HomeMy WebLinkAbout25-206 Resolution No. 25-206
RESOLUTION
AUTHORIZING EXECUTION OF A REDEVELOPMENT AGREEMENT WITH CHICAGO
REALTY VENTURES, INC. FOR THE REDEVELOPMENT OF 53-63 DOUGLAS AVENUE,
ELGIN, ILLINOIS
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS,
that David J. Kaptain, Mayor, and Kimberly A. Dewis, City Clerk, be and are hereby authorized
and directed to execute a Redevelopment Agreement on behalf of the City of Elgin with Chicago
Realty Ventures, Inc., for the redevelopment of 53-63 Douglas Avenue, Elgin, Illinois, a copy of
which is attached hereto and made a part hereof by reference.
s/David J. Kaptain
David J. Kaptain, Mayor
Presented: December 3, 2025
Adopted: December 3, 2025
Omnibus Vote: Yeas: 9 Nays: 0
Attest:
s/ Kimberly Dewis
Kimberly Dewis, City Clerk
CITY OF ELGIN
REDEVELOPMENT AGREEMENT
(53-63 DOUGLAS AVENUE)
THIS REDEVELOPMENT AGREEMENT (hereinafter referred to as the "Aureement")
is made and entered into this 3 day of December ,2025 by and between the CITY OF ELGIN.
an Illinois municipal corporation(hereinafter referred to as the"C ")and CHICAGO REALTY
VENTURES,INC.,an Illinois corporation (hereinafter referred to as the"Developer"). The City
and Developer may be referred to collectively herein as the "parties" and individually as a
"party."
WHEREAS, the City Council of the City of Elgin (hereinafter referred to as the "Cite
Council") has adopted Ordinance Nos. S6-99, SI-02, S2-02, S3-02 and S4-02 proposing,
approving,and creating the Elgin Central Area Tax Increment Financing Redevelopment Plan and
Project (hereinafter referred to as the "ECA TIF District") pursuant to the Tax Increment
Allocation Redevelopment Act at 65 ILCS 5/11-74.4-1,et seq.;and
WHEREAS,the ECA TIF District was established on April 10,2002 and will continue for
thirty-five(35)years thereafter pursuant to the enactment of Public Act 104-0322,effective August
15. 2025; and
WHEREAS, the Developer is the owner certain property commonly known as 53-63
Douglas Avenue, Elgin, Illinois, such property being legally described in Attachment A attached
hereto(hereinafter referred to as the"Subject Property"); and
WHEREAS,the Subject Property is located within the ECA TIF District;and
WHEREAS, the Subject Property is currently improved with three (3) -story commercial
building which has substantial vacancies and is under-performing, functionally obsolete. and
below certain minimum code standards for occupancy; and
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WHEREAS,the Subject Property is within the Downtown Elgin Commercial District,and
the Downtown Elgin Commercial District is listed in the federal National Register of Historic
Places and is an integral part of downtown Elgin:
WHEREAS, preservation, redevelopment and improvement of the Subject Property will
be a boon to the area deemed of high importance for the vigor and financial strength of the City's
downtown business district;and
WHEREAS,the Developer has submitted to the City a proposal for the redevelopment of
the Subject Property that would include converting two, vacant, ground-floor commercial spaces
into a lobby and café for a boutique hotel, converting the second and third floors of the building
from mostly-vacant offices into twenty-six(26)rooms for said boutique hotel,and extending new
fire alarm and fire sprinkler coverage to all parts of the building on the Subject Property,all in the
manner as set forth on those twelve (12) pages labeled "DOUGLAS HOTEL" by OMAT
CONSTRUCTION dated November 13, 2025 and such twelve (12) pages are attached hereto as
Attachment B, made a part hereof, and are hereafter collectively referred to as the "Approved
Project Plans";and
WHEREAS,the City Council has determined,and hereby finds,that Developer's proposed
redevelopment of the Subject Property as herein described will further the goals and objectives of
the Elgin Central Area Tax Increment Financing Redevelopment Plan and Project and assist the
City in its objective to create a more economically viable and sustainable downtown business
district through strategic development that supports 24/7 activity and connects commercial
corridors vk ith residential properties, all of which are hereby declared by the City to be a valid
"public purpose"of the City; and
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WHEREAS, the City Council has determined, and hereby finds, that the Developer's
proposed redevelopment of the Subject Property as described herein furthers the goals and
objectives of the City of Elgin Comprehensive Plan in its objective to pursue adaptive reuse
projects in existing downtown structures and to continue using the existing ECA TIF District to
pro-actively assist with improvements to existing buildings, bringing them to current code
standards;and
WHEREAS, Developer's proposal for the redevelopment of the Subject Property will
result in the renovation and further the adaptive re-use of an important downtown building; and
WHEREAS, the proposed redevelopment of the Subject Property would not occur in the
absence of limited development assistance from the City as herein provided; and
WHEREAS, in order to facilitate the proposed redevelopment of the Subject Property as
herein described which will further the goals and objectives of the ECA TIF District, 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 Redevelopment Agreement, resulting in furthering and achieving the
goals and objectives of the ECA TIF District and the City of Elgin Comprehensive Plan, and
resulting in the benefits to the City as hereinabove stated, are matters within the government and
affairs of the City;and
WHEREAS,the redevelopment of the Subject Property will create job opportunities within
the City;and
WHEREAS, the redevelopment of the Subject Property will serve to further the
development of adjacent areas of the City; and
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WHEREAS, the redevelopment of the Subject Property will strengthen the commercial
sector of the downtown and the City;and
WHEREAS,the redevelopment of the Subject Property will enhance the value of adjacent
properties and in turn enhance the tax base of the City; and
WHEREAS,the Developer is currently undertaking a redevelopment in Downtown at 11-
15& 17 Douglas Avenue that is scheduled to be completed in February 2026 and has successfully
redeveloped projects of similar size in Berwyn, Summit, and Northlake, Illinois;and
WHEREAS,this Agreement is made in the best interest of the City.
