HomeMy WebLinkAboutORDINANCE - 2590 - 8/26/1997 - REDEVELOPMENT AGMT/GROVE MALLORDINANCE NO. 2590
AN ORDINANCE AUTHORIZING THE VILLAGE PRESIDENT AND VILLAGE
CLERK TO EXECUTE THE SECOND AMENDMENT TO THE REDEVELOPMENT
AGREEMENT (GROVE MALL SHOPPING CENTER)
NOW, THEREFORE, BE IT ORDAINED by the President 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 Village President be and is hereby authorized to
sign the attached documents marked:
SECOND AMENDMENT TO REDEVELOPMENT AGREEMENT
(GROVE MALL SHOPPING CENTER)
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 Village President.
Section 2: That this Resolution 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 26th
day of August , 1997.
APPROVED this 26th day of August , 1997.
Craig B. Johnson
Village President
ATTEST:
Patricia S. Smith
Village Clerk
By: Ann L Walsh
Deputy Village Clerk
SECOND AMENDMENT TO REDEVELOPMENT AGREEMENT
THIS SECOND AMENDMENT (this "Second Amendment"), is made and entered
into as of the 26th day of August, 1997, by and between the Village of Elk Grove
Village, Illinois, an Illinois municipal corporation located in Cook County, Illinois (the
"Village"), and Elk Grove Town Center, L.L.C., an Illinois limited liability company (the
"Developer').
RECITALS
A. The Village and the Developer entered into a Redevelopment Agreement
dated as of March 11, 1997 (the "Agreement") and a First Amendment dated as of July
22, 1997 (the "First Amendment"). The Agreement and the First Amendment are
collectively referred to herein as the "Agreement." The Agreement provided for the
Village to sell the Property to the Developer, and for the Developer to construct the
Village Green Improvements and the Commercial Center.
B. The Developer has acquired the Property from the Village in accordance
with the Agreement, and has determined that the actual cost of constructing the
Commercial Center, as set forth in the Plans and approved by the Village, exceeds the
Developer's original estimates of costs. Developer now requests that the Village
approve certain modifications to the Plans and approve the reallocation of certain
funds.
C. Developer and Village have now agreed to enter into this Second
Amendment specifying and approving certain modifications, and providing for certain
cost reallocations.
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NOW, THEREFORE, for valuable consideration, receipt and adequacy of which
is hereby acknowledged, the Agreement is hereby amended as follows:
1. Definition of Terms. As used herein, all terms not specifically defined
herein shall have the same meaning as set forth in the Agreement.
2. Agreement in Full Force and Effect. Except as specifically modified
hereby, the Agreement shall remain in full force and effect and unmodified.
3. Modifications to the Plans. The Village hereby agrees that the Plans shall
be modified as set forth in Exhibit A attached hereto. The Developer shall have the
right to construct the Commercial Center making all of the modifications described in
Exhibit A with the approval of the Director of Engineering and Community Development.
4. Reallocation of Funds. The Developer has notified the Village that cost of
constructing the Village Green Improvements will cost less than the One Million Three
Hundred Fifty-seven Thousand Dollars (the "Village Green Allotment') which was
originally projected in Section 4.05 (B) the Agreement, and that the cost of constructing
the Commercial Center will be greater than projected in the Agreement. Accordingly,
subject to the terms and conditions contained herein, the Village has agreed to allow
the Developer, at the election of the Developer, to reallocate the 'Reallocated Funds,"
as that term is hereinafter defined, to defray the additional costs of the Commercial
Center.
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Upon execution of fixed contracts for each of the Village Green Improvements,
the Developer shall provide the Village with a copy of each contract and a Developer
summary indicating the total amount of the contracts for the Village Green
Improvements, the amount of any contingency allowed by the Developer to cover any
cost overruns for the Village Green Improvements, and the amount available (the
"Reallocated Funds") after deducting from the Village Green Allotment 1) the total cost
of the contracts for the Village Green Improvements, and 2) the contingency allowed for
potential cost overruns. The Village will then, at the written request of the Developer,
loan to the Developer the "Reallocated Funds" to defray the extra costs of the
Commercial Center. The Reallocated Funds shall be disbursed in accordance with the
procedures and conditions of Section 4.06 of the Agreement. In the event the
Developer elects to borrow and use the Reallocated Funds for the Commercial Center
and then does not have sufficient funds to complete the Village Green Improvements,
the Developer shall provide any additional funds necessary to complete the Village
Green Improvements or Developer shall be in default of the Agreement and the Village
may seek any remedy available under the Agreement.
5. Repayment of Reallocated Funds. The Reallocated Funds shall be repaid
to the Village from the Developer's 50% share of the actual cash return in excess of
11 %D (the computation of the Developer's 50% share is described in Section 3.06 of the
Agreement). Beginning upon disbursement of the Reallocated Funds to the Developer,
interest on the Reallocated Funds shall be computed monthly at the then Prime
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Lending Rate of the LaSalle National Bank of Chicago. Interest shall continue to
accrue on any unpaid principal until the Reallocated Funds are repaid in full. In the
event the Developer sells the Commercial Center, the Developer shall provide the
Village a thirty -day written notice of the proposed sale. The entire balance of the
unpaid Reallocated Funds and interest due thereon shall become immediately due and
shall be paid from the proceeds of the sale. The Developer may repay the Reallocated
Funds, in part or in full, with any interest earned thereon at any time with no pre-
payment penalty.
