBDIVISION OF PART OF THE SOUTHEAST QUARTER OF SECTION 7, TOWNSHIP 41
NORTH. RANCE 8. EAST OF THE THIRD PRINCIPAL MERIDIAN ACOORDINC TO THE PLAT THEREOF RECORDED DUNE 2, l924
AS KENT NO, 237924 IN WE COUNTY, ILLINOIS.
COMMONLY KNOWN AS; 1341 DUNDEE AVENUE, ELGIJN, ILLINOIS 60120
:Y• ,.v.-6;8••.7V"'-.•�:•.l.•�:•,;::.•-•.i 7.: `
/ i;
+ . /Gr/ND
: ,:L: - IRON LIDO
rryW L. i.l•,i: `:;. .H•,..;.? to Z LOT 4
R. }: .:
CO P,' •1•
1.:♦.M1 Y.:I w�•t ,•, 't 2Uii.DrI.CORNER Is
13 Lit SOUTH OP LINE
•
•`.'?' f ONE STORY ~
; CONCRtTS. e
HOILDINC 2 .,.,..,..- .{.,• J
,.rp&L: r
art :.-1•' .i' ;. :. Z.
FOUND ir' '• ri!:. 'I..l, v y
IRON PIPE • -•.'.�'y'•''. :t-,• - ?.•• BUILDING CORNER IS
, ..•� ;,e ! / 0.50 SOUTH OP LAIC M
d AND Tj2 . ... t j
N IRON PIPE
R=20 f I,JOHN C.AVAMPATO,IWNOIS PROFESSIONAL LAND
Scale A%,c.e. - SURVEYOR NO.03S-0318STHAVE,ON 3-Sz-a f`- AV
Client CA2r,LJ n PERFORMED THIS ISSURVEY AND TOMY BEST RHOWL Dc>E ��..: 9 AS Advanced
AND BELIEF THIS PROFESSIONAL SERVICE CONFORMS To • zs-i 657
Buyer THE CURRENT f WNOlS MINIMUM STANDARDS FORA "0`Q"O""t • E n gi n ee ri n g
�,o/N BOUNDARY SURVEY.THIS SURVEY NAS BEEN MADE AT we eras
Page THE CLIENT'S REQUEST THAT NO CORNER MONWAENTS n"Tt a
F.B. 4G ARE TO BE SET. Cr:, Lung>6• & Surveying
Drawn S alb
Checked .1C I JOHN C AVAMPATO ¢_0 b—m¢ L1crnu P p r0O PLAT VALID ONLY WRH EMBOSSED SEAL
3 K/5 Z. M'fancy in measurements should be promptly
r r-30-w
Job No. reported to surveyor for acpt natson or co bon. 386 E.thicnno St. Phone:(847)888-2900
Municipality 6.I..c-inl We Do Not Certify As To Location Of Underground Elgin,IL 60120 Fax: (847) 888-1945
Utilities Or Underground improvements.
Refer to title policy for easements and building lines not shown hereon.
EXHIBIT C
SURVEY OF KRYSTAL ENTERPRISES PARCEL
14
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EXHIBIT D
LAND VISION PLANS FOR NEW RESTAURANT
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Beef Villa Relocation • Preliminary Plan
Elgin, Illinois
Sheet 2 of 5
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TT b rcl A yu t it 2603
Beef Villa Relocation • Architectural Exhibit
Elgin, Illinois • u .
Sheet 3 of 5
NOM ALL KANT DIAMETERS ARE SHOWN AT A SCALE TYPICAL
A A •TC I- ISO EF 5 OF A 3 TO 7 TEAR GROWTH PATTERN.
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—.—..- ..
GENERAL NOTES
, csms..........r.P,..m.....i....,,-.•...,• tar fa,...no:1u PLANT LIST
2 ',a oargto.lar on.a...t Y.•Astant•tiation onlYearard ant[...rhos,Lo-0.1..011 r a i a
u.51.,.....-.....en.i.....v.,......a... n. •••••• 11..110.1.••••14•••• NM ••••••• nor sway Oa*orno Or I•onfan
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remearYI loot...pity soff,a-o gnaw*to ezn,•to rho lalb For Oa ep K ,
e 4,, „.,.. 'pont*,
a •••••6.11400 1.0•1014 r Ofk.
•or...II.4,..•,,,10,.... ., .11,110.le,nun*,liaas. Stan et,Ormol Krt.-tam. Papaw.am cor,ocerfos VANS*
etZ=•rrga- "..