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. 13uildinu Permit Application.
A. I)v eloperr shal l tile with the City a formal building permit application at the Subject
Property (such building permit application being hereinafter referred to as the "Permit
Application"). Such Permit Application will request the permits necessary to provide for the
redevelopment of the Subject Property in general conformance with the Approved Project
Plans, modified and amended as may be required to comply with ordinances, building codes
or other requirements of law (collectively hereinafter referred to as the "Project
Modifications").
B. The Developer's proposal as set forth in the Approved Project Plans and as
possibly modified by any Project Modifications is hereinafter referred to as "Subject
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Redevelopment Plans"and the redevelopment of the Subject Property is hereinafter referred
to as the "Subject Redevelopment".
3. Construction of Subject Redevelopment.
A. It is agreed and understood that the redevelopment assistance being provided by the
City to the Developer pursuant to this Agreement is being provided for the sole purpose of assisting
the Developer with the Subject Redevelopment of the Subject Property as described in this
Agreement. The redevelopment of the Subject Property shall conform in all respects with the
Subject Redevelopment Plan and as otherwise directed by the City to the extent necessary to
comply with other applicable ordinances, building codes, or other requirements of law. The
Developer shall also cause all work performed in connection with the Subject Redevelopment to
be performed in a workmanlike manner. Except as otherwise provided in this Agreement,all costs
and expenses relating to the Subject Redevelopment including, without limitation,construction of
the Subject Redevelopment Plans, shall be the responsibility of and shall be paid for by the
Developer.
B. Developer shall, within ninety (90) days of the date of the entry into this
Agreement, submit to the City and to all other governmental bodies or agencies thereof having
jurisdiction over the Subject Redevelopment (if any) applications for all permits required to
perform the Subject Redevelopment in accordance with the Subject Redevelopment Plans to be
approved by the City (collectively hereinafter referred to as the "Required Permits").
C. Developer shall commence construction of the Subject Redevelopment on the
Subject Property within one hundred and twenty (120) days of the issuance to the Developer by
the City and by any other governmental body or agency having jurisdiction over the Subject
Redevelopment, of all Required Permits (hereinafter referred to as the "Construction
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('ornrnencement Deadline"), subject, however, to reasonable extension by reason of Force
Majeure (as hereafter defined). Developer shall be deemed to have commenced construction of
the Subject Redevelopment upon Developer obtaining a building permit from the City for the
Subject Redevelopment and the commencement of initial construction activities associated with
the Subject Redevelopment. In the event the Developer does not commence construction by
the first to arrive of(i)the Construction Commencement Deadline(as same may be extended
as provided herein) or (ii) the first business day that is two hundred seventy (270) days after
the date of the entry into this Agreement, subject, however, to reasonable extension by reason
of Force Majeure, then Developer shall provide the City notice of non-commencement,
whereupon, absent any written agreement between the parties to extend the Construction
Commencement Deadline, either party shall have the right, by written notice to the other, to
terminate this Agreement, whereupon this Agreement shall be cancelled and null and void
with no further liability of either party hereunder.
D. Upon Developer commencing construction of the Subject Redevelopment on the
Subject Property,the Developer shall continue with the construction of the Subject Redevelopment
in as expeditious a manner as is reasonably practicable. The Developer shall substantially
complete the Subject Redevelopment on or before the last day of the eighteenth (18'h) month
following the commencement of construction of the Subject Redevelopment (hereinafter referred
to as the "Completion Date"); provided, however, that such Completion Date shall be extended
by one day for each day for which construction is delayed or stopped due to accident, strikes,
shortage of materials,extreme weather,acts of God,pandemic(including the COVID-19 virus and
any variant thereof),government shutdown,public health crisis,undue delay by the City in issuing
any required permits for which application has been properly made by the Developer, or lawsuits
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or other administrative actions brought by any third party that has the effect of hindering or
delaying Developer's performance hereunder(such occurrences being individually or collectively
hereinafter referred to as"Force Majeure"). In the event Developer requires any further extension
of any of the Completion Dates for the Subject Redevelopment of the Subject Property other than
by reason of Force Majeure, 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. The City
Development Administrator may grant an extension of the Completion Date for the Subject
Redevelopment of the Subject Property for up to six (6) months in the City Development
Administrator's sole discretion, provided that an) such extension shall also be in writing. Any
agreement by the City to further extend the Completion Date for the Subject Redevelopment of
the Subject Property beyond said six(6)months shall be at the sole discretion of the City Council
of the City.
