R-05-00 01/24/2000RESOLUTION R - 5 - c
RESOLUTION AUTHORIZING EXECUTION OF A TAX
INCREMENT FINANCE REDEVELOPMENT AGREEMENT
WITH THE STOUGH GROUP FOR DEVELOPMENT OF A
SENIOR HOUSING PROJECT
WHEREAS, the Village of Lemont seeks to enter into a TIF Redevelopment Agreement to
facilitate construction of a 43 unit senior citizen housing development on property located south of
the Illinois & Michigan Canal, east of Holmes Street, and
WHEREAS, the Redevelopment Agreement is necessary to provide for financing
commitments related to the use of developer generated TIF funds, and
WHEREAS, the Village and Stough Group have agreed that the terms and conditions of this
agreement and seek to proceed with the project redevelopment.
NOW, THEREFORE, BE IT RESOLVED the Redevelopment Agreement attached hereto
as Exhibit A is hereby approved.
PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF LEMONT, COUNTIES OF COOK, WILL, AND DU PAGE, ILLINOIS,
on this 24th day of January , 2000.
John Benik
Debby Blatzer (/
Keith Latz
Connie Markiewicz
Rick Rimbo
Mary Studebaker
AYES NAYS PASSED ABSENT
V
NE SMOLLEN, Village Clerk
Approved by me this 24th day of , r 000.
i
CH•'��
Atte t:
HARLENE SMO LEN, Village Clerk
rm:
illage A
Date:
Village President
Recording Requested by and
When Recorded Return to
Katharine L. Bensen
Schiff Hardin & Waite
6600 Sears Tower
Chicago, IL 60606
Box 408
Common Address:
800 North Main Street
Lemont, Illinois 60439
Tax Identification Nos.
See Exhibit B
REDEVELOPMENT AGREEMENT
BETWEEN
VILLAGE OF LEMONT, ILLINOIS
and
LEMONT SENIOR HOUSING L.P.I.
Dated: as of January 24, 2000
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TABLE OF CONTENTS
Page
ARTICLE I — RECITALS PART OF AGREEMENT 3
ARTICLE II — MUTUAL ASSISTANCE 4
ARTICLE 111 — DEVELOPMENT OF THE PROJECT 4
Section 3.01 Development Plan. 4
Section 3.02 Modifications 7
Section 3.03 Utilities and Fees 7
Section 3.04 Access Parcel Acquisition and Dedication; Road Construction 7
Section 3.05 Street Vacations 7
Section 3.06 Costs of Developer Infrastructure Improvements 7
Section 3.07 Indemnity 8
Section 3.08 No Liens 8
Section 3.09 Insurance 8
ARTICLE IV — OBLIGATIONS AND DISBURSEMENTS 8
Section 4.01 Allocation of Financing Responsibility 8
Section 4.02 Financing of Developer Infrastructure Improvements 9
Section 4.03 Senior Lien Bonds 9
Section 4.04 Junior Lien Note 9
Section 4.05 Disbursements 10
Section 4.06 Procedures for Payment 10
Section 4.07 Rights of Developer's Lender 11
Section 4.08 Right to Inspect 11
ARTICLE V — COMPLETION 11
Section 5.01 Certificate of Completion 11
Section 5.02 Form of Certificate 11
Section 5.03 Agreement to Pay Taxes 12
ARTICLE VI — AUTHORITY 12
Section 6.01 Actions 12
Section 6.02 Powers 12
Section 6.03 Authorized Parties 12
ARTICLE VII — GENERAL PROVISIONS 12
Section 7.01 Time of Essence 12
Section 7.02 Breach 13
Section 7.03 Amendment 13
Section 7.04 Entire Agreement 13
Section 7.05 Assigns 13
Section 7.06 Severability 13
Section 7.07 Illinois Law 13
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Section 7.08 Notice 14
Section 7.09 Counterparts 14
Section 7.10 Recordation of Memorandum of Agreement 15
Section 7.11 Consent or Approval 15
Section 7.12 Recourse 15
Section 7.13 Conflict of Interest: Village's Representative Not Individually Liable 15
EXHIBIT A — Site Plan A -1
EXHIBIT B — Legal Description of Redevelopment Project Area and PIN Numbers B -1
EXHIBIT C — Developer Infrastructure Improvements and Related Fees and Expenses C -1
EXHIBIT D — Plat of Right of Way Dedication D -1
EXHIBIT E — Projected Incremental Site Taxes E -1
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REDEVELOPMENT AGREEMENT
THIS REDEVELOPMENT AGREEMENT (this "Agreement "), is made and entered into as
of the 24th day of January, 2000, by and between the VILLAGE OF LEMONT, ILLINOIS, an Illinois
municipal corporation located in Cook County, Illinois (the "Village "), and LEMONT SENIOR HOUSING
L.P.I., an Illinois limited partnership (the "Developer ").
RECITALS
A. The Village is a duly constituted and existing municipality, created under the laws
of the State of Illinois.
B. The Village has the authority to promote the health, safety and welfare of the
Village and its inhabitants, to encourage private development in order to enhance the local tax base,
create employment and ameliorate blight, and to enter into contractual agreements with third persons to
achieve these purposes.
C. Pursuant to the Tax Increment Allocation Redevelopment Act of the State of
Illinois, 65 ILCS 5/11- 74.4 -1, et. seq., as from time to time amended (the "Act "), the President and Board
of Trustees of the Village are empowered to undertake the redevelopment of a designated area within its
municipal limits in which existing conditions permit such area to be classified as a "conservation area"
as defined in Section 11.74.4 -3(b) of the Act.
D. The Village authorized the preparation of a Redevelopment Project and Plan by
Trkla, Pettigrew, Allen & Payne, dated March, 1991 (the "Redevelopment Project and Plan "), concerning
the Downtown Lemont Redevelopment Project Area (the "Redevelopment Project Area "), all within the
corporate limits.
E. In accordance with the requirements of the Act, the Village held and conducted
a public hearing with respect to the Redevelopment Project and Plan, the Redevelopment Project Area
and the redevelopment project described in such Redevelopment Project and Plan at a meeting of the
President and the Board of Trustees held on May 13, 1991.
F. In accordance with the requirements of the Act, the President and Board of
Trustees of the Village, pursuant to Ordinance No. 690, adopted by the President and Board of Trustees
of the Village on May 28, 1991, approved the Redevelopment Project and Plan for the Redevelopment
Project Area.
G. In accordance with the requirements of the Act, the President and Board of
Trustees of the Village, pursuant to Ordinance Nos. 689 and 691, respectively, adopted by the President
and Board of Trustees of the Village on May 28, 1991, designated the Redevelopment Project Area as a
redevelopment project area (as that term is defined by the Act) and adopted tax increment allocation
financing for the Redevelopment Project Area pursuant to the Act for the purposes of implementing the
Redevelopment Project and Plan for the Redevelopment Project Area.
H. The President and Board of Trustees of the Village have determined that the
blighting factors described in the Redevelopment Project and Plan are detrimental to the public and
impair development and growth in the Redevelopment Project Area, with the result that it is necessary
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to incur extraordinary costs in order to develop the Redevelopment Project Area. The blighting factors
in the Redevelopment Project Area will continue to impair growth and development but for the use of tax
increment financing to pay Redevelopment Project Costs (as defined in the Act) which necessarily must
be incurred to implement the aforesaid program of redevelopment.
In furtherance of its commitment to develop the Redevelopment Project Area, the
Village has from time to time invited and solicited proposals from qualified developers for redevelopment
of certain land within the Redevelopment Project Area in an effort to encourage its revitalization as
outlined in the Redevelopment Project and Plan.
