O-28-06 05/15/2006 VILLAGE OF LEMONT
ORDINANCE NO. 0-28-06
AN ORDINANCE APPROVING A REDEVELOPMENT AGREEMENT
BY AND BETWEEN THE VILLAGE OF LEMONT,ILLINOIS AND
MARQUETTE PROPERTY INVESTMENTS,INC.,IN CONNECTION WITH
DOWNTOWN CANAL DISTRICT I REDEVELOPMENT PROJECT AREA
AND RELATED MATTERS
ADOPTED BY THE
PRESIDENT AND BOARD OF TRUSTEES
OF THE VILLAGE OF LEMONT
This
15th day of May ,2006
Published in pamphlet form by
authority of the President and
Board of Trustees of the Village of
Lemont,Counties of Cook,Will,and
DuPage,Illinois this 15th day
of May ,2006
ORDINANCE NO. P
AN ORDINANCE APPROVING A REDEVELOPMENT AGREEMENT
BY AND BETWEEN THE VILLAGE OF LEMONT, ILLINOIS AND
MARQUETTE PROPERTY INVESTMENTS, INC., IN CONNECTION
WITH DOWNTOWN CANAL DISTRICT I REDEVELOPMENT
PROJECT AREA, AND RELATED MATTERS
WHEREAS, Marquette Property Investments, Inc. (the "Townbuilder"), has
submitted a proposal to the Village of Lemont, Illinois (the "Municipality") for redevelopment
of a part of the Municipality's Downtown Canal District I Redevelopment Project Area (the
"Redevelopment Project Area"); and, thereafter, the Municipality and the Townbuilder have
engaged in negotiations related to a Redevelopment Agreement (including all exhibits and
attachments in connection therewith, as supplemented and amended, the "Redevelopment
Agreement," with respect to which undefined terms herein shall have the meaning therein)
concerning redevelopment incentives and assistance related to the preservation, development and
redevelopment of a part of the Redevelopment Project Area.
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF LEMONT, COOK, DUPAGE AND WILL
COUNTIES,ILLINOIS, as follows:
Section 1. Approval. The Redevelopment Agreement, in substantially the form
thereof presented before the meeting of the President and Board of Trustees at which this
ordinance is adopted, shall be and is hereby ratified, confirmed and approved, and the Village
President and Village Clerk are authorized to execute and deliver the Redevelopment Agreement
for and on behalf of the Municipality, with such modifications and revisions therein as the
Municipality's officers executing the Redevelopment Agreement shall approve, such approval to
be conclusively evidenced by execution and delivery, with no further authorization required
other than this ordinance; and upon the execution thereof by the Municipality and the
Townbuilder, the appropriate officers, agents, attorneys and employees of the Municipality are
authorized to take all supplemental actions, including (i) the issuance from time to time of TIF
Notes and/or Refunding TIF Notes under the Redevelopment Agreement and related
Authenticating Orders from time to time, and (ii) the execution and delivery of related
supplements and amendments and related supplemental approvals and consents, obligations
(including TIF Notes, Refunding TIF Notes and Authenticating Orders) opinions, certificates,
agreements (including Parking Agreements), instruments not inconsistent with the
Redevelopment Agreement, desirable or necessary to implement and otherwise give full effect to
the Redevelopment Agreement (and including without limitation the TIF Notes, and/or
Refunding TIF Notes, as the case may be, and related Authenticating Orders). Upon full
execution thereof, the Redevelopment Agreement shall be attached as an exhibit to this
ordinance, but any failure to so attach shall not abrogate, diminish or impair the effect of the
Redevelopment Agreement as fully executed.
Section 2. Reimbursements. The Municipality reserves the right, and intends
to, reimburse itself from incremental property taxes (not pledged under the Redevelopment
Agreement) for redevelopment project costs paid from the Municipality's local improvement
fund or from general funds.
Further, the Municipality reserves the right, but is not obligated, to reimburse
itself from proceeds of tax-exempt obligations up to the amount of its contribution to
redevelopment project costs as set forth in the Redevelopment Agreement, under Section 1.150-2
of the Income Tax Regulations.
Section 3. Bid Waiver. Pursuant to Section 8-9-1 of the Illinois Municipal Code
bidding requirements, if any, related to the Redevelopment Agreement and related documents
and related contracts entered into or to be entered into shall be and are hereby waived. The
Townbuilder shall be responsible for compliance with applicable law related to the
Redevelopment Agreement, including without limitation the Prevailing Wage Act.
Section 4. Effective. This ordinance shall be in full force and effect in the
manner provided by law.
Upon motion by Trustee Cowles , seconded by
Trustee Stapleton , adopted this 15 day of May, 2006, by roll call vote, as follows:
AYES (Names): Blatzer, Coules, Reaves, Miklos, Stapleton, Virgilio
NAYS (Names):
ABSENT (Names):
Approved this 15 day of May, 2006.
(SEAL) �= lmwsiNK
Village ''resident, Vi lage if emont, Cook,
DuPag; and Will Counti:., linois
Attest:
1 i lage Clerk, Village of Lemont, Cook,
DuPage and Will Counties, Illinois
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MINUTES
VILLAGE BOARD MEETING
May 15,2006
The regular meeting of the Lemont Village Board took place on Monday,May 15,2006 at 7:00 p.m.,
President John Piazza presiding. Roll call: Blatzer, Miklos, Reaves, Stapleton, Virgilio present. Coules
absent.
AUDIENCE PARTICIPATION-AGENDA ITEMS
I. MAYOR'S REPORT
Mayor Piazza announced that the Board would take action on the ordinance presented approving a
Redevelopment Agreeement with Marquette Companies in connection with downtown redevelopment,but
would delay execution of the agreement until several conditions have been met.
ORDINANCES
Ordinance 0-28-06-Ordinance Approving a Redevelopment agreement By and Between the
Village of Lemont nd Marquette Property Investments,Inc., in Connection with Downtown
Canal District I Redevelopment Project Area and Related Matters.Motion by Coules,seconded
by Stapleton, to adopt said ordinance. Roll call: Blatzer, Coules, Miklos, Reaves, Stapleton,
Virgilio; ayes. Motion passed.
II. OLD BUSINESS
III. NEW BUSINESS
IV. EXECUTIVE SESSION
V. ACTION ON CLOSED SESSION ITEMS
VI. ADJOURNMENT
There being no further business,a motion was made by Stapleton, seconded by Coules,to adjourn
the meeting at 7:18 p.m. Voice vote: 6 ayes. Motion passed.
STATE OF ILLINOIS )
COUNTY OF COOOK ) SS.
VILLAGE OF LEMONT )
CERTIFICATION OF ORDINANCE
I, Charlene M. Smollen, do hereby certify that I am the duly selected, qualified
and acting Village Clerk of the Village of Lemont, Cook, DuPage and Will Counties, Illinois (the
"Municipality"), and as such official I am the keeper of the records and files of the Municipality
and of its President and Board of Trustees (the "Corporate Authorities").
I do further certify that the attached ordinance constitutes a full, true and correct
excerpt from the proceedings of the Municipality's Corporate Authorities held on May 15 ,
2006, insofar as same relates to the adoption of Ordinance No. 0-28-06 , entitled:
AN ORDINANCE APPROVING A REDEVELOPMENT AGREEMENT BY AND
BETWEEN THE VILLAGE OF LEMONT, ILLINOIS AND MARQUETTE PROPERTY
INVESTMENTS, INC., IN CONNECTION WITH THE DOWNTOWN CANAL
DISTRICT I REDEVELOPMENT PROJECT AREA, AND RELATED MATTERS,
a true, correct and complete copy of which ordinance as adopted at such meeting appears in the
minutes of such meeting and is hereto attached. Such ordinance was adopted and approved on
the date thereon set forth by not less than a affirmative vote of a majority of the Corporate
Authorities and approved by the Village President on the date indicated thereon.
I do further certify that the deliberations of the Corporate Authorities on the
adoption of the above ordinance were taken openly, that the vote on the adoption of such
ordinance was taken openly and was preceded by a public recital of the nature of the matter
being considered and such other information as would inform the public of the business being
conducted, that such meeting was held at a specified time and place convenient to the public, that
the Agenda for the meeting was duly posted at the Village Hall at least 48 hours prior to the
meeting, that notice of such meeting was duly given to all of the news media requesting such
notice, that such meeting was called and held in strict compliance with the provisions of the
Illinois Municipal Code, as amended, and that the Corporate Authorities have complied with all
of the applicable provisions of such laws and such Code and their procedural rules in the
adoption of such ordinance.
IN WITNESS WHEREOF, I hereunto affix my official signature and the seal of
the Village of Lemont, Illinois, this 15th day of May , 2006.
/u
(SEAL) Village Clerk
TABLE OF CONTENTS
Page
ARTICLE I. DEFINITIONS/REPRESENTATIONS
1.1 Definitions 2
1.2 Construction 11
1.3 Representations and Warranties of the Municipality 11
1.4 Representation and Warranties of the Townbuilder 12
1.5 Disclaimers Warranties of the Municipality 13
ARTICLE II. TOWNBUILDER DESIGNATION
2.1 Townbuilder Designation 13
2.2 Townbuilder to Submit Costs 14
2.3 Townbuilder Limitation. 14
ARTICLE III. ACQUISITION AND CONSTRUCTION OF THE DEVELOPMENT PROJECT
3.1 Development Project and Schedules 15
3.1.1 Townbuilder 15
3.1.2 Municipality 19
3.2 Development Plans 19
3.2.1 Approvals of Concept Site Plan and Development Plans 19
3.2.2 Changes 20
3.3 Townbuilder to Undertake the Development Project. 20
3.3.1 Construction Contracts. 21
3.3.2 Compliance with Applicable Law 21
3.4 Changes 21
3.5 Acquisition of Development Property by Negotiation 21
3.6 Municipality Approvals 22
3.7 Certification of Substantial Completion 22
3.8 Construction Escrow . 22
ARTICLE IV. INFRASTRUCTURE /REDEVELOPMENT ACTIVITIES
4.1 Infrastructure 22
4.2 Financing 23
4.3 Building Materials 25
4.4 Front Street/River Road Infrastructure 25
4.5 Parking Agreements 25
4.6 Parking Structure/Restrictive Covenant 30
ARTICLE V. COLLECTION AND USE OF TIF REVENUES
5.1 Certificate of Total Initial Equalized Assessed Value 30
5.2 Special Tax Allocation Fund 30
5.3 TIF Note 31
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REDEVELOPMENT AGREEMENT
by and between the
VILLAGE OF LEMONT,ILLINOIS,
And
MARQUETTE PROPERTY INVESTMENTS,INC.,
as Townbuilder
dated as of
May 15,2006
II
5.4 Refunding TIF Note 31
5.5 Payment and Discharge 32
5.6 Equity Sharing 33
ARTICLE VI. GENERAL PROVISIONS
6.1 Assignment. 33
6.2 Remedies 33
6.3 Force Majeure. 34
6.4 Notices. 34
6.5 Conflict of Interest. 35
6.6 Insurance. 35
6.7 Inspection. 36
6.8 Choice of Law 36
6.9 Entire Agreement;Amendment 36
6.10 Counterparts 36
6.11 Severability. 36
6.12 Representatives Not Personally Liable 36
6.13 Actions Contesting the Validity and Enforceability of the Redevelopment Plan. 37
6.14 Release,Defense,and Indemnification. 37
6.15 Covenant to Comply with Applicable Laws 39
6.16 Recordable Memorandum 39
6.17 Survival 39
6.18 Term 39
EXHIBITS
EXHIBIT A Legal Description of Development Property
P p rtY
EXHIBIT A-1 Concept Site Plan
EXHIBIT B Form of Certificate of Substantial Completion
EXHIBIT C Form of Certificate of Qualified Project Costs/Requisition
EXHIBIT D Pro Forma
EXHIBIT E Form of TIF Note
EXHIBIT E/R Form of Refunding TIF Note
EXHIBIT F Form of Bill of Sale/Hold Harmless Agreement/and Insurance Requirements
EXHIBIT G Consent/Approval Form
EXHIBIT H Parking Structure/Declaration of Covenants&Restrictions
EXHIBIT I Contractor Certifications
EXHIBIT J Condominium Association Acceptance
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F
REDEVELOPMENT AGREEMENT
THIS REDEVELOPMENT AGREEMENT(this "Agreement")is made and entered into as of this
15th day of May,2006,by and between the VILLAGE OF LEMONT,ILLINOIS,a municipal corporation
of the State of Illinois(the"Municipality"),and MARQUETTE PROPERTY INVESTMENTS,INC.,an
Illinois corporation (the "Townbuilder"). (Certain capitalized terms used herein shall have the meanings
ascribed to them in Article I of this Agreement,except as they may be defined elsewhere in this Agreement.)
RECITALS
WHEREAS,pursuant to the Tax Increment Allocation Redevelopment Act, Chapter 65, Sections
5/11-74.4-1 through 5/11-74.4-11 of the Illinois Compiled Statutes, as supplemented and amended (the
"Act"),the President and Board of Trustees,by Ordinance Nos.0-37-05,0-38-05, and 0-39-05 adopted and
approved on April 18,2005 (as supplemented and amended, including by Ordinance No. 0-33-05,adopted
April 11,2005, collectively,the `Approving Ordinances"),(i)approved a redevelopment plan and project
titled "Downtown Canal District I Redevelopment Plan and Project" (the "Redevelopment Plan," and
includes the related "Redevelopment Project"), (ii)designated the "Downtown Canal District I
Redevelopment Project Area" within the Municipality(the "Redevelopment Area"), and (iii)adopted tax
increment allocation finance("TIF")for the Redevelopment Area,all as set forth in the Approving Ordinances
and in accordance with the requirements of the Act;and
WHEREAS, in furtherance of the redevelopment of a part of the Redevelopment Area, the
Townbuilder proposes to undertake the redevelopment of the first Phase("Phase I")of the Redevelopment
Area, such Phase 1 constituting a part of the Redevelopment Area to be owned, acquired, or otherwise
controlled by the Townbuilder and developed and redeveloped as provided in this Agreement(the "Phase 1
Development Property,"as described in Exhibit A to this Agreement,as supplemented and amended under
this Agreement); and
WHEREAS, the Townbuilder desires to redevelop the Development Property and make certain
infrastructure improvements as set forth in this Agreement,consistent with the Redevelopment;and
WHEREAS,pursuant to provisions of the Act,the Municipality is authorized to make and enter into
all contracts necessary or incidental to the implementation and furtherance of the Redevelopment Plan,to pay
directly or to issue one or more TIF Notes(each a"TIF Note")or Refunding TIF Notes(each a"Refunding
TIF Note") as evidence of the Municipality's special and limited obligation to pay certain redevelopment
project costs incurred in furtherance of the Redevelopment Plan(the"Redevelopment Project Costs"),and/or
to apply Incremental Taxes and/or to pledge certain Incremental Taxes to the payment of the TIF Notes and/or
the Refunding TIF Notes;and
WHEREAS, in accordance with the Redevelopment Plan and the Act,the President and Board of
Trustees adopted Ordinance No. on May 15,2006,authorizing this Agreement; and
WHEREAS,the President and Board of Trustees hereby ratifies and affirms its determination that the
approval of the Redevelopment Plan and the fulfillment generally of this Agreement are in the best interests of
the Municipality, and the health, safety, morals and welfare of its residents, and in accord with the public
purposes set forth in the Redevelopment Plan and the Act.
1
AGREEMENT
Now,therefore, in consideration of the above premises and the promises contained herein and other
good and valuable consideration,the adequacy and sufficiency of which are hereby acknowledged,each party
hereto hereby agrees as follows:
ARTICLE I. DEFINITIONS/REPRESENTATIONS
1.1 Definitions. As used in this Agreement, the following words and terms shall have the
following meanings:
"Act"or "TIF Act"means the Tax Increment Allocation Redevelopment Act,Chapter 65,Sections
5/11-74.4-1 through 5/11-74.4-11 of the Illinois Compiled Statutes,as amended.
"Adjacent Sidewalks"shall have the meaning below in this Paragraph 1.1 under"Phase 1A Private
Development".
"Affiliate"with respect to the Townbuilder means a limited partnership,limited liability company or
corporation,the operational control of which is not less than 51%in the Townbuilder or in the shareholders of
the Townbuilder and of which the Townbuilder and/or such shareholders in fact have operational control.
Agreement"means this Redevelopment Agreement,as the same may be from time to time in writing
modified, amended,or supplemented by the Municipality and the Townbuilder.
"Applicable Building Codes" shall have the meaning in Paragraph 3.3 of this Agreement.
Applicable Law" shall all mean all federal, state n
a d local laws, ordinances, resolutions, codes,
regulations and standards, including Applicable Building Codes.
"Authenticating Order"means,if at all,one or more certificates signed by the Village President,and
attested by the Village Clerk,under the Municipality's seal,in a form approved by the Municipal Attorney or
Special TIF Counsel,directing or ordering the authentication and delivery of,as applicable,any TIF Note or
Refunding TIF Note and further setting forth and specifying details of the applicable Notes,including but not
limited to payment dates, interest rate or rates(not to exceed as provided in the Bond Authorization Act),
interest and principal and interest coming due in each applicable payment period, Phase references, series
designations,priorities(subordinate or superior)for the Notes,arbitrage,rebate,yield restrictions,exchange
and transfer,registration,taxable and/or tax-exempt features,the issuance of any TIF Note and/or Refunding
TIF Note in installment form in lieu of serial form or in serial form in lieu of installment form,as the case may
be,any nominal party,optional and mandatory prepayment and/or redemption provisions,series designations,
designation of a registrar and/or paying agent and/or other agents, and investment restrictions, and full
authority is hereby given to the Village President to certify and specify such terms,without any further action
by the Governing Body than this Agreement, or(ii)the Governing Body in supplemental proceedings shall
approve,in either case other than as set forth in this Agreement.
2
"Authorized Townbuilder Representative"means the individuals executing this Agreement(or such
other persons designated in writing filed with the Village Clerk)who each shall have full authority on behalf of
the Townbuilder to execute all further and supplemental documents, instruments and agreements,
specifications,waivers, and authorizations,to give all specifications,waivers,consents and approvals,and to
take all further supplemental actions,to give full effect for the Townbuilder under this Agreement.
"Authorized Municipal Representative"means the Village President or the Village Administrator (or
the Village President's or Village Administrator's designee or designees in writing filed with the Village Clerk
and with an Authorized Townbuilder Representative), who each shall have full authority on behalf of the
Municipality to the extent lawful to execute all further and supplemental documents, instruments and
agreements, specifications, waivers and authorizations, to give all specifications, waivers, consents and
approvals and authorizations, and to take all further supplemental actions, to give full effect for the
Municipality under this Agreement.
"Bill of Sale"means the Bill of Sale in substantially the form in Exhibit F, attached hereto and
incorporated herein by reference.
"Certificate of Qualified Project Costs/Requisition"means one or more documents substantially in
the form of Exhibit C,attached hereto and incorporated herein by reference,delivered by the Townbuilder to
the Municipality in accordance with this Agreement and evidencing Qualified Project Costs incurred in
furtherance of implementation of the applicable Redevelopment Activities,together with supporting contracts,
agreements,receipts,invoices,time records,or other certifications and showings with respect to payment due
or to become due clearly connecting the amount and the applicable Redevelopment Activities and Qualified
Project Costs to authorized expenditures under the Agreement for the applicable Phase of the Development
Project(which may,if sufficient,be the same as required by the Townbuilder's lender in connection with such
Phase).
"Certificate of Substantial Completion"means one or more documents substantially in the form of
Exhibit B, attached hereto and incorporated herein by reference, delivered by the Townbuilder to the
Municipality in accordance with this Agreement and evidencing the Townbuilder's satisfaction of all
obligations and covenants to implement all or the specified functional portion of the Redevelopment Activities.
"Code"means the Internal Revenue Code of 1986, as amended.
"Concept Site Plan"means a preliminary plan sheet(or sheets),attached to this Agreement as Exhibit
A-1 and incorporated herein by reference herein,depicting the conceptual program for the Phase 1 Private
Development and Phase lA Infrastructure to be designed,acquired,constructed and installed in accordance
with this Agreement.
"Condominium Association"means a condominium association under Applicable Law in connection with the
residential units in the Phase 1A Private Development
"Consent/Approval Form" means the Consent/Approval, Etc. Form substantially in the form of
Exhibit G, attached hereto and incorporated herein by reference, delivered by the Municipality and/or the
Townbuilder,as the case may be,which when fully executed shall be appended to the Municipality's originally
signed copy of this Agreement,but any failure to so append shall not abrogate,diminish or impair the effect
3
thereof, with respect to all supplemental authorizations,waivers,specifications,consents and approvals under
or in connection with this Agreement.
"Construction Advances"means the amount of any Certificate of Qualified Project Costs delivered by
the Townbuilder to the Municipality in accordance with of this Agreement,which amount represented by such
Certificate of Qualified Project Costs has been approved by the Municipality and for which TIF Notes or other
payment or reimbursement shall be provided by the Municipality,at the times,in the manner,with the effect
and subject to the limitations set forth in this Agreement.
"Construction Escrow Agreement"means a construction disbursement escrow agreement by and
among the Municipality, the Townbuilder and a recognized title insurance company that administers such
construction disbursement escrow agreement,in connection with the financing and disbursement of funds for
the Parking Structure.
"Construction Management Services" includes: (1) services provided in the planning and pre-
construction phases of a construction project including,but not limited to,consulting with,advising,assisting,
and making recommendations to the Municipality, Townbuilder and architect, engineer, or licensed land
surveyor on all aspects of planning for project construction;reviewing all plans and specifications as they are
being developed and making recommendations with respect to construction feasibility,availability of material
and labor, time requirements for procurement and construction and projected costs;making,reviewing, and
refining budget estimates and other available information; making recommendations to the Municipality,
Townbuilder and the architect or engineer regarding the division of work in the plans and specifications to
facilitate the bidding and awarding of contracts;soliciting the interest of capable contractors and taking bids on
the project;analyzing the bids received;and preparing and maintaining a progress schedule during the design
phase of the project, preparation of a proposed construction schedule, and coordination of the Parking
Structure work and other Phase 1 Infrastructure with the Phase 1 Private Development; and (2) services
provided in the construction phase of a project including,but not limited to,maintaining competent supervisory
staff to coordinate and provide general direction of the work and progress of the contractors on the project;
directing the work as it is being performed for general conformance with working drawings and specifications;
establishing procedures for coordinating among the Municipality, Townbuilder, architect or engineer,
contractors, and construction manager with respect to all aspects of a project and implementing those
procedures; maintaining job site records and making appropriate progress reports and payroll records under
paragraph 3.1.1(k);reviewing the safety and equal opportunity programs of each contractor for conformance
with the public owner's policy and making recommendations;reviewing and processing all applications for
payment by involved contractors and material suppliers in accordance with the terms of the contract;making
recommendations and processing requests for changes in the work and maintaining records of change orders;
scheduling and conducting job meetings to ensure orderly progress of work; developing and monitoring a
project progress schedule,coordinating and expediting the work of all contractors and providing periodic status
reports to the Municipality, Townbuilder and the architect or engineer; establishing and maintaining a cost
control system and conducting meetings to review costs, and coordination of the Parking Structure and
Walkways work with the Phase 1 Private Development.
"Construction manager"means any individual,sole proprietorship,firm,partnership,corporation or
other legal entity providing construction management services for the Phase 1 Private Development and the
Phase 1 Infrastructure.