E. The Subject Redevelopment shall be deemed"suhstantially completed"when the
Developer has completed all of the improvements proposed to be constructed and installed in
connection with the Subject Redevelopment, subject to only customary "punchlist" work to be
completed,and has obtained a temporary or final occupancy permit for the building on the Subject
Property.
4. 1)ev elopment Assistance from City.
A. In consideration of the Developer completing the Subject Redevelopment as set
forth in this Agreement, the City agrees to provide the development assistance to the Developer
set 'brill in this Section 4. In the event of Developer's completion of the Subject Redevelopment,
the City agrees to provide the Developer monetary development assistance of One Million Two
Hundred Thousand and 00/100 Dollars ($1,200,000.00) (hereinafter referred to as the "Subject
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Monetary Development Assistance") plus a contingency fund in the amount of One Hundred
Thirty-Six Thousand One Hundred and 00/100 dollars ($136,100.00) for unforeseen conditions,
extras, labor increases, material pricing increases, Approved Project Plan revisions, delays, and
such other like additional development costs of Developer (the "Contingency Fu nd"). The
Subject Monetary Development Assistance and Contingency Fund shall be paid by the City to the
Developer to reimburse the Developer for Subject Redevelopment Costs (as hereinafter defined)
incurred by the Developer in connection with the Subject Redevelopment. Redevelopment Project
Costs shall be defined as provided in 65 ILCS 5/11-74.4-3(q),which are incurred by Developer in
connection with the Subject Redevelopment and which are eligible under law for reimbursement
from the City's ECA TIF District (such costs as defined in 65 ILCS 5/11-74.4-3(q), which are
incurred by the Developer in connection with Subject Redevelopment and which are eligible under
law for reimbursement from the City's ECA TIF District are hereinafter referred to as the
"Redevelopment Project Costs"). Eligible Redevelopment Project Costs shall include labor,
material, and equipment costs, and such other costs as may be reasonably necessary for the
execution and completion of the Subject Redevelopment as detailed within the 2-page "Estimate
for Elgin Hotel on Douglas Ave" from OMAT CONSTRUCTION,dated October 11,2025,as set
forth in Attachment C, attached hereto and made a part hereof.
B. It is expressly agreed and understood that, regardless of the actual amount of the
Redevelopment Project Costs incurred by the Developer, the City's Subject Monetary
Development Assistance to Developer shall nonetheless be limited to an amount not to exceed One
Million Three Hundred Thirty-Six Thousand One Hundred and 00/100 Dollars ($1,336,100.00),
inclusive of the Contingency Fund. As a condition of the right to receive payment from the City
of the Subject Monetary Development Assistance and Contingency Fund, Developer shall be
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required to document to the City's reasonable satisfaction evidence that it has incurred
Redevelopment Project Costs in connection with the Subject Redevelopment in the amount of the
Subject Monetary Development Assistance and Contingency Fund. The Subject Monetary
Development Assistance and Contingency Fund shall be utilized by the Developer solely and only
for the payment of Redevelopment Project Costs for the Subject Redevelopment in accordance
with the terms of this Agreement.
C. The City shall pay the Subject Monetary Development Assistance to the Developer
in increments at each Payment Eligibility Date(as defined in the following table)as follows:
Payment Description of Payment Eligibility Amount of Subject Monetary
No. Development Assistance to be
paid to Developer
1 Developer has provided to the City Fifty percent (50%) of the
evidence that fifty percent (50%) of the Subject Monetary Development
Subject Redevelopment has been Assistance, to be deposited into
completed as certified to the City by the the Developer's construction
Developer's project architect and by escrow at the title insurance
such third-party architect as the City company being used by
may, in its discretion, elect to retain to Developer for making
oversee the completion of the work. construction payouts for the
work being performed on the
Subject Redevelopment of the
Subject Property.
