R-39-05 Approve The Extension Of R-74-04, Pre-Redevelopment Agreement With Marquette CompaniesRESOLUTION (° 9, a 5"
A RESOLUTION TO APPROVE THE EXTENSION OF R- 74 -04,
PRE - REDEVELOPMENT AGREEMENT WITH MARQUETTE
COMPANIES
NOW, THEREFORE BE IT RESOLVED by the President and Board of Trustees of the
Village of Lemont that:
SECTION 1: R- 74 -04, Pre - Redevelopment Agreement with Marquette is extended
as follows:
a.) Subsection (4)(b) — Execution of a Redevelopment Agreement with Developer by
Jul 11th, 2005 shall be extended to September 12th, 2005.
b.) Subsection (4)(c) — Developer shall commence phase 1 construction on or before
September 30th, 2005 shall be extended to April 1st, 2006.
c.) Subsection (4)(c) — Developer shall have phase 1 substantially completed on or
before December 31, 2006 shall be extended to July 15t, 2006.
SECTION 2: Effective Date: This Resolution shall be in full force and effect from
and after its passage, approval and publication in the manner provided by law.
The Village Clerk of the Village of Lemont shall certify to the adoption of this
Ordinance and cause the same to be published in pamphlet form.
PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES
OF THE VILLAGE OF LEMONT, COOK, WILL AND DU PAGE COUNTIES ILLINOIS
on this /114' Day of Ja , 2005.
Debby Blatzer
Peter Coules
Clifford Miklos
Brian Reaves
Ronald Stapleton
Jeanette Virgilio
Attest:
AYES NAYS PASSED ABSENT
JO N F. PIAZZA, Vill. President
CHARLENE SMOLLEN, Village Clerk
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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:
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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.
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b. The Village shall commence proceedings to establish a Downtown Canal District
1 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.
X13
g.
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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:
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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
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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 4Thday of *JO , 2004.
VILLAGE OF "MONT
THE ■∎• 7. ETTE COMPANIES
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EXHIBIT A
Downtown Canal District I Redevelopment Project Area
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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
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MARQUETTE COMPANIES"
June 24, 2005
John Piazza
Village President
Village of Lemont
418 Main Street
Lemont IL 60439 -3708
Re: Marquette Property Investments Pre - Development Agreement
Dear Mayor Piazza:
The purpose of this letter is to request the Village Board to consider an extension of time
of three of the actions required in the Pre - Redevelopment Agreement between the Village of
Lemont and Marquette Property Investments, Inc. dated November 4, 2004.
As you know Marquette has been pursuing the redevelopment of the Downtown Canal
District area with all possible haste. We have accomplished the contract objectives set forth in
the agreement including:
1. Raising the investment capital for the downtown Lemont revolving land fund,
2. Purchasing the first block well in advance of our September 1, 2005 contract date
3. Master Plan preparation,
4. Retail strategy and concept for the canal amenity,
5. Zoning and regulatory code awaiting public hearing in July,
6. Financing commitment for block 1,
7. Selection of general contractor for the building, parking garage, and canal work,
8. And we are proceeding with the design development work for the phase 1 block and
public improvements with our architects and engineers.
The three actions include: 1) deadline to execute a Redevelopment Agreement: 2) the
deadline to commence construction of Phase I; and 3) the deadline to substantially complete
construction of Phase 1.
We are concerned that any delay in the progress of the project will result in a breach of our
redevelopment agreement and as a result are requesting that the deadline to execute the
Redevelopment Agreement be extended from July 11, 2005 to September 12, 2005. We have
prepared a draft of the Redevelopment Agreement and are meeting to finalize a draft for
submittal to the Village. However, in Tight of the fact that the Village Board meeting of July
11`h would require submission, review and approval of the Redevelopment Agreement by the
Village by approximately July 5`h, it is clear that there is insufficient time for a proper review
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of the document between the parties. A 60 -day extension would provide both the Village and
Marquette sufficient time to properly review and approve the Redevelopment Agreement.
The second date we are seeking to extend is the deadline to commence construction of
Phase 1 from September 30, 2005 to April 1, 2006. This extension is required to accommodate
the delay inherent with a Spring 2006 start instead of a Fall 2005 start just in case that is
necessary. We currently expect a fall construction start.
Finally we are seeking to extend the deadline to substantially complete construction of
Phase I from December 31, 2006 to July 1, 2007 given the complexity of the private /public
improvements required, and to reflect appropriate construction time given the aforementioned
date range for construction start.
We are seeking this extension to provide the parties with sufficient time to adopt a
Redevelopment Agreement that both parties agree can help accomplish the development of the
Downtown Canal District.
Your consideration of our request is greatly appreciated as we eagerly await the Village
Board decision.
We look forward to hearing from you.
Respectfully,
‘1**6/a.
Bruno Bottarelli
Managing Director
The Marquette Companies
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