J. The Developer has proposed to build senior citizen housing development units
consisting of nine one -story buildings containing in the aggregate 43 one bedroom units, together with
a resident manager's unit, a 3,000 square foot community center, a coach house containing living quarters
for a maintenance person and 63 parking spaces (the "Housing Development "). The Parties to this
Agreement agree the Housing Development will provide much needed housing facilities in the Village
for senior citizens. The Housing Development will be built in substantial conformity with the site plan
attached to this Agreement as Exhibit A (the "Site Plan ") on the portion of the Redevelopment Project Area
legally described in Exhibit B to this Agreement (the "Site ").
K. The Developer also proposes to construct certain improvements, including the
Road described in paragraph L below and certain off-site improvements with respect to the Housing
Development, all identified on Exhibit C attached to this Agreement. The improvements described in
Exhibit C are referred to collectively in this Agreement as the "Developer Infrastructure Improvements."
L. The Site is bordered to the North by the Illinois and Michigan Canal (the "Canal "),
on the East by land owned by a person other than the Developer, on the South by the Illinois Central
Railroad and on the West by land owned by Alan Senffner ( "Senffner "), and therefore contains no ingress
or egress to public streets. Senffner has offered to sell to the Village the portion of the real estate adjoining
the Site to the West and depicted in the Site Plan (the "Access Parcel ") in order to enable the Developer
to construct a road, consisting of an extension of Talcott Street both within the Access Parcel (running
from the Western perimeter of the Site to the eastern edge of Holmes Street) and within the Subdivision
itself (collectively, the "Road ").
M. To induce the Developer to construct the Housing Development and to construct
the Developer Infrastructure Improvements (collectively, the "Project "), the President and Board of
Trustees of the Village have determined that it is in the best interest of the Village and the health, safety,
morals and welfare of its residents for the Village to (i) acquire the Access Parcel, (ii) acquire from the
Developer the Road and pay for the acquisition from the Developer on June 30, 1999, of an
approximately fifty (50) foot wide strip of land within the Site and adjacent to the Canal (the "Canal
Reserve Strip "), in each case as depicted on Exhibit A, for a purchase price of $250,000, (iii) vacate that
portion of Grant Street located within and adjacent to the western boundary of the Site, and (iv) issue its
senior lien tax increment financing revenue bonds and a junior lien tax increment financing revenue note
pursuant to the Act, with (a) the proceeds from the sale of such bonds being used by the Village to acquire
that portion of the Road not contained within the Access Parcel and the Canal Reserve Strip and (b) the
proceeds from the sale of such note being used to finance the Developer Infrastructure Improvements and
pay the related fees and expenses described in Exhibit C, in each case pursuant to the Act.
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N. This Agreement has been submitted to the President and Board of Trustees of the
Village for consideration and review, and, after publication of a ten day notice for comment, questions
and alternate proposals, the President and Board of Trustees of the Village have taken all actions required
to be taken prior to the execution of this Agreement in order to make the same binding upon it according
to its terms.
O. The President and Board of Trustees of the Village, after due and careful
consideration, have concluded that the development of the Site for the Project as provided for in this
Agreement and in the Redevelopment Project and Plan and the provision to the Developer of the benefits
described in paragraph M above will further the growth of the Village, facilitate the redevelopment of the
entire Redevelopment Project Area, improve the environment of the Village, increase the assessed
valuation of the real estate situated within the Village, foster increased economic activity within the
Village, increase employment opportunities within the Village, further the goals of the Redevelopment
Project and Plan, enable the Village to further direct the development of the Redevelopment Project Area,
and otherwise be in the best interests of the Village by furthering the health, safety, morals and welfare
of its residents and taxpayers.
P. The Village is desirous of having the Site developed for the Project in order to
serve the needs of the Village community and in order to produce increased tax revenues for the various
taxing districts authorized to levy taxes within the Redevelopment Project Area; and the Village, in order
to stimulate and induce the development of the Redevelopment Project Area, has agreed to finance the
Developer Infrastructure Improvements through tax increment revenues, and through the issuance of
senior lien tax increment financing revenue bonds, and a junior lien tax increment financing revenue note
all in accordance with the terms and provisions of the Act and this Agreement.
NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and
agreements contained in this Agreement, and other good and valuable consideration, the receipt and
sufficiency of which are acknowledged, the Village and the Developer agree as follows:
ARTICLE 1
RECITALS PART OF AGREEMENT
The representations and recitations set forth in the foregoing recitals are material to this
Agreement and are incorporated into and made a part of this Agreement as though they were fully set
forth in this Article 1.
ARTICLE 11
MUTUAL ASSISTANCE
The Village and the Developer agree to take such actions, including the execution and
delivery of such documents, instruments, petitions and certifications (and, in the Village's case, the
adoption of such ordinances and resolutions), as may be necessary or appropriate to carry out the terms,
provisions and intent of this Agreement and to aid and assist each other in carrying out said terms,
provisions and intent of this Agreement.
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ARTICLE I11
DEVELOPMENT OF THE PROJECT
Section 3.01 Development Plan.
(a) Although the scope and detail of the construction of the various
components of the Project (sometimes referred to in this Agreement as the "Work ") shall be set
forth in the Final Plans (as defined in Section 3.01(g) below), the summary of certain aspects of
the Work provided in this Section 3.01 shall serve as a general guide to the development of the
Final Plans and the Parties' intent with respect to the scope of the Work. The Developer shall
coordinate all Work, if any, to be performed by public utility companies installing on -site electric
power lines, telephone lines and gas mains, including main feeder lines, conduits, piping, wiring,
valves, manholes and other appurtenant devices within the Site to provide service to the Project,
as may be necessary or appropriate to implement the Final Plans and to satisfy all Legal
Requirements (as defined in Section 3.01(d) below).
(b) The Housing Development shall include, without limitation, nine one -
story buildings containing in the aggregate 43 one bedroom units, together with a resident
manager's unit, a 3,000 square foot community center, a coach house containing living quarters
for a maintenance person and 63 parking spaces.
(c) The Developer Infrastructure Improvements shall be constructed on the
Site and shall include, without limitation, installation of the following:
(i) site preparation, including grading of land;
(ii) infrastructure improvements, including roadways, curbs, gutters,
sidewalks, lighting standards (including concrete bases, conduits, fittings and fixtures), a
drainage system, water mains and sanitary sewers;
(iii) landscaped areas, including landscape buffers along the perimeter
of the parcels within the Site (including tree drains) required in the maintenance of the
Site; and
(iv) parking lot striping and painting.
all generally in accordance with the Site Plan and specifically as may be necessary or appropriate to
implement the Final Plans and to satisfy all Legal Requirements.
(d) The design documents shall comply with all applicable federal, state,
county, municipal or administrative laws, ordinances, rules, regulations, codes and orders
(collectively, the "Legal Requirements ") relating in any manner to the Work.
(e) Subject to the terms, conditions and provisions provided below, the
Developer has the following general responsibilities (which are not all inclusive) for the planning,
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design, development, construction and installation of the Work (with the technical assistance of
such qualified outside consultants as the Developer, in its discretion, may retain):
(i) providing all plans and specifications for the Project (collectively
referred below to as the "Preliminary Plans" until such time as they shall be separately
approved as the Final Plans) which may be necessary for the Work (except for the
portions of such Work for which plans and specifications shall be provided by utility
companies);
(ii) providing qualified full -time field personnel for inspecting and
reviewing the Work progress and construction of the Work, including final inspection and
certification by Developer that, to the best of its knowledge, all Work, as constructed,
conforms with the approved Final Plans;
(iii) preparing and updating a master activity schedule (the
"Construction Schedule ") with respect to the design and construction of all Work, which
Construction Schedule is to be submitted to the Village for approval as to format and
content and which is to include a program to update said schedule;
(iv) holding periodic project coordination and progress meetings
among the Developer, the Village and maintaining and distributing memorandum notes
concerning all such meetings, including confirmations of decisions, reports and
correspondence, together with the performance of appropriate administrative duties to
accomplish appropriate follow -up;
(v) providing, either alone or in conjunction with the Developer's
advisers and consultants, the appropriate coordination of all planning and construction
of the Work, including the directing and scheduling of construction, all field inspections,
tests, surveys and other activities related to the construction of the Work; and
(vi) furnishing line and grade surveying services as well as an "as-
built" survey, which shall be furnished as soon as reasonably possible after completion
of the Work and which as -built survey shall show the boundaries of the Site, the parking
facilities and the location of utilities on the Site.