2 When the work required to complete the The unpaid balance of the
Subject Redevelopment is substantially Subject Monetary Development
completed, as defined in Section 3.E Assistance; provided that the
hereof, as certified to the City by the City may hold back an amount
Developer's project architect and by estimated to be the reasonable
such third-party architect as the City cost to complete all punchlist
may, in its discretion, elect to retain to items, if any.
oversee the completion of the work,and
when the Developer submits to the City:
(1) an executed, notarized itemized
contractor statement reflecting the total
cost of the work required to complete the
Subject Redevelopment and each
portion thereof,including but not limited
to, the cost of labor (whether provided
by any contractor or subcontractor),
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materials and equipment; (2) copies of
all bids, contracts and invoices
submitted, executed or incurred
pursuant to the work required to
complete the Subject Redevelopment;
(3) reasonable proof of payment of all
costs incurred pursuant to the work
required to complete the Subject
Redevelopment; and (4) lien waivers
from any all contractors and
subcontractors required to execute the
Subject Redevelopment Plan.
D. Developer may also request the City to disburse up to fifty percent (50%) of
the Contingency Fund for eligible expenses in conjunction with the first Payment Eligibility
Date for the Subject Monetary Development Assistance in the proceeding subsection C,
provided that(1)the Developer first provides to the City evidence that the Developer has already
spent at least One Hundred Thirty Six thousand and 00/100 Dollars ($136,100.00) for unforeseen
conditions, extras, labor increases, material pricing increases, Approved Project Plan revisions,
delays, and such other like additional development costs of Developer, and (2) the Contingency
Fund work was reasonably necessary and has been completed as certified to the City by the
Developer's project architect and by such third-party architect as the City may, in its discretion,
elect to retain to oversee the completion of the work ("Eligible Contingency Funds"). The
Developer may request the City to disperse the unpaid balance of the Eligible Contingency Funds
when the work required to complete the Subject Redevelopment is substantially completed, as
defined in Section 3.E hereof, as certified to the City by the Developer's project architect and by
such third-party architect as the City may,in its discretion,elect to retain to oversee the completion
of the work, and when the Developer submits to the City: (1) those items required within Section
4.0 hereof; and (2) a written explanation of the unforeseen conditions, extras, labor increases,
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material pricing increases, Approved Project Plan revisions, delays, and/or such other additional
development costs of Developer. The City may hold back an amount of the Contingency Fund
estimated to be the reasonable cost to complete all punchlist items, if any.
E. The City shall be permitted access to the Subject Property to periodically review
the progress of the work associated with the Subject Redevelopment. Such review shall not be in
lieu of any other inspections that may otherwise be required by law or by the City. Any and all
portions of the work associated with the Subject Redevelopment which do not, in the sole
discretion of the City, conform to the Subject Redevelopment or other applicable terms of this
Agreement, shall be made to conform to the Subject Redevelopment and other applicable terms of
this Agreement upon written notice of the existence of such non-conforming portions.
F. In addition to the Subject Monetary Development Assistance and Contingency
Fund to be provided to the Developer as defined in the preceding subsections of this Section 4,the
City also agrees to grant to the Developer during the construction of the Subject Redevelopment
temporary construction easements on City-owned property adjacent to the Subject Property
reasonably necessary for the construction of the Subject Redevelopment. Such temporary
construction easements shall be in a form approved by the City's Corporation Counsel.
G. The parties understand and agree that the Subject Monetary Development
Assistance, Contingency Fund, and the other assistance being provided by the City to the
Developer as set forth in this Section 4 are expressly subject to and contingent upon the Developer
completing and maintaining the Subject Redevelopment as set forth in this Agreement. In the
event the Developer fails to complete the Subject Redevelopment as required in this Agreement,
or fails to maintain and operate the Subject Redevelopment as described and required in this
Agreement, the parties understand and agree that the City will not be providing the Subject
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Monetary Development Assistance or Contingency Fund. Upon the occurrence of an Event of
Default on the part of the Developer (as defined in Section 9) then, in addition to other remedies
available to the City at law, equity or otherwise, the City shall recover any Subject Monetary
Development Assistance and Contingency Fund previously paid to the Developer and may
terminate any further and other assistance being provided to the Developer.
5. INTENTIONALLY OMITTED.
6. Subject Redevelopment to Remain on Subject Property. The Developer agrees
that, except as otherwise agreed to in writing by the City's Director of Community Development,
the Subject Redevelopment shall be maintained, remain,and otherwise continue operating on the
Subject Property for a period of not less than five (5)years following the date of this Agreement
(hereinafter referred to as the "Redevelopment Term"). Nothing herein is intended to limit,
restrict,or prohibit the Developer from undertaking any other work in or about the Subject Property
that is unrelated to the Subject Redevelopment provided for in this Agreement.
