15-63 Resolution No. 15-63
RESOLUTION
AUTHORIZING EXECUTION OF FIRST AMENDMENT AGREEMENT
TO REDEVELOPMENT AGREEMENT WITH CAPSTONE DEVELOPMENT GROUP, LLC
(100 E. Chicago Street)
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 first amendment agreement to redevelopment agreement on behalf of the City of
Elgin with Capstone Development 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: April 22, 2015
Adopted: April 22, 2015
Vote: Yeas: 7 Nays: 0 Abstain: 1
Attest:
s/Kimberly Dewis
Kimberly Dewis, City Clerk
FIRST AMENDMENT AGREEMENT
This First Amendment Agreement ("First Amendment Agreement") is made and entered
into as of the 22"d day of April, 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 the 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 "Subject Redevelopment
Agreement"); and
WHEREAS, the parties wish to enter into this First Amendment Agreement to provide
for certain amendments to the Subject Redevelopment Agreement.
NOW, THEREFORE, for and in consideration of the mutual undertakings as set forth
herein, and the mutual undertakings as set forth in the Subject Redevelopment Agreement, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:
1. That Section 3(b) of the Subject Redevelopment Agreement be and is hereby
amended to read as follows:
"(b) Developer shall, within seven (7) days following the entry into this First
Amendment Agreement commence work on all plans, specifications and permit
drawings (hereinafter collectively the "Permit Drawings") necessary for the
Required Permits (hereinafter defined). Developer shall, within sixty (60) days of
the entry into this First Amendment 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
approved by the City (collectively the "Required Permits"). In the event the
Developer is prevented from (i) acquiring merchantable fee simple title to the
Subject Property satisfactory to the Developer or its lenders in either of their
reasonable discretion and / or (ii) prevented from procuring commercial
financing, tax credits and investor equity for the Subject Redevelopment of the
Subject Property on terms acceptable to the Developer (collectively "Acceptable
Title and Financing") as a result of lawsuit(s) brought by any third party, the
Developer shall provide the City written notice thereof on or before September 1,
2015 detailing the circumstances thereof, whereupon, absent any written
agreement between the parties to further extend such written notice deadline, the
Title Acquisition Deadline and 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 deemed canceled and null and
void with no further liability of either party hereunder except for the City's
reimbursement obligation for Permit Drawings and the Developer's obligations to
convey and assign such Permit Drawings to the City as provided for in the
remainder of this Section 3(b). In the event the Developer is prevented from
acquiring Acceptable Title and Financing as a result of lawsuit(s) brought by any
third party and Developer provides the City timely written notice thereof and this
Agreement is terminated as a result thereof as provided in this Section 3(b), the
City agrees to reimburse the Developer the costs to prepare the Permit Drawings
in the total amount not to exceed $121,600 consisting of engineering costs of
approximately $41,600, structural engineering costs of approximately $25,000
and architecture fees of approximately $55,000. In the event of such
reimbursement by the City to the Developer for the costs to prepare the Permit
Drawings, the Developer shall convey and assign to the City all right, title and
interest to the Permit Drawings and such Permit Drawings shall be available for
use by the City in connection with the redevelopment of the Subject Property at
no additional cost to the City. Paper and electronic copies of the Permit Drawings
shall be provided to the City upon such an assignment to the City of the Permit
Drawings at no additional cost to the City. The City shall have the right either on
its own or through such other consultants as determined by the City to utilize
and/or amend such Permit Drawings. Developer's agreements with the persons or
entities preparing the Permit Drawings shall include a provision which allows
such assignment to and use of the Permit Drawings by the City and for the
cooperation of such persons or entities in providing copies of such Permit
Drawings to the City at no additional cost to the City."
2. That in the event of any conflict with the terms of this First Amendment
Agreement and the terms of the Subject Redevelopment Agreement, the terms of this First
Amendment Agreement shall supersede and control.
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3. That except as specifically and expressly amended in this First Amendment
Agreement, the terms of the Subject Redevelopment Agreement shall remain in full force and
effect.
IN WITNESS WHEREOF, the parties hereto have entered into and executed this First
Amendment Agreement as of the date and year first written above.
CITY OF ELGIN, a municipal CAPSTONE DEVELOPMENT GROUP, L.L.C.
Corporation A Missouri limited liability company
By ki/wt_ ,! f, iA By:
or Name: William L. Luchini
Title: Member
Attest:
4.41(1/.
ity Clerk
F:\Legal Dept\Agreement\First Amendment to Redevelopment Agr-Capstone Development-4-15-15.docx
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