(f) The Developer shall engage the services of architects, soil engineers,
structural engineers, lighting, heating, ventilating and air conditioning, life safety and other design
consultants, as Developer shall deem necessary and appropriate, to prepare design documents.
G. The Village shall expeditiously review all Preliminary Plans and the
Village shall promptly notify the Developer of its specific objections to the Preliminary Plans and
of any requested modifications, alterations or additions. Any proposed modifications, alterations
or additions to the Preliminary Plan, or deletions therefrom, if possible, shall be prominently noted
on the plan or drawing so affected or shall otherwise be clearly stated. The Parties shall meet as
often as reasonably necessary to resolve and adjust any such objections or proposals with a view
toward developing the Preliminary Plans in their final form. The Village shall approve separately
the final plans for the Project (the "Final Plans "), one copy of which shall be maintained by the
Village at the Village Hall. The Parties may agree to approve a portion of the Final Plans before
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the remainder of the plans are approved as Final Plans. Material changes may be made in the
Final Plans only upon the prior written agreement of the Village.
H. The Developer shall secure all authorizations, permits and licenses,
including those of a temporary nature, as may be necessary for the construction and intended use
of the Work from all governmental authorities, and the Village shall reasonably assist the
Developer in securing such regulatory approvals from the Village and from other governmental
authorities. The Village agrees to use its best efforts to complete their review as promptly as
practical of all plans, drawings, specifications, license and permit applications and requests for
approvals submitted by the Developer in connection with the Work, provided that the
Developer's submittals are complete and accurate and contain all of the information required by
the applicable ordinances or other Legal Requirements.
Upon approval of the Final Plans, the Developer shall enter into one or
more written contracts for the Work (collectively, the "Construction Contracts ").
j. Promptly (weather permitting) after approval of the Final Plans, the
Developer shall cause the respective Work on such parcel to be constructed in a good and
workmanlike manner and in substantial conformity with the Final Plans. All Work shall be
prosecuted in compliance with any and all permits and approvals received in connection with
the Work. The Construction Contracts shall provide for the completion of the Work in
accordance with the Construction Schedule. The Developer agrees with the Village to use its best
efforts to cause all of the Work to be timely completed in accordance with the Construction
Schedule.
K. Time is of the essence of this Agreement; however, a Party shall not be
deemed in material breach of this Agreement with respect to any obligations of this Agreement
on such Party's part to be performed if such Party fails to timely perform the same and such failure
is due in whole or in part to war, insurrection, riots, floods, earthquakes, fires, casualties, acts of
God, epidemics, quarantine restrictions, freight embargoes, inability to procure materials, acts
caused directly or indirectly by the other Party (or such other Party's agents, employees or
invitees) or similar causes beyond the reasonable control of such Party ( "Force Majeure"). If one
of the foregoing events shall occur or either Party shall claim that such an event shall have
occurred, the Party to whom such claim is made shall investigate same and consult with the Party
making such claim regarding the same and the Party to whom such claim is made shall grant an
extension for the performance of the unsatisfied obligation equal to the period of the delay, which
period shall commence to run from the time of the commencement of the Force Majeure,
provided that the failure of performance was reasonably caused by such Force Majeure.
L. Promptly after completion of the Project in accordance with this
Agreement, the Village shall furnish the Developer with appropriate instruments so certifying. The
certification by the Village shall be conclusive determination of satisfaction and termination of the
Developer's covenants with respect to the construction and completion of the Work required by
the Final Plans. The certification shall be in such form as will enable it to be recorded.
Section 3.02 Modifications. The construction of the Project may be modified or revised
by the Developer, with the Village's and Developer's approval, or to provide for other improvements
comprising less than the square footage provided for in this Agreement, provided that the projected
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incremental taxes from such constructed development, in the aggregate, are not less than the projected
incremental taxes, and further provided that the incremental taxes as a result of such modification are not
less in the aggregate in any year than those projected in the feasibility report used as a basis for issuance
of the Senior Lien Bonds. No modifications shall be made to the Project which, in the opinion of Schiff
Hardin & Waite, would affect the tax - exempt status of the Senior Lien Bonds or the Junior Lien Note.
Section 3.03 Utilities and Fees. The Village hereby agrees that the Developer shall
have the right to connect any and all on -site water lines, sanitary and storm sewer lines constructed on
the Site to Village utility lines existing at or near the perimeter of the Site. The Village agrees that the
Developer shall be obligated to pay, in connection with the development of the Site, only those water,
sanitary sewer, building permit, engineering, inspection, and other fees imposed by entities other than the
Village and the Village shall waive fees of the foregoing type that would otherwise be imposed by the
Village.
Section 3.04 Access Parcel Acquisition and Dedication; Road Construction. The
Village represents that it has acquired and dedicated the Access Parcel as a public right of way. The
Developer agrees to construct the Road as part of the Developer Infrastructure Improvements and agrees
that the Road shall be part of the municipal public street system of the Village, serving as a through street
and serving the residents of the Village and the Housing Development.
Section 3.05 Street Vacations. The Village agrees to vacate (i) the portion of Grant
Street located within and adjacent to the western boundary of the Site, (ii) the portion of Catherine Street
located north of Main Street and within the Site, (iii) the portion of Julia Street located north of Main Street
and within the Site and (iv) the portion of Grove Street located east of Grant Street and within the Site, all
as depicted in more detail on the Plat of Right of Way Vacation attached to this Agreement as Exhibit D.
Section 3.06 Costs of Developer Infrastructure Improvements. The Village and the
Developer agree that the Developer shall cause the construction of the Developer Infrastructure
Improvements for a stipulated lump sum in the amount indicated on Exhibit C, which amount also
includes fees and expenses related incurred by the Developer to such construction and implementation
of the Redevelopment Project and Plan as set forth in more detail in Exhibit C. The Developer reserves
the right to reallocate dollars between and among line items as may be desirable or necessary to
implement the Redevelopment Project, provided that such re- allocation is consistent with the terms of the
Redevelopment Project and Plan and the Act and does not, in the opinion of Schiff Hardin & Waite, affect
the tax - exempt status of the Junior Lien Note (as defined in Section 4.05). The cost for the Developer
Infrastructure Improvements shall be paid in accordance with Article IV of this Agreement. The Developer
Infrastructure Improvements shall be owned by the Village.
Section 3.07 Indemnity. The Developer covenants and agrees, at its expense, to pay,
and to indemnify and save the Village, and its officers, agents, employees and attorneys (the "Indemnitee ")
harmless of, from and against, any and all claims, damages, demands, expenses, and liabilities resulting
directly from the Developer's development activities with respect to the Project, unless such claims,
damages, demands, expenses, or liabilities, arise by reason of the negligent act or omission of the Village
or other Indemnitee.
Section 3.08 No Liens. No mechanics' or other liens shall be established or remain
against the Developer Infrastructure Improvements, or the funds in connection with any of the Developer
Infrastructure Improvements, for labor or materials furnished in connection with any acquisition,
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construction, additions, modifications, improvements, repairs, renewals or replacements so made.