"Construction Period Interest"means,(with respect to Phase 1A),the interest during the construction
period of the public portion of the Parking Structure and of the Walkways and the Plaza/Square in connection
4
with the TIF Note, to be included as an endorsement of a capital cost on such TIF Note as provided in
paragraph 4.2(c).
"Contractor Certifications"means,as applicable to contracts for any Phase,all certifications required
by Applicable Law and include the certificates set forth in Exhibit I,attached hereto and incorporated herein
by reference.
"Design-build"means a delivery system that provides responsibility within a single contract for the
furnishing of architecture, engineering, land surveying and related services as required, and the labor,
materials, equipment,and other construction services for a project.
"Design-build contract"means a contract to furnish architecture,engineering, land surveying, and
related services as required,and to furnish the labor,materials,equipment,and other construction services for a
project,and which may allow modifications in the project scope without invalidating the design build contract
and this Agreement.
"Development Account"means the account within the Special Allocation Fund designated as the
"Marquette Property Development Account" (which may be further identified by reference to a particular
Phase,as applicable)into which Incremental Taxes shall be initially deposited or credited.
"Development Inspector"means a building inspector or a qualified civil engineering firm or licensed
engineer or architect to be selected and retained by the Townbuilder (who may be as designated by the
Townbuilder's lender) and/or the Municipality from time to time, as the case may be,the fees and costs of
whom shall be reasonable, shall be subject to payment in connection with the Private Development and the
Parking Structure, the Plaza/Square and the Walkways from the Development Account (including as a
Qualified and/or Project Cost endorsed on a TIF Note) and in connection with the Front Street/River Road
Infrastructure from available funds of the Municipality, subject to reimbursement from the Municipality
Account,and shall be deemed Qualified Project Costs subject to Article IV hereof.
"Development Plans"means reasonably detailed and specific plans,drawings,specifications,cost
estimates, construction schedules and related documents for the design, acquisition, construction and
installation of each Phase of the Development Project and the related Infrastructure and related,together with
all supplements, amendments or corrections thereto, submitted by the Townbuilder in accordance with this
Agreement.
"Development Project" means the applicable Private Development, Infrastructure and related
facilities and improvements referenced in this Agreement,including without limitation the implementation of
the Redevelopment Activities within the Development Property, to be undertaken in one or more Phases:
Phase 1A and one or more Subsequent Development Phases.
"Development Property" means real property owned, acquired or otherwise controlled by the
Townbuilder on which the applicable Phase of the Private Development is to be constructed, located in the
Redevelopment Area,as further described for the Phase 1 Development Property(comprised of the Phase 1 A
and Phase 1B and Phase 1C Development Properties)in Exhibit A,attached hereto and incorporated herein by
reference, and is agreed upon from time to time by one or more written supplements or amendments to this
Agreement.
5
"Downtown District Regulations"means SECTION VIIUDD,as supplemented by other applicable
ordinances, codes and regulations of the Municipality, of the Zoning Ordinance of the Municipality, and
includes any recodification thereof.
"Front Street/River Road Infrastructure"shall have the meaning below in the definition of
Infrastructure.
"Governing Body"means the Municipality's President and Board of Trustees.
"Hold Harmless Agreement" means the Hold Harmless Agreement in substantially the form in
Exhibit F,attached hereto,and made a part hereof(within which reference therein to"Contractor"shall mean
the Townbuilder).
"IDOT"means the Illinois Department of Transportation.
"Impositions"shall mean all taxes,assessments,use and occupancy taxes,charges,excises,license
and permit fees, and other charges by public or government authorities, general and special, ordinary and
extraordinary,foreseen and unforeseen,which are or may be assessed,charged,levied,or imposed by applying
applicable public or government authorities on or in connection with the Parking Structure or any portion
thereof or with respect to any property located thereon or any business conducted thereon.
"Insurance Requirements"means the Insurance Requirements in substantially the form in Exhibit F,
attached hereto, and made a part hereof(within which reference therein to "Contractor" shall mean the
Townbuilder).
"Incremental Taxes"means,net of all amounts constituting Surplus,as herein defined,and net of all
amounts required by operation of applicable law to be paid to others (for example, to school districts and
library districts under Section 11-74.4-3(n)7.5 and—3(n)7.7 of the TIF Act), 100%of all amounts constituting
ad valorem taxes, if any, arising from the levies upon taxable real property in the applicable Development
Property by taxing districts and tax rates determined in the manner provided in paragraph(c)of Section 11-
74.4-9 of the TIF Act attributable to the increase in the current equalized assessed valuation of each taxable lot,
block, tract or parcel of real property in such Development Property (and for Phase 1A includes all of the
Phase 1 Development Property)over and above the initial equalized assessed value of such property in the
applicable Development Property (and for Phase IA includes all of the Phase 1 Development Property)shall
be allocated to and when collected shall be paid to the Municipality's Treasurer who shall credit such taxes to
the "Special Tax Allocation Fund" to be deposited into or credited to the Development Account of the
Special Allocation Fund in accordance with this Agreement.
"Infrastructure" means, as applicable to a particular Phase, the acquisition, construction and
installation by the Municipality or the Townbuilder(or by the Townbuilder as agent for the Municipality as
provided in this Agreement),as the case may be, of public infrastructure,facilities and improvements within
or adjacent to the Development Property,all to be in compliance with the Municipality's generally Applicable
Building Codes,as shall be shown in the Development Plans,as follows:
Phase 1A. The Infrastructure for Phase 1A (collectively, the "Phase lA Infrastructure") shall
consist of the acquisition, construction (which shall include reconstruction, extensions and
improvements, as applicable) of the following: (i) the Parking Structure; (ii) Front Street (from
Stephen Street to Ed Bossert Street and River Road (to a point just west of 340 River Road (the
6
location of the Private Development within the Development Property)),in each case including related
curbs,gutters,sidewalks,streetscape(including planters,lighting and other furnishings),waterlines,
sanitary sewers and storm sewers (collectively, (ii) constitutes the "Front Street/River Road
Infrastructure"); (iii)the Plaza/Square; and(iv)the Walkways.
Subsequent Development Phases. The Infrastructure for Subsequent Development Phases
("Subsequent Phase Infrastructure") shall be as agreed upon from time to time by one or more
written supplements or amendments to this Agreement.
"Master Plan"or "Regulating Plan"means a general development plan for the downtown
Lemont area(including the Redevelopment Area),as contained in the Downtown District Regulations as the
"Illustrative Master Plan"(including as recodified).
"Material Changes"means those changes that could reasonably be expected to result in a decrease of
at least twenty percent (20%) of the aggregate amount of Incremental Taxes to be generated from the
applicable Development Property.
"Municipality"means the Village of Lemont,Illinois,a municipal corporation organized and existing
under the laws of the State of Illinois.
"Municipality Account"means the account by that name within the Special Tax Allocation Fund,as
described in this Agreement, into which TIF Revenues derived from the Redevelopment Area, other than
Incremental Taxes(which Incremental Taxes are to be deposited or credited to the Development Account)are
to be deposited or credited.
"Municipality Approvals" means all plat approvals, re-zoning or other zoning changes, site plan
approvals, conditional use permits, building permits, storm water management plan approvals or other
subdivision,zoning,building or similar approvals required for the implementation of the Development Plans
and the Development Project and consistent with the Act,the Concept Site Plan, and this Agreement.
"Municipal Attorney"means the Municipality's duly selected Village Attorney or any attorney at law
or a firm of attorneys acceptable to the Municipality in general matters pertaining to municipal law and duly
admitted to the practice of law before the highest court of the State of Illinois.
"Notes"means, collectively,the TIF Notes and the Refunding TIF Notes.
"Parking Agreement"means,subject to paragraph 4.5,one or more licenses,permits or other user
agreements with respect to the use by residential unit purchasers of the Private Parking Spaces.
"Parking Declaration"means the Declaration of Covenants and Restrictions in substantially the form
in Exhibit H, attached hereto and incorporated by reference.
"Parking Spaces"means the parking spaces within the Parking Structure.
"Parking Structure"means a public parking deck (five (5) floors) of approximately 262 parking
spaces,the exact nature of which to be agreed upon in the Development Plans therefor,of which 180 parking
spaces are to be available to the general public as separately identifiable public parking spaces, and the
balance of the parking spaces(not to exceed 82)are to be separately identifiable and available to particular
7
residential units in Phase IA, by licenses,permits or other use agreements supplemental to this Agreement,
with a controlled access mechanism or permits,as the case may be,for specified residential units in Phase 1 A,
and allowing public access to the 180 public parking spaces.
"Parking Term";with respect to the Parking Spaces for residential units in Phase IA and subject to
the terms and provisions of this Agreement(including without limitation,Paragraph 4.5),a term of ninety-
nine(99)years for each of the licenses, permits or other use agreements with owners of residential units in
Phase 1A, based upon a commencement date for the Parking Term as set forth in Paragraph 4.5(d).
"Paying Agent" and `Registrar" means, for Notes, and subject to an applicable Authenticating
Order,the Village Treasurer, or his/her designee.
"Payment Date" with reference to any Note,means the Payment Date or payment date set forth in an
applicable Note,or if such day is not a business day,the first business day thereafter,beginning with the first
Payment Date specified in the applicable Note until the earlier of payment or the final maturity date of, as
applicable, the TIF Note and/or the Refunding TIF Note.
"Phase"means,as applicable, Phase 1 A and a Subsequent Development Phase.
"Phase 1A"means, within the Phase 1 Development Property,the first Phase of the Development
Project as generally described in Paragraph 3.1.1 (d), including the related Phase IA Infrastructure.
"Phase 1 Development Property"means the real estate designated as Phase 1 Development Property
in Exhibit A hereto,on and within which Phase 1 will be undertaken,comprised,collectively,of(i)the Phase
IA Development Property(also known as"340 Front Street"); (ii)the Phase I B Development Property(also
known as the"Post Office Site");and(iii)the Phase 1C Development Property(also known as "230 River
Road").
"Phase lA Development Property"means,within the Phase 1 Development Property,the real estate
designated as the Phase lA Development Property in Exhibit A hereto,on and within which Phase lA is to be
undertaken.
"Phase IB Development Property"means,within the Phase 1 Development Property,the real estate
designated as the Phase 1B Development Property in Exhibit A hereto,on and within which Phase 1B is to be
undertaken.
"Phase 1C Development Properry"means,within the Phase 1 Development Property,the real estate
designated as the Phase IC Development Property in Exhibit A hereto,on and within which Phase IC is to be
undertaken.
"Phase lA Infrastructure"shall have the meaning above in "Infrastructure."
"Phase 1A Lender" or "Phase 1A lender" each means the Townbuilder's lender or lenders in
connection with the Phase 1 A Private Development, the Parking Structure, the Plaza/Square and the
Walkways.
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"Phase IA Loan Documents"includes all of the loan agreement(s),mortgage(s),security instruments
and other loan documentation by and between the Townbuilder and the Phase 1 A Lender(s)in connection with
the Phase lA Private Development,the Plaza Square,the Tower,the Walkways and the Parking Structure.
"Phase IA Municipal Mortgage"means a mortgage(howsoever styled)of the Parking Structure and
the related real estate by the Municipality to the Townbuilder's lender to secure up to $3,383,170 principal
amount of first lien debt in connection solely and only with the Parking Structure.
"Phase IA Private Development"means the design,acquisition,construction and installation of an
approximate 135,540 square-foot,five(5)story mixed use residential/office/commercial development(ground
floor office and commercial and up to 16 units of residential and 4 floors of residential for a total of up to 98
residential units and the adjacent sidewalks(the"Adjacent Sidewalks"),to be served by the Parking Spaces in
the Parking Structure serving residential units.
"Plaza/Square"means the approximate 3,500 sq.ft. "Plaza/Square"area in the Southwest corner of
the Phase 1 Development Property,as designated in the Concept Site Plan for Phase 1 (Exhibit A-1).
"Private Development" means the private residential, commercial and mixed use facilities to be
acquired,constructed and installed in Phases as a part of the Development Project within the Redevelopment
Area by the Townbuilder.
"Pro Forma" shall have the meaning in Paragraph 5.6 and shall be as set forth in Exhibit D,
attached hereto and incorporated herein by reference.
"Qualified Project Costs"means only those costs associated with the Redevelopment Activities that
are qualified under Article IV hereof, which shall not exceed the aggregate sum set forth in Exhibit E,
attached hereto and incorporated herein by reference.
"Redevelopment Area"means the Municipality's Downtown Canal District I Redevelopment Project
Area as described in the Redevelopment Plan.
"Redevelopment Activities"means for any Phase the specified Infrastructure to be designed,acquired,
constructed and installed by the Municipality(including by the Developer as the Municipality's agent as herein
provided)and/or the Townbuilder,as the case may be,and the Private Development and Infrastructure to be
designed,acquired,constructed and installed by the Townbuilder,as set forth in this Agreement(including as
supplemented and amended)and the applicable Concept Site Plan and Development Plans.
"Redevelopment Plan"means the redevelopment plan titled the "Downtown Canal District I
Redevelopment Plan and Project" duly approved and adopted by the President and Board of Trustees
and as such Redevelopment Plan has been
No. 0-37
-OS adopted on April 18,2005, P
pursuant to Ordinance N p P
supplemented and amended and may be supplemented and amended from time to time.
"Redevelopment Project" means the redevelopment project under the TIF Act described in the
Redevelopment Plan.
9
"Redevelopment Project Costs"means and includes the sum total of all reasonable or necessary costs
incurred or estimated to be incurred in undertaking Redevelopment Activities and any such costs incidental to
the Redevelopment Plan and the Redevelopment Project,which include,subject to the Redevelopment Plan,
the "redevelopment project costs" under Section 11-74.4-3(q) of the TIF Act in connection with the
acquisition,construction,and installation of the Development Project in the manner provided by the TIF Act
and,as applicable to Phase 1, Paragraph 4.8 of this Agreement.
"Refunding TIF Note"means, subject to an applicable Authenticating Order, each TIF note
obligation of the Municipality,in substantially the form set forth in Exhibit E/R,which shall bear interest at a
rate or rates percent per annum, fixed or variable, not exceeding the maximum authorized by the Bond
Authentication Act,as available by the Authorized Municipal and Townbuilder Representatives to refund TIF
Notes issued pursuant to this Agreement.
"Residential Units" means the condominium residential units within the Phase 1 A Private
Development.
"Special Tax Allocation Fund"means the designated"special tax allocation fund"under the TIF
Act for the Redevelopment Area.
"Special TIF Counsel"means an attorney at law or a firm of attorneys acceptable to the Municipality
of nationally recognized standing in matters pertaining to TIF and the issuance of obligations(including on a
tax-exempt basis)issued by states and their political subdivisions duly admitted to the practice of law before
the highest court of any state of the United States of America or the District of Columbia.
"Subsequent Development Phase"means one or more Phases of the Private Development after(or
concurrently with,as the case may be)Phase lA or another Subsequent Development Phase
with respect to
which payable or reimburseable Redevelopment Project Costs,constituting Qualified Project Costs,shall be as
agreed upon from time to time by one or more written supplements or amendments to this Agreement.
"Subsequent Phase Development Area"means the real estate within the Redevelopment Area for
each applicable related Subsequent Development Phase(i.e.,Phase 1B,Phase 1C,Phase 2, etc.).
"Subsequent Phase Private Development"means the design,acquisition,construction and installation
of Private Development within the applicable Subsequent Phase Development Area subsequent (or
concurrently,as the case may be)to Phase IA or another Subsequent Development Phase.
"Surplus" means that portion of TIF Revenues declared to be surplus or paid (or required by
applicable law to be declared surplus or paid)(i)by the Municipality or(ii)by operation of applicable law,and
to be passed through to each applicable affected taxing district on a pro rata basis or otherwise as required by
applicable law.
"Tax-exempt"with reference to an obligation means that the interest thereon is excluded from gross
revenue for federal income tax purposes.
"Taxable"or "taxable"with reference to an obligation means that the interest thereon is not tax-
exempt.
"TIF"means tax increment financing under the TIF Act.
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"TIF Note"means, subject to an applicable Authenticating Order, each TIF note obligation of the
Municipality,in substantially the form set forth in Exhibit E,which shall bear interest at a rate or rates percent
per annum,fixed or variable, not exceeding the maximum allowed by the Bond Authorization Act,as arranged
by the Authorized Municipal and Townbuilder Representatives.
"TIF Revenues"means all moneys constituting incremental taxes or other specified revenue sources
derived from the Redevelopment Area on deposit in the designated accounts of the Special Allocation Fund in
accordance with this Agreement,the Redevelopment Plan and the TIF Act.
"Tower"means that part of the Phase 1 A Private Development designated as the Tower in the
Concept Plan(Exhibit A-1).
"Townbuilder"means Marquette Property Investments,Inc.,an Illinois corporation,or its successors
or assigns in interest as authorized by this Agreement.
"Walkways"means the public walkways around the Parking Structure, and includes(i) the public
Walkway connection to the Front Street right-of-way pedestrian area and the Plaza/Square to that part of the
Walkway around the Parking Structure,(ii)the land, if any,between the Walkways surrounding the Parking
Structure and the Plaza/Square, and(iii)a public Walkway under the Tower.
1.2 Construction. This Agreement,except where the context by clear implication shall otherwise
require, shall be construed and applied as follows:
(a) definitions include both singular and plural.
(b) pronouns include both singular and plural and cover all genders; and
(c) headings of sections herein are solely for convenience of reference and do not constitute a part
hereof and shall not affect the meaning,construction or effect hereof.
(d) all exhibits attached to this Agreement shall be and are operative provisions of this Agreement
and shall be and are incorporated by reference in the context of use where mentioned and
referenced in this Agreement.
(e) The term"commence"or"commenced"or"commencement,"and the like,with reference
to construction by the Townbuilder or the Municipality, as applicable shall mean that the
Townbuilder or Municipality(i)has executed construction contracts;and(ii)has all financing
in place with no material or substantial contingencies on drawing against the loan(s);and(iii)
that the applicable contractor(s) has (have) mobilized on the construction site for the
contracted work.
(f) This shall also constitute an intent to reimburse under Section 1.150-2 of the Income Tax
Regulations related to costs advanced.
1.3 Representations and Warranties of the Municipality. In order to induce the Townbuilder
to enter into this Agreement, the Municipality hereby makes certain representations and warranties to the
Townbuilder,as follows:
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(a) Organization and Standing The Municipality is a non-home rule municipality duly
organized,validly existing and in good standing under the Constitution and laws of the State of Illinois.
(b) Power and Authority. The Municipality has full power and authority to execute and deliver
this Agreement and to perform all of its agreements, obligations and undertakings hereunder.
(c) Authorization and Enforceability. The execution, delivery and performance of this
Agreement have been duly and validly authorized by all necessary action on the part of the Municipality's
Corporate Authorities. This Agreement is a legal, valid and binding obligation of the Municipality,
enforceable against the Municipality in accordance with its terms,except to the extent that any and all fmancial
obligations of the Municipality under this Agreement shall be limited to the availability of Incremental Taxes
and other revenue sources therefor as may be specified in this Agreement and that such enforceability may be
further limited by laws, rulings and decisions affecting remedies, and by bankruptcy, insolvency,
reorganization,moratorium or other laws affecting the enforceability of debtors' or creditors' rights, and by
equitable principles and matters of public policy.
(d) No Violation. Neither the execution nor the delivery of this Agreement or the performance of
the Municipality's agreements,obligations and undertakings hereunder will conflict with,violate or result in a
breach of any of the terms, conditions, or provisions of any agreement,rule, regulation, statute, ordinance,
judgment,decree, or other law by which the Municipality may be bound.
(e) Governmental Consents and Approvals. No consent or approval by any governmental
authority is required in connection with the execution and delivery by the Municipality of this Agreement or
the performance by the Municipality of its obligations hereunder.
(f) TIF. The Municipality has duly adopted, approved and designated, as applicable, the TIF
Ordinances,the Redevelopment Plan,the Redevelopment Area and TIF.
1.4. Representations and Warranties of the Townbuilder. In order to induce the Municipality to
enter into this Agreement, the Townbuilder makes the following representations and warranties to the
Municipality:
(a) Organization. The Townbuilder is an Illinois corporation duly organized,validly existing and
in good standing under the laws of the State of Illinois,and is duly qualified to transact business in,and is in
good standing under,the laws of each of the other states where the Townbuilder is required to be qualified to
do
business.
s
(b) Power and Authority. The Townbuilder has full power and authority to execute and deliver
this Agreement and to perform all of its agreements,obligations and undertakings hereunder.
(c) Authorization and Enforceability. The execution, delivery and performance of this
Agreement have been duly and validly authorized by all necessary action on the part of the Townbuilder's
board of directors and in accordance with its articles of incorporation and by-laws. This Agreement is a legal,
valid and binding agreement, obligation and undertaking of the Townbuilder, enforceable against the
Townbuilder in accordance with its terms,except to the extent that such enforceability may be limited by laws,
rulings and decisions affecting remedies,and by bankruptcy,insolvency,reorganization,moratorium or other
laws affecting the enforceability of debtors' or creditors' rights,and by equitable principles.
12
(d) No Violation. Neither the execution nor the delivery or performance of this Agreement will
conflict with, violate or result in a breach of any of the terms, conditions, or provisions of, or constitute a
default under, or (with or without the giving of notice or the passage of time or both) entitle any party to
terminate or declare a default under any contract, agreement, lease, license or instrument or any rule,
regulation,statute,ordinance,judicial decision,judgment,decree or other law to which the Townbuilder is a
party or by which the Townbuilder or any of its assets may be bound.
(e) Consents. No consent or approval by any governmental authority or other person is required in
connection with the execution and delivery by the Townbuilder of this Agreement or the performance thereof
by the Townbuilder.
(f) No Proceedings or Judgments. There is no claim,action or proceeding now pending,or to the
best of its knowledge,threatened,before any court,administrative or regulatory body,or governmental agency
(1)to which the Townbuilder is a party and(2)which will,or could,prevent the Townbuilder's performance
of its undertakings, agreements and obligations under this Agreement.
(g) Upon request by the Municipality from time to time, the Townbuilder shall provide the
Municipality with complete and correct copies of its organizational documents(and amendments to the date of
such request) and applicable corporate resolutions or other authorizing actions in connection with this
Agreement and the Townbuilder's actions hereunder.
1.5. Disclaimer of Warranties. The Municipality and the Townbuilder acknowledge that neither has
made any warranties to the other,except as set forth in this Agreement. The Municipality hereby disclaims any
and all warranties with respect to the Development Project or the Infrastructure,express or implied,including,
without limitation,any implied warranty of fitness for a particular purpose or merchantability or sufficiency of
the Incremental Taxes or other specified revenue sources for the purposes of this Agreement. Nothing has
come to the attention of the Townbuilder to question the assumptions or conclusions or other terms and
provisions of any forecasts of Incremental Taxes,and the Townbuilder assumes all risks in connection with
the practical realization of any such forecasts of Incremental Taxes.