7. Assessment of Subject Property. The City and Developer agree that the Subject
Redevelopment 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 the Developer or its successors or permitted assigns from appealing or challenging
assessments against the Subject Redevelopment which Developer or its successors or permitted
assigns consider to be contrary to law. Notwithstanding any other provisions of this Agreement to
the contrary, in the event the Developer conveys the Subject Property to a for-profit entity during
the Redevelopment Term, then any such successor owner of the Subject Property during the
Redevelopment Term shall not do any of the following:
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A. Request a full or partial exemption for general real estate taxes for any portion of
the Subject Property or the improvements thereon;
B. Request a partial or full abatement of general real estate taxes for any portion of the
Subject Property or the improvements thereon;
C. Request an assessment at a value not otherwise permitted by law.
8. Compliance with Laws.
A. Notwithstanding any other provisions of this Agreement,it is expressly agreed and
understood by the Developer and the City that in connection with the performance of this
Agreement and the redevelopment of the Subject Property with the Subject Redevelopment, the
Developer shall comply with all applicable federal, state, city, and other requirements of law,
including but not limited to, any applicable requirements regarding prevailing wages, minimum
wage, workplace safety,and legal status of employees. Without limiting the foregoing,Developer
hereby certifies,represents,and warrants to the City that all Developer's employees and/or agents
who will be providing products and/or services with respect to this Agreement shall be legal
residents of the United States. The City shall have the right to audit any records in the possession
or control of the Developer to determine Developer's compliance with the provisions of this
section. In the event the City proceeds with such an audit, the Developer shall make available to
the City the Developer's relevant records at no cost to the City. Developer shall pay any and all
costs of such audit.
B. In all hiring or employment made possible or resulting from this Agreement,there
shall be no discrimination against any employee or applicant for employment because of sex,age,
race,color,creed,national origin,marital status,of the presence of any sensory,mental or physical
handicap, unless based upon a bona fide occupational qualification, and this requirement shall
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apply to,but not be limited to,the following: employment advertising, layoff or termination, rates
of pay or other forms of compensation and selection for training, including apprenticeship.
C. The City agrees to waive and not require the Developer to pay any building permit
fees, impact fees,water tap and water meter fees. fire alarm and fire sprinkler permit fees,elevator
permit and initial inspection fees, plan review fees, engineering fees, food handling permit fees,
and occupancy permit fees, collectively referred to as the "Development Fees," which would
otherwise be due and payable to the City in connection with the initial establishment of the Subject
Redevelopment. Said waiver of Development Fees does not include any subsequent annual permit
and/or inspection fees owed or otherwise required,and said waiver does not include any fees owed
or otherwise required for the sale of alcoholic beverages, including but not limited to a liquor
license. Any and all permit fees, impact fees, recapture fees, or other fees that may be due and
owing to any other governmental entity other than the City shall be paid by the Developer.
Developer shall also at its expense secure all permits and licenses, pay all charges and fees not
expressly waived by this subsection C.of this Section 8,and give all notices necessary and incident
to the due and lawful prosecution of the work necessary to provide for the Subject Redevelopment
as described in this Agreement.City agrees to expediate the review of the applications for building
permit related to the Subject Redevelopment.
9. INTENTIONALLY OMITTED.
10. Default. The Developer and City agree that an"Event of Default"shall be deemed
to have occurred with respect to either party if(a) such party materially breaches it obligations
hereunder and (b) such breach remains uncured for more than thirty (30) days following written
notice thereof to such breaching party by the other party; provided, however, that if the nature of
the breach is such that it cannot reasonably be completely cured within thirty (30)days of the date
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of such notice,then so long as the notified party commences such cure within said thirty(30)days
and thereafter diligently pursues the completion of such cure in good faith, then such the party
shall not be deemed to have breached this Agreement and the other party shall not seek to enforce
any remedies against said notified party.
11. Remedies. Upon the occurrence of an Event of Default with respect to either party
(such party being hereafter referred to as the"Party in Default"),the other party(in such context
the "Aggrieved Party") shall, except as otherwise provided in this section, 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 Subject Development Monetary Assistance the City
has agreed to pay pursuant to the preceding Section 4 hereof,no action shall be commenced by the
Developer against the City for monetary damages. Developer hereby further waives any and all
claims to interest on money claimed to be due pursuant to this Agreement and waives any and all
such rights to interest which it claims it may otherwise be entitled to pursuant to law, including,
but not limited to, the Local Government Prompt Payment Act (50 ILCS 501/1, et seq.), as
amended, or the Illinois Interest Act (815 ILCS 205/1, et seq.), as amended. The parties hereto
further agree that any action by the Developer arising out of this Agreement must be filed within
one (1)year of the date the alleged cause of action arose or the same shall be time barred. 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. The provisions of this Section shall survive any
termination, completion and/or expiration of this Agreement.
12. Time. Time is of the essence of this Agreement.
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13. Notices. All notices herein required shall be in writing and shall be served on the
parties at the following addresses:
If to City: City of Elgin
Attn: Richard Kozal, City Manager
150 Dexter Court
Elgin, IL 60120
Email: kozal r@cityofelgin.org
With copy to: City of Elgin
Attn: Christopher Beck, Corporation Counsel
150 Dexter Court
Elgin, IL 60120
Email: beck c@cityofelgin.org
If to Developer: Chicago Realty Ventures, Inc.