However, the Developer shall not be in default if mechanics' or other liens are filed or established and
the Developer, as agent for the Village, contests in good faith said mechanics' liens and in such event may
permit the items so contested to remain undischarged and unsatisfied during the period of such contest
and any appeal therefrom. The Developer hereby agrees and covenants to indemnify and hold harmless
the Village in the event any liens are filed against the Housing Development or the Developer
Infrastructure Improvements as a result of acts of the Developer, its agents, or independent contractors.
Section 3.09 Insurance. The Developer agrees to secure or cause to be secured
liability, workmen's compensation, and employer's liability insurance coverage in commercially
reasonable amounts with respect to construction of the Developer Infrastructure Improvements. The
Developer shall deliver to the Village certificates evidencing liability insurance policies, naming the
Village as an additional insured, with provisions for notification to the Village in the event of cancellation.
ARTICLE IV
OBLIGATIONS AND DISBURSEMENTS
Section 4.01 Allocation of Financing Responsibility. The Developer hereby
acknowledges that the Village shall have no financing obligations in connection with the Housing
Development or the Developer Infrastructure Improvements except as expressly provided for in this
Agreement. The Village and the Developer agree that the Developer shall be solely responsible for the
costs of constructing the Housing Development, provided that the Developer shall have no obligation to
construct the Housing Development until the proceeds of the Senior Lien Bonds and the Junior Lien Note
shall have been made available to pay the Developer Infrastructure Costs. The Village and the Developer
further agree, subject to Section 4.04 of this Agreement, that the sole source of funding for the
construction of the Developer Infrastructure Improvements shall be tax increment allocation financing,
implemented in accordance with the terms and provisions of the Act.
Section 4.02 Financing of Developer Infrastructure Improvements. Subject to Section
4.05 of this Agreement, the Village shall adopt a bond ordinance (the "Bond Ordinance ") providing for
the pledge of funds on deposit in the special tax allocation fund of the Village in respect to the
Redevelopment Project Area (the "Fund ") in an amount equal to One Hundred Percent (100 %) of the
incremental real estate taxes generated by the Site as determined in accordance with 65 ILCS 5/11- 74.4 -8
of the Act. Such amounts are referred to in this Agreement as the "Pledged Taxes." Since the Site
constitutes Tess than the entire Redevelopment Project Area, Pledged Taxes shall be ascertained using the
real estate tax bills paid by the Developer in respect of the Site and the Developer shall deliver to the
Village copies of all such bills promptly following their payment. The projected Pledged Taxes, which
have been determined at the request of the Village by Speer Financial, Inc. (with an assumed closing date
of March 6, 2000), are attached to this Agreement as Exhibit E. Subject to Section 4.03(b) of this
Agreement, the Bond Ordinance shall provide for the deposit of the Pledged Taxes into a separate account
of the Fund which shall be pledged to retire the obligations described in this Article IV, provided that the
Village shall have no obligation to make such deposit available until it shall have been provided with
copies of paid real estate tax bills for the Site. The Village may use incremental real estate taxes generated
by the Redevelopment Project Area other than the Pledged Taxes for any purposes permitted by the Act,
including, but not limited to the payment of obligations secured by such increment. Pledged Taxes shall
cease to be so pledged to following payment in full of the Senior Lien Bonds and Junior Lien Note, and
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may thereafter be used by the Village for any purposes permitted by the Act, including, but not limited
to the payment of obligations secured by such increment.
Section 4.03 Senior Lien Bonds. (a) The Village hereby shall issue to Michael Pizzuto
and Paul Berglund or such other purchaser(s) as shall be designated by Michael Pizzuto its Village of
Lemont Senior Lien Tax Increment Revenue Bonds, Series 2000 (the "Senior Lien Bonds ") pursuant to the
Act in the initial aggregate principal amount of $250,000. The Senior Lien Bonds shall be capital
appreciation bonds, all of the interest on which shall be payable as appreciation in the principal amount
of the Senior Lien Bonds. The proceeds of the Senior Lien Bonds shall be used to fund the cost of
acquiring from the Developer the Road and the previous acquisition from the Developer, on June 30,
1999, of the Canal Reserve Strip. The Senior Lien Bonds are not general obligations of the Village and
are secured solely by the Pledged Taxes. Neither this Agreement nor the Senior Lien Bonds shall
constitute a full faith and credit obligation of the Village.
Section 4.04 Junior Lien Note. The Village shall issue to Michael Pizzuto and Paul
Berglund or such other purchaser(s) as shall be designated by Michael Pizzuto, subject to the terms of this
Agreement, its Village of Lemont Junior Lien Redevelopment Note, Series 2000 (the "Junior Lien Note ")
in the aggregate principal amount of $1,169,669. The proceeds of the Junior Lien Note shall be used to
fund (i) the cost of the Developer Infrastructure Improvements set forth in Exhibit C, (ii) the legal,
engineering, consulting and other costs incurred by the Village and the Developer in connection with this
Agreement, the Project and the issuance of the Senior Lien Bonds and Junior Lien Note, and (iii) the cost
of issuing the Senior Lien Bonds and the Junior Lien Note, including all necessary capitalized interest and
reserve funds (if any), and other eligible costs. The Junior Lien Note shall be secured only by the Pledged
Taxes and shall be subordinate to the Senior Lien Bonds in all respects. The Developer hereby
acknowledges that the Pledged Taxes may be insufficient to both cover the payment of principal and
interest on the Senior Lien Bonds and to pay principal and interest on and retire the Junior Lien Note prior
to the termination of the Redevelopment Project Area. The Village covenants that it will not terminate the
Redevelopment Project Area prior to May 28, 2014, which date is twenty three (23) years following the
date the Village designated the Redevelopment Project Area, unless the Senior Lien Bonds and Junior Lien
Note shall have been paid in full. In the event that the Pledged Taxes are, as of the date the
Redevelopment Project Area terminates (subject to the Village's covenant in this paragraph), insufficient
to pay the Junior Lien Note, the Developer shall have no recourse against the Village. To the extent that
there are insufficient proceeds from the Junior Lien Note to pay for the costs of the Developer
Infrastructure Improvements (the "Excess Costs "), the Developer will be solely responsible for the funds
to complete those Developer Infrastructure Improvements.
The Junior Lien Note is not a general obligation of the Village and is secured solely to
the extent that there are Pledged Taxes available to make required payments of principal and interest
thereon. Should Pledged Taxes be insufficient there shall be no default declared in the payment of the
Junior Lien Note. The Junior Lien Note does not constitute a full faith and credit obligation of the
Village.
(c) The Village's obligations described in paragraphs (a) and (b) of this Section 4.03
to issue the Senior Lien Bonds and the Junior Lien Note are expressly contingent upon a bond opinion
from Schiff Hardin & Waite opining that the Senior Lien Bonds and the Junior Lien Note are being issued
in accordance with Act and are further subject to all of the provisions and conditions contained in this
Agreement.
REDEVA -2.WPD
-9-
Section 4.05 Disbursements. The Village and the Developer agree that the proceeds
realized upon sale of the Senior Lien Bonds and the Junior Lien Note shall be deposited in a Project Fund
established pursuant to the Bond Ordinance and shall be disbursed from time to time in accordance with
the terms of this Agreement and the Bond Ordinance.