ARTICLE II. TOWNBUILDER DESIGNATION
2.1 Townbuilder Designation. The Municipality hereby selects the Townbuilder to serve as the
designated developer in connection with the acquisition,construction and installation of the Redevelopment
Activities on its part to be undertaken,acquired,constructed and installed under this Agreement within each
applicable Phase of the Development Property in accordance with(i)the Act,(ii)the Redevelopment Plan,(iii)
the Redevelopment Project,(iv)this Agreement, and (v)the Downtown District Regulations. Any conflict
among any of the aforementioned documents shall be resolved by giving preference to the documents in the
foregoing order(i)—(v),with the Act being given the highest preference. The Townbuilder's designation with
respect to Phase 1 A shall commence upon execution of this Agreement and shall terminate on the last to occur
of completion of Phase 1 A(as evidenced by a Certificate of Substantial Completion(Exhibit B))or December
31,2007. The Townbuilder's selection as designated developer under this Agreement shall continue with
respect to any Subsequent Phase Development Area as long as the Townbuilder has acquired the next
Subsequent Phase Development Area within 12 months after the completion date for the next preceding Phase
and commences such next Subsequent Phase Private Development(and any agreed upon infrastructure)within
12 months of such acquisition,and completes such Subsequent Phase Private Development within 24 months
13
i
of commencement, and otherwise such status as the designated Townbuilder under this Agreement shall
terminate,subject to any TIF benefits then vested under this Agreement. The nature and amount of Qualified
Project Costs in connection with any Subsequent Development Phase(other than Phase 1B and/or Phase 1C)
shall be as specified by one or more supplements or amendments to this Agreement or by one or more separate
redevelopment agreements.
2.2 Townbuilder to Submit Costs.
(a)Cooperation, The Municipality will assist and cooperate with the Townbuilder in obtaining permits and
approvals related to the Private Development including without limitation: IEPA,IDOT,MWRD,METRA,
INDR,all Federal and State agencies including those regarding canal and waterway construction,all railroad
and transportation authorities and all public and private utility companies.
(b)Reauisitions. The Townbuilder agrees to submit a requisition(in substantially the form of Exhibit C)for
payment by the Municipality of Qualified Project Costs as necessary to complete the applicable
Redevelopment Activities. Without limiting the generality of the foregoing,simultaneously with the issuance
of or endorsement of a draw upon one or more TIF Notes, which shall not be unreasonably withheld, the
Townbuilder from time to time shall advance to the Municipality an amount equal to the Qualified Project
Costs which amount the Municipality shall either(i)immediately apply to such Qualified Project Costs or(ii)
keep in a separate subaccount of the Development Account of the Special Allocation Fund and which the
Municipality shall use solely for the purpose of paying such costs incurred with respect to the related TIF
Notes. All amounts so advanced to the Municipality by the Townbuilder shall be for Qualified Project Costs
and shall be eligible for payment or reimbursement exclusively from the proceeds of Notes issued in
accordance with and subject to the provisions of
J P Article IV of this Agreement.
I �
i
(c)Draw Conditions. Notwithstanding the foregoing, the Municipality shall not be required to pay any
Qualified Project Costs or to issue a TW Note or Refunding TIF Note or to endorse a draw on a TIF Note or
Refunding TIF Note until the Townbuilder demonstrates, subject to written confirmation by an Authorized
Municipal Representative, that: (i) Phase 1 will require Qualified Project Costs in an aggregate principal
amount of at least $4,482,170; (ii) the Development Property, as improved by Phase IA, over 20 years is
reasonably forecasted to produce at least$3,000,000 in net present value of Incremental Taxes based on 4.57%
of triennial EAV increases,discounted to present value at 6%per annum;(iii)fmancing is committed,or the
Phase IA Loan Documents with the Phase 1A Lender are fully executed and in effect, in each case with no
unreasonable conditions prior to draws thereon and consistent with this Agreement as certified by an
Authorized Municipal Representative,for(A)the Phase 1 A Private Development,(B)all costs of the Parking
Structure (including the Phase 1A Municipal Mortgage) in excess of the $2,173,330 (which $2,173,330
amount is to be paid by the Municipality as provided herein),in form and substance(including the Phase 1A
Municipal Mortgage, as herein provided)as approved by the Municipality, and(C)the Walkways;(iv)the
Townbuilder has conveyed to the Municipality the land under the Parking Structure,the Plaza/Square and the
Walkways and to the extent owned or controlled by the Townbuilder within the right-of-way for the Front
Street/River Road Infrastructure under paragraph 3.1.1.(g)(v)below,and has dedicated to the Municipality
the Adjacent Sidewalks;(v) the Phase 1A Municipal Mortgage shall have been executed and delivered;and
(vi)the Declaration of Covenants&Restrictions(Exhibit H)is filed before any Phase lA Loan Documents.
(d)Public Facilities. The Parking Structure,the Walkways and the Plaza/Square shall be public facilities and
improvements owned by the Municipality and the Adjacent Sidewalks,as dedicated. Up to 82 Parking Spaces
in the Parking Structure shall be available to serve residential units, as herein provided.
14
2.3 Townbuilder Limitation. Notwithstanding anything in this Agreement to the contrary,whether
expressed,inferred or implied,recognizing that the Municipality has an obligation to the public and to other
taxing districts, the Municipality shall not be obligated to pay to the Townbuilder or to any other person
(including contractors or vendors or sellers) or endorse a TIF Note, as the case may be, for any Qualified
Project Costs or other amounts under this Agreement,unless the Townbuilder shall have prior to incurring any
such costs or amounts received the prior written approval(including as to amount,nature of engagement(i.e.
bid/no-bid)and the related purpose)from an Authorized Municipal Representative.
Notwithstanding the foregoing, the Municipality hereby approves previously incurred Qualified
Project Costs of the Townbuilder,as follows:
Qualified Project Costs Amount($)
TIF formation and related planning costs, including $350,000.00
the Master Plan/Regulating Plan and the Downtown
District Regulations.
ARTICLE III. ACQUISITION AND CONSTRUCTION OF THE DEVELOPMENT PROJECT
3.1 Development Project and Schedules. The Townbuilder shall commence its obligations
under this Agreement with respect to the design, acquisition, construction, and installation of the Parking
Structure(in part as the Municipality's agent)and of other Phase 1A Infrastructure(as set forth in Article IV,
as the Municipality's agent),and of the Phase 1 Private Development,at the times,in the manner and with the
effect as provided in Article II and in this Article III.
The Townbuilder will enter into no contract or agreement, including a design build contract or for
construction management services or for a Development Inspector,in connection with the Parking Structure or
the other Phase 1A Infrastructure, without the prior written authorization of the Authorized Municipal
Representative,except: Standard Form Agreement Between Owner and Contractor(Fixed Price Option),dated
March 22,2006,by and between the Townbuilder and Pickus Construction&Equipment,Inc_.
3.1.1. Townbuilder. Certain obligations of the Townbuilder under this Agreement are as
follows:
(a) Real Estate Acquisition. The Townbuilder represents and warrants that it
has acquired or otherwise controls all of the real estate constituting the Phase
1A Development Property, the Parking Structure, the Walkways, the
Plaza/Square and all of the River Road right-of-way except a portion owned
by the BHSF railroad (which excepted real estate the Municipality is to
provide). The funds for land acquisition for Phase 1 Development Property,
the Parking Structure,the Walkways,the Plaza/Square,and a purchase of the
River Road right-of-way(under paragraph 2.2(vi)),shall be provided by
the Townbuilder, subject to reimbursement (including through T1F Note
endorsement)as a Qualified Project Cost.
(b) Master Plan. The Townbuilder has completed the Master Plan/Regulating
15
Plan,which is incorporated into the Downtown District Regulations as"D.
ILLUSTRATIVE MASTER PLAN". The funds for the Master
Plan/Regulating Plan were advanced by the Developer subject to
reimbursement (including through TIF Note endorsement) as a Qualified
Project Cost.
(c) Phase 1 Development Property. The Developer has acquired or otherwise
controls a necessary and sufficient amount of the Phase 1 Development
Property such that the Townbuilder shall commence Phase 1A.
(d) Subsequent Phases. The Townbuilder shall undertake one or more
Subsequent Phases as market demand allows subject to the timing provisions
therefor in Paragraph 2.1.The Townbuilder may effect Subsequent phases
itself or by coordinated action with other developers or then present owners
and tenants. Commercial and residential development in Phase 1 shall be
sprinkled in accordance with applicable building codes and regulations. The
use of"Lemont Limestone" or other natural stone construction shall be
negotiated with respect to the development of Phase 1 and Subsequent
Phases.
(e) Coordination/Maintenance. In order to coordinate the design,acquisition,
construction and installation,including the application of public(i.e.TIF and
other funds of the Municipality as provided in this Agreement)and private
(i.e.,the Phase 1 Private Development,the Walkways,the Plaza/Square and
the Parking Structure) financing of the Phase IA Infrastructure with the
Phase 1A of the Private Development, the Townbuilder, as the
Municipality's agent,subject to Paragraph 2.3,has engaged or will engage
a construction manager and undertake the Redevelopment Activities for
Phase 1 A,including those on the part of the Municipality in connection with
the Adjacent Sidewalks, the Parking Structure, the Plaza/Square and the
Walkways.
(f) Permits. The acquisition of the required local, state, and federal permits,
approvals and licenses by the Townbuilder for the Phase 1A of the
Development Project, shall be advanced by the Townbuilder, subject to
reimbursement (including through TIF Note endorsement) as a Qualified
Project Cost.
(g) infrastructure.The design,acquisition,construction and installation of all
Infrastructure shall be in accordance with Applicable Law, including
engineering approved by the Municipality,and other government agencies
having jurisdiction over such Infrastructure. The schedules for such
acquisition,construction and installation of Infrastructure shall be as follows:
(i) Phase 1A: The schedule for the design, acquisition, construction and
installation of the Parking Structure, Walkways, Adjacent Sidewalks and
certain Private Development for Phase 1 A shall be as follows:
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Infrastructure Commencement Date Completion Date
(on or before) (on or before)
Parking Structure May 15,2007 November 15,2009
Walkways May 15,2007 November 15,2009
Adjacent Sidewalks May 15,2007 November 15,2009
Phase IA Private May 15,2007 November 15,2009*
Development
*The Municipality shall coordinate with the Townbuilder so that the
Front Street/River Road Infrastructure shall be completed concurrently
with completion of the Phase lA Private Development.
Notwithstanding the foregoing Phase lA schedule,if the Townbuilder shall
not have obtained the fmancings referenced in paragraph 2.2(c)(iii)on or
before December 11, 2006, this agreement shall terminate automatically
without the application of Article VI.
(ii)Subsequent Phases:The schedule for the acquisition,construction and
installation of Infrastructure for each Subsequent Phase shall,be as approved
by a supplement to or amendment of this Agreement.
(iii)Parking Structure: Funds for the Phase 1A Infrastructure under(i)
above shall be provided in part($2,173,330)by the Municipality,and any
balance (that is all costs over$2,173,330)by the Townbuilder(including
private financing), subject to reimbursement (including through TIF Note
endorsement)as a Qualified Project Cost.
(iv) Certain Conveyances: Upon completion, the Townbuilder shall
convey to the Municipality good and merchantable title to(together with a
title insurance policy for their fair market values): (A) the Adjacent
Sidewalks, the Walkways and the Plaza/Square and (B) the Parking
Structure. In connection with real estate taxes on the Parking Structure prior
to such conveyance to the Municipality, and assignment of applicable tax
identification number(s),the Townbuilder shall be responsible for all such
real estate taxes, to the extent lawful to be subject to reimbursement as a
Qualified Project Cost,and not otherwise.
(v)Right-of-Way: On or before the Municipality commences construction,
the Townbuilder shall dedicate or convey to the Municipality the land owned
by it within the right-of-way for the River Road part of the River
Street/River Road Infrastructure.
(h) Insurance. The Townbuilder shall maintain insurance coverage in amounts
equal to or greater than as provided in Paragraph 6.6.
(i) Reporting The Townbuilder shall report directly to a designated
Authorized Municipal Representative (and at a Authorized Municipal
Representative's request,from time to time to the Municipality's Board of
Trustees)regarding all matters related to this Agreement.
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(j) Residential. Unless separately approved in writing by an Authorized
Municipal Representative,all residential units shall be developed for sale by
the Townbuilder or Affiliates to buyers(e.g.,condominium units) and not as
rental units.
(k) Development Fees / Donations. The Townbuilder shall pay applicable
donations, building permit, inspection and impact fees, when determined
(estimated at $600,000), together with an engineer's review fee (which is
typically 2.5%of estimated improvements),estimated(not limited)site work
constructed by the Townbuilder as follows:
340 River Road
Lemont Fire Protection District $25,000
Park Donation $116,250
School Donation
Elementary(K-8) $9,872.31
Junior High $4,356.25
High School(9-12) $6,088.00
Village of Lemont
Tap on—Water and Sewer $233,036
Building Inspection $100,000(Estimate/hourly basis @$80/hour)
Building Permit Fees $90,000
Engineering Review $10,000(Estimate/hourly basis)
Escrow—Building Department To be determined upon review of building plan
Total: $600,000(Estimate)
In the above table, building permits (and review) and inspections and
engineering review and inspections are outsourced, and the related costs
shall be as invoiced to the Municipality plus a nominal
processing/administration fee.
The above donations,permit and impact fees in connection with Phase 1B
and Phase 1 C are subject to amendments or supplements to this Agreement.
(1) Prevailing Wages. The Townbuilder acknowledges that the Prevailing
Wage Act applies to the Infrastructure under this Agreement. Under the
Prevailing Wage Act the Townbuilder shall require that contractors and sub-
contractors submit, on a monthly basis, a certified payroll to the
Municipality. These records shall be kept by the Municipality for three years
and are subject to review through the Freedom of Information Act(FOIA),
provided that for purposes of public review,such records would not include
an employee's address,phone number or social security number.
(m) Performance Security. After$2,982,170 of the Phase IA loan under the
Phase I A Loan Documents has been expended on the Parking Structure,
18
which is the cost of the Parking Structure, less the contingency, the
Municipality, after having received a Development Inspector's certificate
that $2,173,330 will pay the balance, will have 90 days to fund the next
$2,173,330. The contingency will be then used to fund any cost overruns or
enhancements with the Townbuilder to cover any short fall. When the
Parking Structure is completed, the Townbuilder will post a maintenance
bond of$125,000,which is 5%on its share of the hard cost of the Parking
Structure. The maintenance bond will be released within 24 months after
completion of the Parking Structure.
(n) Certain Easements. To the extent within the power and authority of the
Municipality and/or the Townbuilder to do so, each hereby covenants and
agrees, upon the request of the other, to provide such reasonable access
easements, construction easements and utility easements as desirable or
necessary to the operation, construction and installation of the applicable
Private Development and/or Infrastructure in connection with the applicable
development or redevelopment Phase.
(o) Contractor Certifications. The Townbuilder shall obtain all required
Contractor Certifications (Exhibit I) in connection with the Phase IA
Infrastructure and shall file originals with the Municipality.
3.1.2. Municipality. Certain obligations of the Municipality under this Agreement are as
follows:
(a) The Municipality has adopted the Downtown District Regulations with form
and content acceptable to the Townbuilder,which to the extent lawful shall
be applicable to all development within the Development Property.
(b) The Municipality has caused appraisals to be prepared of all of the parcels
in the Redevelopment Area, which the Municipality has provided to the
Townbuilder,for which the Townbuilder hereby receipts.
(c) The Municipality shall expedite all Applicable Building code submissions
and requests of the Townbuilder in connection with this Agreement that are
within the Municipality's jurisdiction to process.
3.2 Development Plans
3.2.1 Approvals of Concept Site Plan and Development Plans.
(a) The Concept Site Plan attached hereto as Exhibit A-1 has been approved,
and is hereby ratified.
(b) Development Plans for the Development Project, including in Phases as
herein provided, shall be in accordance with the Downtown District
Regulations and as approved by the Authorized Municipal Representative.
19
(c) On or before the execution of this Agreement, the Townbuilder shall submit
to the Municipality Development Plans for the Phase 1 Private Development,
the Parking Structure, the Plaza/Square and the Walkways. The
Municipality shall within thirty(30)days from receipt approve or disapprove
applicable Development Plans,after reviewing such Development Plans for
compliance with Applicable Law and this Agreement and including but not
limited to the life safety and zoning regulations,and conformance with the
Concept Site Plan.
If the Municipality disapproves,the Municipality in writing shall provide the
reasons for such disapproval. The Townbuilder shall submit revised plans
within a reasonable time from the date of disapproval. Upon resubmission,
the Municipality shall review and approve or disapprove such revised
Development Plans within ten(10)business days of submittal. This process
shall repeat until the plans are approved by the Municipality.
3.2.2 Changes. During the progress of the Redevelopment Activities and Development
Project, the Townbuilder and the Municipality, by supplemental agreement executed by an
Authorized Municipal Representative and an Authorized Townbuilder Representative,may authorize
changes to the Concept Site Plan, the Development Plans or any aspect thereof as may be in
furtherance of the general objectives of the Redevelopment Plan and this Agreement and as site
conditions or other issues of feasibility may dictate or as may be required to meet the reasonable
requests of prospective tenants or owners or as may be necessary or desirable in the determination of
the Townbuilder to enhance the economic viability of the Development Project;provided,however,
the Townbuilder may make non-material changes and may not make any Material Changes to the
Development Plans, whether individually or in the aggregate with respect to any Phase,without the
advance written consent of the Municipality, provided that Development Plans shall comply with
Applicable Law, including Applicable Building Codes.
3.3 Townbuilder to Undertake the Development Project. The Townbuilder, in connection
with Redevelopment Project and the related Infrastructure,shall undertake the Redevelopment Activities,and
shall commence and complete the Development Project,if at all,in Phases in accordance with the terms of this
Agreement. The Townbuilder, to the extent applicable to the Townbuilder under this Agreement, shall
acquire,construct and install the Private Development,the Redevelopment Activities,the Infrastructure and
the Development Project in a good
and workmanlike ce mann
er. as Except otherwise p rwise expressly provided herein,
the Townbuilder shall have discretion and control,free from interference, interruption or disturbance,in all
al
matters relating to the management, marketing, development, redevelopment and construction of the
Development Project,provided that the same shall,in any event,conform to and comply with the terms and
conditions of the applicable Development Plans, the Redevelopment Plan and this Agreement, and all
Applicable Laws, including without limitation applicable zoning (including the Downtown Development
Regulations), subdivision, land use, building, fire, environmental and other applicable development codes
(collectively"Applicable Building Codes"), subject to any variances, special uses and exceptions, and
governmental approvals. The Townbuilder, as the Municipality's agent, in order to coordinate specified
Improvements (including the Phase 1 Improvements for Phase 1) to the applicable Development Project
(including the Phase 1 Development Project),shall act as,and hereby agrees to act as,the Municipality's agent
as provided specifically in Article IV, and not otherwise.
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3.3.1 Construction Contracts. The Townbuilder may enter into one or more acquisition
or construction contracts(including on a design-build basis and for construction management services)
to complete the Redevelopment Activities, the applicable Development and the related applicable
Infrastructure. Prior to executing any such acquisition or construction contract with respect to the
Infrastructure the Townbuilder: (i) shall obtain the Municipality's prior written approval under
Paragraph 2.3 above;(ii)shall have provided for the full funding for the Infrastructure on its part to
be funded; and(iii) shall have made arrangements for the full funding for the Infrastructure by the
Municipality on its part to be funded. Prior to execution of any such acquisition or construction
contract,the Townbuilder shall provide satisfactory documentation to the Municipality evidencing that
such contractor has agreed that it has no recourse against the Special Allocation Fund or any other
funds of the Municipality and any recourse of all such contractors against the Municipality is limited
to any mechanic's lien rights such contractor may have against the applicable Development Property
or the Townbuilder. Prior to the commencement of the Redevelopment Activities,the Townbuilder
shall obtain,or shall ensure that any such contractor obtain workers' compensation,comprehensive
public liability and builder's risk insurance coverage in amounts customary in the industry for similar
type projects and as provided in Paragraphs 3.1.2(g) and 6.6 of this Agreement. Prior to
commencement of the applicable Redevelopment Activities or simultaneously with the execution and
delivery of this Agreement by the Townbuilder,whichever is later,the Townbuilder shall deliver to
the Municipality evidence of all insurance to be maintained by such contractor as required by this
paragraph. The Townbuilder shall ensure that the insurance required is maintained by any such
contractor for the duration of the implementation of the Redevelopment Activities.
3.3.2 Compliance with Applicable Law. Prior to the execution of any contract with
contractors for design,acquisition,construction or installation in connection with the Redevelopment
Activities pursuant to Paragraphs 3.3.1 and 3.4.1 of this Agreement,the Townbuilder shall comply
with all Applicable Laws, including without limitation those laws pertaining to environmental,
contracting, prevailing wages, performance, labor and material payment bonds, and Applicable
Building Codes. Subject to the foregoing,the Townbuilder,as the Municipality's agent with respect
to the acquisition,construction and installation of the Infrastructure, may select such contractors as it
deems fit.
3.4 Changes. During the progress of the applicable Development Project,the Townbuilder may
make such reasonable changes , including, without limitation, modification of the construction schedule,
including dates of commencement and completion within the limitations otherwise set forth in this Agreement,
modification of the areas in which the Development Project is to be performed, relocation, expansion or
deletion of items,and such other changes to the Development Plans as site conditions or orderly development
may dictate or as may be required to meet any reasonable requests of prospective tenants or purchasers of any
portion of the Private Development,or as may be necessary or desirable to enhance the economic viability of
the Development Project;provided that any such changes shall be in accordance with the general objectives of,
and shall be in substantial conformity with,the Development Project as provided in the Development Plans,
the Redevelopment Plan,the Redevelopment Project,and this Agreement. Notwithstanding the foregoing,the
Townbuilder shall not make any changes pursuant to this Paragraph that will result in a Material Change to the
Development Plans unless the Townbuilder obtains the advance written consent of the Municipality pursuant
to Paragraph 3.2.2 of this Agreement.
3.5 Acquisition of Development Property. The Townbuilder represents to the Municipality that,
prior to the date of this Agreement,it has assembled(or otherwise controls)all or a necessary and sufficient
amount of the Development Property for Phase 1 A by negotiated purchase.The Townbuilder has obtained all
21
title commitments,inspections,tests,surveys and environmental or other reports,hired and retained all experts,
professionals,including attorneys or engineers and staff,and cause to be paid,pay or advance all acquisition
costs as may be necessary to acquire such Development Property for Phase 1A and to assure that the acquired
Development Property for Phase 1A is appropriate for Phase IA.
3.6 Municipality Approvals. The Municipality agrees to cooperate with the Townbuilder and to
expeditiously process and timely consider all applications for Municipality Approvals as received, all in
accordance with the applicable ordinances,codes and regulations of the Municipality and laws of the State of
Illinois, and to take all further actions on Municipality Approvals (after processing in accordance with
applicable laws and ordinances)as are consistent with the Development Plans,the Redevelopment Plan,and
this Agreement.
3.7 Certification of Substantial Completion. Promptly after substantial completion of all or a
functional portion of the Redevelopment Activities for a particular Phase or a separate functional part of a
particular Phase, in accordance with the provisions of this Agreement, the Townbuilder shall so certify by
furnishing to an Authorized Municipal Representative a Certificate of Substantial Completion in the form of
Exhibit B to this Agreement. Such certification by the Townbuilder,together with the written acceptance by
an Authorized Municipal Representative,shall be a conclusive determination of the substantial satisfaction of
the Townbuilder's agreements and covenants to implement, as applicable, all or the specified functional
portion of the Redevelopment Activities. The accepted Certificate of Substantial Completion may be recorded
by the Townbuilder in the office of the Cook County Recorder. If an Authorized Municipal Representative
shall refuse or fail to accept such Certification,an Authorized Municipal Representative shall,within fifteen
(15)business days after written request by the Townbuilder,provide to the Townbuilder a written statement
stating in reasonable detail in what respects the Townbuilder has failed to complete the applicable
Redevelopment Activities in substantial compliance with, as applicable, the Development Plans, the
Redevelopment Plan,and this Agreement,or is otherwise in default,and what reasonable measures or acts the
Townbuilder may take or perform,in the opinion of the Authorized Municipal Representative,to obtain such
acceptance.