Attn: Ayman Mryan, President
3108 Oak Park Avenue, Suite 1
Berwyn, IL 60402-3061
Email: a.mryan@outlook.com
With copy to:
Any such notices may be sent by (a) certified mail, return receipt requested, in which case notice
shall be deemed delivered on the date of deposit,postage prepaid in the U.S. mail or(b)a nationally
recognized overnight courier, in which case notice shall be deemed delivered on the date of deposit
with such courier or(c) by email to the parties at the email addresses, in which case notice shall be
deemed delivered upon electronic transmission or(d)by personal delivery.The above addresses and
email addresses may be changed by notice to the other party,provided that no notice of a change of
address or email address shall be effective until actual receipt of such notice.Notice on behalf of any
party may be given by such party or its counsel to the other party and/or its counsel.
14. 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.
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15. 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.
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
signed by all parties hereto, or their permitted successors or assigns as the case may be.
18. Entire Agreement. This Agreement and its attachments contain 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. The parties agree that no representations or warranties shall be binding upon the other
party unless expressed in writing herein or in a duly executed amendment hereof.
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 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.
20. Assi<gnment. This Agreement shall be binding on the parties hereto and their
respective successors, successors in title, grantees, and assigns and shall run with the land. A
memorandum of this Agreement shall be recorded by the City against the title of the Subject
Property.This Agreement and the obligations herein may not be assigned by the Developer without
the express written consent of the City, which consent may be withheld at the sole discretion of
the City.
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21. No Conflicting Interests. 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 of the Developer, under oath, disclosing the identity of every person
having an interest, real or personal, in the respective entity, and every equity owner entitled to
receive more than seven and one/half percent (7.5%) of the total distributable income of the
respective entity. Such disclosures shall be in writing and in a form as forth in Attachment D
hereto.
22. 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 workers'compensation claims,
in any way resulting from or arising out of or alleged to be resulting from or arising out of the
negligent actions or omissions of the Developer in connection herewith, including negligent acts
or omissions of the Developer's employees, agents, contractors, or subcontractors in the
performance of the redevelopment work contemplated by 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 law by the Developer or its employees or agents. 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 Section shall survive any termination, completion,
and/or expiration of this Agreement.
23. No Liability. No past, present, or future elected or appointed official, officer,
employee, attorney, agent, or independent contractor of the City shall be charged personally or
- 18 -
held contractually liable under any term or provision of this Agreement including, but not limited
to, because of their negotiation,approval,execution, or attempted execution of this Agreement.
24. Reports. Developer agrees to and shall provide to the City written reports on the
progress of the Subject Redevelopment. Such written reports shall be provided to the City on a
quarterly basis following the entry into this Agreement and shall continue until the Subject
Redevelopment has deemed substantially completed.
25. Acknowledgement. Developer, on behalf of itself and its successors, assigns,
grantees, and lessees of the Subject Property hereby acknowledges the proprietary, necessity, and
legality of all of the terms and provisions of this Agreement and does hereby further agree and
does waive any and all rights to any and all legal or other challenges or defenses to any of the
terms and provisions of this Agreement and hereby agrees and covenants on behalf of itself and
its successors,assigns,grantees,and lessees of the Subject Property not to sue the City or maintain
any legal action or defenses against the City with respect to any challenges of the terms and
provisions of this Agreement. The provisions of this Section shall survive any termination,
completion,and/or expiration of this Agreement.
26. Severabilitv,.The terms of this Agreement shall be severable. In the event that any
of the terms or provisions of this Agreement are deemed to be void or otherwise unenforceable for
any reason,the remainder of this Agreement shall remain in full force and effect.
27. Counterparts and Execution. This Agreement may be executed in counterparts,
each of which shall be an original and all of which shall constitute one and same Agreement. This
Agreement may be executed by electronic signature, which shall be considered as an original
signature for all purposes and shall have the force and effect as an original signature. Without
- 19-
limitation, "electronic signature" shall include faxed versions of an original signature or
electronically scanned and transmitted versions(e.g., PDF)of an original signature.
IN WITNESS WHEREOF, the parties hereto have entered into and executed this
Agreement on the date and year first written above.
CITY OF ELGIN:
By:
avid J. apta. . Mayor
Attest:
im Dewis, 'ity Clerk
DEVELOPER:
CHICAGO REALTY VENTURES, INC.
By: L'
Ayman Mryan, President
-20-
ATTACHMENT A
LEGAL DESCRIPTION OF SUBJECT PROPERTY
PARCEL ONE:
THAT PART OF THE NORTH 110 FEET OF LOT 5 IN BLOCK 17 OF THE ORIGINAL TOWN OF
ELGIN, IN THE EAST SIDE OF THE FOX RIVER,LYING WEST OF THE WEST RIGHT OF WAY
OF THE CHICAGO AND NORTHWESTERN RAILWAY COMPANY, IN THE CITY OF ELGIN,
KANE COUNTY,ILLINOIS.