6 TYar undootor•ara...tort roma,.No runt taf or*trots owl.•Prie.*eller.*Se Of ....op room
aroue,an al.4 Weans oll.r.for co,r,ama.wtr,*a...or.,•fa...a...4
7 1,6 w.f...wr.6.6t n.orn•tors•6....to....,6 Merle.,,rste r el or eao we...or rise '. ' Zrettr.teirelli Ver " " r.7.--v-..17.-...t.-7'
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IIII , Otittd Al19,t 11 200.8
Beef Villa Relocation • Landscape Plan iSi Sign Detail
55„„.......
Elgin, Illinois • ._. ...._ .
. .
._ . . ....
54010t 4 of 5
•
. —
LANDSCAPE SPECIFICATIONS
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na.rt u ..ter.,ar`r..I... `w n..w'b a ear. a a ..err.....
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���r »mason* *sel .....b✓...,. �^'wN •.f.ma.w"L.a. =.air. PLANTING DETAILS
rart
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4..0,o0."::: �"" r.a« .*r _a.n ant nor ._a.. µno*N.. �E�: .oar
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OECWOOE AND EVENONEEN 5Na0Ei
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ti at* ar � ; e ro bo n..
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PUNT!.IsuN0 DOAK PERENNIALS A.OEO0N0OOVEES
O t,5: A y.,ilia 21)GR
Beef Villa Relocation • Landscape Notes b& Details ti .._.'nabob
fi_i.-)DE)Pt
ba,b-no, Mon
Elgin, Illinois
ry
Sheet 5 of 5
8/26/08
EXHIBIT E
COMMERCIAL LEASE AGREEMENT
THIS LEASE is made and entered into this_day of .200_,by and between the City of
Elgin,an Illinois municipal corporation(hereinafter referred to as the"Lessor"),and Beef Villa,Inc.,
d/b/a Beef Villa,an Illinois Corporation(hereinafter referred to as"Lessee"),and constitutes a Lease
between the parties of the Premises as identified in the Basic Lease Provisions below,on the terms
and conditions and with and subject to the covenants and agreements of the parties hereinafter set
forth.
WITNESSETH:
1. Basic Lease Provisions
The following are certain lease provisions which are part of,and,in certain instances,referred to,in
subsequent provisions of this Lease:
Lessor's Name and Address: City of Elgin, 150 Dexter Court
Elgin,IL 60120-5555
Lessee's Name and Address: Beef Villa,Inc.,d/b/a Beef Villa
do Todd Evanson
Vice President of Operations
1225 W.Spring St.,South Elgin,IL 60177
Premises: 1055 Dundee Avenue, Elgin, Kane County, Illinois
60120, such property being legally described on
Exhibit A attached hereto and made a part hereof by
this reference (hereinafter referred to as the
"Premises").
2. Grant
Lessor is leasing the Premises to Lessee in consideration of the rent to be paid and the covenants to
be performed by Lessee.
3.Rent
Rent. Lessee agree to pay to the Lessor the sum of One Dollar($1.00)monthly as the total monthly
rent due under the terms of this Lease. The rent shall be paid monthly on the 1st day of each month
in advance at Lessor's address stated in the Basic Lease Provisions. The monthly rent shall be
automatically increased 5%if received by Lessor after the 5th of the month for which it is due.
4.Security Deposit
Security Deposit. No security deposit shall be required.
5.Term
Term. The term of this Lease shall commence on ,200_,(and shall terminate
twelve (12) months later on , 200 , or such earlier date as may be hereinafter
agreed to by the parties. Notwithstanding the foregoing,or anything to the contrary in this Lease,
this Lease may be terminated by the Lessee upon thirty(30)days written notice to the Lessor.
6.Conduct of Business by Lessee
Use of Premises. Lessee shall use and occupy the Premises during the continuance of this Lease
solely for the purpose of operating Lessee's restaurant consistent with the zoning ordinance for the
Premises. Lessee shall not use or occupy the Premises for any other purpose or purposes without the
prior written consent of Lessor.If any governmental license or permit shall be required for the proper
and lawful conduct of Lessee's business or other activity carried on in the Premises or if a failure to
procure such a license or permit might or would, in any way, affect Lessor or the Premises,then
Lessee,at Lessee's expense,shall procure and maintain such license or permit.Lessee shall promptly
comply with all laws and ordinances and lawful orders and regulations affecting the Premises and the
cleanliness,safety,occupancy,and use of same.Lessee agrees that it will conduct its business in the
Premises in a lawful manner and in good faith. Lessee shall not cause or permit the use,generation,
storage,or disposal in,on,or about the Leased Premises or the Premises of any substances,materials,
or wastes subject to regulation under any Federal, state,or local laws from time to time in effect
concerning hazardous,toxic,or radioactive materials.