3.8 Construction Escrow. The Townbuilder and the Municipality before commencing the work
on the Parking Structure, will cause to be created a Construction Escrow account(under the Construction
Escrow Agreement). Funds in the amount$3,382,170 will be placed in such Construction Escrow account by
arrangements to be made by the Townbuilder,with notification provided to the Municipality of availability of
assets.
ARTICLE IV. INFRASTRUCTURE/REDEVELOPMENT ACTIVITIES.
4.1 Infrastructure. The Municipality shall cause the financing,design,acquisition,construction
and installation of the Front Street/River Road Infrastructure as provided in this Article IV and in Article III.
The Townbuilder shall cause the financing,design,acquisition(including the conveyance to the Municipality
of certain real estate with respect to the Parking Structure,the Tower,the Walkways,the Plaza/Square and the
Front Street / River Road Infrastructure), construction and installation of the Private Development, the
Walkways and the Plaza/Square, as provided in this Article IV and in Article III.
The Townbuilder shall cause to be commenced and completed the design,acquisition,construction
and installation of certain of the Phase 1 Infrastructure according to the schedule set forth in Paragraph
3.1.1(f). The Municipality hereby designates the Townbuilder as its agent, and the Townbuilder hereby
accepts such designation,to so acquire,construct and install the Parking Structure,the Plaza/Square and the
22
Walkways at the time and in the manner so that the Parking Structure,the Plaza/Square and the Walkways are
coordinated with the Townbuilder's design,acquisition,construction and installation of the Phase 1 Private
Development, with respect to which the Authorized Municipal Representative is authorized to enter into
supplemental agreements for such Coordinator.
4.2 Financing. The Municipality shall arrange for financing a portion of the Phase 1 Infrastructure,
as follows:
(a) Parking Structure. The Municipality agrees to issue sufficient debt obligations to generate
$2,173,330(or otherwise fund such amount)to be applied to the Parking Structure. Within 90 days after the
later of the date(i)this Agreement is fully executed and the Townbuilder in writing requests such funding or
(ii)the Townbuilder has arranged a commitment for its financing for all other costs of the Parking Structure,
the Walkways, the Plaza Square,the Adjacent Sidewalks and the Phase 1A Private Development, and has
provided the Municipality a copy of such commitment and the Townbuilder in writing requests such funding,
the Municipality shall make available such$2,173,330 amount for application to the Parking Structure after the
Phase IA Lender's loan in this connection has been applied in the amount of at least $3,382,170. The
Townbuilder shall arrange its financing in this connection such that(i)the private financing funds are applied
and(ii) at least$3,000,000 is applied to the Phase 1A Private Development,prior to drawing on any of the
funds therefor provided by the Municipality.
(b) Other Phase lA Infrastructure. The Municipality shall arrange for the allocation of
$1,600,000 in utility tax funds from the Municipality's Local Improvement Fund to be applied to the Front
Street/River Road Infrastructure. The Municipality reserves the right to be reimbursed for such advance of
funds from moneys available in the Municipality Account. Within 30 days after the Townbuilder has arranged
a commitment for its financing for its costs of the Parking Structure,the Walkways and the Phase 1 Private
Development,subject to the second paragraph of Paragraph 4.1,the Municipality shall make available such
$1,600,000 amount for the Front Street/River Road Infrastructure (with any excess of such amount to be
returned to the Municipality). The Developer shall arrange the application of its private financing for the Phase
1A Private Development and all costs of the Parking Structure, in excess of the Municipality's $2,173,330
contribution,such that a minimum of$6,682,170 of such financing($3,382,170 for the Parking Structure and
$3,000,000 for the Phase 1A Private Development) has been drawn upon for the Phase IA Private
Development before the work of the Front Street/River Road Infrastructure and the Parking Structure is
commenced.
(c) Construction Period Interest, Construction Period Interest shall be endorsed on a TIF Note
as a financing cost(and a Qualified Project Cost)of the Municipality,not more frequently than quarterly. The
interest rate percent per annum for the TIF Notes shall not exceed the interest rate percent per annum charged
by the Phase 1A Lender under the Phase 1A Loan Documents.
(d) phase 1 Costs/Summary. In connection with this Agreement,an overall summary of Phase
lA Private Development and Infrastructure costs(with the Municipality expressly limited as to the amounts
allocated to the Municipality under this Agreement)and with the Townbuilder to be responsible for any excess
amounts, is as follows:
PROJECT COSTS
Parking Deck/Walkways construction (262 spots) 4,650,000
23
Parking Deck construction- site demolition cost 150,000
Parking Deck construction- site work 110,000
Parking Deck land (40%) 640,000
Parking Deck land donation from Marquette to Village (240,000)
Parking Deck construction- 5% construction contingency 245,500
Roads & Water & Sewer Utilities Construction 1,600,000
Interest Reserve (Construction period interest expense until TIF available) 950,000*
Planning Cost Reimbursements to Marquette 350,000
PROJECT COSTS TOTAL 8,455,500
*Subject to actual determination.
VILLAGE FINANCING
Cash - Road Improvement Fund 850,000
Cash - Water Improvement Fund 750,000
Revenue Bond/Debt Certificate (Utility Taxes) - Parking Deck Construction & Land
2,173,330
VILLAGE FINANCING 3,773,330
MARQUETTE FINANCING (Taken in form of TIF Developer Note)
Parking Deck /Walkways 3,382,170
Interest Reserve (Construction interest expense until TIF available) 750,000*
Planning Cost Reimbursements to Marquette 350,000
Phase 1 A Private Development/ Adjacent Sidewalks 17,800,000
Walkways
Adjacent Sidewalks
MARQUETTE FINANCING
*Subject to actual determination and arrangements for payment on a current basis by the Townbuilder(subject
to endorsement on a TIF Note(other than as secured by the Phase I A Municipal Mortgage)for payment as a
Qualified Project Costs)
24
Under present law,the Municipality generally approves and authorizes the above Phase 1A budget and
financing program.
(e) Phase IA Municipal Mortgage / Parking Agreement. The Townbuilder or the
Townbuilder's Lender, as applicable, with at least 5 business days for initial review and comment, shall
provide to the Municipality proposed drafts of the Phase 1 Municipal Mortgage and the Phase 1 A Lender's
Mortgage for the Phase 1 A Private Development. The Phase 1 A Municipal Mortgage shall not cross-secure
the Phase 1A Private Development; and the Phase 1A Lender's mortgage for the Phase 1A Private
Development shall not cross-secure the Townbuilder's and Phase 1A Lender's Phase IA Loan Documents
related to the Parking Structure. The Municipality shall within 15 business days from receipt approve or
disapprove the Phase 1A Municipal Mortgage. If the Municipality disapproves,the resubmission/revision
process shall be substantially as provided above in the second paragraph of paragraph 3.2.1(c).
The Parking Declaration(Exhibit H)shall be in a recordable form,and shall be recorded before any of
the Phase 1A Lender's Phase 1A Loan Documents, containing a covenant running with the land that the
Parking Structure for the 99-year term of the Parking Agreement shall be maintained as a public parking
facility.
(f) Notes may be issued under this Agreement from time to time,and with such priorities as an
Authorized Municipal Representative and an Authorized Townbuilder Representative supplementally arrange
and agree,with terms as authorized in this Agreement.As long as the Townbuilder is not in default under this
Agreement and the superior position of the Note funding the Parking Structure is not altered,the Municipality
will not unreasonably disapprove the Townbuilder's request for the issuance of the Note pursuant to financing
arrangements obtained by the Townbuilder.
4.3 Building Materials. As long as there is no violation of Section 11-74.4-3(q)(1 2)of the TIF
Act or other Applicable Law,in connection with the construction of the Parking Structure and the Walkways,
the Townbuilder is and shall act as the Municipality's agent; and the Municipality, at the Townbuilder's
request, will sign or co-sign or otherwise authorize the acquisition and delivery of building materials and
related personal property in such a manner that the Parking Structure and the Walkways is not subject to State
of Illinois sales and use taxes. The Townbuilder shall and does indemnify, defend and hold harmless the
Municipality in this connection.
4.4 Front Street/River Road Infrastructure. The Municipality shall be responsible for the
fmancing,design,acquisition,construction and installation of the Front Street/River Road Infrastructure at the
time and in the manner as provided in this Agreement.
4.5 Parking Agreements. This paragraph 4.5 shall constitute provisions of any Parking
Agreements by and between the Municipality and the owners of the residential units in Phase 1A.
(a) Construction and Maintenance. This Parking Structure shall be acquired,
constructed and installed at the time,in the manner and with the effect as provided in
this Agreement. The Municipality shall be responsible for the general maintenance
of the Parking Structure.
(b)b
P
S ecification. The Authorized Municipal Representative shall determine,allocate,
specify,and assign the location(s)of Parking Spaces and the allocation of Parking
25
Spaces to the residential units in Phase 1A,provided that no single residential unit
shall receive more than one such allocation. Such assignments and specifications
may change from time to time.
(c) User Fees. The user,license or lease fees to be paid to the Municipality with respect
to the Parking Spaces for residential units shall be as follows: A monthly fee of$25
per month per Parking Space for residential units,with an annual adjustment based
on CPI index selected by the Municipality,but not to exceed 4%per year,is to be
paid by a Condominium Association to the Municipality for purpose of maintenance
of the Parking Structure, the Walkways, the Adjacent Sidewalks and catwalks or
other facilities related to and serving the Parking Structure. The Condominium
Association shall be responsible separately for the costs associated with the trash
compacter and dumpster services.
(d) Parking Term/License. The Parking Term shall commence upon the completion of
the Parking Structure and of the Phase 1A Private Development,as evidenced by a
Certificate of Substantial Completion (Exhibit B), and execution of the
Condominium Association Acceptance(Exhibit J). During the Parking Term,the
residential owners in Phase 1 A shall have a ermit license or other arrangement� an ement to
g
use the applicable assigned Parking Spaces, but solely and only for the parking of
operable motor vehicles that would fit the applicable Private Parking Space with not
less than 18"of open space on either side of such motor vehicles.
(e) `As Is'Condition. The Parking Spaces for residential units are being provided"as
is" and"with all faults,"and the Municipality makes no representation or warranty
of any kind,express or implied,with respect to Parking Spaces for residential units;
and without limiting the generality of the foregoing, it is expressly agreed that the
Municipality makes no representation or warranty as to the marketability,habitability
or fitness for any particular purpose of the Parking Spaces for residential units or
(notwithstanding the Parking Term and the Municipality's intention that Parking
Spaces for residential units are to be available for the entire Parking Term)that the
Parking Structure will exist for the full Parking Term, including with respect to
subparagraphs (n) and (o) below. The Parking Term may end as a result of
consumption of the Parking Structure by age, obsolesce and wear and tear and
physical deterioration or depreciation. Notwithstanding the foregoing, the
Municipality will use reasonable efforts that the Parking Structure is available for its
intended purposes for the Parking Term..
(f) Payment of Impositions. In connection with the Parking Structure prior to the
Municipality obtaining an exemption from real estate taxation, which the
Municipality agrees to timely apply for,the Townbuilder shall pay all such real estate
taxes.
While the Municipality, based upon the Townbuilder's representations, does not
anticipate that there will be any with respect to the Parking Spaces for residential
units, the Condominium Association shall pay all Impositions, if any, assessed,
levied, charged, or imposed upon or against or in connection with, the Parking
Spaces for residential units and related facilities and improvements during the
26
Parking Term as a result of or substantially caused by use of the Parking Spaces for
residential units. Such Impositions shall be the sole and exclusive obligation of
Condominium Association or its assignees. The Condominium Association may,in
good faith, at its own expense (and in its own name as Condominium Association
may determine appropriate), contest any such Impositions. The Municipality shall
use reasonable efforts to cooperate with Condominium Association in contesting any
such Impositions;provided,however,that the Municipality shall not be required to
incur any expense in connection therewith and the Municipality shall not in any way
become liable for the payment of any such Impositions or be held responsible for the
outcome of any contest of Impositions so undertaken by the Condominium
Association.
If the Condominium Association shall fail to pay any Impositions for which it is
liable before the same becomes delinquent,or fails to notify the Municipality of its
intention to contest the same prior to such delinquency,or fails to pay any contested
Impositions before the property is threatened with foreclosure or similar proceedings,
the Municipality,at the Municipality's election,may(but shall not be obligated to)
pay such Impositions with any interest and penalties due thereon, and the amount
paid by the Municipality shall be repayable by Condominium Association on
demand, together with interest thereon at 12% per annum from the date of such
payment until repaid together with all penalties. Thereafter in addition to all other
remedies of the Municipality, the Municipality may require the Condominium
Association to pay to the Municipality,and the Condominium Association shall pay,
on a monthly basis, one-twelfth (1/12) of the Impositions, as estimated by the
Municipality,becoming due during each calendar year. Any such additional payment
shall be due monthly on the first day of each month and shall be held in escrow by
the Municipality for such purposes.
(g) Compliance with Restrictions and Laws. The Condominium Association shall be
responsible for the use of the Parking Spaces for residential units in compliance with
this Agreement. The Condominium Association shall, at the Condominium
Association's sole expense (w) comply with Applicable Laws of governing
authorities having jurisdiction over the Parking Spaces for residential units (x)
comply with any directive, order or citation made pursuant to law by any public
officer requiring abatement of any nuisance or which imposes in respect of the
Parking Spaces for residential units any duty or obligation arising from the use of the
Parking Spaces for residential units, (y) comply with all insurance requirements
applicable to the Parking Spaces for residential units and(z)indemnify and hold the
Municipality harmless from any loss,cost,claim or expense which the Municipality
incurs or suffers by reason of any failure to comply with the obligations under
clauses(w),(x),(y)or(z)above. If the Condominium Association receives notice of
any such directive, order citation or of any violation of any law, order, ordinance,
regulation or any insurance requirement, the Condominium Association shall
promptly notify the Municipality in writing of such alleged violation and furnish the
Municipality with a copy of such notice.
(h) IT.,a»thorized Use. The Condominium Association shall use best efforts to prevent
unauthorized usage of Parking Spaces for residential units. The Condominium
27
Association and the Municipality shall cooperate to prevent unauthorized usage of
the Parking Spaces for residential units through a signage or other system to be
developed and agreed upon the Authorized Municipal Representative and the
Authorized Townbuilder Representative or the Condominium Association.
(i) Municipality Regulations. Except as specifically provided in this Agreement,use
of the Private Parking Spaces shall be subject to all specification, assignments,
procedures,rules,regulations,and enforcement practices of the Municipality for the
Parking Structure. Such rules,regulations and enforcement practices are subject to
change at the Municipality's sole and absolute discretion. The Municipality shall
provide the Condominium Association with advance notice of changes and such
specifications,assignments,procedures,rules,regulations and enforcement practices
which relate to use of the Parking Structure.
(j) Maintenance of Parking Structure. Subject to Paragraph 4.5 (e) above, the
Municipality at the Municipality's cost and expense, shall at all times during the
Parking Term provide ordinary maintenance and repair the Parking Structure.
(k) Prohibition of Liens. The Condominium Association shall not suffer or permit any
mechanics' liens or other liens to be filed against the Parking Structure by reason of
any work,order,service or material supplied or claimed to have been supplied to the
Condominium Association. If any such mechanics'liens or materialmens'liens shall
be recorded against the Parking Structure, or any improvements thereon, the
Condominium Association shall cause the same to be removed or bonded over.
(1) Required Insurance. Throughout the Parking Term, the Townbuilder (and
assignees) shall, at the Townbuilder's (and assignees') expense, maintain
comprehensive general liability insurance for bodily injury, death or property
damage,insuring the Townbuilders(and assignees)and naming the Municipality as
an additional insured against all claims,demands,or actions relating to the use of the
Parking Structure on an occurrence basis, issued by and binding upon a solvent
insurance company licensed to do business in Illinois,with limits of not less than One
Million
dollars with respect to injury p njury or death to a single person;not
less than Five Million 5 00
($ ,0 ,000)Dollars with respect to any one occurrence and
not less than One Million($1,000,000)Dollars for property damage or destruction.
In addition to other remedies provided in this Agreement,if the Townbuilder fails to
maintain the insurance required by this subparagraph,the Municipality may,but is
not obligated to,obtain such insurance and the Townbuilder's(and assignees')shall
pay to the Municipality upon demand as additional payments the premium cost
thereof plus interest at 12%per annum from the date of payment by the Municipality
until repaid. The insurance policy or policies must name by the Municipality and the
Townbuilder(and assignees)as named insureds.
Prior to the commencement of the Parking Term,the Townbuilder shall furnish to the
Municipality evidence of insurance, in a form acceptable to the Municipality,
showing that the Townbuilder is in compliance with the insurance coverage
requirements hereof and indicating the exclusions from coverage, if any. Any
insurance company providing insurance required hereunder shall notify the
28
Municipality at least thirty(30)days prior to cancellation or material change in any
such insurance. All insurance required herein shall be primary and noncontributing
with any insurance that may be carried by the Municipality. The Municipality
reserves the right from time to time throughout the Parking Term to increase the
minimum insurance limits set out above to ensure that adequate insurance is being
reasonably maintained according to industry standards.
The term "assignees" in this subparagraph (1) includes the Condominium
Association.
(m) Indemnification for Use of Parking Spaces for Residential Units. The
Municipality shall not be liable for any loss, damage, or injury of any kind or
character to any person or property arising from any occurrence on or within the
Parking Spaces for residential units. The Condominium Association and the
authorized users of the Parking Spaces for residential units hereby waive all claims
against the Municipality for damages to any property or injury to, or death of, any
person in,upon or about the Parking Spaces for residential units arising at any time
and from any cause(including specifically without limitation,the negligence of the
Municipality) other than solely by reason of the gross negligence or willful
misconduct of the Municipality. The Condominium Association and the authorized
users of the Parking Spaces for residential units for themselves and their agents,
employees, representatives, contractors, licensees, concessionaires, invitees,
successors and assigns,expressly assumes all risks of injury or damage to persons or
property,either proximate or remote resulting from condition of the Parking Spaces
for residential units or any part thereof. In addition to any indemnify contained in
this Agreement and not in lieu thereof, the Condominium Association and the
authorized users of the Parking Spaces for residential units agree to indemnify and
save harmless the Municipality and its agents, servants, officers and employees
(collectively "Indemnitees") from and against any and all liabilities, damages,
claims, suits,costs(including court costs,attorneys fees and costs of investigation)
and actions of any kind arising or alleged to arise by reason of injury to or death of
any person or damage to or loss of property occurring on, in or about the Parking
Spaces for residential units or by reason of any other claim whatsoever of any person
occasioned or alleged to be occasioned by act or omission on the part of the
Condominium Association and the authorized users of the Parking Spaces for
residential units or any officer, director, servant, agent, employee, representative,
contractor,subcontractor,licensee,concessionaire,invitee,successor and assign,or
by the violation or non performance of any covenant of the Condominium
Association and the authorized users of the Parking Spaces for residential units under
this Agreement, whether such liability, claims, suits, costs, injuries, deaths or
damages arising from or are attributed to the concurrent negligence of any
Indemnitee if any action or proceeding shall be brought by or against any Indemnitee
in connection with any such liability or claim,the Condominium Association and the
authorized users of the Parking Spaces for residential units on notice from the
Municipality, shall defend such action or proceeding at the expense of the
Condominium Association and the authorized users of the Parking Spaces for
residential units expense, by or through attorneys reasonably satisfactory to the
Municipality. The provisions of this paragraph (m)shall apply to all activities of the
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Townbuilder and assignees with respect to the Parking Spaces for residential units,
whether occurring after execution of this Agreement. The obligations under this
subsection shall not be limited to the limits of coverage of insurance maintained or
required to be maintained under this Agreement. This provision shall survive the
termination of this Agreement.
(n) Damage to Premises. If,during the Parking Term,the Parking Structure is wholly
or partially destroyed or damaged by fire, or any other casualty whatsoever
(collectively called a `Casualty"), the Municipality may (but is not required to)
repair, replace, restore and reconstruct the Parking Structure, in a good and
workmanlike manner.
(o) Takings. If all or substantially all of the Parking Structure is taken under power of
eminent domain(which term as used in this Agreement shall include any conveyance
in avoidance or settlement of condemnation or eminent domain proceedings)or other
similar proceeding,then the Parking Term shall terminate as of the date of taking of
possession by the condemning authority.
The Municipality and the Townbuilder and assignees agree that if less than all or
substantially all of the Parking Structure is taken under power of eminent domain or
other similar proceeding,then Parking Term shall nevertheless continue in effect as
to the remainder of the Parking Structure as the case may be;provided,however,that
if the Municipality and the Townbuilder and assignees both agree within thirty(30)
days following the e taken that so much of the taking he Parkmg Structure as the case may be
has been taken or condemned as to make it economically unsound to attempt to use
the remainder thereof for the conduct of Townbuilder's or assignee's business
thereon,then Parking Term shall terminate upon possession of such portion of the
Parking Structure as the case may be by the condemning authority.
All sums awarded or agreed upon between the Municipality and the condemning
authority for the taking of the interest of the Municipality and the Townbuilder and
assignees in the Parking Structure,whether as damages or as compensation,will be
the property of the Municipality or the Townbuilder and assignees as applicable.
(p) This Paragraph 4.5 shall be accepted by the Condominium Association Acceptance
in substantially the form in Exhibit J,attached hereto and incorporated herein by this
reference.
4.6 Parking Structure/Restrictive Covenants. During the Parking Term the Parking Structure
shall be operated and maintained according to the terms and provisions of this Agreement. In this connection
a Parking Declaration(Exhibit H)shall be executed and duly filed for record in Cook County,Illinois before
any Phase IA Loan Documents or Phase IA condominium documents are filed for record in Cook County,
Illinois.
ARTICLE V. COLLECTION AND USE OF TIF REVENUES
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5.1 Certificate of Total Initial Equalized Assessed Value. The Townbuilder acknowledges that
the Municipality has provided (or upon availability will provide) to the Townbuilder a true, correct, and
complete copy of the Cook County Clerk's certification of the initial equalized assessed value("Initial EAV")
of all taxable property within the Redevelopment Area,as determined pursuant to Section 11-74.4-9 of the TIF
Act. Notwithstanding the foregoing the Townbuilder and the Municipality hereby agree that the Initial EAV
for the Phase 1 Development Property shall be as specified in a Consent/Approval Form(Exhibit G),which
shall be the basis for determining the amount of Incremental Taxes for deposit or credit to the Development
Account.
