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HomeMy WebLinkAbout99-285 Resolution No. 99-285 RESOLUTION AUTHORIZING EXECUTION OF A FIRST AMENDMENT TO REDEVELOPMENT AGREEMENT WITH PLANNED DEVELOPMENT CONSTRUCTION, INC . , MICHAEL ORIGER AND NAIM J. ELIAS (Prairie Rock Brewing Company and Restaurant) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Ed Schock, Mayor, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute an agreement on behalf of the City of Elgin with Planned Development Construction, Inc . , Michael Origer and Naim J. Elias for the development of the Prairie Rock Brewing Company and Restaurant, a copy of which is attached hereto and made a part hereof by reference . s/ Ed Schock Ed Schock, Mayor Presented: November 17, 1999 Adopted: November 17, 1999 Omnibus Vote : Yeas 6 Nays 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk r DRAFT 10/19/99 RAGREE/PRAIRIE .RKA FIRST AMENDMENT TO REDEVELOPMENT AGREEMENT THIS AGREEMENT made and entered into this 17th day of November , 1999, by and between the CITY OF ELGIN, an Illinois municipal corporation (hereinafter referred to as the "City" ) and PLANNED DEVELOPMENT AND CONSTRUCTION, INC . , an Illinois corporation, MICHAEL ORIGER and NAIM J. ELIAS (hereinafter collectively referred to as "Owners" ) . WITNESSETH WHEREAS, the City and Owners have previously entered into a Redevelopment Agreement dated August 9, 1995 , providing for Owners to develop and operate a restaurant and microbrewery known as the Prairie Rock Brewing Company and Restaurant on the property commonly known as 127 South Grove Avenue, Elgin, Illinois, Illinois (such Redevelopment Agreement hereinafter referred to as the "Subject Redevelopment Agreement" ) ; and WHEREAS, the Owners have requested and the City has agreed to amend the Subject Redevelopment Agreement as herein provided. NOW, THEREFORE, for and in consideration of the mutual promises and undertakings contained in this agreement, and the mutual promises undertaken and contained in the original Subject Redevelopment Agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows : 1 . That the foregoing recitals are hereby incorporated into this agreement in their entirety. 2 . That Paragraph 5 of the Subject Redevelopment Agreement is hereby amended as follows : a. The total interest subsidy of $200 , 000 in the second sentence thereof is amended to read $220 , 000 . b. The interest subsidy for year five (5) in the amount of $30 , 000 in the third sentence thereof is amended to read $50 , 000 . C . The sixth sentence thereof is amended to read as follows : "For the purposes of this agreement, full time operation of the microbrewery and restaurant shall mean that the establishment is open for business to the public six days a week for a minimum of nine (9) hours each day with service during such operations to include lunch and dinner each day. " 3 . That except as expressly amended herein the Subject Redevelopment Agreement and the original terms thereof shall remain in full force and effect . IN WITNESS WHEREOF, the parties have entered into and executed this agreement on the date and year first written above . CITY OF ELGIN PLANNED DEVEL M NT C NSTRUC- TION, INC. By , By h Ed Scock, Mayor Its Presid t Attest : Attest : City Clerk Micha O ige Naim J. fas 2 City of Elgin Agenda Item No. October 6, 1999 TO: Mayor and Members of the City Council FROM: Joyce A. Parker, City Manager SUBJECT: Request from Prairie Rock Brewing Company to Revise their Development Agreement PURPOSE The purpose of this memorandum is to present to the Mayor and City Council a request from the Prairie Rock Brewing Company to revise their current Development Agreement . BACKGROUND The Prairie Rock Brewing Company (PRBC) opened its micro-brewery and restaurant facility at 127 South Grove Avenue in Elgin on October 27, 1995 . The facility consists of a micro-brewery, bar area and a restaurant with a seating capacity of 350 to 400 guests . Within the restaurant is a small banquet room with a seating capacity of 45 guests . The City of Elgin participated in the initial development of this site by providing an interest loan subsidy ($200, 000 over 60 months) to its current owners, Mike Origer and Joe Elias, and also agreed to make certain sidewalk, curb, and street repairs on Prairie Street . The Development Agreement subsidy will end in September, 2000 . The owners of PRBC have approached the City requesting the Development Agreement be revised and the interest loan subsidy continue for another period of five years at $50, 000/year. PRBC has indicated their willingness to reopen for lunch but would prefer that the current language mandating that the restaurant and brewery stay open seven days a week and nine hours per day be modified. Currently, the restaurant is closed on Monday and not open for lunch, which does not meet the requirements of the 1996 Development Agreement . Mr. Origer is in the process of developing a multi-phase plan for the future development/expansion of the brewery and has indicated that he will share those details with the City Council at its next meeting. Prairie Rock Brewing Company Development Agreement October 6 , 1999 Page 2 . The extension of the loan subsidy assistance continues to represent the original interest of the Development Agreement by providing an excellent economic development opportunity for the Center City and reflects the type of business desired to promote vitality in the area. Additionally as a result of this project, other developers have invested in the downtown making it a more dynamic, alive focal point for both citizens and visitors . COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None . FINANCIAL IMPACT The additional subsidy for 1999 would equal $12, 500 ($50 , 000 divided by 12 months = $4 , 166 . 67 X 3 months) and although not budgeted, monies could be used from greater-than-anticipated 1999 Riverboat dollars to fund the request . Future years ' subsidies would need to be included in the 2000 - 2004 Financial Plan. LEGAL IMPACT A revised Development Agreement will need to be negotiated with the principals of Prairie Rock Brewing Company. ALTERNATIVES Determine the level of participation that the City Council is willing to support and direct staff to develop an Agreement with Prairie Rock that reflects such participation. Advise Prairie Rock that the Mayor and City Council do not wish to participate in the proposed project . RECOMMENDATION It is recommended that the City Council consider extending the Development Agreement with Prairie Rock Brewing Company for five years subject to an annual approval by the City Council . Res ectfully submitted, Joy A. arker City Manager