Care of Premises. Lessee shall keep the Premises (including the service areas adjacent to the
Premises,windows,and signs)orderly,neat,safe,and clean.
7.Alterations;Lessee and Lessor Alterations
Lessee shall not make any repairs, alterations or improvements to the Premises without the prior
written approval of the Lessor. In the event of any such prior written approval of the Lessor any such
repairs,alterations and improvements to the premises shall be in conformance with all applicable
code regulations and other requirements of law. As outlined in the Development Agreement
between the City of Elgin and Krystal Enterprises, LLC, on page 12, paragraph 35,"The parties
understand that it is the City's intention to demolish the improvements on the Krystal Enterprises
Parcel following Krystal Enterprises relocation from the Krystal Enterprises Parcel to the City Parcel.
The parties therefore agree that all equipment and fixtures on the Krystal Enterprises Parcel may be
retained by Krystal Enterprises and removed from the Krystal Enterprises Parcel prior to Krystal
Enterprises vacating the Krystal Enterprises Parcel." All alterations, decorations, additions, and
improvements made by Lessee shall be deemed to have attached to the leasehold and to have become
the property of Lessor upon such attachment, and upon expiration of this Lease, Lessee shall not
remove any of such alterations, decorations, additions, and improvements, except trade fixtures
installed by Lessee may be removed if all rents due herein are paid in full and Lessee is not otherwise
2
in default hereunder.Prior to commencing any renovation work approved by Lessor,Lessee shall
procure certificates of insurance from all contractors and subcontractors showing general liability and
worker's compensation coverage and naming Lessor as an additional insured.Lessee shall in any
event be responsible for repairing any damage caused to the Premises by virtue of any unauthorized
alteration,addition,or improvement installed by or on behalf of Lessee.
8.Signs
Signage on the Premises shall remain"As Is".
9. Maintenance of Leased Premises. Lessor shall not be required or called upon to make any
improvements or repairs of any kind to the Premises. Lessee shall be responsible at its costs for any
and all repairs or maintenance to the Premises. Lessee shall keep and maintain the Premises in a
clean, sanitary, and safe condition in accordance with the laws of the State of Illinois and in
accordance with all directions, rules, and regulations of the health officer, fire marshal, building
inspector,or other proper officials of the governmental agencies having jurisdiction at the sole cost
and expense of Lessee, and Lessee shall comply with all requirements of law, ordinance, and
otherwise,affecting the Premises.If Lessee refuses or neglects to commence and/or complete the
repairs required by the provisions of this Section promptly and adequately,Lessor may,but shall not
be required to do so,make and complete said repairs,and Lessee shall pay the cost thereof to Lessor
upon demand,as additional rental.At the time of the expiration and/or termination of the tenancy
created herein,Lessee shall surrender the Premises,including all systems covering the same in good
condition,reasonable wear and tear,loss by fire or other unavoidable casualty,excepted.Lessee shall
keep the Premises and all other parts of the Premises free from any and all liens arising out of any
work performed,materials furnished,or obligations incurred by or for Lessee,and agrees to bond
against or discharge any mechanic's or materialmen's lien within ten (10) days. Lessee shall
reimburse Lessor for any and all costs and expenses which may be incurred by Lessor by reason of
the filing of any such liens and/or the removal of same,such reimbursement to be made within ten
(10)days after receipt by Lessee from Lessor of a statement setting forth the amount of such costs
and expenses.The failure of Lessee to pay any such amount to Lessor within said ten(10)day period
shall carry with it the same consequences as failure to pay any installment of rental.Lessee,at its
own expense,shall install and maintain fire extinguishers and other fire protection devices as may be
required from time to time by any agency having jurisdiction thereof and the insurance underwriters
insuring the Building.Lessee further agrees to comply with any and all requirements of the insurance
underwriters insuring the Leased Premises.
10.Insurance.
