HomeMy WebLinkAbout99-308 t s ,
Resolution No. 99-308
RESOLUTION
AUTHORIZING EXECUTION OF A FIRST AMENDMENT TO
REDEVELOPMENT AGREEMENT WITH LEROY A. FITZSIMMONS
FOR THE DUNDEE/SUMMIT TIF DISTRICT
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Ed Schock, Mayor, and Dolonna Mecum, City
Clerk, be and are hereby authorized and directed to execute a
First Amendment to Redevelopment Agreement on behalf of the
City of Elgin with Leroy A. Fitzsimmons for the development of
the Dundee/Summit Tax Incremental Financing District as a
professional office complex, a copy of which is attached
hereto and made a part hereof by reference .
s/ Ed Schock
Ed Schock, Mayor
Presented: December 15, 1999
Adopted: December 15, 1999
Omnibus Vote : Yeas 7 Nays 0
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
f . f
FIRST AMENDMENT TO REDEVELOPMENT AGREEMENT
This First Amendment to the Redevelopment Agreement is
made and entered into this day of December, 1999,
between the CITY OF ELGIN, ILLINOIS, a municipal corporation
(hereinafter referred to as the "City" ) and LEROY A.
FITZSIMMONS (hereinafter referred to as "Developer" ) .
WITNESSETH
WHEREAS, the City and Developer entered into a
Redevelopment Agreement dated September 7 , 1999 , relating to
the Developer ' s redevelopment of the property commonly known
as the Dundee/Summit TIF District and legally described on
Exhibit A to the Redevelopment Agreement (such Redevelopment
Agreement of September 7 , 1999, hereinafter referred to as the
"Subject Redevelopment Agreement" ) ; and
WHEREAS, by way of letter of November 3 , 1999 , Developer
has requested an extension of the financing commitment as
specified in paragraph 14 of the Subject Redevelopment
Agreement and requested an amendment to Exhibit B to the
Subject Redevelopment Agreement ; and
WHEREAS, the City has agreed to the proposed amendments
to the Subject Redevelopment Agreement as hereinafter
provided.
NOW, THEREFORE, for and in consideration of the mutual
promises undertakings contained herein, the mutual promises
and undertakings contained in the 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 Section 14 (A) of the Subject Redevelopment
Agreement is herebyamended to read as follows :
g
"A. Developer ' s obligations to close under
this agreement is expressly contingent upon
Developer ' s obtaining a financing commitment
acceptable to the Developer in the amount of
$5, 000 , 000 , for the construction of the Professional
Office Complex on or before March 6, 2000 . If the
Developer is unable to obtain such a financing
commitment , the Developer shall notify the City in
writing on or before March 6, 2000 . If the City is
not so notified, it shall be conclusively presumed
that Developer has secured such financing commitment
or will purchase the Subject Property without such
financing. If the Developer notifies the City on or
before March 6 , 2000 , that it is unable to obtain
such financing commitment , the contract shall be
null and void and all earnest money deposited shall
-2-
be refunded to the Developer. The Developer shall
use reasonable efforts to secure a financing
commitment as provided herein, and any failure to
use such reasonable efforts shall constitute default
under this agreement . "
3 . That Exhibit B to the Subject Redevelopment
Agreement is hereby amended in its entirety as provided by
Exhibit B (Revised 12/3/99) attached hereto and made a part
hereof by this reference .
4 . That in the event of any conflict between the terms
of this First Amendment Agreement and the terms of the Subject
Redevelopment Agreement dated September 7 , 1999 , the terms of
this First Amendment Agreement shall control .
5 . That except as amended herein the Subject
Redevelopment Agreement between the City and the Developer
dated September 7 , 1999, shall remain in full force and effect .
IN WITNESS WHEREOF, the parties hereto have entered
into and executed this agreement on the date and year first
written above .
CITY OF ELGIN, a municipal LEROY A. FITZSIMMONS
corporation
e/ i:/.4,L
Mayor _v
Attest :
City Clerk
-3-
EXHIBIT 8 (Revised 12/3/99)
Offices Division.
