15-171 Resolution No. 15-171
RESOLUTION
AUTHORIZING EXE S UTION OF SECOND AMENDMENT AGREEMENT
TO REDEVELOPMENT AG' I EMENT WITH CAPSTONE DEVELOPMENT GROUP,LLC
(100 E. Chicago Street)
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BE IT RESOLVED BY HE CITY COUNCIL OF THE CITY.OF ELGIN,ILLINOIS,that
David J. Kaptain, Mayor, and K mberly A. Dewis, City Clerk, be and are hereby authorized and
directed to execute second amen•ment agreement to redevelopment agreement on behalf of the City
of Elgin with Capstone Develop ent Group,LLC,a copy of which is attached hereto and made a
part hereof by reference.
s/David J. Kaptain
David J. Kaptain,Mayor
Presented:December 16,2015
Adopted: December 16,2015
Vote: Yeas: 8 Nays: 0 Absta n: 1
Attest:
s/Kimberl Dewis
Kimberly Dewis, City Clerk
SECOND AMENDMENT AGREEMENT
THIS SECOND AMENDMENT AGREEMENT ("Second Amendment Agreement") is
made and entered into as of the 16th day of December,2015,by and between the City of Elgin,an
Illinois municipal corporation (hereinafter referred to as the"City"); and Capstone Development
Group,LLC,a Missouri limited liability company(hereinafter referred to as"Developer").
WHEREAS, the City and Developer have previously entered into a redevelopment
agreement dated October 8, 2014, relating to the redevelopment of the Elgin Tower Building on
the property commonly known as 100 E. Chicago Street, Elgin, Illinois (such redevelopment
agreement dated October 8, 2014, is hereinafter referred to as the "Subject Redevelopment
Agreement"); and
WHEREAS,the parties entered into a First Amendment Agreement dated April 22, 2015,
to the Subject Development Agreement providing for certain amendments to Section 3(b) of the
Subject Redevelopment Agreement; and
WHEREAS,the parties wish to enter into this Second Amendment Agreement to provide
for certain further amendments to the Subject Redevelopment Agreement.
NOW,THEREFORE,for and in consideration of the mutual undertakings set forth herein,
and the mutual undertakings se forth in the Subject Redevelopment Agreement, as amended,and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged,the parties hereto agree as follows:
I. That Section 4(c) of the Subject Redevelopment Agreement be and is hereby
amended to read as follows:
"(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. Dates Development Assistance to be
paid to Developer
1 When (i) the work required to complete Fifty percent (50%) of the
the Subject Redevelopment is fifty Subject Monetary Development
percent (50%) complete, as certified to Assistance, to be deposited into
the City by the Developer's project the Developer's construction
architect and by such third-party escrow at the title insurance
architect as the City may, in its company being used by
discretion, elect to retain to oversee the Developer for making
completion of work, and as confirmed construction payouts for the
by the construction draws from the work being performed on the
construction escrow at the title company Subject Redevelopment of the
being used by the Developer for making Subject Property
construction payouts for the work being
performed on the Subject
Redevelopment and (ii) the Developer
has provided to the City evidence that
the Developer has readily available to it
(whether in the form of its own funds or
in the form of construction loan
commitments) sufficient funds to pay
for the completion of the Subject
Redevelopment.
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.
As a condition to the right to receive payment number 1 described in the above table, the
Developer shall provide to the City a completion guaranty in form attached hereto as
Exhibit B(the "Completion Guaranty"). Said Completion Guaranty shall be delivered
to the City simultaneous y with and as a condition of the City's delivery of payment number
1."
2. That in the event of any conflict with the terms of this Second Amendment
Agreement and the terms of the Subject Redevelopment Agreement or the terms of the First
Amendment Agreement, the terms of this Second Amendment Agreement shall supersede and
control.
3. That except as specifically and expressly amended in this Second Amendment
Agreement, the terms of the Subject Redevelopment Agreement shall remain in full force and
effect.
{SIGNATURE PAGE FOLLOWS}
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IN WITNESS WHERE li F,the parties hereto have entered into and executed this Second
Amendment Agreement as of th- date and year first written above.
CITY OF E 1N, a mun. •-.1 corporation,
By: pI//� f� � ! _,
Mayo
Attest:
ity Clerk
CAPSTONE DEVELOPMENT GROUP,LLC
a Missouri limited liability co ny
By:
William L.Luchini
Title: Member
F:\Legal Dept\Agreement\Redevelopment Agr- :pstone Development Group-2nd Amend-clean 12-8-15.docx
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