07-116 Resolution No. 07-116
RESOLUTION
AUTHORIZING EXECUTION OF AN AMENDMENT TO DEVELOPMENT AGREEMENT
WITH WATER STREET PLACE LLC FOR THE DEVELOPMENT OF
200 N. GROVE AVENUE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that
Ed Schock, Mayor, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to
execute an Amendment to Development Agreement on behalf of the City of Elgin with Water Street
Place,LLC for the development of 200 N. Grove Avenue,Elgin,Illinois, a copy of which is attached
hereto and made a part hereof by reference.
s/Ed Schock
Ed Schock, Mayor
Presented: May 9, 2007
Adopted: May 9, 2007
Vote: Yeas: 7 Nays: 0
Attest:
s/Dolonna Mecum
Dolonna Mecum, City Clerk
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AMENDMENT TO DEVELOPMENT AGREEMENT
THIS AMENDMENT TO DEVELOPMENT AGREEMENT is made and entered into as of
the 9th day of May, 2007, by and between the City of Elgin, Illinois, a municipal corporation,
(hereinafter referred to as the "City") and Water Street Place, LLC, an Illinois limited liability
company,(hereinafter referred to as the"Developer").
WHEREAS,the City and the Developer previously entered into a Development Agreement
dated December 6,2006,relating to the City-owned property at the southwest corner of Kimball
Street and Grove Avenue, Elgin, Illinois (hereinafter referred to as the "Subject Development
Agreement"and
WHEREAS, Section 2(b)of the Subject Development Agreement provides in part for the
Developer to provide to the City within the 120-day Feasibility Period further specified
documentation in the form of a market study to demonstrate and validate to the City's reasonable
satisfaction the Developer's projected sales prices, lease rates and absorption schedule for the
proposed Mixed Use Residential and Commercial Development on the Subject Property such that the
City can independently determine that it is likely to receive the estimated tax increment revenue and
sales tax for the proposed Mixed Use Residential and Commercial Development on the Subject
Property;and
WHEREAS,Developer provided the City the market study referred to in Section 2(b)of the
Subject Development Agreement on April 6,2007;and
WHEREAS,pursuant to Section 2(b)of the Subject Development Agreement the City has
forty-five(45)days from the receipt of such market study to provide written notice to the Developer
to terminate the Subject Development Agreement in the event such documentation does not
demonstrate and validate to the City's reasonable satisfaction the Developer's proposed sales prices,
lease rates and absorption schedule for the proposed Mixed Use Residential and Commercial
Development on the Subject Property such that the City can independently determine it is likely to
receive the estimated tax increment revenue and sales tax for the proposed Mixed Use Residential
and Commercial Development on the Subject Property;and
WHEREAS,such forty-five(45)day time period in Section 2(b)of the Subject Development
Agreement will otherwise expire on May 21,2007;and
WHEREAS, the City and the Developer have mutually agreed to amend the Subject
Development Agreement by extending such forty-five(45)days time period in Section 2(b)of the
Subject Development Agreement to and including June 29,2007.
NOW,THEREFORE,for and in consideration of the mutual undertakings as set forth herein,
and in consideration of the mutual undertakings set forth in the Subject Development Agreement,
and in consideration of other good and valuable consideration,the receipt and sufficiency of which is
hereby acknowledged,the parties hereto hereby agree as follows:
1. Section 2(b)of the Subject Development Agreement is hereby amended to read as
follows:
"During such one hundred twenty (120) day Feasibility Period Developer shall
provide to the City further documentation which shall demonstrate and validate to the
City's reasonable satisfaction the Developer's projected sales prices,lease rates and
absorption schedule for the residential and retail / restaurant components of the
proposed Mixed Use Residential and Commercial Development on the Subject
./
Project as set forth in Exhibit B attached hereto such that the City can independently
determine that it is likely to receive the estimated tax increment revenue and sales tax
for the proposed Mixed Use Residential and Commercial Development on the
Subject Property. Such estimated tax increment revenue and sales tax expected to be
received by the City for the proposed Mixed Use Residential and Commercial
Development of the Subject Property for the time period ending in 2026 to be
validated are as set forth in the Water Street Place Real Estate Tax Revenue Schedule
dated September 20,2006,attached hereto and made a part hereof as Exhibit B-1.
The further documentation to be provided by the Developer to the City shall consist
of a market study from a reputable independent sales and marketing firm,appraisal
firm or real estate development consulting firm which shall analyze,among other
matters,the projected sales prices(assuming an annual price increase of not more
than 3.5%), upgrade targets, lease rates and a sales absorption schedule for the
proposed Mixed Use Residential and Commercial Development of the Subject
Property.Such market study shall include a comparable sales and leasing analysis as
part of the sales and lease pricing analysis and shall include an analysis of
comparable developments in the area as part of the absorption schedule analysis. In
the event the Developer fails to provide the City with such documentation during
such one hundred twenty(120)day Feasibility Period,then the City may,by written
notice to the Developer within ten (10) days following such one hundred twenty
(120)day Feasibility Period, elect to terminate this Agreement. In the event the
Developer does provide such documentation to the City within such one hundred
twenty(120)day Feasibility Period,and such documentation does not demonstrate
and validate to the City's reasonable satisfaction the Developer's projected sales
prices,lease rates and absorption schedule for the proposed Mixed Use Residential
and Commercial Development on the Subject Property as set forth in Exhibit B
attached hereto such that the City can independently determine that it is likely to
receive the estimated tax increment revenue and sales tax for the proposed Mixed
Use Residential and Commercial Development on the Subject Property as set forth in
Exhibit B-1 attached hereto,the City may,by written notice to the Developer on or
before June 29, 2007, elect to terminate this Agreement. If the Developer is so
notified in writing by the City on or before June 29,2007,then this Agreement shall
be canceled and null and void with no further liability of either party hereunder. In
the absence of written notice from the City to the Developer on or before June 29,
2007 electing to terminate this Agreement, or in the event the City provides the
Developer written notice on or before June 29,2007 that the City is waiving its rights
to cancel this Agreement pursuant to the provisions of this section,the City's right to
cancel this agreement pursuant to the provisions of this section 2(b)shall be deemed
waived,and this Agreement shall remain in full force and effect."
2. That in the event of any conflict between the terms of this Amendment Agreement,
and the terms of the Subject Development Agreement,the terms of this Amendment Agreement shall
control.
3. That except as expressly amended in this Amendment Agreement,the terms of the
Subject Development Agreement shall remain in full force and effect.
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IN WITNESS WHEREOF,the parties hereto have entered into and executed this Agreement
on the date and year first written above.
CITY OF ELGIN
c ock,Mayor
Attest:
1uri,1c
City Clerk
WATER STREET PLACE LLC,an Illinois
limited 1. ity company r�
By ■fi�(Cu->1 CA,lik o
Richard S.Curto,a Manager
By Ryan Companies,US,,a Manager
Its Viee-Preskient DI
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