3.. "Offices" [Sal (UNCL) .
Franc_, Insurance, and Real Estate Division.4 "Development sales offices" [SRI (UNCL) .
1
Fi C9, insurance, and real estate (F, .
Services Division.
8. adverdaing (731) .
inns - `
--� - lcani c 2�=nts TMt?oLlt
13 . Carpet and uaaolster? -e cn� _
plants on the premises (7217) .
,n
oc'_ologc_i . -- and
18. Commercial, economic,
5.educational research (8732) .
17. Commercial, physical , and biological research
(8731) .
18. Computer pragrmminsr, data proces_sink and
other computer related ser-riCas (737) .
-_-- ---=-- --- _20. merc'wtile
credit remor^n; agenCie- •Consumer c-„-e n
r=Porrng agencies, and adiustment and collection
agencies (732) .
-- T�,. .. __ ...- rn�— ry--_T.rTIC�s (1 L1I)
22. Detective and C`+a- e fnrnol
^2 Za=a�=_ant
2a Win,mtee_ing, accounting, _ ea
and related services. (87) .
27 Home health care set-r ces (808) .
Zoning:_
29. job training and `+OcatiOnai rehabilitation services
(833) •
nn - - _
31 . •
J�� �.,.�services (311) .
. - racroduction commercial art ant
33. Ylai-Ltn�, ,� Fyn.
liotOgraPnY, and sterOg_'•aPhic services ( � 2) .
Management and public rc..__iadons services (874) .
35 Medical and dental laboratories (807) .
3^ Membership or??=izat ohs (86) .
a .
•
/�nr1�L
A
43. News syndicates (7383) .
44. Noncommercial research organizations (8733) .
45 . Offices and clinics of den ti s is (802) .
46. Offices and clinics of doctors of medicine (801) . .
47. Offices and clinics of doctors of osteopathy (803)
48. Offices and clinics of other health practitioners
(804) • educatonal sarvic�s (829)
4.9. Other =schools and
50. Persannel su�Dly services (736) .
53. Physical fitness facilit es (7991) . and promoters
5� professional sports .
operator
.rr � \
=8 Security systems services (7382) . ,���
60. T—ax return preparation services (7291) .
r
61. Testing 1z.boratories (8734) .
62. Theatrical producers (792) .
64. Vocational schools (824) .
Retail Trade Division.
-9 . ..E_2q 3/_2/951
3u=_iness Districts
3. Drug stores and crorr_etary stcres
'`99^:.
- . _ _cd :tor-c •
-•n -r C.. --4.,� --...... • •
.,.. ..,.,
-
- r
rt. .ter- _-4
'=n°^ .
84. Optical goods stores (5995) .
_ :bccco J J._c '3O0 ) .
- - --_. :co: : -Ja _ ...-. , c /n'7a
92. Landscape counseling and piprning (0781) .
r=. --- -` -'^� c_v�;ncc /(17R^.l
95. Veterinary services for household pets (07412) .
.,C. "'_'ztY__:a__ ?_riot _nc :1 (SR]
1727JCLa. - -
-_ c _ ("Inn
a-
Wholesale Trade Division
99. Drugs, drug proprietaries, and druga sty'
sundries (5.12) .
'a"-
a_: - - -- - -- - g7
- (;
Transmortation, 7Communicrtion and Unites Division.
110. Arrnnger*ient of passenzer transportation (472) .
- c 1=
•
�ar.1nQ-
. _-_ --- J=112. •,^= States post OLIiCaS (1.:1_) .
3rafC' Unites _ __ -
l d Ca01e and oth
er her mar lon
-
enna
"Cotnmer r:21 antennas and ,t c�1 (ti -ru rLrac
i .
TOt1T-lte^_' on e�suns structures" - �_�,-.
Coramu^iCadon =er'T `
_Cas not elsewhere ias ii__-
(489)
-- . / ♦rf tl^�
122_ adio and te1eVSiOn_ __
•
-- Tecr_J b. an other y
1
-77 Teleiemessag ccmmuniC=bons (482) .