As additional rent for the Premises,Lessee shall procure and maintain policies of insurance written
in occurrence form,at its own cost and expense,insuring:
A. Lessor and Lessee from all claims,demands or actions for injury to or death of any person in
an amount of not less than$1,000,000.00,for injury to or death of more than one person in
any one occurrew and an umbrella liability policy in an amount of not less than
$3,000.000.00 0Z and for damage to property in an amount of not -{Formatted:Strikethrough
3
less than$500,000.00 made by,or on behalf of,any person or persons,firm or corporation
arising from,related to or connected with the Premises.
B. Lessee from all worker's compensation claims.
C. All contents,and Lessee's trade fixtures,machinery,equipment,furniture and furnishings in
the Premises to the extent of at least ninety percent(90%)of their replacement cost under
standard fire and extended coverage insurance,including,without limitation,vandalism and
malicious mischief.The aforesaid insurance shall be in companies and in form, substance
and amount(where not stated above)satisfactory from time to time to Lessor.The aforesaid
insurance shall not be subject to cancellation except after at least thirty (30) days prior
written notice to Lessor.The original insurance policies(or certificate thereof satisfactory to
Lessor)together with satisfactory evidence of payment of the premiums thereon, shall be
deposited with Lessor at the beginning date of this Lease,and renewals thereof not less than
thirty(30) days prior to the end of the term of each such coverage. Lessee shall provide
Lessor with a Certificate of Insurance naming Lessor as an additional insured party indicating
the above coverage on an annual basis.
11.Covenant to Hold Harmless
To the fullest extent permitted by law,Lessee agrees to indemnify,defend and hold harmless Lessor,
its officers, officials, officers, employees, boards and commissions from and against any and all
claims,suits judgments,costs,attorney's fees,damages or other relief arising out of or resulting from
or through or alleged to arise out of any reckless or negligent acts or omissions of Lessee and/or of
Lessee's officials,officers,employees or agents in connection with the leasing of the Premises and/or
in the performance of this agreement. In the event of any action against the Lessor, its officials,
officers, employees, agents, boards or commissions covered by the foregoing duty to indemnify,
defend and hold harmless,such action shall be defended by legal counsel of the Lessor's choosing.
The provisions of this section shall survive any termination and/or expiration of this Lease
Agreement.
12.Utility Charges
Lessee shall be solely responsible for and promptly pay all charges for water,gas,heat,electricity,
sewer,telephone and any other utility used upon or furnished to the Premises.
13.No Assignment or Subletting
Lessee agrees not to assign or in any manner transfer this Lease or any estate or interest therein
without the prior consent of Lessor, and not to sublet the Premises or any part or parts thereof or
allow anyone to come in with,through,or under it without like consent.It is understood and agreed
that Lessor's consent hereunder (and wherever else in this Lease required, unless specifically
provided to the contrary) may be arbitrarily withheld, notwithstanding any statutory or other
provisions of law to the contrary.
4
14.Waste and Nuisance
Lessee shall not commit or suffer to be committed any waste upon the Premises or any nuisance or
other act or thing which may disturb the quiet enjoyment of surrounding properties.Lessee shall not
use or permit to be used any medium that might constitute a nuisance,such as loudspeakers,sound
amplifiers,phonographs,radios,televisions,or any other sound-producing device which will carry
sound outside the Premises.
15.Destruction of Leased Premises
In case the Premises shall be rendered untenable by fire,explosion or other casualty,Lessor may,at
its sole option,terminate this Lease or repair the Premises within sixty days.If Lessor does not repair
the Premises within said time,or the building on the Premises shall have been wholly destroyed,the
term hereby created by the Lease shall cease and determine.
16.Eminent Domain
If the whole of the Premises hereby leased shall be taken by any public authority under the power of
eminent domain, or by deed in lieu thereof,then the term of this Lease shall cease as of the day
possession shall be taken by such public authority and the Rent and other charges due hereunder,
shall be paid up to that day with a proportionate refund by Lessor of such rent as may have been paid
in advance for a period subsequent to the date of the taking.If less than the whole of the Premises
shall be taken under eminent domain,Lessor shall have the right either to terminate this Lease and
declare same void,or require Lessee to continue in the possession of the remainder of the Premises if
such can reasonably be accomplished.Lessor shall notify Lessee in writing within twenty(20)days
after such taking of Lessor's intention.If the Lessee is to remain in possession,all of the terms herein
provided shall continue in effect,(except that the Fixed Minimum Annual Rental shall be reduced in
proportion to the amount of the Premises,if any,taken.)All damages awarded for such taking under
the power of eminent domain,whether for the whole or a part of the Premises,shall belong to and be
the property of Lessor whether such damages shall be awarded as compensation for diminution in
value to the leasehold or to the fee of the Premises. The Lessee may pursue its own claims for
damages with the appropriate government authority so long as same does not interfere with,or in any
manner diminish,the award of Lessor.