Section 4.06 Procedures for Payment. In order to receive payment or reimbursement
of the costs of the Developer Infrastructure Improvements and related fees and expenses as set forth in
more detail in Exhibit C from proceeds of the Junior Lien Note, not less than twenty (20) business days
prior to any date upon which such payment or reimbursement is to be made the Developer shall submit
to the Village a written request therefor setting forth the amount for which payment or reimbursement is
sought and identification of the Developer Infrastructure Improvement with respect to which payment or
reimbursement is sought. Each request for payment or reimbursement shall be accompanied by such bills,
contracts, invoices, lagging lien waivers or other evidence as the Village shall require to evidence
appropriate payment under, and the due performance of, this Agreement. The Village reserves the right
to have its engineer or other agents or employees inspect all work in respect of which a requisition is
submitted, to examine the Developer's and other's records relating to all costs to be paid, and to obtain
from such Village and the Developer as the Village determines to be appropriate such other information
as is necessary for the Village to evaluate compliance with the terms of this Agreement. The Village shall
have twenty (20) business days after receipt of any request for payment or reimbursement to approve or
disapprove any such request. Upon approval of the request the Village shall be obligated to promptly send
a requisition as above described to the paying agent authorizing payment to the appropriate party entitled
to payment for the full amount of the request. In the event the Village finds an error in the request or the
work performed in respect thereto, the Village shall specify such error in reasonable detail within twenty
(20) days from the date of the request for payment, and the request or the work shall be corrected prior
to approval of the portion of the request affected.
Section 4.07 Rights of Developer's Lender. The Village agrees that in the event that
the Developer defaults under the terms of this Agreement or under the terms of any private financing
which the Developer secured for the construction of this project, that Developer's lender will be entitled
to complete construction of Developer Infrastructure Improvements and obtain disbursement for payment
or reimbursement as provided in this Article IV.
Section 4.08 Right to Inspect. The Developer agrees that, up to one year after
completion of the Redevelopment Project Improvements, the Village, with reasonable advance notice and
during normal business hours, shall have the right and authority to review, audit, and copy, from time to
time, the Developer's books and records relating to the Developer Infrastructure Improvements funded
by the Village under this Agreement (including all loan statements, general contractor's sworn statements,
general contracts, subcontractor's sworn statements, general contracts, subcontracts, material purchase
orders, waivers of lien, paid receipts and invoices) in order to confirm that the proceeds realized upon
issuance and sale of the Senior Lien Bonds are or have been expended for purposes of undertaking the
Developer Infrastructure Improvements or other purposes permitted under the Act.
REDEVA -2.WPD
- 10 -
ARTICLE V
COMPLETION
Section 5.01 Certificate of Completion. Promptly upon the completion of the Housing
Development, the Village shall furnish the Developer a Certificate of Completion so certifying.
"Completion" as used in reference to the Housing Development, means that the Developer has
substantially completed the Housing Development in accordance with the plans and specifications
approved by the Village prior to issuing its building permits. Except as provided in Section 5.02 of this
Agreement, the Village's issuance of the Certificate shall release the Developer from any further obligation
or liability under this Agreement with respect to the construction and completion of the Housing
Development portion of the Project. The Certificate shall not have any effect or bearing on the issuance
of a certificate of occupancy by the Village.
Section 5.02 Form of Certificate. The Certificate of Completion shall be in a
recordable form, and shall be a conclusive determination of satisfaction and termination of the covenants
in the Agreement with respect to the obligations of the Developer and its successors and assigns in regards
to the construction and completion of the Housing Development. Upon written request by the Developer
for a request for a Certificate of Completion, the Village shall have ten business days after receipt of same
to provide the Developer with a Certificate of Completion or a written statement indicating in detail how
the Developer has failed to complete the construction in conformity with the Redevelopment Project and
Plan and this Agreement, or is otherwise in default, and what measures or acts will be necessary, in the
opinion of the Village, for the Developer to take or perform in order to obtain the Certificate of
Completion.
Section 5.03 Agreement to Pay Taxes. The Developer further agrees to pay, to any
extent it is obligated any portion of the real estate tax bills for the Site, and it shall pay such taxes promptly
on or before the due date of such tax bills.
ARTICLE VI
AUTHORITY
Section 6.01 Actions. The Village represents, warrants and covenants that upon
application of the Developer it has taken, or will take, such action(s) as may be required and necessary
to process the amendments, variations, and special use approvals relating to its zoning ordinances and
its other ordinances, codes and regulations, as may be necessary or proper in order to insure the
development of the Site in accordance with the Redevelopment Project and Plan and to enable the Village
to execute this Agreement and to carry out fully and perform the terms, covenants, agreements, duties and
obligations on its part to be kept and performed as provided by the terms and provisions of this
Agreement.
Section 6.02 Powers. The Village represents and warrants that the Village has full
constitutional and lawful right, power and authority, under currently applicable law, to execute and
deliver and perform the terms and obligations of this Agreement, including but not limited to the right,
power and authority to issue and sell the Senior Lien Bonds and the Junior Lien Note, and all of the
foregoing have been or will be duly and validly authorized and approved by all necessary Village
REDEVA -2.WPD
proceedings, findings and actions. Accordingly, this Agreement constitutes the legal, valid and binding
obligation of the Village, enforceable in accordance with its terms and provisions and does not require
the consent of any other governmental authority.
Section 6.03 Authorized Parties. Whenever under the provisions of this Agreement
and other related documents and instruments or any supplemental agreement, request, demand, approval,
notice or consent of the Village or the Developer is required, or the Village or the Developer is required
to agree or to take some action at the request of the other, such approval or such consent or such request
shall be given for the Village, unless otherwise provided in this Agreement, by the Village President or his
designee and for the Developer by any officer of the Developer so authorized (in any event, the officers
executing this Agreement are so authorized); and any person shall be authorized to act on any such
agreement, request, demand, approval, notice or consent or other action and neither party to this
Agreement shall have any complaint against the other as a result of any such action taken.
ARTICLE VII
GENERAL PROVISIONS
Section 7.01 Time of Essence. Time is of the essence of this Agreement. The Village
and the Developer will make every reasonable effort to expedite the subject matters of this Agreement and
acknowledge that the successful performance of this Agreement requires their continued cooperation.
Section 7.02 Breach. Before any failure of any party of this Agreement to perform its
obligations under this Agreement shall be deemed to be a breach of this Agreement, the party claiming
such failure shall notify, in writing, the party alleged to have failed to perform of the alleged failure and
shall demand performance. No breach of this Agreement may be found to have occurred if performance
has commenced to the reasonable satisfaction of the complaining party within thirty (30) days of the
receipt of such notice.
Section 7.03 Amendment. This Agreement, and any exhibits attached to this
Agreement, may be amended only by the mutual consent of the Village and the Developer, by the
adoption of an ordinance or resolution of the Village approving said amendment, as provided by law, and
by the execution of said amendment by the Village and the Developer or their successors in interest.
Section 7.04 Entire Agreement. This Agreement, and the Exhibits attached to it
contain the entire agreement between the Parties in connection with these transactions, and there are no
oral or parol agreements, representations or inducements existing between the parties relating to these
transactions which are not expressly set forth in this Agreement and covered by this Agreement.
Section 7.05 Assigns. This Agreement shall be binding upon the Village and the
Developer and their respective successors and assigns. Nothing in this Agreement shall in any way prevent
the alienation or sale of the Project, or any portion of the Project, by the Developer, nor shall anything
in this Agreement be construed as limiting any rights of any lender or equity partner or investor, and to
the extent that any provision of this Section 7.05 conflicts with any loan, partnership or investor
agreement, the loan, partnership or investor agreement will control. Excepting the foregoing, prior to any
assignment of this Agreement to any successor owner of the entire Redevelopment Project, the Village's
written consent must first be had, which consent shall not be unreasonably withheld. The Developer shall
REDEVA -2.WPD
- 12 -
request permission to assign this Agreement by submitting a written request to the Village. The Village
shall either approve said request within seven days of receipt, or shall deny said request in writing with
specificity. Failure of the Village to respond in seven days shall constitute approval of said request for
assignment. Any assignee shall expressly assume in writing the obligations of the Developer under this
Agreement, in which case the Developer shall be relieved of its obligations with respect to such sold
Parcel(s) or portion thereof. Anything contained in this Section 7.05 to the contrary notwithstanding, the
Village's consent shall not be required for any pledge of the Redevelopment Project and this Agreement
as collateral security or for any foreclosure sale or deed in lieu thereof pursuant or subsequent transfers
after such sale or deed in lieu.