PARCEL TWO:
THAT PART OF THE NORTH 110 FEET OF LOT 5 IN BLOCK 17 OF THE ORIGINAL TOWN OF
ELGIN, IN THE EAST SIDE OF THE FOX RIVER, LYING WEST OF THE EAST RIGHT OF WAY
OF THE CHICAGO AND NORTHWESTERN RAILWAY COMPANY, IN THE CITY OF ELGIN,
KANE COUNTY, ILLINOIS, EXCLUDING THEREFROM THAT PART OF THE NORTH 110 FEET
OF LOT 5 IN BLOCK 17 OF THE ORIGINAL TOWN OF ELGIN,IN THE EAST SIDE OF THE FOX
RIVER, LYING WEST OF THE WEST RIGHT OF WAY OF THE CHICAGO AND
NORTHWESTERN RAILWAY COMPANY,IN THE CITY OF ELGIN,KANE COUNTY,ILLINOIS.
KNOWN AS: 53-63 DOUGLAS AVE,ELGIN,IL 60120
PERMANENT INDEX NUMBER: 06-14-280-006
ATTACHMENT B
APPROVED PROJECT PLANS
(12 Pages, Not Including This Cover)
.
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ATTACHMENT C
SCOPE OF WORK AND ELIGIBLE REDEVELOPMENT PROJECT COSTS
(2 Pages,Not Including This Cover)
•, MAT CONSTRUCTION
Construction & Management Group
Estimate for Elgin Hotel on Douglas Ave
59 Douglas Ave, ELGIN IL 60120
October 11, 2025
Trade Estimate
SOFT COST
Architectural Design, 130500
Structural Engineering
Mechanical Engineering
Electrical Engineering
Total Soft Cost 130500
GENERAL REQUIREMENTS
Demolition 75300
75300
MASONRY
MASONRY&other brick work 65300
Sub-total Masonry 65300
ROUGH& FINISH CARPENTRY
Rough Carpentry Labor& Material 120000
Finish Carpentry Labor&Material (Millwork, Cabinets,..) 20000
Sub-total finish carpentry 140000
ROOFING& MOISTURE PROTECTION
Flat roof material & Labor 70000
Insulation material& labor 100000
Sub-total roofing&moisture protection 170000
DOORS, FRAMES& HARDWARE
Wood doors&frames 31500
Wood windows 32000
Sub-total doors,frames& Hrdware 63500
FINISHES
Flooring 80650
Tiling Labor&material
Paint, interior, Labor&material 45000
Paint, interior, Labor&material
Painting, Exterior, material 65000
Drywall, Labor& material 135,000
Sub-total finishes 452650
11313 Brook Crossing Dr.,Orland Park, IL 60467
708.928.3976,omatconstruction@comcast.net
0 MAT CONSTRUCTION
r.
Construction & Management Group
SPECIALTIES
SPECIAL CONSTRUCTION
Elevator 75000
Sub-total special construction 75000
MECHANICAL
HVAC 325,000
Sub-total Mechanical 315,000
FIRE PREVENTION
Fire Alarm 119000
Building sprinkler system 160000
Sub-total Fire prevention 279000
PLUMBING
Rough plumbing, interior 220,000
Rough plumbing, exterior(Sewer)
Rough Plumbing, exterior(Water)
Plumbing fixtures 55500
Water heater 16500
Gas lines 25300
Sub-total Plumbing 317,300
ELECTRIC 225,000
Electric service, rough Interior
Electric rough, building exterior
Light fixtures 42500
Sub-Total Electric 267500
MISCELLANEOUS
Lobby 75,000
CONTINGENCY 245,000
Total 2,681,050
11313 Brook Crossing Dr.,Orland Park, IL 60467
708.928.3976,omatconstruction@comcast.net
ATTACHMENT D
AFFIDAVITS OF OWNERSHIP
(4 Pages)
1
(name), Wee. (title),being
first duly sworn upon oath states as follows:
Affiant has personal knowledge of the facts stated herein.
Per 50 ILCS 105/3.1,the identities of all owners and beneficiaries having an interest or proposing
to have an interest in the real property commonly known as
53 _ �, t kook kA to be conveyed/used are as follows (check applicable
box(es)and complete information requested):
Ei Individual. Individual owner(or proposing to be an owner or tenant)of the property is:
Nonprofit Organization. Nonprofit organization owner (or proposing to be an owner or
tenant) of the property is . There is no individual or
other organization receiving distributable income from the organization.
Public Organization, including units of local government. Public organization owning (or
proposing to be an owner or tenant) the property is
There is no individual or other organization receiving distributable income from the
organization.
Publicly-Traded Corporation. Publicly-traded corporation owning (or proposing to be an
owner or tenant) the property is
There is no readily known shareholder entitled to receive more than 7-1/2% interest in the
total distribution income of the corporation.