17.Default of the Lessee.
Definition of Event of Default. Each of the following shall be deemed an event of default:
(i)Lessee's failure to make payment of rent or other charges as provided in this Lease;(ii)Lessee's
failure to perform any of the covenants, terms, conditions, or provisions of this Lease; (iii) if a
petition is filed by or against Lessee for relief under the bankruptcy laws,or Lessee shall make an
assignment for the benefit of creditors,or if a receiver of any property of the Lessee be appointed in
any action,suit,or proceeding by or against Lessee,or if Lessee shall admit that it is insolvent,or it
is generally not paying its debts as such debts become due,or if the interest of Lessee in the premises
shall be sold under execution or other legal process,or if Lessee shall abandon the premises;(iv)
Lessee vacates or abandons the premises;(v)this Lease or the Premises or any part of the Premises
5
are taken upon execution or by other process of law directed against Lessee,or are taken upon or
subject to any attachment at the instance of any creditor or claimant against Lessee, and the
attachment is not discharged or disposed of within fifteen(15) days after its levy; (vi)Lessee is
dissolved.Notwithstanding anything herein to the contrary,Lessee shall not be entitled to more than
one(1)notice for monetary defaults during any twelve(12)month period,and if after such notice
any rent is not paid when due,an event of default will be considered to have occurred without further
notice.Upon the occurrence of an event of default,Lessor shall have the right to terminate the Lease
and shall be entitled to possession of the Premises.Lessor may make its election to terminate known
to Lessee by delivery of a notice of termination.Such termination shall be immediately effective and
Lessor shall be entitled to forthwith commence an action in summary proceedings to recover
possession of the Premises,but such termination shall not terminate Lessee's liabilities hereunder.
Lessee waives all notice in connection with such termination,including by way of illustration,but
not limitation,notice of intent to terminate, demand for possession or payment, and notice of re-
entry.No receipt of money by the Lessor from the Lessee after the termination of this Lease shall
reinstate, continue, or extend the term, nor affect or waive any notice given by the Lessor to the
Lessee prior to such receipt of money.
Right to Re-Enter. If the event of default is for the nonpayment of rent, Lessor may, as an
alternative to terminating the Lease, serve a notice for possession or payment. Unless the rent,
additional rent,and any other amounts due under this Lease are paid in accordance with the demand
for possession or payment,Lessor shall be entitled to possession of the Premises and Lessee shall
have no further right to possession under the Lease,but Lessee shall not be relieved of any of its
liability hereunder.Lessee shall remain liable to Lessor for the payment of all rent and other charges
which Lessee has agreed to pay under this Lease throughout the remainder of its term.Should Lessor
elect to re-enter,as herein provided,it may from time to time,without terminating this Lease,make
such alterations and repairs as may be necessary in order to relet the Premises, and relet said
Premises or any part thereof for such term or terms(which may be for a term extending beyond the
term of this Lease)and at such rental or rentals and upon such other terms and conditions as Lessor
in its sole discretion may deem advisable.Notwithstanding anything herein to the contrary,Lessor
may, without demand or notice, re-enter and take possession of the Premises or any part of the
Premises,repossess the same,expel Lessee and those claiming through or under Lessee,and remove
the effects of both or either, using such force for such purposes as may be necessary,without being
liable for prosecution,without being deemed guilty of any manner of trespass,and without prejudice
to any remedies for arrears of amounts payable under this Lease or as a result of any preceding
breach of covenants or conditions.
Other Remedies. The Lessor's rights, remedies, and benefits provided by this Lease shall be
cumulative,and shall not be exclusive of any other rights,remedies and benefits allowed by law.
Estoppel.The parties agree that they shall rely solely upon the terms of this Lease to govern their
relationship.They further agree that reliance upon any representation,act,or omission outside the
terms of this Lease shall be deemed unreasonable,and shall not establish any rights or obligations on
the part of either party.
6
Independent Covenant.Notwithstanding anything to the contrary,Lessee acknowledges and agrees
that its obligation to pay rent under this Lease is an independent covenant,and that such obligation to
pay rent is not subject to set-off or recoupment in connection with any action for summary
proceedings to recover possession of the Premises.