5.2 Special Tax Allocation Fund. The Municipality agrees to maintain the Special Tax
Allocation Fund, including the following accounts and such further accounts as the Municipality may deem
appropriate in connection with the administration of the Special Tax Allocation Fund pursuant to the TIF Act
and this Agreement: (A) Development Account (into which all Incremental Taxes shall be deposited or
credited,including a Phase 1 subaccount in connection with Phase 1),and within it or such Phase 1 subaccount
(i)with respect to each TIF Note(or,as applicable,each Refunding TIF Note,a "debt service subaccount"
and (ii) a"qualified project costs sub-account"; and(B)the Municipality Account(into which all TIF
Revenues,excluding Incremental Taxes with respect to the Phase 1 Development Property,shall be deposited
or credited). All TIF Revenues shall be credited to the Special Tax Allocation Fund. Incremental Taxes to pay
(x)debt service on a TIF Note shall be deposited into the debt service subaccount;(y)Qualified Project Costs
other than debt service shall be deposited into the qualified projects costs subaccount;and as applicable,and
not otherwise,(z) interest subsidy under Section 11-74.4-3 (q)(11)of the TIF Act shall be deposited into the
interest subsidy subaccount. All TIF Revenues in excess of Incremental Taxes shall be deposited into the
Municipality Account. While any TIF Note is outstanding and unpaid,Incremental Taxes shall be deposited
into the debt service subaccount, and otherwise shall be deposited into(y)or(z)above as the Townbuilder
directs,and into(y) if there is no direction by the Townbuilder.
Prior to the issuance of any Refunding TIF Note, on or before December 1 in each calendar year,
commencing December 1,2007,it shall be the sole responsibility of the Townbuilder to provide,or cause to be
provided,the Municipality with either copies of paid real estate tax bills or other proof of payment of such
taxes as provided by the County Treasurer for each lot, block, tract, or parcel constituting each applicable
Development Area for the previous tax year together with the Townbuilder's determination,based on available
information,of the Incremental Taxes to be deposited or credited to the Development Account. The failure of
the Townbuilder to provide such information to the Municipality as to the increment of some individual parcels
will result in the Municipality not depositing the undetermined Incremental Taxes into the Development
Account for those parcels. After the issuance of a Refunding TIF Note for such the Phase 1 Development
Property, the Municipality on or before each such December 1 shall determine the amount of applicable
Incremental Taxes and deposit or credit such amount to the Phase 1 debt service subaccount of the
Development Account under this Agreement.
5.3 TIF Note. Each TIF Note shall be in substantially the form set forth in Exhibit E. The
interest rate or rates on the TIF Note shall be as set by an Authorized Townbuilder Representative and an
Authorized Municipal Representative,to be specified in an applicable Authenticating Order,but not to exceed
the interest rate or rates under the Bond Authorization Act. Also, in connection with any outstanding TIF
Note,the Townbuilder,on a quarterly basis(i.e. 5 business days after each January 15,April 15,July 15 and
October 15)shall provide the Municipality with an accounting status as to outstanding principal and accrued
interest as of each such January 15,April 15, July 15 and October 15.
Any TIF Note or Refunding TIF Note(or other financing or debt instrument)which is secured by the
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Phase 1 A Municpal Mortgage)shall be superior to any other TIF Note or Refunding TIF Note in connection
with this Agreement.
5.4 Refunding TIF Note. At the Townbuilder's request,and pursuant to arrangements made by
or on behalf of the Townbuilder,to which arrangements and related documentation the Municipal shall not
unreasonably withhold approval,the Municipality shall undertake supplemental proceedings to issue one or
more Refunding TIF Notes to refund the TIF Notes issued and/or drawn upon under this Agreement. No
Refunding TIF Notes shall be issued until all TIF Notes are fully issued or drawn upon,or so certified by the
Townbuilder. Such Refunding TIF Notes shall have such terms and provisions,among others customary to
such financings with terms and process to be specified in an Authenticating Order, substantially as follows:
(a) The interest on the Refunding TIF Notes shall be"tax-exempt"under Sections 103 and
141 et seq. of the Code to the extent lawful.
(b) The interest rate or rates on the Refunding TIF Notes shall be determined or set such that
the interest cost is as reasonably low as practicable, and specified in an applicable
Authenticating Order.
(c) The Refunding TIF Notes shall have a first lien on all Incremental Taxes generated and
derived from the Phase 1 Development Property and on deposit or credited to the Phase 1
debt service subaccount of the Development Account, and not otherwise.
(d) The Refunding TIF Notes shall have a non prepayment period(or"no call"period)for
five years from their issuance,and thereafter the prepayment/call notice shall be with at
least 30 days prior notice to the holders thereof.
(e) The Refunding TIF Notes shall have such other and further terms and provisions as shall
be agreed upon by and between the Municipality and the Townbuilder,as specified in an
applicable Authenticating Order.
5.5 Payment and Discharge. Notes may be discharged,payment provided for,and the
Municipality's liability terminated, in whole or in part,as follows:
(i)Discharge of Indebtedness. If(i)the Municipality shall pay or cause to be paid to
the registered owners of the Notes the principal,premium, if any, and interest to become due thereon at the
times and in the manner stipulated therein and herein, (ii)all fees and expenses, if any,of the Registrar and
Paying Agent shall have been paid,and(iii)the Municipality shall keep,perform and observe all and singular
the covenants and promises in the Notes and in this Agreement expressed as to be kept, performed and
observed by it or on its part,then these presents and the rights hereby granted shall cease,determine and be
void. If the Municipality shall pay or cause to be paid to the owners of the Notes of a particular series,or of a
particular maturity within a series,the principal, premium, if any, and interest to become due thereon at the
times and in the manner stipulated therein and herein,such Notes shall cease to be entitled to any lien,benefit
or security under this Agreement, and all covenants, agreements and obligations of the Municipality to the
owners of such Notes shall thereupon cease,terminate and become void and discharged and satisfied.
(ii) Provision for Payment. Notes for the payment
sufficient monies or sufficient government securities shall have been irrevocably deposited in a separate
account of the Municipality for such purpose(whether upon or prior to the maturity or the redemption date of
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such Notes)shall be deemed to be paid within the meaning of this Agreement and no longer outstanding under
this Agreement;provided,however,that if such Notes are to be redeemed prior to the maturity thereof,notice
of such redemption shall have been duly given as provided in this Agreement or arrangements satisfactory to
the Registrar(including certified public accountant verifications and opinions of counsel,as requested)shall
have been made for the giving thereof. Government securities shall be considered sufficient only if such
investments are not redeemable prior to maturity at the option of the issuer thereof and mature and bear interest
in such amounts and at such times as will assure sufficient cash to pay currently maturing interest and to pay
principal and redemption premiums if any when due on the Notes without rendering the interest on any tax-
exempt Notes taxable under the Code. The Municipality may at any time surrender to the Registrar for
cancellation by it any Notes previously authenticated and delivered thereunder,which the Municipality may
have acquired in any manner whatsoever, and such Notes, upon such surrender and cancellation, shall be
deemed to be paid and retired.
(iii) Termination of Municipality's Liability. Upon the discharge of indebtedness
under paragraph(i)hereof,or upon the deposit in a separate account of the Municipality for such purpose or
another appropriate escrow agent of sufficient money and government securities for the retirement of any
particular Note or Notes,all liability of the Municipality in respect of such Note or Notes shall cease,determine
and be completely discharged and the registered owners thereof shall thereafter be entitled only to payment out
of the money and the proceeds of the government securities deposited as herein described for the payment.
5.6 Equity Sharing. The Townbuilder acknowledges that the level of financial assistance
provided by the Municipality under this Agreement is based upon the Pro Forma,(Exhibit D). Within sixty
(60)days of issuance of a final Certificate of Substantial Completion for the Phase 1A Private Development,
the Townbuilder shall submit to the Authorized Municipal Representative a certification of actual costs in each
of the categories shown on the Pro Forma. The Townbuilder shall provide such documentation as the
Authorized Municipal Representative deems necessary to confirm the actual costs. The Municipality shall
have the certified actual costs reviewed by its financial advisers and shall notify the Townbuilder in writing
when they are determined by it and its financial advisers to be acceptable. If not so determined to be
acceptable,the resubmission/revision process shall be substantially as provided in the second paragraph of
paragraph 3.2.1(c).
Once the certified actual costs are deemed to be acceptable to the Municipality,to the extent they show
a "return on project costs" (as calculated by the Municipality's independent financial advisers) to the
Townbuilder in excess of ten percent(10%),fifty percent(50%)of such excess(the "50%excess")shall be
paid to the Municipality,such payment to be made within thirty(30)days of acceptance of the certified actual
costs by the Municipality. Notwithstanding the foregoing,the form certifying to the Townbuilder such 50%
excess,the Municipality shall obtain an opinion of special TIF Counsel that the receipt of such amount will not
adversely affect the tax-exempt status of the interest on any tax-exempt Notes, and otherwise the amount
actually to be certified to the Townbuilder for payment shall�an such if any,such TIF Counsel's lesser
opinion have such an
excess,as shall be applied to a specific cost that would
tax-exempt status impact..
ARTICLE VI. GENERAL PROVISIONS
6.1 Assignment. The rights, duties and obligations of a party to this Agreement shall be
assignable subject to prior written approval of the other party, which approval hall no be wea onably
withheld or delayed, provided that the Townbuilder may not make any
Municipality's written consent until completion of the Phase 1 Private Development and the Phase 1
33
Infrastructure,at the times,in the manner and with the effect as provided in this Agreement. Notwithstanding
the foregoing,the Townbuilder may assign this Agreement in whole and not in part prior to completion of the
Phase 1 Private Development and the Phase 1 Infrastructure to an Affiliate,provided that 10 days prior to the
execution and delivery of the applicable assignment documents true, correct and complete copies of such
assignment documents,together with true, correct and complete copies of the assignee's organizational and
authorizing documents, are provided to the Authorized Municipal Representative and to the Municipal
Attorney and within 10 days of execution and delivery thereof true, correct and complete copies of such
executed assignment documents and organization and authorizing documents, as certified by an Authorized
Townbuilder Representative,are filed with the Village Clerk.
6.2 Remedies. Except as otherwise specifically provided in this Agreement,in the event of any
default in or breach of any term or condition of this Agreement by either party or any permitted successor or
assign, the alleged defaulting or breaching party shall, upon written notice from the other party, proceed
immediately to cure or remedy such default or breach, and, shall, in any event,within thirty(30)days after
receipt of such notice,commence to cure or remedy such default. In case such cure or remedy is not taken or
not diligently pursued or the default or breach is not cured or remedied within a reasonable time,the aggrieved
party may institute such proceedings as may be necessary or desirable in its opinion to cure and remedy such
default or breach,including but not limited to proceedings to compel specific performance by the defaulting or
breaching party. Notwithstanding anything herein to the contrary,the sole remedy of the Townbuilder in the
event of a default by the Municipality under any of the terms and provisions of this Agreement shall be to
institute legal action against the Municipality for specific performance or other appropriate equitable relief;and
under no circumstances shall the Municipality be subject to any monetary liability or be liable for damages
(compensatory or punitive or consequential or otherwise)under the provisions,terms and conditions of this
Agreement in excess of Incremental Taxes duly deposited into the Development Account. Except as to the
foregoing,the parties shall have all remedies with respect to this Agreement available under applicable law.
6.3 Force Majeure. Neither the Municipality nor the Townbuilder nor any successor in interest
shall be considered in breach or default of their respective obligations under this Agreement, and times for
performance of obligations hereunder shall be extended, in the event of any delay caused by force majeure,
including,without limitation,damage or destruction by fire or casualty;condemnation;strike; lockout;civil
disorder; war; restrictive government regulations; issuance of any permits and/or legal authorization by the
governmental entity necessary to proceed with the Redevelopment Activities or any portion thereof;shortage or
delay in shipment of material or fuel; inability to secure labor or materials within established budget
limitations, including contingencies; acts of God; unusually adverse weather or wet soil conditions;
environmental conditions;adverse conditions affecting the work on the Development Property;or other like
causes beyond the parties' reasonable control, including but not limited to, any litigation, court order or
judgment resulting from any litigation affecting the validity of the Redevelopment Plan, the Development
Project,this Agreement,or the TIF Notes;provided that such event of force majeure shall not authorize a delay
hereunder of more than 60 days in any one calendar year without the approval of the other party, which
approval shall not be unreasonably withheld or delayed,and any days unused in one calendar year shall not be
carried over to increase the number of days of permitted delay in any subsequent calendar year. A party
seeking to extend the time for performance of obligations pursuant to this Section shall notify the other party
within ten (10) business days (of the Municipality) of the event of delay caused by force majeure, and
otherwise may not claim any time extension in that connection.
6.4 Notices. Any notice,demand,or other communication required by this Agreement to be given
by either party hereto to the other shall be in writing and shall be sufficiently given or delivered if dispatched
34
by certified United States first class mail,postage prepaid;sent by facsimile with confirmation of transmittal;
or delivered personally,
(i) In the case of the Townbuilder,to:
Marquette Property Investments, Inc. tel: (630)364-0000
15 W.Jefferson Ave.,2nd Floor fax: (630)364-0003
Naperville, Illinois 60540
Attn: Jeff Prosapio
j p rosap i o @m argn et.com
cc: bbottarelli @margnet.com
cc: nzyan @margnet.com
with a copy to:
Robert C. Kenney,Esq. tel: (312)422-7657
Schain,Burney,Ross&Citron,Ltd. fax: (312)332-4514
222 N. LaSalle Street, Suite 1910
Chicago,Illinois 60601
rkenny( schainlaw.com
(ii) In the case of the Municipality,to:
Village of Lemont tel: (630)243-2709
418 Main Street fax: (630)243-0958
Lemont,Illinois 60439-3708
Attn: Village Administrator
gholmes @lemont.il.us
tsch loneger @lemont.i i.us
bwehmeier @lemont.il.us
jbrown @lemont.il.us
With a copy to:
Village Attorney tel: (630)257-5816
Antonopoulos&Virtel,P.C. fax: (630)257-8619
15419— 127th Street, Suite 100
Lemont,Illinois 60439
Attn: John P.Antonopoulos,Esq.
avlawoffice@sbcglobal.net
or to such other address with respect to either party as that party may,from time to time,designate in writing
and forwarded to the other as provided in this Paragraph.
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6.5 Conflict of Interest. No member of the President and Board of Trustees or any branch of the
Municipality's government who has any power of review or approval of any of the Townbuilder's
undertakings,or of the Municipality's contracting for goods or services for the Development Property,shall
participate in any decisions relating thereto which affect that member's personal interests or the interests of any
corporation or partnership in which that member is directly or indirectly interested or otherwise in violation of
and otherwise in compliance with Section 11-74.4-4(n)of the TIF Act. Any person having such interest shall
immediately, upon knowledge of such possible conflict, disclose in writing to the President and Board of
Trustees the nature of such interest and seek a determination by the President and Board of Trustees with
respect to such interest,and in the meantime shall not participate in any actions or discussions relating to the
activities herein proscribed and otherwise in compliance with Section 11-74.4-4(n)of the TIF Act.
6.6 Insurance. The Townbuilder shall cause there to be insurance as hereinafter set forth at all
times during the process effecting, acquiring, constructing and installing Redevelopment Activities or the
Development Project under this Agreement and shall provide the Municipality with one or more applicable
certificates of insurance naming the Municipality, its Governing Body, officials, agents, employees, and
independent contractors as additional insureds in compliance with the Insurance Requirements in Exhibit F.
The Muncipality acknowledges that the contract for the Parking Structure exceeds these requirements.
(i) Builder's risk insurance, written on the so called "Builder's Risk —
Completed Value Basis,"in an amount equal to one hundred percent(100%)of the insurable value of any
construction work at the date of completion,and with coverage available in non-reporting form on the so called
"all risk"form of policy;
(ii) Comprehensive general liability insurance(including operations,contingent
liability,operations of subcontractors,completed operations and contractual liability insurance)together with
an owner's contractor's policy, with limits against bodily injury and property damage of not less than Two
Million Dollars($2,000,000)for each occurrence(to accomplish the above required limits,an umbrella excess
liability policy may be used); and
(iii) Worker's compensation insurance,with statutorily required coverage.
The policies of insurance required pursuant to this paragraph 6.6 shall be in form and content
satisfactory(the approval of which shall not be unreasonably withheld)to the Municipality and shall be placed
with financially sound and reputable insurers licensed to transact business in the State of Illinois. The policy of
insurance delivered pursuant to clause(i)above shall contain the agreement of the insurer to give not less than
thirty(30)days advance written notice to the Municipality in the event of cancellation of such policy or change
affecting the coverage thereunder. To the extent that(i)or(ii)or(iii)above are inconsistent with or provide
lesser coverages than the Insurance Requirements,the Insurance Requirements shall control.
6.7 Inspection. Prior to the completion of the Redevelopment Activities,the Townbuilder shall
allow authorized representatives of the Municipality access to the Development Property from time to time for
reasonable inspection thereof upon reasonable advance notice.
6.8 Choice of Law. This Agreement shall be taken and deemed to have been fully executed,
made by the parties in, and governed by the internal laws of the State of Illinois for all purposes and intents.
6.9 Entire Agreement;Amendment. The parties agree that this Agreement constitutes the entire
agreement between the parties and that no other agreements or representations other than those contained in
36
this Agreement have been made by the parties. This Agreement shall be effective when signed by the
authorized officers of the parties,and shall be amended only by a writing signed by the authorized officers of
the parties.
6.10 Counterparts. This Agreement is executed in multiple counterparts, each of which shall
constitute one and the same instrument.
6.11 Severability. In the event any term or provision of this Agreement is held to be unenforceable
by a court of competent jurisdiction, the remainder shall continue in full force and effect, to the extent the
remainder can be given effect without the invalid provision.
6.12 Representatives Not Personally Liable. No official, agent, employee, independent
contractor or representative of the Municipality shall be personally liable to the Townbuilder in the event of
any default or breach by any party under this Agreement, or for any amount which may become due to any
party,or on any obligations under the terms of this Agreement.
6.13 Actions Contesting the Validity and Enforceability of the Redevelopment Plan. In the
event a third party brings an action against the Municipality or the Municipality's Governing Body,officials,
agents, employees and representatives contesting the validity or legality of the Redevelopment Area, the
Redevelopment Plan,the TIF Notes,the Development Project,this Agreement or the ordinances approving this
Agreement or the TIF Notes,the Townbuilder may at the Townbuilder's option,assume the defense of such
claim or action (including, without limitation, to settle or compromise any claim or action for which the
Townbuilder has assumed the defense) with counsel mutually acceptable to the Municipality and the
Townbuilder. The parties expressly agree that so long as no conflicts of interest exist between them,the same
attorney or attorneys may simultaneously represent the Municipality and the Townbuilder in any such
proceeding. All cost of any such defense,whether incurred by the Municipality or the Townbuilder,shall be
deemed to be eligible Qualified Project Costs and reimbursable from any amounts in the Special Allocation
Fund,subordinate to any Refunding TIF Notes and subject to Article IV of this Agreement.
6.14 Release, Defense and Indemnification. In connection with release, indemnification and
defense,to the fullest extent of applicable law,the following subparagraphs of this Paragraph 6.14 shall apply
(provided that reference to Development Property means only the part or parts of the Development Property
owned or controlled by the Townbuilder and with respect to the period of such ownership or control(and as
applicable, assignees)):
6.14.1 Notwithstanding anything herein to the contrary, the Municipality, its Governing
Body,officials,attorneys,agents,employees and independent contractors shall not be liable to the Townbuilder
for damages of any kind or nature whatsoever or otherwise in the event that all or any part of the TIF Act,or
any ordinance of the Municipality adopted in connection with either the TIF Act, this Agreement or the
Redevelopment Plan,shall be declared invalid or unconstitutional in whole or in part by the fmal(as to which
all rights of appeal have expired or have been exhausted)judgment of any court of competent jurisdiction,and
by reason thereof either the Municipality is prevented from performing any of the covenants and agreements
herein or the Townbuilder is prevented from enjoying the rights and privileges hereof;provided that nothing in
this paragraph shall limit claims by Townbuilder against the Development Account of the Special Allocation
Fund or actions by the Townbuilder seeking specific performance of relevant contracts.
37
6.14.2 The Townbuilder releases from and covenants and agrees that the Municipality and its
Governing Body,officials,agents,employees and independent contractors shall not be liable for,and agrees to
indemnify and hold harmless the Governing Body, officials, attorneys, agents, employees and independent
contractors thereof against,any loss or damage to property or any injury to or death of any person occurring at
or about or resulting from any defect in the construction of the Development Project,except as such may be
caused by the intentional conduct,gross negligence,negligence or other acts or omissions of the Municipality,
its Governing Body,officials,agents,employees or independent contractors that are contrary to the provisions
of this Agreement.
6.14.3 The Municipality and its Governing Body, officials, agents, employees and
independent contractors shall not be liable for any damage or injury to the persons or property of the
Townbuilder or its officers, agents, independent contractors or employees or any other person who may be
about the Development Property or Development Project due to any act of negligence of any person,except as
such may be caused by the intentional misconduct,gross negligence,or acts or omissions of the Municipality,
its Governing Body,officials,agents,employees,or independent contractors that are contrary to the provisions
of this Agreement.
6.14.4 All covenants,stipulations,promises,agreements and obligations of the Municipality
contained herein shall be deemed to be the covenants,stipulations,promises,agreements and obligations of the
Municipality and not of any of its Governing Body, officials, attorneys, agents, employees or independent
contractors in their individual capacities.
6.14.5 No member of the Governing Body, officials, attorneys, agents, employees or
independent contractors of the Municipality shall be personally liable to the Townbuilder(i)in the event of a
default or breach by any party under this Agreement, or (ii)for any amount or any TIF Notes which may
become due under the terms of this Agreement.
6.14.6 Notwithstanding anything herein to the contrary,the Municipality shall not be liable to
the Townbuilder for damages of any kind or nature whatsoever arising in any way from this Agreement,the
TIF Notes or any other obligation or agreement made in connection therewith or from any breach thereof,or
arising from a declaration by a final judgment by a court of competent jurisdiction that all or any portion of the
Act is unconstitutional or that any ordinance of the Municipality adopted in connection with this Agreement,
the Redevelopment Plan or the TIF Act is invalid or unconstitutional in whole or in part;provided that nothing
in this paragraph shall limit claims by Townbuilder against the Special Allocation Fund or actions by the
Townbuilder seeking specific performance of this Agreement or relevant contracts.
6.14.7 The Townbuilder agrees to indemnify,defend and hold harmless the Municipality,its
Governing Body,officials,agents,employees and independent contractors,from and against any and all suits,
claims and cost of attorneys' fees, resulting from, arising out of, or in any way connected with (i) this
Agreement or the TIF Notes (except contractual agreements or covenants undertaken by the Municipality
outside of this Agreement or tax increment revenue obligations issued by the Municipality not authorized by
this Agreement),including any opinions regarding their validity,(ii)the design,acquisition,construction and
installation of the Development Project,and(iii)the negligence or willful misconduct of the Townbuilder,its
officials, agents, employees or independent contractors in connection with the management, development,
redevelopment and construction of the Development Project,except as such may be caused by the intentional
conduct,gross negligence,negligence or breach of this Agreement by the Municipality,its Governing Body,
officials,agents, employees or independent contractors.