'�Dh - •
128. Te?e-chane ccmmurscst ohs (4.81) .
' ` OfE4
� oo
ti� Agenda Item No.
City of Elgin
qu
Rim) ce 4
November 17, 1999
TO: Mayor and Members of the City Council
FROM: Joyce A. Parker, City Manager
SUBJECT: Proposed Amendments to the Redevelopment Agreement
Between the City of Elgin and Leroy A. Fitzsimmons
(Dundee/Summit TIF District)
PURPOSE
The purpose of this memorandum is to present to the Mayor and
members of the City Council a request from developer Leroy A.
Fitzsimons for an extension of the financing contingency and other
amendments to the redevelopment agreement for the Dundee/Summit TIF
District .
BACKGROUND
The City and Leroy A. Fitzsimmons entered into a redevelopment
agreement dated September 7, 1999 providing for the sale and
redevelopment of the Dundee/Summit TIF District . The City is to
sell the subject property to the developer at the price of $98, 500 .
The developer is to redevelop the TIF District area into a
professional office complex.
Section 14 of the agreement provides for a financing contingency
whereby developer' s obligation to close under the agreement is
contingent upon developer obtaining a financing commitment
acceptable to the developer in the amount of $5 million for the
construction of a professional office complex within 60 days of the
execution of the agreement .
Attached is correspondence of November 3 , 1999 from developer' s
attorney, Al Anderson, advising that the developer has been unable
to secure the financing commitment as specified in Section 14 of
the redevelopment agreement within the 60-day time period and
requesting a four month extension of the financing contingency
through March 6, 2000 .
Mr. Anderson has also communicated to the Corporation Counsel the
developer' s request for an amendment to Exhibit B to the
redevelopment agreement . Exhibit B to the redevelopment agreement
is a section of the City' s zoning ordinance which provides for a
listing of permitted uses within the AB Area Business Zoning
District . The listing of such uses has been edited to provide for
the uses which would be permitted in the professional office
complex to be developed on the subject property. A copy of Exhibit
•
Proposed Amendment to Redevelopment Agreement
with Leroy Fitzsimmons Re : Dundee/Summit TIF District
Page 2
November 17, 1999
B is attached. In the preparation and editing of this listing of
uses, developer' s attorney deleted from the miscellaneous uses
division thereof certain accessory uses which would customarily and
reasonably be expected to be included within a professional office
complex development . These accessory uses which are currently
excluded from the listing in Exhibit B to the redevelopment
agreement include such accessory uses as parking lots, signs and
storage tanks . Developer' s attorney is requesting an amendment to
Exhibit B to the redevelopment agreement to allow for such uses as
accessory uses to the professional office complex.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None .
INANCIAL IMPACT
0114--
None .
N LEGAL IMPACT
An amendment to the redevelopment agreement will be required to
provide for the requested extension of the financing contingency
and the amendment to Exhibit B.
ALTERNATIVES
1 . Approval of the proposed amendments to the redevelopment
agreement .
2 . Rejection of the proposed amendments to the redevelopment
agreement which will result in the termination of the
redevelopment agreement .
RECOMMENDATION
It is recommended that the City Council agree to the requested
amendments to the redevelopment agreement with Leroy A. Fitzsimmons
and that formal contract amendment be prepared to provide for such
amendments .
Respectfully submitted,
Joyce A. Parker
City Manager
WAC/mg
Attachment
•
ARIANO, ANDERSON, HARDY & CASTILLO, P.C.