6. Certification of Developer Costs. The Developer has represented to the
Village that the financial assistance provided to the Developer as outlined in the
Agreement and this Second Amendment is necessary because of certain extraordinary
costs associated with the Project. Accordingly, the Developer has represented that the
Commercial Center, exclusive of the Theater, shall consist of 130,694 square feet of
building and that with this configuration, the Developer shall provide not less than
Fifteen Million, Two Hundred and eighty-three Thousand, Eight Hundred and Fifty -
Three Dollars ($15,283,853) in private funds using a combination of Loan proceeds and
Developer equity (the "Private Funds"). However, in the event the configuration of the
Commercial Center changes and as a result, the total square footage is reduced, the
Developer may reduce the Private Funds accordingly, and the Village shall have the
right to review and reasonably approve the level of Private Funds. Upon completion of
the Commercial Center, the Developer shall certify to the Village the costs paid to
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parties unrelated to the Developer (both hard and soft costs, which may include items
such as financing fees, construction interest, etc.) of the Commercial Center paid with
Private Funds. In the event the Private Funds actually expended by the Developer are
less than the amount of the Private Funds as specified herein, the Developer hereby
agrees to reimburse the Village for the shortfall in an amount up to the borrowed
amount of Reallocated Funds. The shortfall would be paid to the Village upon
completion of the Project, prior the Village's issuance of a Certificate of Completion.
The obligation to repay the Reallocated Funds and interest earned thereon shall be
subordinate the mortgage securing Developer's construction loan.
7. Counterparts. This Amendment may be executed in several counterparts,
each of which shall be an original and all of which shall constitute but one and the same
agreement.
8. Recordation of Amendment. The Parties agree to execute and deliver the
original of this Amendment in proper form for recording with the Cook County Recorder
of Deeds.
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IN WITNESS WHEREOF, the Parties have duly executed this Agreement
pursuant to all requisite authorizations as of the date first above written.
ATTEST:
Patricia S. Smith
Clerk
By: Ann I. Walsh
Deputy Village Clerk
ATTEST:
Its:
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VILLAGE OF ELK GROVE VILLAGE, an
Illinois municipal corporation
By: Craig B. Johnson
Its President
ELK GROVE TOWN CENTER, L.L.C., an
Illinois limited liability company
M
Its:
STATE OF Illinois )
SS.
COUNTY OF Cook )
I, Nora E. Layton , a Notary Public, in and for said County, in the
State aforesaid, DO HEREBY CERTIFY that Craig B. Johnson, the President
of Elk Grove Village, an Illinois municipal corporation, is personally known to me
to be the same person whose name is subscribed to the foregoing instrument as
such President, appeared before me this day in person and acknowledged that
he signed and delivered said instrument as his own free and voluntary act and
as the free and voluntary act of said municipal corporation, for the uses and
purposes therein set forth.
GIVEN under my hand and Notarial Seal, this 27th day of August, 1997.
Nora E. Layton
Notary Public
My Commission expires: 5/28/98
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STATE OF )
SS.
COUNTY OF )
I, , a Notary Public, in and for said County, in the
State aforesaid, DO HEREBY CERTIFY that , a
member of Elk Grove Town Center L.L.C., an Illinois limited liability company, is
personally known to me to be the same person whose name is subscribed to the
foregoing instrument as such Member, appeared before me this day in person
and acknowledged that he signed and delivered said instrument as his own free
and voluntary act and as the free and voluntary act of said limited liability
company, for the uses and purposes therein set forth.
GIVEN under my hand and Notarial Seal, this day of August, 1997.
Notary Public
My Commission expires:
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Exhibit A
Masonry
1. Replace Limestone with Renaissance Stone
2. Eliminate stone header on inside of arcade
3. Use blocks in the loading area portion of the backs of buildings B & C
that is lower than the height of the brick screening wall
4. Eliminate brick and limestone columns from buildings within arcades; replace with
glazing
5. Backs of Dominick's, and Buildings D & E will be block stained to match the color of
brick, except for the wrap-around treatment on Building E, which is approximately 24
feet in length, and the wrap-around portion of Building D, which is approximately 4 feet
in length
Glazine
1. Replace some double doors with single doors
2. Change mullion system to two windows from four
Roof System
1. Change length of roof from 16 feet to 12 feet except on the Dominicks
and Walgreens Buildings
2. Change 4 foot eaves to a 3 foot eaves on all buildings
except Walgreens & Dominicks
3. Substitute clay tile with concrete tile
Other
1. Replace steel roof truss with wood
2. Remove steel deck above arcade (inside roof system)
3. Remove plywood from arcade and use exterior gypsum
Sitework
1. Reuse existing base
2. Commercial Excavation
3. Commercial Paving
4. Site plumbing soil removal
Walereen's
1. Masonry (same as Masonry above)
2. Substitute clay tile with concrete tile
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