Corporation, Partnership, Limited Liability Company. Corporation, partnership, limited
liabili com any owning (or proposing to be an owner or tenant) the property is
t ����cr�, ��=�x`c e . Those entitled to receive more than 7-1/2%
o The total dist�ble income orsa!d-eiitity are as follows:
Name Address
*1.c \-A\okitt\A JL-KI\n
2.
3.
4.
El Land Trust or Declaration of Trust. Land trust or declaration of trust owning(or proposing
to be an owner or tenant) the property is . The
identity of each beneficiary of Grantor Trust is as follows:
Name Address %of
Interest
*1.
2.
3.
4.
*IF THE INITIAL DISCLOSURES SHOW INTERESTS HELD BY ANOTHER
CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY, OR TRUST, THEN
FURTHER DISCLOSURES SHOULD BE PROVIDED UNTIL THE NAMES OF
INDIVIDUALS OWNING THE INTEREST IN THE ENTITY ARE DISCLOSED.
Date this 2- k day of N , 20 2 .S
By: ,
Signature
N_ )i‘A.4cAp. vviiiottit _ r
Th
rint Name and Tie if applicable
State of Illinois )
)SS
County of )
This instrument was acknowledged before me on Novi mhir At 2026, by
P1T n V I I 1 n .
(SEAP r ALLYSON VILLA i e 1 V V u,C 1)
E OFFICIAL SEAL Notary I uillgc
,/ = Notary Public-State Of JIGrgis
MY Commission Expires
"� November os,2026 My Commission Expires: I I /C /L 1,
•
NOTE: THIS AFFIDAVIT MAY BE EXECUTED AND ACKNOWLEDGED ON
BEHALF OF THE RECORD OWNER(S) BY A MEMBER, AN OWNER,
AUTHORIZED TRUSTEE, CORPORATE OFFICIAL, GENERAL PARTNER,
OR MANAGING AGENT, OR HIS OR HER ATTORNEY.
1. Sanjeev Misra (name). Manager (title). being
first duly sworn upon oath states as follows:
Aftiant has personal knowledge of the facts stated herein.
Per 50 ILCS 105/3.1. the identities of all owners and beneficiaries having an interest or proposing
to have an interest in the real property commonly known as
53-63 Douglas Ave to be conveyed/used are as follows (check applicable
box(es)and complete information requested):
OIndividual. Individual owner(or proposing to be an owner or tenant)of the property is:
0 Nonprofit Organization. Nonprofit organization owner (or proposing to he an owner or
tenant) of the property is . There is no individual or
other organization receiving distributable income from the organization.
0 Public Organization. including units of local government. Public organization owning(or
proposing to be an owner or tenant) the property is
There is no individual or other organization receiving distributable income from the
organization.
0 Publicly-Traded Corporation. Publicly-traded corporation owning (or proposing to be an
owner or tenant) the property is
There is no readily known shareholder entitled to receive more than 7-1/2%interest in the
total distribution income of the corporation.
® Corporation. Partnership. Limited Liability Company. Corporation. partnership. limited
It i itv co ny owning (or propo i g ) be an owner or tenant) the property is
lvi t"lotel Investments LL . Those entitled to receive more than 7-1/2%
of the total distributable income of said entity are as follows:
Name Address
*I. Sanjeev Misra 1290 N Clybourn Ave.
Chicago. IL 60610
3.
4.
0 Land Trust or Declaration of Trust. Land trust or declaration of trust owning(or proposing
to be an owner or tenant) the property is . The
identity of each beneficiary of Grantor Trust is as follows:
Name Address %of
Interest
•I.
3.
4.
•1F THE INITIAL DISCLOSURES SHOW INTERESTS HELD BY ANOTHER
CORPORATION. PARTNERSHIP. LIMITED LIABILITY COMPANY. OR TRUST. THEN
FURTHER DISCLOSURES SHOULD BE PROVIDED t NTIL THE NAMES OF
INDIVIDUALS OWNING THE INTEREST IN THE ENTITY ARE DISCLOSED.
Dated LI day of N llVf n-\ht'( . 21)25.
By: •
Signature
S(Nrl\eev ‘Sc`, 1 hr\klyr.
Printiklame and Title if applicable
State of Illinois
I SS
County of NV :
This instrument was acknowledged before me on (VW L . '_Oc-ST by
(SEAL) "OFFICIAL SEAL"
HANAN A HAFEZ Notary Public
Notary Public,Sato Of Minis
Commission No.1001983
My Commission I Ins January 02,2029 \1\ Commission Expires: • •••6? n?'\
NOTE: THIS AFFIDAVIT MAY BE EXECUTED AND ACKNOWLEDGED ON
BEHALF OF THE RECORD OWNER(S) BY :\ MEMBER. AN OWNER.
At ITIIORIZED 1 Rl lS l l l . CORPORA IF OFFICIAL. GENERA1. PARTNER.
OR MANAGING AGENT. OR HIS OR I TER ATTORNEY.
TORNEY.
IccallXplKcdcsclop \pr-5?•n?I) a Ia,-I Ia.ndd."'