ATTORNEYS AT LAW
FRANK V.ARIANO 474 SUMMIT STREET WILLIAM F. CASTILLO
ALLEN M.ANDERSON ELGIN, ILLINOIS 60120-3829 (1949 - 1997)
RALPH C. HARDY TELEPHONE (847) 695-2400
BRETT E.ANDERSON FACSIMILE (847) 695-8397 OTHER OFFICE
HARRIS BANK BUILDING
SCOTT G. RICHMOND Writer's Direct Dial: (847) 289-6052 10604 VINE STREET(RT. 47)
KARRSTEN GOETTEL ama@ariand.com
JULIO CESAR VALDEZ HUNTLEY, IL 60142
CHRISTINE A.TAKATA November 3, 1999
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
City of Elgin
c/o Ms. Joyce Parker
City Manager
150 Dexter Court
Elgin, IL 60120-5555
RE: City of Elgin - Fitzsimmons
Redevelopment Agreement dated 9-7-99 (Dundee Avenue and Summit Street TIF
Property)
Dear Ms. Parker:
On behalf of Leroy A. Fitzsimmons, please be advised that he has been unable to
secure the financing commitment as specified in paragraph 14 of the Development
Agreement within the sixty (60) days of execution of the agreement. Mr. Fitzsimmons is
requesting a four month extension of the financing contingency through and including
March 6, 2000.
Although Mr. Fitzsimmons has had a favorable indication from his lender, First
Community Bank, the problem with the financing seems primarily to be a result of the most
recent disclosure of contaminated ground water on the above-identified property. As you
may be aware, Mr. Fitzsimmons has engaged an environmental consultant and is
proceeding not only with Phase I analysis of the entire property, but is aggressively pursing
a Phase II analysis of that portion of the property that is adjacent to the Amoco Station and
the identified discharge plume in the expectation that the financing and the development of
the project is still viable.
Mr. Fitzsimmons,in anticipation of reaching an agreement with the City regarding this
financing request, is continuing with his development obligations and will be submitting the
contemplated Professional Office Complex Plans on or before November 5, 1999. However,
to remain "in contract", we need to document this extension as we work through this and the
other issues regarding the development and related contract issues.
•
•
Ms. Joyce Parker, City Manager
November 3, 1999
Page 2
I will await your response.
Very truly yours,
Allen M. Anderson
AMA/gj
cc: VMr. Bill Cogley
Mr. Leroy Fitzsimmons
First Community Bank
(GloriaLettersFitzsimmons(Dundee Tif)Parker Ltr I 1-02-99)
s
EXHIBIT B
Offices Division.
3.. "Offices" [SR] (UNCL) .
Finance, Insurance, and Real Estate Division.
• 4. "Development sales offices" [SR] (UNCL) .
5. Finance, insurance, and real estate (H) .
Services Division.
6. Advertising (731) .
�-A.LLL LU4vC y� LL.-L dull . "L'3 uij .vi ..+ __
E. 72.. �cc:a tmd
9. 3a:cc. :to-cc r
l .
__+^_ rnrl y% I
13. Carpet and upholstery cleaning agents without
plants on the premises (7217) .
cY az:mc--- :c'z1=L'chm== 799') .
16. Commercial, economic, sociological and
educational research (8732) .
17. Commercial, physical, and biological research
(8731) .
18. Computer programming, data processing and
other computer related services (737) •
a 1 ,. /n nn
_0 , Com:utc: �_�_ -_d i_cacir_g , j
20. Consumer credit reporting agencies, mercantile
reporting agencies, and adjustment and collection
agencies (732) .
2, '- ;"
Dan cc at.-ci_ae and _Znoo... 91
22. Detective and guard services (7381) .
'72 . iAiftY_OQl- 3iMi 31J6-7a11v
24. Engineering, accounting, research, management
and related services (87) .
ns •Tunoral fcr ,
26. Cs__cnt 'Dr_cc'.rg, and ag=ntc
dry 31canorc
27. Home health care services (808) .
'28 . " - 'c'' rSR; ;�'0'
_o`c!; �nc a�o�c_ -.
(E:c:a 8/:.8/95) 19.35-23
Zoning
29. Job training and vocational rehabilitation services
(833) *l
T i
-
31. Legal services (811) .
n n T .1+ (-84
33. Mailing, reproduction, commercial art and
photography, and stenographic services (733) .
34. Management and public relations services (874) .
35. Medical and dental laboratories (807) .
36. Membership organizations (86) . ron .�
.ff -
•
FTg4z�'• "" -
lit?) •
/n n A
^ ` y - - .
