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Home My WebLink AboutRESOLUTION - 69-17 - 12/13/2017 - Elk Grove Hospitality West redevelopment agreement RESOLUTION NO. 69-17 A RESOLUTION AUTHORIZING THE MAYOR AND VILLAGE CLERK TO EXECUTE A SECOND AMENDMENT TO THE REDEVELOPMENT AGREEMENT (ELK GROVE HOSPITALITY WEST, LLC) NOW, THEREFORE, BE IT RESOLVED 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: SECOND AMENDMENT TO REDEVELOPMENT AGREEMENT copies of which are 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 the adoption of this amendment by the Village provides consent to allow the owner to recoup TIF eligible expenses by extending the TIF note but not extending the TIF period. Section 3: 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 12th day of December 2017. APPROVED this 12th day of December 2017. APPROVED: Mayor Craig B.Johnson Village of Elk Grove Village ATTEST: Loretta M. Murphy,Village Clerk Second Amendment to Redevelopment Agreement This Second Amendment to is entered into this 12th day of December, 2017 by and between the Village of Elk Grove Village, an Illinois home rule municipality in Cook and DuPage counties (the "Village") and Elk Grove Hospitality West, LLC, an Illinois limited liability company(the "Developer"). RECITALS A. On June 26, 2001, the Village adopted an ordinance creating a Redevelopment Project Area(the "TIF District")pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1 et seq. (the "Act"). The Act limits the duration of a TIF District to twenty-three (23) years and obligations issued therefor to twenty(20) years. B. On December 9, 2002, the Village and Developer entered into a redevelopment agreement(the "Redevelopment Agreement"), which was amended by the First Amendment dated January 28, 2003 (the Redevelopment Agreement and the First Amendment are referred to collectively herein as the "RDA"). C. The RDA required the Developer to build a hotel and other commercial developments and for the Village to issue a redevelopment note in the amount of$4,250,000 (the "note")to defray certain redevelopment costs. D. The Note was issued on May 1, 2003 for a term of twenty years and the sole source of repayment was a pledged portion of the "Incremental Taxes,"as that term is defined in the Act. That portion of Incremental Taxes that was not pledged to the Note was pledged to the Village to reimburse it for its costs. E. Payments on the Note were to begin in 2006 but the first payment was not made until 2008, thereby shortening the term of the Note by two years. F. The term of the Note as currently issued will end on April 30, 2023 with the last payment being made from the first installment of the 2022 taxes collected by Cook County and paid to the Village. The TIF District will continue until December 31, 2024 and the Village will receive its last payment of Increment in March of 2025. G. The parties acknowledge that when the current term of the Note expires,the Developer, for several reasons, will not have been fully reimbursed for the agreed upon eligible costs and the parties have agreed to enter into this Second Amendment to the RDA to extend the term of the Note for two years to give Developer an opportunity to be repaid its eligible costs. H. The Village currently receives an annual repayment for its costs of$65,000, and the parties have agreed to increase that amount to not less than $100,000 per year. NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements as set forth herein, and other good and valuable consideration, the receipt and sufficiency are hereby acknowledged, the Parties do hereby agree as follows: I RECITALS PART OF AGREEMENT The representations, covenants and recitations set forth in the foregoing Recitals are material to this Second Amendment and hereby incorporated into and made a part of this Agreement as though they were fully set forth in this Article I. II 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 to carry out the terms of this Second Amendment and to aid and assist one another in carrying out said terms. III AMENDMENT OF NOTE 3.01. Term. The Village hereby agrees to extend the term of the Note from March 31, 2023 to March 31, 2025 (the "Extended Term"). 3.02 Pledged of Incremental Taxes. On January 1, 2020, Twenty-percent(20%) of the annual Incremental Taxes received by the Village from the Cook County Treasurer shall be paid to the Village to reimburse it for the eligible costs it incurred and the balance shall be paid on the Note until the earlier of the expiration of the Extended Term or repayment of the Note in full. In no event shall the annual payment to the Village be less than $100,000 per year. IV GENERAL PROVISIONS 4.01 Defined Terms. All Capitalized words used herein shall have the same definition as in the RDA, unless specifically amended. 4.02 Conflict. In the event of a conflict between this Second Amendment and the RDA, the terms and conditions of this Second Amendment shall control. [SIGNATURE PAGES TO FOLLOW] IN WITNESS WHEREOF, the Parties have duly executed this Agreement pursuant to all requisite authorizations as of the date first above written. VILLAGE OF ELK GROVE VILLAGE, COOK AND DUPAGE COUNTIES, ILLINOIS, an Illinois municipal corporation BY: Mayor Craig 14. Johnson ATTEST: Village Clerk ELK GROVE HOSPITALITY WEST, an Illinois limited liability company. BY Its: Managing Member STATE OF ILLINOIS ) SS. COUNTY OF COOK ) 1, , a Notary Public in and for the said County, in the State aforesaid, DO HEREBY CERTIFY that of the Elk Grove Hospitality West, LLC, personally known to me to be the same person whose name is subscribed to the foregoing instrument as such , respectively appeared before me this day in person and acknowledged that he signed and delivered the said instrument as his own free and voluntary act for the uses and purposes set forth therein. GIVEN UNDER my hand and Notarial Seal this day of , 2017. NOTARY PUBLIC My Commission Expires: (Seal) STATE OF ILLINOIS ) SS COUNTY OF COOK ) I, a Notary Public in and for the said County, in the State aforesaid, DO HEREBY CERTIFY that of the Village of Elk Grove Village, personally known to me to be the same person whose name is subscribed to the foregoing instrument as such , respectively appeared before me this day in person and acknowledged that he/she signed and delivered the said instrument as his/her own free and voluntary act and as the free and voluntary act of said Village, for the uses and purposes set forth therein; and the said Village Clerk then and there acknowledged that he/she, as custodian of the corporate seal of said Village, did affix the corporate seal of said Village to said instrument, as his/her own free and voluntary act and as the free and voluntary act of said Village, for the uses and purposes set forth therein. Witness my hand and notarial seal this day of , 2017. Notary Public My Commission Expires: (Seal)