18.Bankruptcy or Insolvency
In the event that a trustee is appointed for Lessee or by Lessee as Debtor in Possession,Lessee is
liquidated or files a subsequent petition for reorganization or adjustment of debts under the
Bankruptcy Code,Lessee be adjudicated a bankrupt,insolvent,or placed in receivership,or should
any proceedings be instituted by or against the Lessee for bankruptcy, insolvency, receivership,
agreement of composition,or assignment for the benefit of creditors,or if this Lease or the estate of
the Lessee hereunder shall pass to another by virtue of any court proceedings,writ of execution,levy,
sale or by operation of law,then,and in any of such events,Lessor may,at its option,terminate this
Lease and all rights of Lessee hereunder,by giving five(5)days Notice of its election to so terminate
to Lessee,or to any trustee,receiver,assignee,or other person in charge of or acting as custodian of
the assets or property of the Lessee.Upon the giving of such Notice,this Lease and the term hereof
shall end on the date fixed in such Notice, or if no such date is fixed, five(5)days following the
proper dispatch of such Notice, and the Lessor shall have the right to remove all persons,goods,
fixtures,and chattels from the Premises by force or otherwise,without liability for damages,and all
the other rights permitted under this Lease in the event of a default.
19.Access By Lessor
Lessor or Lessor's agents shall have the right to enter the Premises at all reasonable times which shall
consist of normal business hours,Monday through Sunday,and upon twenty-four(24)hour notice to
Lessee.
20.Miscellaneous
Waiver.One or more waivers of any covenant,term,condition,or provision of the Lease by either
party shall not be construed as a waiver of a subsequent breach of the same covenant, term,
condition,or provision,and the consent or approval by Lessor to or of any act by Lessee requiring
Lessor's consent or approval shall not be deemed a waiver of Lessor's consent or approval to or of
any subsequent similar act by Lessee.No breach of a covenant,term,condition,or provision of this
Lease shall be deemed to have been waived by Lessor,unless such waiver(i)is in writing signed by
Lessor,(ii)identifies the breach,and(iii)expressly states that it is a waiver of the identified breach.
Observance of Lessor's Rules and Regulations.Lessee shall keep and observe such reasonable
rules and regulations now or hereafter required by Lessor,which may be necessary for the proper and
orderly care of the Premises and the Building.
No Partnership.Nothing contained in this Lease shall be deemed or construed by the parties hereto,
nor by any third party,as creating the relationship of principal and agent or of partnership or of joint
venture between the parties hereto.
7
Construction.Whenever herein the singular number is used,the same shall include the plural,and
the masculine gender shall include the feminine and neuter genders.The captions,section numbers,
article numbers,and index appearing in this Lease are inserted only as a matter of convenience and in
no way define, limit, construe,or describe the scope or intent of such sections or articles of this
Lease nor in any way affect this Lease.
Notice. Any notice, demand, request, consent, approval, or other instrument which may be or is
required to be given under this Lease shall be personally delivered or sent by overnight courier or
United States certified mail return receipt requested,postage prepaid,and shall be addressed to the
addresses and persons set forth hereunder:
Beef Villa,Inc.,d/b/a Beef Villa City Manager
c/o Todd Evanson City of Elgin
Vice President of Operations 150 Dexter Court
1225 W.Spring Street Elgin,IL 60120-5555
South Elgin,IL 60177
With a copy to:
William A.Cogley
Corporation Counsel
City of Elgin
150 Dexter Court
Elgin,IL 60120-5555
Recording.Lessee shall not record this Lease without the consent of Lessor,which may be withheld
for any reason whatsoever,in Lessor's absolute discretion.
Governing Law.This agreement shall be subject to and 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. Notwithstanding anything to the contrary in
this Lease,and to the full extent permitted by law,no action or claim shall be asserted or commenced
by Lessee or any other related person or entity,or any of their successors and assigns,against the
Lessor for monetary damages.
Partial Invalidity. If any provision of this Lease or the application thereof to any person or
circumstances shall,to any extent,be invalid or unenforceable,the remainder of this Lease shall not
be affected thereby and each provision of the Lease shall be valid and enforceable to the fullest
extent permitted by law, and the remaining provisions of this Lease shall be interpreted so as to
nearly as possible conform to the intent of the parties as indicated in this Lease.