43. News syndicates (7383) .
44. Noncommercial research organizations (8733) .
45 . Offices and clinics of dentists (802) .
46. Offices and clinics of doctors of medicine (801) .
47. Offices and clinics of doctors of osteopathy (803) .
48. Offices and clinics of other health practitioners
(804) .
49. Other schools and educational services (829) .
50_ personnel supply services
53. Physical fitness facilities (7991) . romoters
54. Professional sports operators and p
(7941)• /n ^AA
rcnair ;'.
_ - - _ _ -
58. Security -systems services (7382) . (^,)=
60. Tax return preparation services (7291) .
61. Testing laboratories (8734) .
62. Theatrical producers (792) .
'r '--�,Ci ',721)
64. Vocational schools (824) .
Oe. Wct _ - --- -- - _ .
Retail Trade Division.
i} - - -
i
C3.
Carryout rcbtc.urantz ;5g12) .
n U.ii a.
19.35-24 (-c:g:n 3/Z9/96)
4 Business Districts
73. Drug stores and /proprietary stores (591) .
Bating pla.nc 1�,•
73 . T'_orictc (5 Q9..}•
i C. Food
77. C.ror111 mordl ar./44 -, ^-r me /-4Z 1
m t
. \\ • _ _
gt`lapcc (=71• �- �lcs"`'1.Gii2
s- M c c�Ci2c n n� -cam=' : J C
CO. Miac:"e.-- 'a ; cdc „-orcn
1 . 1u.i:c :�c... rem y 3 o��
C2. Veto_ vehicle ica!_aro ;500^.)
84. Optical goods stores (5995) .
8G . 'Yhztcecr _sty
and �_� _--s `aoiL':�r�, qR 1
CC. Taoacco ;50Gs) .
JG. otcrac ;50', .
.•1J. Dog ;,-_-corning ,_/5_rnn�n�
. -
CO. ra_= 'labor and c1anag=__r-- r���ac rn7g1.
92. T.andscape counseli and planning
— --Cg. Or-^—cnt_^_ -C art' r �= rn7R11'
.h
95. Veterinary services for household pets (0742) .
CC. "C3Lt_'acto_c a f:oo and
_'7� �_ [SRJ
ri
T:
07. Cc W.-C-=-G- 1.,rinting '_CC'- `ti'^'1 - nnZ
CCU. C cC-:
Wholesale Trade Division .5;s
, g"�cdo and. no tong
,
CO. ..zYczc_ r-__� �� and druggists
99. Drugs, drug proprietaries,
sundries (512) .
100. '21cctri.cial gc�'t r,nal �g= ��
01 __� �cTc `ur~�:=.i_ !=n .
y . L uc.uC .. (,511 �"
102. -Groc__:c3 _ d =c'.ctcd crccu .
and cipp':^= r=(17) _s✓r�cc ;53G
04. 11cch:.Lc_, , :� c__t, -- ) .
• ' ' tiartc �a
yG'G. ? ter vc c_ci and Tcta_ =�Clo
164. i GDGP an,"
i 0G.
'transportation, Communication and Utilities Division.
J 1 /TT TCT
10C. "_1...ct..sr :ad:e artc nr.co.t
no. Arrangement of passenger transportation (472) .
,__;I: 3/:8/96) 19.35-25
4 Zoning
112. Branch United States post offices (4311)�., •
• - ✓
114. Cable and other pay television services (484) .
115. "Commercial antennas and antenna LstrCuIc)ures
mounted on existing structures" [
116.
Communication services not elsewhere classified
(t89)
n
- - -5 T " rc 1 TT. T ) .
t
122. Radio and television broadcasting stations r\s83) .
n 11- rCT11 /TT\Tf'T \
_ • f * J 1. 1 •
r_•• +
1 1 -
127. Telegraph an other message communications (482)
128. Telephone communications ( .81) ._
" ------- - -- :T e-
-
Miscellaneous Uses Division• r_o„T T�,al
it r
- rf -- �,� 1 Gr
,.T fr _ ../T " rr'' 1 (TT.T('T 1
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1 9 .35-26 -- 3/:9/961