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R-72-04 11/04/2004RESOLUTION _ itz. pl,/ A RESOLUTION ENTERING INTO A PRE - REDEVELOPMENT AGREEMENT WITH MARQUETTE PROPERTY INVESTMENTS, INC. WHEREAS, the Village of Lemont, Cook, Will & DuPage Counties Illinois, desires to create a new Tax Increment Redevelopment Plan and Redevelopment Project from a portion of the Downtown Redevelopment Project Area to be known as the Downtown Canal District I Redevelopment Project Area NOW THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND MEMBERS OF THE BOARD OF TRUSTEES OF THE VILLAGE OF LEMONT, COOK , WILL & DU PAGE COUNTIES, ILLINOIS that: Section 1: Incorporation of Recitals: The foregoing recitals are hereby expressly incorporated into and made a part of this Resolution as if fully set forth herein. Section 2: The Mayor and Village Clerk are authorized to execute the Pre - Redevelopment Agreement attached hereto. Section 3: Effective Date: This Resolution shall become effective upon passage, approval and publication, in Book and Pamphlet form as provided by law. PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF LEMONT, COOK, WILL AND DU PAGE COUNTIES ILLINOIS on this 4 Day of nnv.n,,y, &wr , 2004 AYES NAYS PASSED ABSENT Debby Blatzer ✓ Peter Coules Brian Reaves Steven Rosendahl Ronald Stapleton v Jeanette Virgilio Attest: CHARLENE SMOLLEN, Village Clerk F. PIAZZA, Village - 1 - PRE - REDEVELOPMENT AGREEMENT WHEREAS, the VILLAGE OF LEMONT, Cook, Will & DuPage Counties, Illinois, adopted a Tax Increment Redevelopment Plan and Redevelopment Project for the Downtown Redevelopment Project Area by Ordinance No. 690, dated May 28, 1991; and WHEREAS, the VILLAGE OF LEMONT, Cook, Will & DuPage Counties, Illinois, adopted Tax Increment Allocation Financing for the Downtown Redevelopment Project Area by Ordinance No. 691, dated May 28, 1991; and WHEREAS, the VILLAGE OF LEMONT, Cook, Will & DuPage Counties Illinois, desires to create a new Tax Increment Redevelopment Plan and Redevelopment Project from a portion of the Downtown Redevelopment Project Area to be known as the Downtown Canal District I Redevelopment Project Area as described in Exhibit A hereto: IT IS, THEREFORE, agreed by and between the Village of Lemont, Cook, Will & DuPage Counties, Illinois (hereinafter "Village "), and Marquette PROPERTY INVESTMENTS, INC., and its affiliated companies (hereinafter "Developer "), as follows: 1. That the preambles are a material part hereof and are adopted by reference as a part of this Agreement. 2. The mutual goals of the Village and the Developer are as follows: a. The acquisition of certain parcels of the real property set forth in Exhibit A. b. Creation of a Master Plan for the redevelopment for the proposed Downtown Canal District I Redevelopment Project Area. c. Redevelopment by Developer of certain parcels of the Downtown Redevelopment Project Area in accordance with the Master Plan. 3. As provided in the Agreement and the final Redevelopment Agreement, the Developer shall be the sole and exclusive developer of the Downtown Canal District I Redevelopment Project Area during the term of a Redevelopment Agreement, which shall commence upon execution of the Redevelopment Agreement, which shall be on or before July 11, 2005, and not otherwise, and shall continue for 15 years after execution thereof. 4. The obligations of the Developer under this Agreement are as follows: 111253/1 a. The acquisition by the Developer of certain parcels of the real property set forth in Exhibit A shall be by purchase. The Developer shall, if at all, acquire the initial parcel of said property by September 1, 2005, if at all. The funds for such acquisition shall be provided by the Developer's capital or borrowing. 111253/1 - 2 - b. The Village shall commence proceedings to establish a Downtown Canal District I Redevelopment Project Area and a related redevelopment plan and redevelopment project and adopt tax increment finance ( "TIF ") therefore by February 14, 2005 and complete the designation, approval and adoption thereof and the execution of a Redevelopment Agreement with Developer, by July 11, 2005. The Developer shall commence the Master Planning by December 1, 2004 and complete same prior to September 1, 2005. The Village shall undertake proceedings to adopt the Master Plan immediately upon its completion. The Master Plan is to include a physical plan of Lemont's downtown area, fiscal and traffic impacts and a retail market strategy. The funds for the Master Plan shall be provided by the Developer's capital or borrowing. The developer immediately upon request shall reimburse the Village from time to time for funds advanced in connection with the preparation of the redevelopment plan and redevelopment project and designation of the Downtown Canal I Redevelopment Project Area. c. The Developer shall commence the phase 1 mixed use 5 story residential, retail and parking structure development on or before September 30, 2005; to be substantially completed on or before December 31, 2006. The Developer shall undertake further phased development after Phase I is commenced as market demand allows. The Developer may effect such further phased developments itself or by coordinated action with other developers or then present owners and tenants. In the event of any inactivity of more than 30 months between any phase and the next phase, the Developer's sole and inclusive developer designation in paragraph 3. above shall terminate, and the Village shall be allowed to deal with other owners and developers in connection with TIF benefits, subordinate to any then vested in favor of the Developer under the final Redevelopment Agreement. d. The acquisition of the required local, state, and federal permits, approvals and licenses by the Developer shall be provided by the Developer's capital or borrowing. e. The construction of the public infrastructure set forth in Exhibit B in accordance with engineering approved by the Village, and other government agencies having jurisdiction over the improvements, shall be according to the schedule for such construction or public infrastructure set forth on Exhibit B. The funds for such public infrastructure shall be advanced by the Developer's private financing and reimbursed to Developer by the TIF funds. The Developer acknowledges that TIF reimbursement