38
6.14.8 To the extent permitted by law,the Townbuilder agrees to indemnify,defend,and hold
harmless the Municipality, its Governing Body, officials, attorneys, agents, employees and independent
contractors,from and against any and all claims,demands,costs,liabilities,damages or expenses, including
attorneys' and consultants' fees,investigation and laboratory fees,court costs and litigation expenses,arising
from: (i)any release or threat of a release,actual or alleged,of any hazardous substances,upon or about the
applicable Development Property or respecting any products or materials thereafter located upon,delivered to
or in transit to or from the applicable Development Property regardless of whether such release or threat of
release or alleged release or threat of release has occurred or hereafter occurs(and except where such release
occurs as a result of any act,omission,negligence or misconduct of the Municipality);(ii)(A)any violation
(actual or alleged)of,or any other liability under or in connection with,any environmental laws relating to or
affecting the applicable Development Property created by the Townbuilder or its agents, or (B) any now
existing or hereafter arising violation,actual or alleged,or any other liability,under or in connection with,any
environmental laws relating,to any products or materials previously,now or hereafter located upon,delivered
to or in transit to or from the applicable Development Property created by the Townbuilder or its agents,
regardless of whether such violation or alleged violation or other liability is asserted or has occurred or arisen
prior to the date hereof or hereafter is asserted or occurs or arises and regardless of whether such violation or
alleged violation or other liability occurs or arises,as the result of any act,omission,negligence or misconduct
of the Townbuilder or any third party or otherwise; (iii) any assertion by any third party of any claims or
demands for any loss or injury arising out of,relating to or in connection with any hazardous substances on or
about or allegedly on or about the Development Property; or(iv) any breach, falsity or failure of any of the
representations,warranties,covenants and agreements of the like. For purposes of this paragraph,"hazardous
materials" includes, without limit, any flammable explosives, radioactive materials, hazardous materials,
hazardous wastes, hazardous or toxic substances, or related materials defined in the Comprehensive
Environmental Response,Compensation,and Liability Act of 1980,as amended(42 U.S.C.§§9601 et seq.),
the Hazardous Materials Transportation Act, as amended (49 U.S.C. §§ 1801 et seg.), the Resource
Conservation and Recovery Act,as amended(42 U.S.C. §§9601 et seg.),and in the regulations adopted and
publications promulgated pursuant thereto,or any other federal,state or local environmental law,ordinance,
rule,or regulation.
6.14.9. In the event litigation or other proceedings are threatened (whether or not suit or other
proceedings are filed)or commenced against the Municipality related to either or both of(i)the Downtown
District Regulations or(ii)the designation of the Redevelopment Area as a redevelopment project area under
the TIF Act or the approval of the Redevelopment Plan or Redevelopment Project for the Redevelopment Area
or the adoption of TIF for the Redevelopment Area, the Municipality hereby covenants and agrees, at the
Townbuilder's cost and expense,including attorneys fees and related costs and disbursements,to undertake the
defense of the Downtown District Regulations under(i)and the Municipality hereby covenants and agrees to
undertake the defense of any such litigation or other proceedings related to TIF under(ii). The Townbuilder
and the Municipality each will cooperate with the other in connection with any such defense. All costs of such
defense,including attorneys fees,disbursements and costs,shall be additional Qualifying Project Costs under
this Agreement,and when incurred shall constitute a prior claim,pledge or lien against Incremental Taxes and
all other TIF Revenues not subject at the time to any prior claim,pledge or lien,including but not limited to
any debt service payments on any TIF Notes.
6.15 Covenant to Comply with Applicable Laws. The Townbuilder hereby warrants and
covenants that in performing the Development Project it will comply with all applicable laws.
39
6.16 Recordable Memorandum. The Townbuilder or the Municipality may record a
memorandum of this Agreement in the office of the Cook County Recorder,and the agreements and covenants
contained herein shall be a covenant running with the land.
6.17 Survival. Notwithstanding the expiration,termination or breach of this Agreement by either
agreements contained in Article VI,Sections 3.9(as to the certification),6.3,6.11,6.12,6.13,6.14
party,the agree (
and 6.15 of this Agreement shall, except as otherwise expressly set forth herein, survive such expiration,
termination or breach of this Agreement by either party.
6.18 Term. This Agreement shall be in effect upon its execution by the Municipality and the
Townbuilder and shall terminate at the end of the longest period provided for by the TIF Act or otherwise
applicable law,unless otherwise earlier terminated by the provisions hereof. In connection with Section 11-
74.4-7 the TIF Act, obligations shall have a term not exceeding 20 years. Certain payment obligations
(including a TIF Note)under this agreement constitute"obligations" subject to such 20-year limit.
[The remainder of this page is intentionally left blank.]
40
IN WITNESS WHEREOF,the Municipality and the Townbuilder have caused this Agreement to be
executed in their respective names and caused their respective seals to be affixed thereto and attested as to the
date first above written. This may be executed in counterparts.
"MUNICIPALITY": VILLAGE OF LEMONT,ILLINOIS
(SEAL)
By
Village President
Attest:
Village Clerk
ACKNOWLEDGMENT
STATE OF ILLINOIS )
SS.
COUNTY OF COOK )
On this day of ,2006,before me,the undersigned,a Notary Public,appeared
and ,to me personally known,who,being by me
duly sworn, did say that they are the Village President and the Village Clerk,respectively,of the VILLAGE
OF LEMONT,ILLINOIS,a body politic and corporate duly authorized,incorporated and existing under and
by virtue of the laws of the State of Illinois, and that the seal affixed to the foregoing instrument is the
corporate seal of such Municipality, and that such instrument was signed and sealed in behalf of the
Municipality by authority of its President and Board of Trustees, and said officials acknowledged said
instrument to be executed for the purposes therein stated and as the free act and deed of such Municipality.
IN WITNESS WHEREOF,I have hereunto set my hand and affixed my notarial seal,the day and year
last above written.
Notary Public
(SEAL)
41
"TOWNBUILDER": MARQUETTE PROPERTY INVESTMENTS,INC
By
Its President
ACKNOWLEDGMENT
STATE OF ILLINOIS )
SS.
COUNTY OF )
On this day of ,2006,before me,the undersigned,a Notary Public,appeared
,to me personally known,who,being by me duly sworn,did say that(s)he
is President of Marquette Property Investments,Inc.duly authorized,established and existing
under and by virtue of the laws of the State of Illinois,and that such instrument was signed and sealed in behalf
of such limited liability company by authority of its board of directors, and such officer acknowledged said
instrument to be executed for the purposes therein stated and as the free act and deed of said limited company.
IN WITNESS WHEREOF,I have hereunto set my hand and affixed my notarial seal,the day and year
last above written.
Notary Public
(SEAL)
42
EXHIBIT A
Legal Description of the Phase 1 Development Property
Parking Structure/Walkways/Adjacent Sidewalks
Phase 1A Development Property/340 River Road
That part of Lot 9 (except the West 400.50 feet as measured on the South line thereof) in County Clerk's
Division of Unsubdivided Lands in Section 20, Township 37 North, Range 11 East of the Third
Principal Meridian, lying South of the right-of-way of the Atchison Topeka and Santa Fe Railroad
Company and East of the East line of State Street produced Northerly across said Lot 9, in Cook
County, Illinois;
Also, all of Block 5 in Singer and Talcott Stone Company's Subdivision of part of the West Half of the
Southeast Quarter of Section 20, Township 37 North, Range 11 East of the Third Principal Meridian,
lying North of Illinois Michigan Canal, and also Lot 10 in County Clerk's Division of Unsubdivided
Lands in said Section 20, taken as a tract, except the Easterly 180 feet thereof, all in Cook County,
Illinois.
Phase 1B Development Property/Post Office Site
The east 180.00 feet of the north 105.00 feet of Block 5 in Singer and Talcott Stone Company's
Subdivision of part of the West l of the Southeast 14 of Section 20, Township 37 North, Range 11 East
of the Third Principal Meridian, lying north of the Illinois and Michigan Canal, in Cook County,
Illinois.
Phase 1C Development Property/240 River Road
A-1
EXHIBIT A-1
Concept Site Plan
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° 0
EXHIBIT B
Certificate of Substantial Completion
The undersigned is the of ,the
Architect/Engineer for the Phase_Project,including the applicable Redevelopment Activities,carried out by
Marquette Property Investments, Inc., (the "Townbuilder"), in accordance with the terms of that certain
Redevelopment Agreement dated as of ,2006(the "Agreement")between the Townbuilder and
the Village of Lemont,Illinois(the "Municipality").
The undersigned hereby certifies to the Townbuilder and the Municipality that:(a)the implementation
of[all/a functional portion]of the Redevelopment Activities[,which functional portion is described in the
following paragraph,]has been reviewed and found to be substantially complete;(b) [all/such functional
portion] of the improvements associated with the Redevelopment Activities have been constructed in a
workmanlike manner and in accordance with the Development Plans (as those terms are defined in the
Agreement);(c) lien waivers for applicable portions of such improvements have been obtained;and(d)the
date of substantial completion of[all/such functional portion] of the Redevelopment Activities is the date of
this Certificate.
The functional portion of the Redevelopment Activities consists of:
In witness whereof, the undersigned has duly executed this Certificate on the day of
6.
[NAME OF PROJECT ARCHITECT/ENGINEER]
(SEAL)
By:
Title:
Attest:
B-1
ACKNOWLEDGMENT
STATE OF )
) SS.
COUNTY OF )
On this day of , ,before me,the undersigned,a Notary Public,appeared
, who being before me duly sworn did say that he is the
of [name of project architect/engineer],a
,and that said instrument was authorized by and signed on behalf
of said , and said acknowledged said instrument to be
executed for the purposes therein stated and as the free act and deed of said
IN WITNESS WHEREOF,I have hereunto set my hand and affixed my notarial seal,the day and year
last above written.
Printed Name:
Notary Public in and for said State
Commissioned in County
(SEAL)
My commission expires:
B-2
EXHIBIT C
Certificate of Qualified Project Costs/Requisition
TO: Village of Lemont,Illinois
RE: Redevelopment Agreement dated ,2006 by and between the Village of Lemont,Illinois
and Marquette Property Investments,Inc.
You are hereby notified that in accordance with Ordinance No. adopted on ,2006
(the "Ordinance"),of the Village of Lemont,Illinois(the "Municipality"),and that certain Redevelopment
Agreement (the "Agreement") dated as of , 2006, by and between Marquette Property
Investments,Inc.(the "Townbuilder")and the Municipality, that the Townbuilder has incurred the following
Qualified Project Costs:
Payee Amount Description of Qualified Project Costs
Terms not otherwise defined herein shall have the meaning ascribed to such terms in the Agreement.
The undersigned hereby states and certifies that:
1. Each item listed above is a Qualified Project Cost and was incurred in connection with the
acquisition, construction, and installation of the Development Project. Attached to this Certificate is
supporting documentation of the nature and amount of each Qualified Project Cost submitted herein.
2. The(se)Qualified Project Cost(s)has/have been incurred by the and
are presently due and payable or have been paid by the and are payable or reimbursable
under the Agreement.
3. Each item listed above has not previously been paid or reimbursed from moneys in the Special
Allocation Fund and no part thereof has been included in any other certificate previously filed with the
Municipality.
4. There has not been filed with or served upon the Townbuilder any notice of any lien,right of
lien or attachment upon or claim affecting the right of any person,firm or corporation to receive payment of the
amounts stated in this request,except to the extent any such lien is being contested in good faith.
5. All necessary permits and approvals required for the portion of the Redevelopment Activities
on the Development Project for which this certificate relates have been issued and are in full force and effect.
C-1
6. All Redevelopment Activities for which payment or reimbursement is requested has been
performed in a good and workmanlike manner and in accordance with,the Development Plans, the Concept
Site Plan and the Agreement.
7. In the event that any cost item to be paid or reimbursed under this certificate is deemed to not
constitute a"development project cost"within the meaning of the TIF Act and the Redevelopment Agreement,
the Townbuilder shall have the right to substitute other eligible Qualified Project Costs for payment
hereunder.
[8. The costs to be paid or reimbursed under this certificate constitute advances qualifying for
issuance of or draw upon a TIF Note.]
9. The following shows: (i) the line item under the Redevelopment Plan for each Qualified
Project Cost identified above and the beginning line item balance; (ii) the amount of each such Qualified
Project Cost identified above; and (iii) the line item balance after giving effect to the payment of such
Qualified Project Costs.
And (ii)Amount of
(i)Line Item under the Plan BBeginnino Line Item Balanc Qualified Project Cost (iii)Fnding Line Item Balance
10. The Townbuilder is not in default or breach of any term or condition of the Agreement.
Dated this day of
MARQUETTE PROPERTY INVESTMENTS, INC.
By:
Printed Name:
Title:
Authorized Townbuilder Representative
Approved for Payment this day of
VILLAGE OF LEMONT, ILLINOIS
By:
Title:
Authorized Municipal Representative
C-2
EXHIBIT D
Pro Forma
Companies
s orinx SF j'Unit Tet4 SF
•
-Roodontl4runits &' 3,201, ,a9poz
Ratan Unitas 2.0 1,217 201.E
Canxncn Aro04 ft#.9
For 84 t°i.:: i OF TOTAL SL TOTAL TOTAi&
AO4AASITOON COST 1
Oorno S#r wars,r0 I-4 d in GM,-.,: a 7 iCi,'OOG
Di1ECTCONSTRUCTION 14,119,12Y
t`rti*;;-{,+a,MOM(F, S34%6if_i,'?. 1 till‘ 637 f,1;11P
F.,.Vii;'I rOTt9rit",.-F rte- 2 If a $0,000
Omi.lOvopef-Civ-atileoo„.IT!FTX-0E OM 4% 3N Aet),
TCOSTS
Ar-elf ti,:r0t Enn}., ra9 xn -zx 1 c0414 Stt3.070
232,iao
F r-Ope3ts TtlY
?rqe a ,r'd se5.u. 11'n a t,4tP;
104061 SAaNidnp 1,06$,273
Meoia 41,L,-qt/tILN-" 2 t-i. B ,013:
'xa t∎f>rOVATAksne t TIT^ 309,Me
Ar'rai Adrift Ex, a *_ r,.s73
see*ComnO isn* 1,541 532
'.;r-r.,-.f•-03 3Vrlr. 6 1.2 ,it
` ipatttt,'&-,x.- 2 3-tKo,f,Ot
NO/CMG 3. 1151
Addifioral PA6zaaane€it ' S'. : 14:: 4 1,,..
0ONTISOENOY 352,353'
it,itir t ol.ti,orc t# I,
TOTAL SOFT STS , #, 'A
TOTAL LEVEL i !COST$ 1004 6%, aossoss
sus PRICE TOO A& setae
e FT 10-F7'
P,00440Artsi 24.6-60 WOW .;24,2”.401)
0 2,1$00 N, 6 .:: ,156'
TOTAL 11400001E SOLSOL6010'
TOTAL WOVE ;/39* $tn
TOTAL a99T 23,8^ 11
PA01011 20661464
&A-0440N_ 4-0101.0
Ptepatoti fly"Sri=san.1 4sootatos. 412
D-1
EXHIBIT E
REGISTERED REGISTERED
NO. _- ( ) $
Maximum
Aggregate
Principal Amount
UNITED STATES OF AMERICA
STATE OF ILLINOIS
THE COUNTIES OF COOK,DUPAGE AND WILL
VILLAGE OF LEMONT
[SUBORDINATE LIEN]TAX INCREMENT REDEVELOPMENT REVENUE NOTE
[DOWNTOWN CANAL DISTRICT I REDEVELOPMENT PROJECT AREA/PHASE 1]
SERIES 200
INVESTMENT IN THIS NOTE IS SPECULATIVE AND INVOLVES A VERY HIGH
DEGREE OF RISK. THIS NOTE MAY BE TRANSFERRED ONLY AS A WHOLE AND
NOT IN PAR T. THIS NOTE INCLUDES THE ATTACHED "SCHEDULE ULE OF
ADVANCES"AND"PAYMENT SCHEDULE". THE HOLDER OF THIS NOTE AND ANY
PROSPECTIVE TRANSFEREE MUST CONTACT THE PAYING AGENT FOR THIS
NOTE TO CONFIRM PAYMENT STATUS. THE PAYMENT SCHEDULE MAY NOT
REFLECT CURRENT PAYMENT STATUS. THIS NOTE IS SUBJECT TO A CONDITION
HEREIN THAT ANY INSUFFICIENT COVERAGE OF INCREMENTAL TAXES IS NOT
A DEFAULT OR AN EVENT OF DEFAULT.
Interest Rate: Maturity Date: Dated Date:
Variable ( , 20_, Variable—See Schedule
but not to exceed 20 years of Advances
with respect to any specific
Draw) — See Schedule of
Advances
Registered Owner:
Maximum Aggregate Principal Amount: Dollars
KNOW ALL BY THESE PRESENTS.that the Village of Lemont,Cook,DuPage
and Will Counties, Illinois(the"Municipality"),hereby acknowledges itself to owe and for value
received promises to pay from the source and as hereinafter provided to the Registered Owner
identified above, or registered assigns as hereinafter provided, up to the Maximum Aggregate
Principal Amount identified above (to the extent drawn as shown on the attached Schedule of
Advances and outstanding and unpaid) and to pay interest (subject to limitations and restrictions
hereinafter stated) on the outstanding principal balance (as shown on the attached Schedule of
E-1
Advances)of such Maximum Aggregate Principal Amount(the"Principal Amount")from the first
advance shown on the Schedule of Advances and from the date or dates of each subsequent advance
as shown on such Schedule of Advances (or from the most recent interest payment date to which
interest has been paid, as the case may be) at the Interest Rate per annum set forth above,
commencing the first December 15 following at least twelve(12)months from the date of the first
draw hereon,and on each December 15 thereafter until such Principal Amount is paid,except as the
provisions hereinafter set forth with respect to prepayment and the application of Incremental Taxes
(defined below), pursuant to the Redevelopment Agreement dated as of , 2006
(with respect to which undefined terms herein shall have the meanings therein,the"Redevelopment
Agreement")by and between the Municipality and Marquette Property Investments,Inc.,an Illinois
corporation(including its authorized successors and assigns,the"Townbuilder"),are and become
applicable hereto. All principal and interest payments,if any,shall be made on December 15 of each
year,commencing the first December 15 following at least twelve(12)months from the date of the
first draw hereon. The principal hereof and interest hereon are payable in lawful money of the
United States of America by check or draft of the Municipality upon the Phase 1 debt service
subaccount of the Development Account. The transmittal of such a check or draft shall specify the
principal component (in integral multiples of$0.01) and interest component of such a payment.
Such payment of principal and interest shall be made to the Registered Owner hereof on the
registration books of the Municipality,maintained by the Village Treasurer as registrar("Registrar",
and who also shall be the paying agent, the"Paying Agent"), at the close of business on the fifth
(5th)day of the calendar month of the applicable payment date and shall be paid by check or draft of
the Municipality mailed to the address of such Registered Owner as it appears on such registration
books or at such other address furnished in writing by such Registered Owner to the Registrar. The
Registrar shall not authenticate this Note until the Registered Owner and/or any pledgee,as the case
may be, shall sign the Acceptance below.
[Priority specification, as applicable.]
THE FAILURE TO PAY THE PRINCIPAL OF AND INTEREST ON THIS NOTE WHEN
DUE SOLELY BECAUSE OF AN INSUFFICIENCY OF INCREMENTAL TAXES SHALL
NOT BE AN EVENT OF DEFAULT HEREUNDER OR UNDER THE REDEVELOPMENT
AGREEMENT, A CONDITION AND RISK TO WHICH THE REGISTERED OWNER
HEREOF BY THE ACCEPTANCE OF THIS NOTE IRREVOCABLY ASSENTS.
This Note is an obligation issued pursuant to the Tax Increment Allocation
Redevelopment Act(Section 5/11-74.4-1 et seq. of Chapter 65 of the Illinois Compiled Statutes,the
"TIF Act"), as supplemented and amended(the "Act"),and under the Redevelopment Agreement
and the principal of and interest on this Note are payable,if at all,and not otherwise,solely and only
derived from Incremental Taxes from such Phase 1 Development Property portion of the
Redevelopment Project Area, established under the Act, and as provided in and subject to the
limitations provided in the Redevelopment Agreement pursuant to which the Municipality is issuing
this Note. In connection with this Note,the term"Incremental Taxes"means,net of Surplus and
net of all amounts required by operation of applicable law to be paid to others (for example,to
school districts and library districts under Section 11-74.4-3(n)7.5 and 7.7 of the TIF Act), 100%of
incremental property taxes from the Phase 1 Development Property under Section 11-74.4-8 of the
E-2
TIF Act, as specified in the Redevelopment Agreement,derived solely and only from the Phase 1
Development Property, and not otherwise. This Note is being issued for the purpose of financing
certain qualifying redevelopment project costs as set forth as"Qualified Project Costs" in the
Redevelopment Agreement and redevelopment project costs in the Act. The Registered Owner by
the acceptance of this Note assents to all the provisions of this Note and the Redevelopment
Agreement. This Note, together with the interest hereon, is the special, limited obligation of the
Issuer,payable solely from Incremental Taxes available therefor,and not otherwise. For the payment
of this Note, both principal and interest, as aforesaid, if at all, on the due dates thereof, such
Incremental Taxes specified in the Redevelopment Agreement are hereby pledged.
THIS NOTE DOES NOT CONSTITUTE AN INDEBTEDNESS OF THE MUNICIPALITY
WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION
OR LIMITATION. NO HOLDER OF THIS NOTE SHALL HAVE THE RIGHT TO
COMPEL THE EXERCISE OF THE GENERAL TAXING POWER OF THE
MUNICIPALITY, THE STATE OF ILLINOIS OR ANY OTHER POLITICAL
SUBDIVISION THEREOF, FOR PAYMENT OF PRINCIPAL HEREOF OR INTEREST
HEREON.
Under the Act and the Redevelopment Agreement, the Incremental Taxes shall be
deposited in the Phase 1 debt service subaccount of the Development Account of the Municipality's
Special Tax Increment Allocation Fund (the "TIF Fund") for the Redevelopment Project Area.
Moneys on deposit in such Phase 1 debt service subaccount of the Development Account of the TIF
Fund shall be applied to the payment of debt service on this Note as provided by the terms of the
Redevelopment Agreement.
The holder of this Note, including as a pledgee, as the case may be, as authorized
pursuant to the Redevelopment Agreement,hereby represents, warrants and certifies, as follows:
(1) No sale or transfer by the holder of this Note will result in a violation of the
Securities Act of 1933,the Securities Exchange Act of 1934, any rules or regulations promulgated
under either act, or the applicable securities laws of any other authority having jurisdiction in
connection therewith. This Note has not been registered under any federal or state securities act,law
or regulation.
(2)The holder is aware that this Note is a special and limited obligation and does not
represent a general obligation of the Village of Lemont, the State of Illinois or of any political
subdivision thereof but is payable solely from Available Revenues derived under and in respect of
the Redevelopment Agreement pursuant to which this Note is issued. Undefined terms herein shall
have the meanings given them in the Redevelopment Agreement. Neither the Municipality nor any
other person has made any representations concerning the realization of Available Revenues. The
initial holder of this Note made or arranged all computations, forecasts and projections as to the
receipt of Available Revenues.
(3) The holder has, through its attorneys, agents and employees, investigated the
public and private facilities and real property constituting the Development Project and the parts
thereof to be financed with the proceeds of this Note and the allowable Qualified Project Costs. The
E-3
holder acknowledges that it has through its counsel, advisors and consultants participated in the
drafting of the underlying documents in connection with this transaction, and has investigated the
Act,the Redevelopment Plan,the Redevelopment Agreement,the Redevelopment Project and the
Municipality, and all requested information relating thereto as well as such other information as it
deems necessary or appropriate as prudent and knowledgeable investor in evaluating this investment.