Section 7.06 Severability. If any provision, covenant, agreement or portion of this
Agreement, or its application to any person, entity or property, is held invalid, such invalidity shall not
affect the application or validity of any other provisions, covenants or portions of this Agreement and, to
that end, any provisions, covenants, agreements or portions of this Agreement are declared to be
severable.
Section 7.07 Illinois Law. This Agreement shall be construed in accordance with the
laws of the State of Illinois. To the extent there is a conflict between this Agreement and the Bond
Ordinance, the Bond Ordinance is controlling.
Section 7.08 Notice. All notices and requests required pursuant to this Agreement shall
be sent as follows.
To the Developer:
Lemont Senior Housing L.P.I.
Michael Pizzuto
The Stough Group
534 West Chestnut
Suite B1
Hinsdale, Illinois 60521
With copies to:
Katharine L. Bensen
Schiff Hardin & Waite
6600 Sears Tower
Chicago, Illinois 60606 -6473
Tom Thorne - Thomsen
Applegate and Thorne - Thomsen
322 South Green Street
Chicago, Illinois 60607
To the Village:
Village of Lemont
418 Main Street
REDEVA-2.WPD
- 13 -
Lemont, Illinois 60439 -3788
Attention: Village Clerk
With a copy to:
John P. Antonopolous
Antonopolous & Virtel, P.C.
15419 127th Street
Suite 100
Lemont, Illinois 60439
or at such other addresses as the Village and the Developer may indicate in writing to the other either by
personal delivery, courier, or by registered mail, return receipt requested, with proof of delivery thereof.
Mailed notices shall be deemed effective on the third day after mailing; all other notices shall be effective
when delivered.
Section 7.09 Counterparts. This Agreement may be executed in several counterparts,
each of which shall be an original and all of which shall constitute but one and the same agreement.
Section 7.10 Recordation of Memorandum of Agreement. The Village and the
Developer agree to execute and deliver a memorandum of this Agreement in proper form for recording
and /or indexing in the appropriate land or governmental records.
Section 7.11 Consent or Approval. Except as otherwise provided in this Agreement,
whenever consent or approval of either party is required, such consent or approval shall not be
unreasonably withheld.
Section 7.12 Recourse. Except as provided in this Agreement, no monetary recourse
under or upon any obligation, covenant or agreement contained in this Agreement or for any claim based
thereon or otherwise in respect thereof shall be had against the officers, agents and employees of either
Party for any reason. Except as provided in this Agreement, no liability, right or claim at law or equity shall
attach to and be incurred by the officers, agents and employees of either Party by and through any of the
terms contained in this Agreement. The shareholders of the general partner of the Developer shall be
personally and jointly and severally liable to the Village for the following: any damages, expenses or costs
suffered or incurred by the Village (i) as a result of any intentional or willful misrepresentation made by
or on behalf of the Developer under this Agreement, or (ii) as a result of fraud committed by or on behalf
of the Developer under this Agreement.
Section 7.13 Conflict of Interest: Village's Representative Not Individually Liable. No
member, official or employee of the Village shall have any personal interest, direct or indirect, in this
Agreement; nor shall any such member, official or employee participate in any decision relating to this
Agreement which affects such person's interests or the interests of any corporation, partnership, or
association in which such person is directly or indirectly interested. No member or employee of the
Village has acquired any interest direct, or indirect, in the Site. No member, official, or employee of the
Village shall be personally liable to the Developer or any successor in interest in the event of any default
or breach by the Village or for any amount which may become due to the Developer or successor or on
REDEVA -2. WPD
- 14 -
any obligation under the terms of this Agreement, except as such shall be found to be caused by a
violation of Section 4(n) of the Act.
REDEVA -2.WPD
- 15 -
IN WITNESS WHEREOF, the Village and the Developer have duly executed this
Agreement pursuant to all requisite authorizations as of the date first above written.
ATTEST:
ATTEST:
Secretary
Approved As • Form:
`� la
Date:
4
REDEVA -2.WPD
VILLAG • F LEMONT,
an Illi
unicipal corporation
By: /' &,11 ■
7 �r :sidY
LEMONT SENIOR HOUSING L.P.I.,
an Illinois Limited Partnership
By: Lemont Senior Development Corp.
Its: General Partner
- 1 6 -
By:
Its Preside
SITE PLAN
(See Attached)
REDEVA -2.WPD
EXHIBIT A
EXHIBIT B
LEGAL DESCRIPTION OF REDEVELOPMENT PROJECT AREA AND PIN NUMBERS
Legal Description:
PARCEL 1:
Lots 1, 2, 3, 4 and 5 in Block 12; Lots 1, 2, 3, 4 and 5 in Block 13; Lots 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10 in
Block 15; Lots 1 to 10, both inclusive, in Block 16; all in Town of Athens, being a subdivision in the North
part of the East 1/2 of the Southeast 1/4 of Section 20, Township 37 North, Range 11, East of the Third
Principal Meridian; Except the railroad rights of way in and across said Lots 6, 7, 8, 9 and 10 in Block 15
and Lots 6, 7, 8, 9 and 10 in Block 16; in Cook County, Illinois.
PARCEL 2:
That part of Catherine Street, Julia Street and Grove Street adjoining Blocks 12, 13, 15 and 16, Town of
Athens aforesaid, and that part of Grant Street adjoining Blocks 13, 14 and 15, Town of Athens aforesaid,
and that part of Canal Avenue adjoining Blocks 12 and 13, Town of Athens aforesaid, and bounded
Westerly by the West line of said East 1/2 of the Southeast 1/4 of Section 20; except the railroad rights of
way in and across said Streets; in the East 1/2 of the Southeast 1/4 of Section 20, Township 37 North,
Range 11, East of the Third Principal Meridian, in Cook County, Illinois.
NOTE: The above Parcel 2 legal description is for convenience purposes only and is not an insured
description, based on the description furnished us, and is subject to such amendments and modifications
as deemed necessary upon our receipt and examination of proper vacation ordinance(s) of the Village of
Lemont vacating said above - described streets or parts thereof.
PARCEL 4:
Lot 5 in Block 11 in Town of Athens, being a subdivision in the North part of the East 1/2 of the Southeast
1/4 of Section 20, Township 37 North, Range 11, East of the Third Principal Meridian, in Cook County,
Illinois.
PARCEL 5:
Lots 5 and 6 in Block 17 in Town of Athens, being a subdivision in the North part of the East 1/2 of the
Southeast 1/4 of Section 20, Township 37 North, Range 11, East of the Third Principal Meridian, Except
the railroad rights of way in and across said Lot 6, in Cook County, Illinois.