of construction costs requires competitive bidding, which the Village may waive, and in any case compliance under the Prevailing Wage Law. f. The construction of the private structures is to be in accordance with the Smart Code Zones T5 and T6, and the provision of parking at the rate of 1 parking space per 1000 square feet of mixed use gross floor area. The Developer assumes the risks of applicable laws related to any private structures. g. - 3 - The Developer shall report directly to the Village President (and at the Village President's request, from time to time the Village Board of Trustees) regarding all matters related to this Agreement. h. Upon acquisition of the initial parcel (under a. above) of the real estate, the Developer shall maintain liability insurance in the following amounts: $2,000,000.00, and name the Village as an additional insured thereon; the Developer shall maintain builders all risk insurance for at least the replacement cost of construction during the construction period. 5. The obligations of the Village under this Agreement are as follows: 111253/1 a. To participate and cooperate with the Developer in the creation of the Master Plan, and to undertake proceedings to approve such Master Plan as required by law; and to undertake proceedings to zone the Downtown Redevelopment Project Area to accommodate such Master Plan by the adoption of the Smart Code and to apply Zones T5 and T6 as the exclusive zoning code for the Downtown Canal District I Redevelopment Project Area, and to undertake proceedings to adopt a parking regulation of 1 parking space per 1000 square feet of mixed use gross floor area. The Developer shall not be required to proceed with the acquisition of property until the foregoing provisions of this paragraph a. are completed by the Village. However, the Developer may choose in its sole discretion, confirmed without qualification in writing to the Village on or before July 1, 2005 to proceed with the property acquisition and assume risk that the Village will adopt the aforesaid master plan smart code and zoning for any and all development approvals. b. The Village will undertake procedures to adopt tax increment finance ( "TIF ") and a related redevelopment plan and redevelopment project and to designate Downtown Canal District I Redevelopment Project Area in the manner required by law. The Developer shall not be required to proceed with the acquisition of property until the proposed Downtown Canal District I Redevelopment Project Area, Redevelopment Plan and Redevelopment Project are designated and approved by ordinances of the Village in the manner required by law. c. The Village to the extent lawful shall make available for ground lease to the Developer for 99 years, Village owned real estate within the Redevelopment Project Area, at nominal rent, such real estate as set forth in Exhibit D to meet the requirements of the Master Plan as approved by the Village and to be used by Developer in accordance with the Master Plan and with the final Redevelopment Agreement. d. With the Developer' s compliance with this Agreement by July 11, 2005, the Village shall establish a special account within the special tax allocation fund for - 4 - the Downtown Canal District I Redevelopment Project Area for the deposit of incremental tax revenues from the Downtown Canal District I Redevelopment Project Area (or such portion thereof as agreed in the final Redevelopment Agreement) and distribute same to the Developer for reimbursement as shall be agreed upon in the final Redevelopment Agreement in paragraph 4.b. above. Incremental taxes payable to the developer shall be net of all amounts required by applicable law to be otherwise paid, including to school districts and library districts, and net of 5% of incremental taxes to be available to the Village for administrative costs related to TIF and other redevelopment project costs. e. With the Developer's compliance with this Agreement by July 11, 2005, the Village shall undertake proceedings to establish a redevelopment plan and redevelopment project for the Metropolitan Water Reclamation District property described in Exhibit C, and to adopt TIF for such property, and to enter into a redevelopment agreement with Developer related to such property upon terms to be agreed upon the time, all as permitted by law, and not later than October 1, 2006, if at all. The developer immediately upon request shall reimburse the Village from time to time for funds advanced in connection with the preparation of the redevelopment plan and redevelopment project and designation of the Downtown Canal I Redevelopment Project Area. f. The Village shall cause an appraisal to be prepared of all of the parcels in the Downtown Canal District I Redevelopment Project Area prior to February 1, 2005 for use by the Developer. 6. This Agreement shall be binding upon the Village and the Developer and their successors and assigns to the extent of applicable law and not otherwise, but in any event does not create a debt or liability of the Village within the meaning of any constitutional or statutory provision. This Agreement may not be assigned by a party without the written approval of the other party, such approval not to be unreasonably withheld. Under no circumstances shall the Village be subject to any monetary liability or be liable for damages (compensatory, punitive or otherwise) under the provisions, terms and conditions of this Agreement. Dated this 411kday of CA , __ , 2004. VILLAGE 0 "MONT THE COMPANIES / B III 111253/1 Its: Attest: Its: - 5 - Its: EXHIBIT A Downtown Canal District I Redevelopment Project Area 1 11253/ 1 - 6 - EXHIBIT B Qualified TIF public Improvement Cost Categories • Land acquisition • Public Roadways and streetscapes • Public Utilities • Canal Walk improvements • Environmental clean -up and mitigation • Parking Structures and surface parking • Public Improvement construction and project management fees EXHIBIT C Metropolitan Water Reclamation District property 111253/1 Town Builders Collaborative Partnering to Build Better Towns for America Bruno Bottarelli Director Executive Offices c/o Kensington Marquette Partners 77 West Wacker Drive, Suite 4150 Chicago, Illinois 60601 Phone:630 364 -0000 Fax:630 364 -0001 E-mail:bottarelli@tbcollaborative.com W ebsite:www.tbcol laborat ive. co m