Compliance with Laws. Lessee shall at all times during the term of this Lease,perform and comply
with all laws,rules,orders,ordinances,regulations,requirements of law now or hereinafter enacted
or promulgated, of every governmental authority or municipality having jurisdiction over the
Premises, and any agency thereof, relating to the occupation, possession, operation, use,
8
management,improvement,construction,alteration,repair,maintenance,or control of the Premises,
or to the improvements or the facilities or equipment therein.
No Encumbrance to Title. Lessee shall not do any act which shall in any way encumber the title of
Lessor in and to the Premises or the improvements,nor shall the interest or estate of the Lessor in the
Premises or the improvements be in any way subject to any claim by way of lien, mortgage or
encumbrance,whether by operation of law or by virtue of any express or implied contract by Lessee.
Holding Over. If Lessee shall hold over after the term of this Lease,then such holding over shall be
construed as a tenancy from month-to-month, subject to all of the provisions, conditions and
obligations of this Lease, except that the rent shall be in the amount of One Hundred Dollars
($100.00)per day.
21.Disclaimers
As Is Condition. Lessor has made no warranty,express,implied or with regard to suitability for a
particular purpose of the Premises nor any fixture nor equipment subject to this Lease.
Environmental Hazards. Lessor expressly disclaims any warranty regarding the presence or
absence of any environmental hazard on, upon, beneath or within the Premises to include the
presence of asbestos or other material.
Lessee will not keep or use or permit to be kept or used in or on the premises or any place contiguous
thereto any flammable fluids,hazardous substances,explosives or space heaters.
For purposes of this Lease, (a) "hazardous substances" are those substances defined as toxic or
hazardous substances, pollutants,or wastes by Environmental Law and the following substances:
gasoline, kerosene, other flammable or toxic petroleum products,toxic pesticides and herbicides,
volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials;
(b)"Environmental Law" means federal laws and laws of the jurisdiction where the Premises is
located that relate to health, safety or environmental protection; (c) "Environmental Cleanup"
includes any response action,remedial action,or removal action,as defined in Environmental Law;
and(d)an"Environmental Condition"means a condition that can cause,contribute to,or otherwise
trigger an Environmental Cleanup.
Lessee shall not cause or permit the presence, use, disposal, storage, or release of any hazardous
substances,or threaten to release any hazardous substances,on or in the Premises or the Building.
Lessee shall not do,nor allow anyone else to do,anything affecting the Premises or the Building(a)
that is in violation of any Environmental Law,(b)which creates an Environmental Condition,or(c)
which, due to the presence, use, or release of a hazardous substance, creates a condition that
adversely affects the value of the Premises or the Building.
Lessee shall promptly give Lessor written notice of(a)any investigation,claim,demand,lawsuit or
other action by any governmental or regulatory agency or private party involving the Premises and
any hazardous substance or Environmental Law of which Lessee has actual knowledge, (b) any
9
Environmental Condition, including but not limited to,any spilling, leaking,discharge,release or
threat of release of any hazardous substance,and(c)any condition caused by the presence,use or
release of a hazardous substance which adversely affects the value of the Premises or the Building.
If Lessee learns,or is notified by any governmental or regulatory authority,or any private party,that
any removal or other remediation of any hazardous substance affecting the Premises or the Building
is necessary, Lessee shall promptly take all necessary remedial actions in accordance with
Environmental Law. Nothing herein shall create any obligation on Lessor for an Environmental
Cleanup.
22. Taxes
Taxes. Lessee shall,at Lessee's own cost and expense,bear,pay and discharge prior to delinquency,
all real estate taxes, special assessments, leasehold taxes or any other taxes which are or may be
levied,charged and/or assessed upon the Premises,the improvements and/or the leasehold of the
Premises during the term of this Lease.
23. Entire Agreement
This Lease and the Exhibits attached hereto and forming a part hereof,set forth all the covenants,
promises,agreements,conditions,and understandings between Lessor and Lessee concerning the
leasing of the Premises and there are no covenants, promises, agreements, conditions, or
understandings,either oral or written,between them other than are herein set forth.No alteration,
amendment,change,or addition to this Lease shall be binding upon Lessor or Lessee unless reduced
to writing and signed by the party to be charged.
IN WITNESS WHEREOF, Lessor and Lessee have signed this Lease as of the day and year first
above written.
LESSEE: LESSOR:
I CITY OF ELGIN
BEEF VILLA,INC.
2-
By: By:
Mayor Its: (f(,�,
Attest:
City Clerk
F:\Legal Dept\Agreement\Development Agr-Beef Villa-Krystal Enterprises-Lease-clean 8-26-08.doc
10
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Date August 7, 2008 • NORTHWEARK
ST
TO: Mayor and Members of the City Council ,—�-
FROM: Olufemi Folarin, City Manager „`,.
