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HomeMy WebLinkAboutORDINANCE - 2924 - 1/28/2003 - FIRST AMENDMT REDEVELOPMENT AGMTORDINANCE NO. 2924 AN ORDINANCE AMENDING ORDINANCE NO. 2910 AND AUTHORIZING THE MAYOR AND VILLAGE CLERK TO EXECUTE THE FIRST AMENDMENT TO THE REDEVELOPMENT AGREEMENT WITH CORRIB CONSTRUCTION COMPANY (DEVON/ROHLWING) NOW, THEREFORE, BE IT ORDAINED by the Mayor and Board of Trustees of the Village of Elk Grove Village, Counties of Cook and DuPage, State of Illinois as follows: Section 1: That the Mayor be and is hereby authorized to sign the attached documents marked: FIRST AMENDMENT TO THE REDEVELOPMENT AGREEMENT WITH CORRIB CONSTRUCTION COMPANY a copy of which is attached hereto and made a part hereof as if fully set forth and the Village Clerk is authorized to attest said documents upon the signature of the Mayor. Section 2: That this Ordinance shall be in full force and effect from and after its passage and approval according to law. VOTE: AYES: 6 NAYS: 0 ABSENT: 0 PASSED this 28th day of January 2003 APPROVED this 28th day of January 2003 APPROVED: Craig B. Johnson, Mayor ATTEST: Ann 1. Walsh Village Clerk OrdCorribFirstamendment.doc FIRST AMENDMENT TO REDEVELOPMENT AGREEMENT THIS FIRST AMENDMENT TO REDEVELOPMENT AGREEMENT (this "First Amendment') is made and entered into as of this 28 day in January, 2003, by and between the Village of Elk Grove Village, Illinois, an Illinois municipal corporation located in Cook County, Illinois (the "Village"), Elk Grove Hospitality, Inc., an Illinois corporation (hereinafter "EGH, Inc."), and Corrib Construction, Inc. (hereinafter Corrib, Inc.), an Illinois corporation (both sometimes hereinafter collectively referred to as the "Developers"). RECITALS A. Pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILLS 5/11 - 74.4-1 et seq. (the "Act'), on December 8, 2002, , the Village adopted Ordinance Number 2910, authorizing the Village Mayor to execute a Redevelopment Agreement by and between the Village and Developers. B. Since the Parties executed the Redevelopment Agreement ("Agreement'), economic changes resulting in the unavailability of financing has caused the Developers to amend the initial scope of the Project and timing, and the Developer has asked the Village to extend the dates of its obligation to purchase the Village Property and the Outlots (collectively the "Properties") and to amend certain other provisions to the Agreement. C. The Village has agreed to grant the extensions sought by Developer and the Developer has agreed to secure its performance by increasing its the amount of the Earnest Money currently being held by the Village. . D. The Corporate Authorities of the Village, after due and careful consideration, have concluded that entering into this First Amendment will be in the best interest of the Village, will foster growth and redevelopment in the Project Area. NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements herein contained, and other good and valuable consideration, the receipt and suf- ficiency of which are hereby acknowledged, the Parties do hereby agree as follows: RECITALS PART OF AGREEMENT The representations, covenants and recitations set forth in the foregoing recitals are material to this Agreement and are hereby incorporated into and made a part of this Agreement as though they were fully set forth in this Article I. MUTUAL ASSISTANCE The Parties agree to take such actions, including the execution and delivery of such documents, instruments, petitions and certifications (and, in the Village's case, the adoption of such ordinances and resolutions), as may be necessary or appropriate, from time to time, to carry out the terms, provisions and intent of this Agreement and to aid and assist each other in carrying out said terms; provisions and intent. REDEVELOPMENT PROJECT 3.01 Security for Performance. Pursuant to the Agreement, Developer was obligated to close on the Village Property and the Oullol (collectively the "Properties') on or before December 31, 2002. Developer has requested an extension of its deadline to Close to March 17, 2003, which the Village, subject to the terms and conditions of the Agreement and this Amendment, hereby approves. The Village Treasurer is currently holding Twenly-Five Thousand Dollars of Earnest Money in an escrow account. Developer, in consideration for the extensions agreed to by the Village, has agreed to deposit and additional Seventy -Five Thousand Dollars ($75,000) in Earnest Money with the Village, thereby increasing the Earnest Money to a total of One Hundred Thousand Dollars ($100,000). The Developer will present a check for the $75,000 made payable to the Village upon the approval and execution of this First Amendment. In the event the Developer fails to close on the Properties on or before March 17, 2003, the Village may keep the Earnest Money as liquidated damages. In the event the Developer does close on the Properties as provided for herein, the Village will credit the Developer the amount of the Earnest Money against the Purchase Price. 3.02 Village Payment. In addition to the Village Payment provided for in Section 4.01(A), the Village shall be entitled to repay itself the sum of $302,000 for the out-of-pocket expenses incurred in creating and developing the TIF District and Redevelopment Project before any other payments are made from the Pledged Taxes. 3.03. Agreed Tenants. Village shall have the right to approve all retail/commercial users in the Phase I, Phase II and Phase III developments. Developer shall submit a proposed user to the Village in writing, and the Village will have 10 calendar days to approve or disapprove Developer's proposed user in writing. In the Village fails to respond to Developer's written request with the ten day period, the request shall be deemed approved. 3.04 Purchase of Village Property. Village hereby agrees to sell to the Developer the Village Property prior to Developer obtaining financing for the Hotel. The Developer may begin development of the parcel in accordance with the Plans, and any minor modification as may be approved by the Director of Engineering and Community Development 3.05 Modification to Phase If. Upon Closing on the Properties, Developer may proceed with the construction that portion of Phase II consisting of the banquet facility, the retail shops and the restaurant upon closing on the Properties prior to obtaining financing for the Hotel. Developer shall have three years from the date of this Amendment to obtain Hotel financing and commence construction of the Hotel. If Developer fails to commence construction, or cause the commencement of the Hotel within said three year period, this Agreement shall be void; the Village shall have no further obligations hereunder and Developer shall have no further rights. "Commencement of construction" of the Hotel means that the Developer has obtained a building permit and has begun work on the foundation of the Hotel. 3.06 TIF Note. Except as expressly provided for herein, the TIF Note shall be issued in accordance with the Agreement, but no payments shall be made until the commencement of the Hotel. IV GENERAL PROVISIONS 4.01 Defined Terms. All capitalized words used herein shall have the same definition as in the Agreement. 4.02 Conflict. Unless a provision of the Agreement .is expressly amended herein, all terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the Parties have duly executed this First Amendment pursuant to all requisite authorizations as of the date first above written. VILLAGE OF ELK GROVE VILLAGE, an Illinois Municipal Corporation By: Craig B. Johnson It's Mayor ATTEST: Ann I. Walsh Clerk CORRIB CONSTRUCTION, INC. M ATTEST: Its Is ELK GROVE HOSPITALITY, INC. in ATTEST: Its Its