REDEVA- -2.WPD
PIN Numbers:
22- 20-408 -001
22 -20- 408 -002
22- 20-408 -003
22- 20-408 -004
22- 20- 408 -005
22- 20-409 -001
22- 20-409 -002
22- 20-409 -003
22- 20-409 -004
22- 20-409 -005
22- 20-413 -001
22- 20-413 -002
22- 20-413 -003
22- 20-413 -004
22- 20-413 -005
22- 20-413 -006
22- 20-413 -007
22- 20-413 -008
22- 20-413 -009
22- 20-413 -010
22 -20- 414 -001
22- 20-414 -002
22- 20-414 -003
22- 20-414 -004
22- 20- 414 -005
22- 20-414 -006
22- 20-414 -007
22 -20- 414 -008
22- 20-414 -009
22- 20-414 -010
22- 20-410 -001
22- 20-415 -001
22- 20-415 -005
REDEVA -2. WPD
EXHIBIT C
DEVELOPER INFRASTRUCTURE IMPROVEMENTS AND RELATED FEES AND EXPENSES
Improvement Cost
Concrete Service Walks $45,000
Storm Drains 99,631
Road Work 207,465
Site Lighting 64,500
Earthwork 238,494
Watermain 66,134
Sanitary Sewers 65,580
Uti I ities 8,600
Landscaping 105,350
Irrigation 26,660
Legal Fees 67,000
Appraisal Fees 4,000
Marketing Fees 8,500
Environmental Studies 25,000
TIF Consultant's Fees 10,000
Bonds and Permits 39,946
Site and Marketing Study 5,709
Title and Recording 15,000
Survey 67,100
TOTAL $1,169,669
REDEVA -2.WPD
EXHIBIT D
PLAT OF RIGHT OF WAY DEDICATION
(See Attached)
7.50'
9'57 -E 700.00'
Pk?
gfl
•
I 444
53.25'
53.2E
FHEETOF -RE VACAT
53.25 •
c7:01."4
aj
5125'
53.25'
25
r
50.00'
(14 to
z
1■•••••1
c:4
Ci)
50.00'
5125'
(xi
171.94'
4.58'
z
33.83'
* W
• CATI-
S21'4.2'52 386.32'
Moo'
(HE ETOFORE
0
A
6.
777
S 21'40'03" E
78.83
EXCEPTION TO
BURP= EASEMENT
NO.
118 45.85' 4
V N 21'40'03* W
• 6
AT.
, ,4 (1.)
4 4.58•44,1
21'40'0Y W
33.83' F5- 1 (2)
ti
21'40'03 E R
33.83' t9,
4.58
8.33'
0 ,
17.27'
• /`•
YOri
fa_
4I8; s 28•4003" E
45.85' "2 I ,10 25'
9 E'
EXCEPTION TO
BLANKET EASEMENT
NO. 4
78.83'
-2V40'03
S 21'40'Op
8. 52.33'
r
53.25' S
41 RESERVE 0.00•
C
STRIP
50 .00'
18.25'
EXCEPTION TO it
BLANKET EASEMENT
NO. 3
70.58'
N 1'40'03" W
'14
r
JULM
51.76
1134.38'
if)
28.77' 7,, S 21'40'03" E
7767.gr
- • ,••••
16.25Z 0,4) .2- 291.• '4,30;03 E 67,81
113.85';',4
P19.48
el
,r33-
E g
6 u
5
( 0
-
RP E T •
•.--,
VACAFED) t
1 2 4:58
I
a
\
L 1
,-- 3
75s8ft1'4 0'0
w 3" 29.44'
3
I il c( 3 . 83 '
I .
3
-2
07 133.83'
• 1'40'03"
( )
4'
21'42'52W
30.00'
27.90'
18.25
r
18.257
4,
r)
I0
10
1
51.3E
\ ---
S 21'40'03" E o1.29'
78.83'
EXCEPTION TO
to- ; BLANKET EASEMENT 90
r-
• 17.27
45.85'
29r4a3.25'
r-T4
N 21'40'03" W
a
„ N k >
--) 16 r4
0
7:33' .:,..6.,n, , .,
id 4.58Vi
9 9. t (.-.
33.83' t'j ".
21'40'03 W 1
11
N") 0 3 V
21'40'03 E 22- \ F
33.83' 04
"/--(
3
4.58
8 33'
a
17.27'
4003" W
141
0'
6.33
33
cri 05 S 25'40'03" E
45.85' -2 I
4
EXCEPTION TO
? BLANKET EASEMENT
oi ND. 11-
78.83'
N 21'40'03" W 2
- -
1_,) 112.07
*.>
0' 4,25'
4'
25'
ETOP
2
t!())
90
50
r,19.48
r‘r)
•-•-•)(12;)1... 3; 23.95'
•••
40513 W
24.08' ■S
28.77' 61
21'40'0 W
825'
28.77' 'a$21'...„10'ilt E
24.06,
cn
21'40.03"
- --=--
l8.25 (I,
65'N
619.40
( 0
tr;
r
to'
z 4.58'
vAcISATTFR:DE 2
) ET: ;
.. 3gD3.
w
--.) 1
I 2
I °R; r?''
I ()
_1825'
9.48
,"! C` 1
N 2114003" W-2
S 21y10'03" ES
V) 149.25'
24.06'
8'
1,to'or c 4142.
33.83'
12
0)
38. 22'
( )
29.13' 24.08'
EXCEITION TO
BUNKE EASEMENT
O. 11 in
N 2140'03* W
10' r
87;;;173i.
rill
rc5
■ n"
.72
70• 47(00
45E4E57
6'74' .9T
- %..,GRANT N21'42'52W 341.30'
‘..S. TR EET
/ -I Kt NETROPouTAN -----■ , (HERETOFORE VACATED)
I r4"7:11Z4;"s"u"
50.16'
214003 W
7k2
co
72.
( )
3 rs
';O•
141
105.28'
-
114.41'
970'20'27 "W 290.0
46,09'
55.00'
30.00
(/
Q
1.04:4
h'o04456'
iY 41)
CS
•7.71'
45.00•
ri
EXHIBIT E
PROTECTED INCREMENTAL SITE TAXES
(See Attached)
it. LA/JM _��: �e► �13J2.4K_ 8833 SPEER FINANCIAL -- SCHIFF HARDIN 2002008
T70021
SPEER FINANCIAL, INC.
KEVIN W. MCCANNA
PNEIDIXT
DAVID F. PHILLWS
IL YX2 PR5SmDR
LARRY P. 8UROFR
PUBLIC FINANCE CONSULTANTS SINCE 195..
DANIEL D. POSSES BARBARA L CHEVALIER
vICR PRESIDENT vRE PREEIDlM'
vk`i PR®ICEDIT
THE VILLAGE OF LEMONT, ILLINOIS
2000 TAX INCREMENT PROJECT PROJECTIONS
Speer Financial, Inc. has been requested to review projected tax increment revenues
for the project of The Stough Group. The report shows the projected real estate
taxes to be collected and used to pay the debt service on a senior lien bond Issue.
Tax increment debt by its nature is subject to uncertain cash flows. The bonds are
highly speculative as to timing of repayment and completeness of payment. It is
understood that the debt, consisting of senior lien and junior lien bonds, will be
retained by the developer and related parties.
The assumptions we used are as follows!
1. Assessed valuation is calculated using the income approach in which the market
value of the property is based on an 11.5% capitalization rate using stated rents
with a 10.0% vacancy rate. Please refer to EXHIBIT B for details. Application of
other capitalization rates, rent changes and changes in expense levels would
have a direct impact on valuation under this method of assessment
2. The assessed valuation is estimated to grow at a rate of 6.50% annually. This
factor is used to account for growth in valuation of the building due to inflation,
rental incroasea and other unknowns such as a change in valuation techniques.
Any variation in growth will directly affect the cash flows available for debt service.
3. The county multiplier and tax rate are representative of the area in which the
properly is located in levy year 1998. These have been fairly stable over the past
several years.
4. The taxes extended for levy year 2000 consist of one half year due to an
estimated mid -2000 occupancy. Timing of project completion will affect the timing
of initial taxes.
5. EXHIBIT A is for illustration purposes only, It should be noted that coverage
is available for the senior lien bonds,
MITE 3435.55 PAST MONROE MEET • CHFCAO0, ILLINOIS I1C)3 • (312) 346.3700 • FAX (312) 346-8833
s JrrE 50D ■ 531 COMMERCIAL agar. WATERLOO, IOWA 50701 • (319) 291.2077 • FAX (319)291.6787
ODVOIHO 91HS 0092 S2Z ZTC red Z£ :5T 666T /6T /ZT
L2 17 /99 14139 el 31? 346 8833 _ SPEER FINANCIAL -+-• -- SCHIFF HARDIN 21003/006
SPEER FINANCIAL, INC.