Raymond H. Moller, Director of Economic
Development
SUBJECT: New Beef Villa Restaurant Development
PURPOSE
The purpose of this memorandum is to provide the Mayor and members of the City Council with
information to consider a Development Agreement with Krystal Enterprises LLC for the
development of a new Beef Villa Restaurant at 1337 & 1341 Dundee Avenue and to enter into a
Professional Services Agreement with Cowey, Gudmunson, Leder for engineering services
related to the project.
RECOMMENDATION
It is recommended that the City Council enter into a Development Agreement with Krystal
Enterprises LLC that allows for the development of a new Beef Villa Restaurant to be located at
1337 and 1341 Dundee Avenue and to enter into an agreement with Cowey, Gudmunson, Leder
for engineering services related to the project.
BACKGROUND
The City of Elgin purchased the properties at 1337 and 1341 Dundee Avenue in 2008 for the
price of$770,000. The buildings on the parcels were demolished at a cost of$22,900. These
properties were the former locations for two used car facilities. The City is also in the process of
making gateway enhancements to the Dundee Avenue corridor. Improvements are planned for
the area of Dundee Avenue, Liberty Street and Keep Avenue.
The first Beef Villa Restaurant is located at 1055 Dundee Avenue. The restaurant ownership has
been considering relocating the facility and has considered other locations along Dundee
Avenue. The present restaurant has an appraised value of$200,000.
City staff has approached Beef Villa ownership regarding the development of a new restaurant
on the City owned property in exchange for the transfer of the title for the current site. The City
would demolish the current restaurant after the new facility is in operation and incorporate the
New Beef Villa Restaurant Development
August 7, 2008
Page 2
old parcel into the new Dundee Avenue streetscape. Based on prior demolition bids, it is
estimated that the cost to demolish the existing restaurant is $15,000.
In addition to exchanging properties, the City would be responsible for engineering services and
land planning services for the new Beef Villa location. Engineering services are to be provided
by Cowey, Gudmunson, Leder, LTD at a cost of$20,000. Quotes for engineering services were
received from Christopher Burke, HLR and Cowey. Cowey was the low quote. Land planning
services are to be provided by Landvision Inc. at a budgeted figure of not to exceed $50,000.
Krystal Enterprises is responsible for all other costs associated with the project and will construct
the new facility in conformance to the Architectural Overlay District standards as well as
providing for the placement of permeable pavers throughout the entire parking lot area of the
restaurant. Krystal Enterprises estimates that the cost for the new building will be $700,000 and
the new equipment costs will be $250,000. The net value of the development incentive for
Krystal Enterprises is $677,900 excluding any additional property taxes and sales taxes
generated by the restaurant development.
A public hearing on the project is scheduled for August 20, 2008 before the Zoning and
Subdivision Board.
At the completion of the project, the City will have an attractive new restaurant facility on the
site of two used car lots and enhanced entryway feature in the Dundee Avenue and Liberty Street
corridor.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None
FINANCIAL IMPACT
Funding for the Beef Villa Project ($50,000) is budgeted in the Riverboat Lease Fund account
number 276-0000-791-80-27, project number 17711J, to date, $50,000 has been budgeted and
encumbered.. The cost of engineering services to be provided by Cowhey-Gudmunson-Leder is
$20,000. The original 2008 budget for the Economic Development Program was $727,460.
There is $329,301 available. A budget transfer of$20,000 is required from the Riverboat Lease
Fund, 276-0000-791-80-27 to project number 17711 J to fund the Cowhey contract.
LEGAL IMPACT
A development agreement is required with Krystal Enterprises as well as a Professional Services
Agreement with Cowhey-Gudmunson-Leder.
•
•
•
New Beef Villa Restaurant Development
August 7, 2008
Page 3
ALTERNATIVES
1. The City Council may choose to authorize a Development Agreement with Krystal
Enterprises for the development of a new restaurant at 1337 and 1341 Dundee Avenue
and a Professional Services Agreement with Cowey, Gudmunson, Leder.
2. The City Council may choose not to authorize a Development Agreement with Krystal
Enterprises LLC for a new restaurant at 1337 and 1341 Dundee Avenue or a Professional
Services Agreement with Cowey, Gudmunson, Leder.
Respectfully submitted for Council consideration.
Attachment