The holder acknowledges that the Municipality has made available to such holder and the holder's
representatives the opportunity to obtain additional information and the opportunity to ask questions
of and receive satisfactory answers concerning it and the Redevelopment Plan,the Redevelopment
Project,the Redevelopment Agreement and the nature and source of Available Revenues. Reaching
the conclusion that the holder desires to acquire this Note(or to accept it as collateral)it has carefully
evaluated all risks associated with this investment and acknowledges that it is able to bear the
economic risks of this investment. The holder is, by reason of its knowledge and experience in
financial and business matters in general and real estate transactions in particular, capable of
evaluating the merits and risks of the investment in this Note(or accepting it as collateral).
(4) The holder has reviewed and approved all documents in connection with this
transaction, including the Redevelopment Plan, the Redevelopment Agreement, the eligibility of
Qualified Project Costs to be financed with proceeds of this Note and all other related documents,
certificates and opinions.
(5)The Municipality has made no representation or warranty concerning the forecasts
and projections of Available Revenues,nor has it represented or warranted as to the correctness of
any statements or representations made or materials furnished by or on behalf of any planning
consultant related to the Redevelopment Plan, the Redevelopment Project, or the Development
Project or any other person in connection with this investment.
(6)The holder has received all information which it has requested with respect to the
Redevelopment Plan and the Redevelopment Project, the Available Revenues and the
Redevelopment Agreement necessary in order to purchase this Note or accept it as collateral,and all
other information relating thereto which it has requested has been furnished to it.
(7) The holder hereby covenants and agrees to make available to any prospective
purchaser or purchasers of this Note from it such information as is necessary or appropriate in the
opinion of counsel to enable such prospective purchaser or purchasers to make an informed
investment decision with respect hereto, and in general to conduct any resale of this Note by the
holder to others as if the requirements of Regulation D under the Securities Act of 1933,as amended,
were applicable thereto.
(8)The initial holder has accepted this Note and all other documents in connection
with the purchase of this Note as an inducement to the Municipality to issue this Note.
(9)Each and every provision of this Note shall be binding upon the holder and its
successors and assigns, including any pledgee.
(10) This Note is transferable by the registered owner hereof, but only with the
consent of the Municipality,and not otherwise in person or by such owner's attorney duly authorized
E-4
in writing at the principal office of the Registrar in Lemont,Illinois,but only in the manner, subject
to the limitations and upon payment of any charges imposed by law, and upon surrender and
cancellation of this Note. Upon such transfer a new Note with the same terms will be issued to the
transferee in exchange therefor. The Note is to be issued in Maximum Aggregate Principal Amount
not to exceed the dollar amount specified on the first page hereof in fully registered form in the
denomination of$0.01 or authorized integral multiples thereof.
(11) Notwithstanding any other provision of this Note or the Redevelopment
Agreement to the contrary, expressly or by inference or implication,certain limiting and restricting
provisions of this Note are as follows:
(a) The Municipality and the Registrar may deem and treat the registered owner
hereof as the absolute owner hereof for the purpose of receiving payment of or on account of
principal hereof and interest due hereon and for all other purposes and neither the
Municipality nor the Registrar shall be affected by any notice to the contrary.
(b) This Note is subject to mandatory prepayment on December 15 of each year,
commencing the first December 15 following at least(12)months from the date of the first
draw hereon, in any integral multiple of$0.01,without premium,to the extent of Available
Revenues on deposit in the debt service subaccount of the Development Account of the TIF
Fund, if at all, and not otherwise.
ANY FAILURE TO PAY PRINCIPAL OR INTEREST WHEN DUE SOLELY BY REASON
OF INSUFFICIENCY OF INCREMENTAL TAXES IN THE PHASE 1 DEBT SERVICE
SUBACCOUNT OF THE DEVELOPMENT ACCOUNT OF THE TIF FUND SHALL NOT
CONSTITUTE AN EVENT OF DEFAULT IN CONNECTION WITH THIS NOTE.
(c)This Note is also subject to prepayment at the option of the Municipality in whole
or in part, from any available funds therefor, at any time, in any integral multiple of$0.01,
with not less than 10 days notice by the Municipality to the registered owner hereof plus
accrued interest on such principal amount being so redeemed to the date fixed for
prepayment. Written notice of prepayment in whole or in part of this Note shall be given by
the Municipality to the registered owner or owners hereof by first class mail to the address
shown on the registration books of the Municipality maintained by the Registrar or at such
other address as is furnished in writing by the registered owner to the Registrar. The date of
the mailing of such notice shall be not less than ten(10)days prior to such prepayment date,
and when this Note or any portion thereof shall have been called for prepayment and
payment made or provided for by setting aside funds in a segregated account therefor,
interest hereon shall cease from and after the date so specified.
(12) The rights and obligations of the Municipality and of the Registered Owner of
this Note may be modified or amended only with the consent of the Municipality and of the
Registered Owner of this Note.
It is hereby certified and recited that all conditions,acts and things required by law to
exist or to be done precedent to and in the issuance of this Note did exist,have happened,been done
E-5
and performed in regular and due form and time as required by law, and the Municipality hereby
covenants and agrees that it has made provision for the segregation of the Available Revenues under
the Redevelopment Agreement and that it will properly account for such Available Revenues and
will comply with all the covenants of and maintain the funds,accounts and subaccounts as provided
by the Indenture.
This Note shall not be valid or become obligatory for any purpose until the certificate
of authentication hereon shall have been signed by the Registrar and the acceptance shall have been
signed by the Registered Owner and/or pledgee or assigns, as the case may be.
IN WITNESS WHEREOF,the Village of Lemont,Cook,DuPage and Will
Counties, Illinois,by its President and Board of Trustees,has caused this Note to be signed by the
manual signatures of the its Village President and Village Clerk,and its corporate seal or a facsimile
thereof to be impressed or reproduced hereon, all as appearing hereon and as of the Dated Date
identified above.
(SEAL) Village President
Village Clerk
Registrar/Paying Agent: Village Treasurer
Village of Lemont
418 Main Street
Lemont, Illinois 60439
CERTIFICATION OF AUTHENTICATION
Date of Authentication:
This Note is the "[Subordinate Lien] Tax Increment Redevelopment Revenue Note [Downtown
Canal District I Redevelopment Project Area/Phase 1] Series 200_ under the within mentioned
Redevelopment Agreement by and between the Village of Lemont, Cook, DuPage and Will
Counties, Illinois and Marquette Property Investments, Inc., an Illinois corporation, as the
Townbuilder.
Village Treasurer
E-6
ACCEPTANCE
The Registered Owner of this Note hereby accepts each term and provision of this
Note and the Redevelopment Agreement and assents to each such term and provision hereof and
thereof.
Dated:
By:
Registered Owner (and/or Pledgee)
Authorized Signature
Tax I.D.:
ASSIGNMENT
FOR VALUE RECEIVED, and with the Municipality's consent the undersigned sells,
assigns and transfers unto
(Name, Address and F.E.LN. or Social Security Number of Assignee)
the within Note and does hereby irrevocably constitute and appoint
attorney to transfer the within
Note on the books kept for registration thereof with full power of substitution in the premises. The
transferee is hereby advised that this Assignment shall not be complete unless and until an
Acceptance in the form above is signed by the Transferee.
Dated:
Signature
Signature guaranteed:
CONSENT
The Municipality's consent to the above Assignment is made this day of
, by authority of the President and Board of Trustees.
Village President
E-7
VILLAGE OF LEMONT,ILLINOIS
(SUBORDINATE LIEN)TAX INCREMENT REDEVELOPMENT REVENUE NOTE
(DOWNTOWN CANAL DISTRICT I REDEVELOPMENT PROJECT AREA/PHASE 11
SERIES 200_
SCHEDULE OF ADVANCES AND PAYMENTS
This Note is valid to the amount set forth below,the aggregate of such amounts outstanding and unpaid
from time to time not to exceed the Maximum Principal Aggregate Amount(subject to reduction for any installment
payments as provided in the Note).
Aggregate Principal
Amount Amount Signature of
Date Advanced/Drawn($) Paid/Prepaid($) Note Balance($) Registrar-Paving Agent
E-9
EXHIBIT E/R
Refunding TIF Note
EXHIBIT E/R
REGISTERED REGISTERED
NO. ( ) $
UNITED STATES OF AMERICA
STATE OF ILLINOIS
THE COUNTIES OF COOK, DUPAGE AND WILL
VILLAGE OF LEMONT
[SUBORDINATE LIEN] TAX INCREMENT REDEVELOPMENT REFUNDING
REVENUE NOTE
[DOWNTOWN CANAL DISTRICT I REDEVELOPMENT PROJECT AREA/PHASE 1]
SERIES 200_
Interest Rate: Maturity Date: Dated Date:
Registered Owner:
Principal Amount: Dollars
KNOW ALL BY THESE PRESENTS,that the Village of Lemont,Cook,DuPage
and Will Counties, Illinois (the"Municipality"),hereby acknowledges itself to owe and for value
received promises to pay from the source and as hereinafter provided (subject to limitations and
restrictions hereinafter stated) to the Registered Owner identified above, or registered assigns as
hereinafter provided, the Principal Amount identified above and to pay interest (subject to
limitations and restrictions hereinafter stated)on the outstanding principal balance of such Principal
Amount(to the extent outstanding and unpaid,the"Principal Amount")from the Dated Date set
forth and on each , (or from the most recent interest payment date to which
interest has been paid, as the case may be) at the Interest Rate per annum set forth above,
commencing 200_until such Principal Amount is paid, except as the
provisions hereinafter set forth with respect to prepayment and the application of Incremental Taxes
(defined below), pursuant to the Redevelopment Agreement dated as of , 2006
1 (with respect to which undefined terms herein shall have the meanings therein,the"Redevelopment
Agreement")by and between the Municipality and Marquette Property Investments,Inc.,an Illinois
corporation(including its authorized successors and assigns,the"Townbuilder"),are and become
applicable hereto. All principal and interest payments are payable in lawful money of the United
States of America by check or draft of , as Registrar and Paying Agent for the
Municipality upon the Phase 1 debt service subaccount of the Development Account of the TIF Fund
(as defined herein). Such payment of principal and interest shall be made to the Registered Owner
hereof on the registration books of the Municipality, maintained by , as
registrar("Registrar",and who also shall be the paying agent,the"Paying Agent"),at the close of
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business on the day of the calendar month the applicable
payment date and shall be paid by check or draft of (or on behalf of) the
Municipality mailed by the Paying Agent to the address of such Registered Owner as it appears on
such registration books or at such other address furnished in writing by such Registered Owner to the
Registrar. [record date]
[Priority specification, as applicable.]
THE FAILURE TO PAY THE PRINCIPAL OF AND INTEREST ON THIS NOTE WHEN
DUE SOLELY BECAUSE OF AN INSUFFICIENCY OF INCREMENTAL TAXES SHALL
NOT BE AN EVENT OF DEFAULT HEREUNDER OR UNDER THE REDEVELOPMENT
AGREEMENT, A CONDITION AND RISK TO WHICH THE REGISTERED OWNER
HEREOF BY THE ACCEPTANCE OF THIS NOTE IRREVOCABLY ASSENTS.
This Note is an obligation issued pursuant to the Tax Increment Allocation
Redevelopment Act(Section 5/11-74.4-1 et seq. of Chapter 65 of the Illinois Compiled Statutes,the
"TIF Act"), as supplemented and amended(the "Act"), and under the Redevelopment Agreement
and the principal of and interest on this Note are payable,if at all,and not otherwise,solely and only
from Incremental Taxes derived from the Phase 1 Development Property (as defined in the
Redevelopment Agreement)portion of the Redevelopment Project Area,established under the Act,
and as provided in and subject to the limitations provided in the Redevelopment Agreement pursuant
to which the Municipality is issuing this Note. In connection with this Note,the term"Incremental
Taxes"means,net of Surplus and net of all amounts required by operation of applicable law to be
paid to others (for example, to school districts and library districts under Section 11-74.4-3(n) 7.5
and 7.7 of the TIF Act), 100%of incremental property taxes from the Phase 1 Development Property
under Section 11-74.4-8 of the TIF Act, as specified in the Redevelopment Agreement, derived
solely and only from the Phase 1 Development Property, and not otherwise. This Note is being
issued for the purpose of financing certain qualifying redevelopment project costs as set forth as
"Qualified Project Costs"in the Redevelopment Agreement and redevelopment project costs in the
Act. The Registered Owner by the acceptance of this Note assents to all the provisions of this Note
and the Redevelopment Agreement. This Note, together with the interest hereon, is the special,
limited obligation of the Issuer,payable solely from Incremental Taxes available therefor, and not
otherwise. For the payment of this Note,both principal and interest,as aforesaid,if at all,on the due
dates thereof, such Incremental Taxes specified in the Redevelopment Agreement are hereby
pledged.
THIS NOTE DOES NOT CONSTITUTE AN INDEBTEDNESS OF THE MUNICIPALITY
WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION
OR LIMITATION. NO HOLDER OF THIS NOTE SHALL HAVE THE RIGHT TO
COMPEL THE EXERCISE OF THE GENERAL TAXING POWER OF THE
MUNICIPALITY, THE STATE OF ILLINOIS OR ANY OTHER POLITICAL
SUBDIVISION THEREOF, FOR PAYMENT OF PRINCIPAL HEREOF OR INTEREST
HEREON.
Under the Act and the Redevelopment Agreement, the Incremental Taxes shall be
E/R-2
deposited in the Phase 1 debt service subaccount of the Development Account of the Municipality's
Special Tax Increment Allocation Fund (the "TIF Fund") for the Redevelopment Project Area.
Moneys on deposit in such Phase 1 debt service subaccount of the TIF Fund shall be applied to the
payment of debt service on this Note, as provided by the terms of the Redevelopment Agreement.
1. Authority. This Note is issued by the Municipality pursuant to the exercise of its power
and authority under the TIF Act and pursuant to an ordinance adopted on May 8,2006,and captioned
Ordinance No. , and entitled AN ORDINANCE APPROVING A REDEVELOPMENT
AGREEMENT BY AND BETWEEN THE VILLAGE OF LEMONT, ILLINOIS AND
MARQUETTE PROPERTY INVESTMENTS, INC., IN CONNECTION WITH DOWNTOWN
CANAL DISTRICT I REDEVELOPMENT PROJECT AREA,AND RELATED MATTERS(the
"Ordinance"),which authorizes appropriate officers of the Municipality to take certain actions in
connection with the issuance of the Note. Pursuant to the Ordinance and the Redevelopment
Agreement, the Municipality is issuing this Note for the purpose of refinancing certain Qualified
Project Costs,by refunding the Municipality's (the
"Prior Note(s)"). In the event of any conflict between the terms of this Note and the Redevelopment
Agreement, the Redevelopment Agreement shall be controlling.
2. Security. Incremental Taxes derived solely and only from the Phase 1 Development
Property have been pledged to the payment of this Note,and credits or deposits of such Incremental
Taxes into the Phase 1 debt service subaccount of the TIF Fund to pay this Note shall not be subject
to any additional appropriation process of the Municipality, and amounts credited or deposited
therein shall be disbursed in accordance with this Note and the Redevelopment Agreement without
further action by the Municipality's Governing Body, except as may be required by the TIF Act.
3. Purpose. To the extent available,the above described Incremental Taxes shall be applied
in accordance with the Redevelopment Agreement to make debt service payments on this Note to
refinance Qualified Project Costs which have been approved by the Municipality in accordance with
the Redevelopment Agreement.
4. Terms. The terms and conditions of the Redevelopment Agreement (and the related
this reference as if fully set forth
tin Order) are hereby incorporated into this Note by y
Authenticating ) y rp
g
herein. This Note is executed and delivered by the Municipality pursuant to the Redevelopment
Agreement and the Ordinance for the purpose of refinancing Qualified Project Costs approved by the
Municipality in accordance with the Redevelopment Agreement by refunding the Prior Note(s).
a. Principal Amount The Principal Amount of this Note shall be as set forth
above.
b. Interest Rate. The Interest Rate on this Note shall be as set forth above.
c. Interest Accrual. Interest shall accrue on the outstanding principal balance
of the Principal Amount of this Note.
d. Tax Exempt Status. This Note shall be tax-exempt.
E/R-3
e. Payments. Payments on the account of the indebtedness represented by this
Note shall be made as set forth above, subject to limitations contained herein and in the
Redevelopment Agreement,including,without limitation,the requirement that Incremental
Taxes from the Phase 1 Development Property be on deposit in the Phase 1 debt service
subaccount of the Development Account of the TIF Fund. In accordance with the terms of
the Redevelopment Agreement, such Incremental Taxes shall be credited or deposited into
such Phase 1 debt service subaccount and available after the annual payment(s)on this Note,
shall be paid to the Registered Owner annually by the Paying Agent for the Municipality
starting ,and thereafter on of each year until the
Maturity Date set forth above. Notwithstanding anything to the contrary herein contained,
this Note shall be canceled automatically on the Maturity Date, even if the sum of all
payments received on or prior to that date by the Registered Owner do not satisfy in full the
principal of and/or interest on this Note. Notwithstanding anything contained herein to the
contrary,obligation of the Municipality to make payments on the Note and the amount of any
payment made by the Municipality to the Registered Owner is subject to the terms of the
Redevelopment Agreement.
f. Maturity Date. This Redevelopment Note shall mature on the first to occur
of any of the following:
i. The stated Maturity Date above; or
ii. The payment in full of the principal and interest due under the terms
of this Note.
g. Prepayment. This Note is subject to prepayment and redemption,in whole
or in part,on any date on and after ,at a prepayment/redemption price equal to
the principal amount being prepaid/redeemed plus interest accrued to such
prepayment/redemption date.
h. No Default. THE FAILURE TO PAY THE PRINCIPAL OF AND
INTEREST ON THIS NOTE WHEN DUE SOLELY BECAUSE OF AN
INSUFFICIENCY OF INCREMENTAL TAXES SHALL NOT BE AN EVENT OF
DEFAULT HEREUNDER OR UNDER THE REDEVELOPMENT AGREEMENT,A
CONDITION AND RISK TO WHICH THE REGISTERED OWNER HEREOF BY
THE ACCEPTANCE OF THIS NOTE IRREVOCABLY ASSENTS.
5. Place of Payment. Payments of the principal of and interest on this Note shall be
made by the Paying Agent for the Municipality as set forth above,unless the Municipality has been
directed to make such payments in another manner by written notice given to the Municipality by the
Registered Owner at least fifteen(15)days prior to the applicable Payment Date. Payments shall be
made in such coin or currency of the United States of America as at the time of payment constitutes
legal tender for the payment of public and private debts.
E/R-4
6. No Recourse. THIS NOTE AND THE OBLIGATION TO PAY THE PRINCIPAL
OF AND INTEREST ON THIS NOTE ARE SPECIAL AND LIMITED OBLIGATIONS OF THE
MUNICIPALITY AND PAYABLE SOLELY FROM INCREMENTAL TAXES DERIVED OF
SOLELY AND ONLY FROM THE PHASE 1 DEVELOPMENT PROPERTY AND CREDITED
TO OR DEPOSITED IN THE ABOVE DESCRIBED PHASE 1 DEBT SERVICE SUBACCOUNT
OF THE DEVELOPMENT ACCOUNT OF THE TIF FUND ON EACH
FOLLOWING THE DATE OF ISSUANCE. THIS NOTE AND THE OBLIGATION TO PAY
DEBT SERVICE ON THIS NOTE DO NOT CONSTITUTE AN INDEBTEDNESS OF THE
MUNICIPALITY WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY
PROVISION, AND SHALL NOT CONSTITUTE OR GIVE RISE TO A PECUNIARY
LIABILITY OF THE MUNICIPALITY OR A CHARGE AGAINST ITS GENERAL CREDIT OR
TAXING POWER.
7. Default. If on any Payment Date Incremental Taxes are credited to or on deposit in
the above described Phase 1 debt service subaccount and otherwise available to make any payment
required by this Note,and if the Municipality fails to make a payment on or before the
of that year,the Municipality shall, in that instance only,be deemed to be in default under this Note
(hereinafter referred to as"Default"), but not otherwise.
8. Remedies. The sole and exclusive remedy in connection with any Default as
provided in paragraph 7 above shall be for the Registered Owner of this Note to obtain an order of
court commanding the Municipality or such other person or party as may be authorized and directed
by the court to make payment to the Registered Owner of any Incremental Taxes available and on
deposit in the above described Phase 1 debt service subaccount.
9. No Waiver by Delay. No delay on the part of the Registered Owner of this Note in
exercising any option to demand or compel payment shall operate as a waiver thereof or preclude the
exercise of any authorized remedies.
10. Venue. The sole and exclusive venue for any action or proceeding under this Note
shall be in the Circuit Court of Cook County,Illinois. This Note for all purposes shall be governed
by and construed in accordance with the Acts of the State of Illinois.
11. Miscellaneous.
a. Time is of the essence hereof.
b. If any provision of this Note is found by a court of law to be in violation of
any applicable law,and if such court should declare such provision of this Note to be unlawful,void
or unenforceable as written,then it is the intent of the Municipality and the Registered Owner that
such provision shall be given full force and effect to the fullest possible extent that it is legal,valid
and enforceable, that the remainder of this Note shall be construed as if such unlawful, void or
unenforceable provision was not contained herein,and that the rights,obligations and interests of the
Municipality and the Registered Owner shall continue in full force and effect.
E/R-5
_ _...
c. Upon assignment or other transfer of this Note by the Registered Owner or by
operation of applicable law,the term"Registered Owner"as used herein shall mean such assignee
or other transferee or designated successor to the prior Registered Owner who may become the
holder of this Note by virtue of any assignment or transfer of this Note as more particularly provided
in the Redevelopment Agreement. This Note shall inure to the benefit of Registered Owner and its
designated successors and assigns and shall be binding upon the Municipality and its designated
successors and assigns.
d. The Municipality hereby waives presentment and demand for payment, notices of
nonpayment and of dishonor, protest of dishonor and notice of protest.
This Note shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been signed by the Registrar and the acceptance shall have been
signed by the Registered Owner and/or pledgee or assigns, as the case may be.
IN WITNESS WHEREOF,the Village of Lemont,Cook,DuPage and Will
Counties, Illinois,by its President and Board of Trustees, has caused this Note to be signed by the
manual signatures of the its Village President and Village Clerk,and its corporate seal or a facsimile
thereof to be impressed or reproduced hereon, all as appearing hereon and as of the Dated Date
identified above.
(SEAL) Village President
Village Clerk
Registrar/Paying Agent:
CERTIFICATION OF AUTHENTICATION
Date of Authentication:
This Note is the "[Subordinate Lien] Tax Increment Redevelopment Refunding Revenue Note
[Downtown Canal District I Redevelopment Project Area/Phase 1] Series 200_ described in the
within mentioned Redevelopment Agreement by and between the Village of Lemont,Cook,DuPage
and Will Counties,Illinois and Marquette Property Investments,Inc.,an Illinois corporation,as the
Townbuilder.
E/R-6
ACCEPTANCE
The Registered Owner of this Note hereby accepts each term and provision of this
Note and the Redevelopment Agreement and assents to each such term and provision hereof and
thereof.
Dated:
By:
Registered Owner (and/or Pledgee)
Authorized Signature
Tax I.D.:
ASSIGNMENT
FOR VALUE RECEIVED, and with the Municipality's consent the undersigned sells,
assigns and transfers unto
(Name, Address and F.E.I.N. or Social Security Number of Assignee)
the within Note and does hereby irrevocably constitute and appoint
attorney to transfer the within
Note on the books kept for registration thereof with full power of substitution in the premises. The
transferee is hereby advised that this Assignment shall not be complete unless and until an
Acceptance in the form above is signed by the Transferee.