Future bond value of $775,000 for the senior lien bonds reflects the value at maturity.
As a capital appreciation bond issue reflecting an interest rate of 13.8%, the current
value is less. The senior lien bonds are valued at approximately 9250,074.54. It is
understood that the junior Ilen bonds will be issued with a current value of
approximately $1, 169,669, will also be capital appreciation bonds and will be held by
the developer. This value reflects the developer's expenditures and is not based on
the expected cash flow.
The total income, exPenses without real estate taxes and capitalization rate have
been provided by the developer. Speer Financial, Inc. has not verified this
information or performed an independent investigation of the laws or assumptions,
facts and circumstances upon which such information is based.
There is no guaranty that the methodology and capitalization rate used in
determining the assessed valuation will continue to be valid or utilized in the future.
In addition, there is no guaranty that the real estate taxes will be levied and collected
at the stated rates in the future. Substantial damage to or destruction of the
improvements that have been or will be constructed could cause a material decline in
or Toss of the projected real estate taxes, and could impair the ability of the
development to generate the projected real estate taxes. While it is expected that the
improvements will be insured, there can be no assurance that such insurance will be
available throughout the term of the bonds. Such insurances is not pledged to pay the
bonds. Any of the foregoing circumstances could result in the value of the property
remaining depressed for some time. Any such decline could eliminate or reduce the
amount of real estate taxes available to pay debt service on the bonds.
Enclosures
KWM: wjk
12/17/99
200 2]
2
ODVDIHD MHS 0092 92Z ZTC rfd CC:2T 666I /6I /ZT
SHW CHICAGO
312 258 5600
12/19/1999 15:33 FAX
Levy Collection Principal Assessed
EXHIBIT A
ESTIMATED CASH FLOWS
Equalized Cumulative
County Assessed Tax Taxes Senior Surplus/ Surplus!
Year Year Due Janua t Valuation Multi. Valuation Rate Extended lien • e8c8 ' Licit
2000 2001 2002 $ 197,928 2.1799 $ 431,463 6.7490% 18,874 $ 17,000 $ 1,874 $ 1,874
2001 2002 2003 210,793 21799 459,508 8.749096 40,202 39,000 1,202 3,077
2002 2003 2004 224,495 21799 489,376 8.7490% 42,816 41,000 1,816 4,892
2003 2004 2005 239,087 2.1799 521,186 8.7490% 45,599 44,000 1,599 6,491
2004 2005 2006 254628 2.1799 555663 8.7490% 48,562 47,000 1,582 6,053
2005 2006 2007 271,179 2.1799 591,142 8.749096 51,719 50,000 1,719 9,772
2006 2007 2008 288,805 2.1799 629,566 8.7490% 55,081 53,00D 2,081 11,853
2007 2008 2009 307,577 21799 670,489 6.7490% 58,861 55,000 3681 15,514
2008 2009 2010 327,570 2.1799 714,070 8.7490% 82,474 58,000 4,474 19,988
2009 2010 2011 348,862 2.1799 760,484 8.7490% 66,535 65,000 1635 21,523
2010 2011 2012 371,538 2.1799 809,918 83490% 70,860 69,000 1,060 23,382
2011 2012 2013 395,688 2.1799 862,580 6.7490% 75,465 74,000 1,465 24,848
2012 2013 2014 421408 2.1799 918,627 8.7490% 90,371 79,000 1,371 26,218
2013 2014 2015 448,799 2.1799 979,338 8.7490% 85,595 84,000 1,595 27,813
2014 2015 2016 477,971 2.1799 1,041,929 8.7490% 91,158 91,158 118,972
Total
$ 775,000
66/LT/UT
0
1 1DNVNId IIH3dS
11, 17 /Yb1
14:40 'G?1 311_348 8833 ,_
_ ^ SPEER FINANCIAL
EXHIBIT
ASSESSMENT ESTIMATE
INCOME:
Number of Units
Rent per unit per year
Total Income
EXPENSES;
Expenses without Real Estate Taxes
Estimated Real Estate Taxes for First Year
Total Expenses
Net Income
Captilizatfon Rate
Market Value Based on Capitalization Rate
Assessed Valuation
County Multiplier
Egaulized Assessed Valuation
Tax Rate
Estimated Real Estate Taxes
0OVOIHa PARS
SCaIFF HARDIN Ea005 /006
S 43.00
4
5'18,438.288.00 00
$ 75,1 80.00
39.283.24
$ 114,483.24
$ 68,974.76
11.50%
$599,780.52
$197,927.57
_ 21799
$ 431,482.31
8.7490%
$ 37.748.64
0095 82Z ZTC XV3 te:ST 666T /6T /ZT
D ots
20112000
110112002
8/01/2002
1101/2003
6101!2003
1101//804
60101/2004
110112006
8!01/2000
140142008
610112006
110/42007
01012007
1/0112006
610142006
1/01/3006 17,157.00
6101/2009
110112010 15,670.08
60112010
1/01/2011 1861416
0/01/2011
1/012012 14,64529
8/0142012
140112013 13,6▪ 6636
51012013
1401/2014 12,5▪ 24.86
610112014
1401/2015 11266.60
6101/2015
J c.A.A to Ana \t,,LAL _. 5411irr thtrWi
Lemont TIF
Senior Bonds
DEBT SERVICE SCHEDULE
PAnElpxel Coupon Interest Toes) P�1 P9SCAL TOTAL
13,234.33
26,642.84
24.57016
23.147,00
21,66731
20255.50
16,641.50
•
•
Total 250,07424
YIELD STATISTIC&
BondVeer OnR. a ......... ....................._...._. ...... . .....
......._
13.500% 3,765.67
13.500% 12,357,15
13.500% 16,420,51
13.500% 20,85222
13▪ 0% 25,3▪ 0245
1840011 29,744.00
13,500% 34,158.50
13 -50091 37242.20
•
13,50▪ 096 42,12122
13.50096 49,3- 55.00
13.50• 0% 54.454.11
•
19=0071 50,310.74
1350076 56,175.14
18500% 72,034.20
17,000.00
38200.80
41,000.00
44,000.00
47,000.00
50,000.00
53200-
3,000.00
55,000.00
36,000.00
85,000.00
oxalis
74,00000
79,000.00
64200.00
17,000.00
39,000.00
41,000.00
44,000.00
•
47,000.00
50.000.00
53,000.00
55,00020
08,00010
55,000.00
69.000.00
74.000.00
76,000.00
84.000.00
524925.48 775,000.00 . -•Y y Y
Avail" Lh........._ . _._ .._....._ ................. -..... _ ..... ..,.,_.......... ....,........
Nano coupon...
Net interest Met 0410y..� .. ...... .................._._.__..._... ................_.__ _ .. , . .
Tare Interest Cost ( TILT __ _ . ...................... __ __..._.. _--��
Berets Yhstofor A444/npe Purposes...._....__._, _ , - ,,,._ .......... ...._.._._... , « ...,...r .._
M Indueir6 Cat (AIC)_ _ __. ..._ .. ....... ......................
...._...__._ _..__..__,.....,
Ins FORM 6086
Net Interest Cat.
Weighted Average Nitwit/
11,$'8.63
7.673 Yews
273505841%
27.55554196
13.500154616
13.500184876
135001845%
27358564176
7.673 Years
Spa* rPi m in o.
Pubic *name Coneuilenls S3 oa 1054
800 2,
Ana • - SAME Pt1RPOSE
12/1771999 1241 PIO
Quo, 006
OOV0IH0 MHS 0092 82Z ZIC X3 VC :2T 6661/6i/Zi