Dated:
Signature
Signature guaranteed:
CONSENT
The Municipality's consent to the above Assignment is made this day of
Village President
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EXHIBIT F
BILL OF SALE
KNOW ALL MEN BY THESE PRESENTS,that
an Illinois (hereinafter referred to as the"Townbuilder"),in consideration of
ONE DOLLAR($1.00) and other valuable consideration, does hereby grant, sell, transfer and deliver
unto the VILLAGE OF LEMONT,an Illinois municipal corporation,the following goods,chattels and
other items of personal property in connection with the
namely:
All public improvements located within the subdivision located
, in the Village of Lemont, such public improvements
including but not limited to all sanitary sewer and water lines,all storm sewer lines,all streets
and street improvements, all curbing, all sidewalks, all street lights, signs,and parkway trees.
The object of this Bill of Sale is to grant, sell, transfer and deliver to the Village, with the exceptions
noted, the ownership of all items of personality that comprise the sanitary sewer, water distribution
system, and street system installed by the Townbuilder to date within
Subdivision
located
Lemont, Il.
FURTHER BE IT KNOWN:That Townbuilder does hereby covenant that it is the lawful owner of
the heretofore described goods,chattels and personality;that such items are free from all encumbrances;
that it has the right to sell the same as aforesaid; and that it warrants and will defend the act of said
corporation.
DATED at Lemont, Illinois this day of ,200
By:
STATE OF ILLINOIS)
)SS.
COUNTY OF COOK )
I, ,a Notary Public in and for said County,in the State of Illinois,DO
HEREBY CERTIFY that me
is personally known
to be the same person and acknowledged that he signed, sealed and delivered the said instrument as his
free and voluntary act, for the uses and purposes therein set forth.
Given under my hand and seal this day of
200
Notary Public
F-1
HOLD HARMLESS AGREEMENT
VILLAGE of LEMONT
In consideration of the undersigned being hired to complete the project,
the undersigned hereby recognizes, acknowledges and assumes any and all risk pertaining to the
completion of the project.
To the fullest extent permitted by law, the undersigned hereby agrees to defend, indemnify and hold
harmless the Village of Lemont, its officials, agents and employees, against all injuries, deaths, loss,
damages, claims, suits, liabilities,judgments, cost and expenses(including attorneys fees),which may in
anywise accrue against the Village of Lemont,its officials,agents and employees,arising in whole or in part
or in consequence of the performance of this work by the undersigned, its employees, agents or
subcontractors, or which may in anywise result therefore, except that arising out of the sole legal cause of
the Village of Lemont, its agents or employees. The Contractor shall, at its own expense, appear, defend
and pay all charges of attorneys and all costs and other expenses arising therefore or incurred in
connections therewith, and, if any judgment shall be rendered against the Village of Lemont, its officials,
agents and employees, in any such action,the Contractor shall,at its own expense,satisfy and discharge
the same.
The undersigned shall provide the Village of Lemont a certificate of insurance reflecting coverage for
general liability, auto liability and worker's compensation coverage in satisfactory amounts per stated
in the enclosure. The Village of Lemont, its officials, agents, employees and volunteers are to be
covered as additional insured as respects: liability arising out of the work performed, including activities
performed by or on behalf of the undersigned; products and completed operations of the undersigned;
premises owned, leased or used by the undersigned; or automobiles owned, leased, hired or borrowed
by the undersigned.
Agreed this day of , 2004
(Name of Vendor)
By:
Its:
F-2
Enclosure: Village of Lemont Insurance Requirements
Village of Lemont
JNSURANCE REQUIREMENTS
Contractor shall procure and maintain, for the duration of the contract, insurance against claims for
injuries to persons or damages to property, which may arise from or in connection with the
performance of the work hereunder by the Contractor, his agents, representatives, employees or
subcontractors.
MINIMUM SCOPE OF INSURANCE
Coverage shall be at least as broad as:
A. Insurance Services Office Commercial General Liability occurrence form CG 0001 with
the member named as additional insured,on a form at least as broad as the attached
sample endorsement including ISO Additional Insured Endorsement CG 2026, CG
2010; and
B. Owners and Contractors Protective Liability(OCP)policy with the member as insured;
and
C. Insurance Service Office Business Auto Liability coverage form number CA 0001 (Ed.
10/90 or newer), Symbol 01 "Any Auto."
D. Workers' Compensation as required by the Labor Code of the State of Illinois and
Employers' Liability insurance.
E. Builder Risk Property Coverage, with member as loss payee.
II. MINIMUM LIMITS OF INSURANCE
Contractor shall maintain limits no less than:
A. Commercial General Liability: $1,000,000 combined single limit per occurrence for
bodily injury, personal injury and property damage. The general aggregate shall be
twice the required occurrence limit. Minimum General Aggregate shall be no less than
$2,000,000 or a project/contract specific aggregate of$1,000,000.
B. Owners and Contractors Protective Liability(OCP)$1,000,000 combined single limit.
C. Business Automobile Liability: $1,000,000 combined single limit per accident for bodily
injury and property damage.
D. Workers'Compensation and Employers'Liability: Workers'Compensation coverage
with statutory limits and Employers' Liability limits of$1,000,000 per accident.
E. Builder's Risk: Shall insure against "All Risk" of physical damage, including water
damage (flood and hydrostatic pressure not excluded), on a completed value,
replacement cost basis.
F-3
III. DEDUCTIBLES AND SELF-INSURED RETENTIONS
Any deductibles or self-insured retentions must be declared to and approved by the member.
At the option of the member, either: the insurer shall reduce or eliminate such deductibles or
self-insured retentions as respects the member, its officials, agents, employees and
volunteers;or the Contractor shall procure a bond guaranteeing payment of losses and related
investigation, claim administration and defense expenses.
IV. OTHER INSURANCE PROVISIONS
The policies are to contain,or be endorsed to contain, the following provisions:
A. General Liability and Automobile Liability Coverage's
1. The member, its officials,agents,employees and volunteers are to be covered as
additional insured as respects: liability arising out of the Contractor's work,
including activities performed by or on behalf of the Contractor; products and
completed operations of the Contractor; premises owned, leased or used by the
Contractor; or automobiles owned, leased, hired or borrowed by the Contractor.
The coverage shall contain no special limitations on the scope of protection
afforded to the member, its officials, agents, employees and volunteers.
2. The Contractor's insurance coverage shall be primary as respects the member,its
officials, agents, employees and volunteers. Any insurance or self-insurance
maintained by the member, its officials,agents,employees and volunteers shall be
excess of Contractor's insurance and shall not contribute with it.
3. Any failure to comply with reporting provisions of the policies shall not affect
coverage provided to the member, its officials,agents,employees and volunteers.
4. The Contractor's insurance shall contain a Severability of Interests/Cross Liability
clause or language stating that Contractor's insurance shall apply separately to
each insured against whom claim is made or suit is brought,except with respect to
the limits of the insurer's liability.
5. If any commercial general liability insurance is being provided under an excess or
umbrella liability policy that does not "follow form," then the Contractor shall be
required to name the member, its officials, agents, employees and volunteers as
additional insured. A copy of the actual additional insured endorsement shall be
provided to the member.
I
B. Workers' Compensation and Employers' Liability Coverage *
The insurer shall agree to waive all rights of subrogation against the member, its
officials, agents,employees and volunteers for los ses arising from work performed by
Contractor for the municipality(negotiable--may not be needed on smaller contracts
with limited exposure).
F-4
C. Professional Liability
1. Professional liability insurance with limits not less than$1,000,00 each claim with
respect to negligent acts, errors and omissions in connection with professional
services to be provided under the contract, with a deductible not-to-exceed
$50,000 without prior written approval.
2. If the policy is written on a claims-made form,the retroactive date must be equal to
or preceding the effective date of the contract. In the event the policy is cancelled,
non-renewed or switched to an occurrence form,the Contractor shall be required
to purchase supplemental extending reporting period coverage for a period of not
less than three(3)years.
3. Additional Required Coverage (architect, engineer, surveyor, consultant):
Professional liability insurance that provides indemnification and defense for injury
or damage arising out of acts, errors, or omissions in providing the following
professional services, but not limited to the following:
a. Preparing, approving or failure to prepare or approve maps, drawings,
opinions, report, surveys, change orders, designs or specifications;
b. Providing direction, instruction,supervision, inspection,engineering services or
failing to provide them, if that is the primary cause of injury or damage.
D. All Coverage's
Each insurance policy required by this clause shall be endorsed to state that coverage
shall not be suspended,voided,cancelled, reduced in coverage or in limits except after
thirty(30)days prior written notice by certified mail,return receipt requested, has been
given to the member.
V. ACCEPTABILITY OF INSURERS
Insurance is to be placed with insurers with a Best's rating of no less than A-,VII and licensed
to do business in the State of Illinois.
VI. VERIFICATION OF COVERAGE
Contractor shall furnish the member with certificates of insurance naming the member, its
officials, agents, employees and volunteers as additional insured, and with original
endorsements affecting coverage required by this clause. The certificates and endorsements
for each insurance policy are to be signed by a person authorized by that insurer to bind
coverage on its behalf. The certificates and endorsements may be on forms provided by the
member and are to be received and approved by the member before any work commences.
The attached Additional Insured Endorsement(Exhibit A)shall be provided to the insurer for
their use in providing coverage to the additional insured. Other additional insured
endorsements may be utilized, if they provide a scope of coverage at least as broad as the
coverage stated on the attached endorsement (Exhibit A), such as ISO Additional Insured
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Endorsements CG 2026 or CG 2010. The member reserves the right to request full certified
copies of the insurance policies and endorsements.
VII. SUBCONTRACTORS
Contractor shall include all subcontractors as insured under its policies or shall furnish
separate certificates and endorsements for each subcontractor. All coverage's for
subcontractors shall be subject to all of the requirements stated herein.
VIII. ASSUMPTION OF LIABILITY
The contractor assumes liability for all injury to or death of any person or persons including
employees of the contractor, any sub-contractor, any supplier or any other person and
assumes liability for all damage to property sustained by any person or persons occasioned by
or in any way arising out of any work performed pursuant to this agreement.
IX. INDEMNITY/HOLD HARMLESS PROVISION To the fullest extent permitted by law, the
Contractor hereby agrees to defend, indemnify and hold harmless the member, its officials,
agents and employees,against all injuries,deaths,loss,damages,claims,patent claims,suits,
liabilities,judgments,cost and expenses,which may in anywise accrue against the member,its
officials, agents and employees, arising in whole or in part or in consequence of the
performance of this work by the Contractor, its employees,or subcontractors,or which may in
anywise result therefore, except that arising out of the sole legal cause of the member, its
agents or employees, the Contractor shall, at its own expense, appear, defend and pay all
charges of attorneys and all costs and other expenses arising therefore or incurred in
connections therewith,and,if any judgment shall be rendered against the member,its officials,
agents and employees, in any such action,the Contractor shall,at its own expense,satisfy and
discharge the same.
Contractor expressly understands and agrees that any performance bond or insurance policies
required by this contract, or otherwise provided by the Contractor, shall in no way limit the
responsibility to indemnify, keep and save harmless and defend the member, its officials,
agents and employees as herein provided.
The Contractor further agrees that to the extent that money is due the Contractor by virtue of
this contract as shall be considered necessary in the judgment of the member,may be retained
by the member to protect itself against said loss until such claims, suits, or judgments shall
have been settled or discharged and/or evidence to that effect shall have been furnished to the
satisfaction of the member.
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EXHIBIT G
CONSENT/APPROVAL ETC. FORM
This Consent/Approval Form is given as of the above Dated Date under or in connection
with an authorization and/or consent and/or waiver and/or specification and/or approval and/or action under
the specific provision(s), as follows:
[Reference the provision.]
of the Redevelopment Agreement dated as of May 8, 2006 (the "Agreement," with respect to which
undefined terms herein have the meaning therein) by and between the Village of Lemont, Illinois (the
"Municipality")and Marquette Property Investments, Inc. (the"Townbuilder"), as follows:
[State the nature of the request, authorization, approval, waiver, specification, consent, approval or other
action.]
The undersigned represents that the executing individual below is, as applicable, an Authorized
Municipal Representative and/or Authorized Townbuilder Representative.
Authorized Municipal Representative: Authorized :
thorized Townbuilder Representative.
Signature: Signature:
Name(print): Name(print):
Date:
Date:
APPROVED AS TO FORM AND AUTHORIZATION
UNDER THE REDEVELOPMENT AGREEMENT
By:
, Municipal Attorney
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EXIIIBIT H
Prepared By:
After recording return to:
Kurt P. Froehlich,
EVANS, FROEHLICH, BETH
&Chamley
44 Main Street, Third Floor
Champaign, IL 61820
(217) 359-6494
fax: 359-6468
Dated Date: , 2006
DECLARATION OF COVENANTS & RESTRICTIONS
The Village of Lemont,Illinois(the"Declarant"),is the owner of certain real property located in the Village
of Lemont,in The County of Cook,the State of Illinois,more fully described in Exhibit A attached hereto and made a
part hereof(the"Parking Structure").
The Declarant has entered into a Redevelopment Agreement (the "Agreement") dated as of
,2006,with Marquette Property Investments,Inc. (as"Townbuilder"). The Agreement provides
that the Declarant(including in part as the Declarant's agent)will develop the Parking Structure(with Parking Spaces
for use by the public and certain residential units)as described in the Agreement. For the purpose of enhancing and
protecting the value,the attractiveness and the desirability of the related Phase 1A Private Development pursuant to
the terms of the Agreement; for the purpose of protecting the rights of the Declarant pursuant to the terms of the
Agreement; and for the purpose of enhancing and protecting the purposes of the Agreement as aforementioned, the
Declarant hereby declares that all of the Parking Structure Site(i.e., Exhibit A: Parking Structure/Walkways legal
description in the Agreement)and each part thereof shall be held,owned,operated,sold,and conveyed only subject
to the following covenants,uses and restrictions,which shall constitute covenants running with the land and shall be
binding on all parties having any rights, title or interest in such property or any part thereof, their heirs, successors
and assigns, and shall inure to the benefit of each other thereof. The Townbuilder is the developer(and in part the
Declarant's agent) of the Parking Structure and of the commercial/residential mixed use Phase 1A Private
Development under the Agreement.
1. The Parking Structure Site and the Parking Structure shall be subject to the Agreement and the
terms, covenants, operating and building and use restrictions and conditions in the Agreement.
2. The Declarant further declares that no person using the Parking Structure shall discriminate in
violation of any applicable federal, state or local laws or regulations upon the basis of race,color, religion, sex,age,
national origin or other applicable factors in the sale, lease or rental or in the use or occupancy of the Parking
Structure Site or Parking Structure or any part thereof.
H-1
GENERAL PROVISIONS
4. It is intended and agreed that the covenants provided in Section 1 of this Declaration shall remain in
effect until the earlier of(i) termination of the Townbuilder's rights under the Agreement or (ii) the end of the 99-
year Parking Term under the Agreement; and the covenants provided in Section 2 shall remain effective without any
time limitation; provided, that all such covenants shall be binding on the Declarant and the Townbuilder (and its
assignees)only for such period as the Declarant and the Townbuilder(and its assignees)maintain a direct ownership
or use interest in the Parking Structure Site or the Parking Structure or part thereof(excluding, for example, an
interest therein solely as a creditor or mortgagee), and only with respect to such direct ownership or use interest in
the Parking Structure Site or Parking Structure or part thereof. The termination of the covenants in Section 1 shall
be effective upon the happening of the events described in this Section 4 without any further action by either the
Declarant or the Townbuilder and without the recording of any release or other document.
5. Subject to Section 4 above, it is intended and agreed that the covenants set forth in Sections 1 and 2
above shall be covenants running with the land and that they shall in any event and without regard to technical
classification or designation as legal or otherwise,be binding to the fullest extent permitted by law and equity, for the
benefit and in favor of and enforceable by the Declarant and the Townbuilder and its assignees and with regard to
Section 2 above, the Declarant and the Townbuilder and its assignees, the State of Illinois, and the United States of
America.
6. Failure by the Declarant or the Townbuilder and its assigns or as the case may be, by the State of
Illinois or the United States of America to enforce any covenant or restriction herein contained, shall in no event be
deemed a waiver of the right to do so thereafter.
7. Invalidation of any one of these covenants or restrictions by judgment or court order,shall in no way
affect any other provisions, which shall remain in full force and effect.
8 Covenants and restrictions of this Declaration may be amended by the Declarant only by duly
recording an instrument, executed and acknowledged by the Townbuilder or its assignees.
Executed as of the dated date first above written.
VILLAGE OF LEMONT, ILLINOIS
By:
John F. Piazza, Village President
Acknowledged:
MAQUETTE PROPERTY INVESTMENTS, INC.
By:
Its President
H-2
STATE OF ILLINOIS )
) SS.
COUNTY OF COOK )
I,the undersigned,a Notary Public in and for said County and State aforesaid,DO HEREBY CERTIFY that
John F. Piazza,personally known to me to be the same person whose name is subscribed to the foregoing instrument,
appeared before me this day in person and acknowledged that he signed,sealed and delivered the above instrument as
his free and voluntary for the uses and purposes therein set forth; and on his respective oath stated that he was duly
authorized to execute said instrument.
GIVEN under my hand and notarial seal this day of , 2006.
Notary Public
STATE OF ILLINOIS )
) SS.
COUNTY OF )
I,the undersigned, a Notary Public in and for said County and State aforesaid,DO HEREBY CERTIFY that
,personally known to me to be the of the Marquette Property
Investments, Inc., and personally known to me to be the same person whose name is subscribed to the foregoing
instrument, appeared before me this day in person and acknowledged that he signed, sealed and delivered the such
instrument as his free and voluntary act as such , and as the free and voluntary act of the Marquette
Property Investments, Inc., for the uses and purposes therein set forth; and on his respective oath stated that he was
duly authorized to execute such instrument.
GIVEN under my hand and notarial seal this day of , 2006.
Notary Public
H-3
EXHIBIT I
CONTRACTOR CERTIFICATION
CONTRACTOR'S BID RIGGING CERTIFICATION
As Required Under Article 33E, "Public Contracts",of the Criminal Code of 1961(720 ILCS 5/22E-1 Thru 5/33E-13)
(Print Name of Contractor)
a
(Corporation, Partnership) (Sole Proprietorship)
as part of his/its bid on this Contract hereby certifies that the Contractor is not barred from bidding on this Contract as a
result of a violation of either Section 5/33E-3(bid-rigging)or 5/33E-4(bid-rotating)of Article 33E of Act 5 "Criminal
Code of 1961", as amended.
Dated: By:
(Signature)
Title:
CONTRACTOR'S TAX DELINQUENCY CERTIFICATION
As required under 65 ILCS 5/11-42.1-1,provisions require that the Contractor certify that there are no delinquent
taxes outstanding that are otherwise due the Department of Revenue unless they are being contested in accordance with
established procedures. The undersigned official of the Contractor hereby certifies that there are no violations of the
aforementioned act or if violations do exist, they are being contested properly.
Dated: Contractor:
By:
(Signature)
Title:
STATE OF ILLINOIS )
COUNTY OF
-SS
I, the undersigned, a Notary Public in and for the State and County aforesaid, hereby certify that
(Name of Signatory)appeared before me this day in person and, being first duly sworn on
oath, acknowledge that he/she executed the foregoing certifications as his/her free act and deed.
Dated:
(NOTARY SEAL) (Notary Public)
I-1
CONTRACTOR'S DRUG-FREE WORKPLACE CERTIFICATION
Pursuant to 30 ILCS 580/1,et seq.("Drug-Free Workplace Act"),the undersigned Contractor hereby certifies to
the contracting agency that it will provide a drug-free workplace by:
A. Publishing a statement:
1) Notifying employees that the unlawful manufacture,distribution,dispensation,possession,or use of a
controlled substance including cannabis, is prohibited in the grantee's or Contractor's workplace.
2) Specifying the actions that will be taken against employees for violations of such prohibition.
3) Notifying the employee that, as a condition of employment on such Contract or grant,the employee
will:
(a) abide by the terms of the statement; and
(b)notify the employer of any criminal drug statute conviction for a violation
occurring in the workplace no later than five (5) days after such conviction.
B. Establishing a drug-free awareness program to inform employees about:
1) the dangers of drug abuse in the workplace;
2) the grantee's or Contractor's policy of maintaining a drug-free workplace;
3) any available drug counseling,rehabilitation, and employee assistance program;and
4) the penalties that may be imposed upon employees for drug violations.
C. Making it a requirement to give a copy of the statement required by Subsection A to each employee engaged in
the performance of the Contract or grant, and to post the statement in a prominent place in the workplace.
D. Notifying the contracting agency within 10 days after receiving notice under page (b) of paragraph 3) of
Subsection A from an employee or otherwise receiving actual notice of such conviction.
I-2
CONTRACTOR'S DRUG-FREE WORKPLACE CERTIFICATION, Cont'd.
E. Imposing a sanction on, or requiring the satisfactory participation in a drug abuse assistance or rehabilitation
program by any employee who is so convicted, as required by 30 ILCS 580/5.
F. Assisting employees in selecting a course of action in the event drug counseling treatment and rehabilitation is
required and indicating that a trained referral team is in place.
G. Making a good faith effort to continue to maintain a drug-free workplace through implementation of this Section.
Failure to abide by this certification shall subject the Contractor to the penalties in 30 ILCS 580/6.
Dated: Contractor:
By:
(Authorized Agent of Contractor)
Title:
STATE OF ILLINOIS )
COUNTY OF ) -SS
I, the undersigned, a Notary Public in and for the State and County aforesaid,
hereby certify that (Name of Signatory)appeared before me
this day in person and,being first duly sworn on oath, acknowledged that he/she executed the foregoing certification as
his/her free act and deed.
Dated:
(Notary Public)
(NOTARY SEAL)
I-3
CONTRACTOR'S SEXUAL HARASSMENT POLICY CERTIFICATION
("Contractor"),
having submitted a bid/proposal for to the Village of
Lemont hereby certifies that said Contractor has a written sexual harassment policy in place in full compliance
with 775 ILCS 5/2-105(A)(4).
Dated: Contractor:
By:
(Authorized Agent of Contractor)
Title:
STATE OF ILLINOIS )
COUNTY OF ) -SS
I, the undersigned, a Notary Public in and for the State and County aforesaid,hereby certify that_
(Name of Signatory)appeared before me this day
in person and,being first duly sworn on oath,acknowledged that he/she executed the foregoing certification as
his/her free act and deed.
Dated:
(Notary Public)
(NOTARY SEAL)
I-4
EXHIBIT J
CONDOMINIUM ASSOCIATION
ACCEPTANCE
Parking Agreement: Paragraph 4.5
Redevelopment Agreement dated May 15,2006
(the"Agreement")
by and between
the Village of Lemont, Illinois(the"Municipality")
and
Marquette Property Investments,Inc. (the"Townbuilder")
on , 200_,
By action of
as the Condominium Association under the
Agreement by and between the Municipality and the h 4 5 of the Agreementeaccordi g agrees ts tenor
bound as the Condominium Association by Paragraph
and import,with the same effect as if such Paragraph 4.5 was a separate agreement by and between
the Municipality and the Condominium Association.
as Condominium Association
By:
Its
Date: ,200_
VILLAGE OF LEMONT,ILLINOIS
By:
Authorizing Municipal Representative
Date:
,200_
3-1