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HomeMy WebLinkAboutOrd 3891 02/02/1988ORDINANCE NO. 3891 AN ORDINANCE AUTHORIZING THE EXECUTION OF A REDEVELOPMENT AGREEMENT PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES THE 2nd DAY OF February , 1988. Published in pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois, the 3rd day of February , 1988. . ORDINANCE NO. 3891 AN ORDINANCE AUTHORIZIN~ THE EXECUTION OF A REDEVELOPMI~T~:!~EEMENT,:: ,: WHEREAS, the Village of Mount Prospect is a home rule unit and as such may exercise any power or perform any function pertaining to its government or affairs; and WHEREAS, the Village of Mount Prospect, pursuant to the powers of a home rule unit, has the power to acquire property to remove conservation areas within the Village with the intent of stimulating redevelopment; and WHEREAS, the Village of Mount Prospect is empowered, pursuant to the Tax Increment Allocation Redevelopment Act, P.S. 79-1525, appearing as Section 11-74.4-1 et seq., of Chapter 24 Ill. Rev. Stat., 1979 (hereinafter the "Act") to undertake the redevelopment of conservation areas through tax increment financing, to acquire by purchase, donation, lease or condem- nation of real property within the designated redevelopment Project Area, and pursuant to said Act to incur redevelopment Project costs and enter into Redevelopment Agreements; and WHEREAS, the President and Board of Trustees of the Village of Mount Prospect, Cook County, Illinois have heretofore adopted Ordinance No. 3554 entitled AN ORDINANCE APPROVING THE TAX INCREMENT REDEVELOPMENT PLAN AND REDEVELOPMENT PROJECT FOR THE DISTRICT NO. 1 REDEVELOPMENT PLAN AND REDEVELOPMENT PROJECT FOR THE DISTRICT NO. 1 REDEVELOPMENT PROJECT AREA IN THE VILLAGE OF MOUNT PROSPECT, ILLINOIS and Ordinance NO. 3555 entitled AN ORDINANCE DESIGNATING DISTRICT NO. 1 TAX INCREMENT REDEVELOPMENT PROJECT AREA IN THE VILLAGE OF MOUNT PROSPECT, ILLINOIS, both of which are incorporated herein in their entirety; and WHEREAS, the President and Board of Trustees of the Village of Mount Prospect have determined that the DISTRICT NO. 1 TAX INCREMENT REDEVELOPMENT PROJECT AND PLAN which was the subject matter of public hearings is in the best interests of the residents of the Village of Mount Prospect and is public purpose; and WHEREAS, the President and Board of Trustees of the Village of Mount Prospect adopted Ordinance No. 3586 entitled AN ORDINANCE AUTHORIZING THE ACQUISITION OF PROPERTY THROUGH CONDEMNATION OR OTHERWISE FOR THE DISTRICT NO. 1 TAX INCREMENT REDEVELOPMENT PROJECT AND PLAN: and WHEREAS, the Village has acquired the property described in the Redevelopment Agreement attached hereto as Exhibit "A" to revitalize the conservation area, and stimulate redevelopment within the area pursuant to the objectives of the DISTRICT NO. 1 TAX INCREMENT REDEVELOPMENT PROJECT AND PLAN: and WHEREAS, the Village of Mount Prospect desires to sell certain property pursuant to the terms and conditions included in the Redevelopment Agreement and supplementary Agreement thereto in accordance with the DISTRICT NO. 1 TAX INCREMENT REDEVELOPMENT PROJECT AND PLAN: and WHEREAS, the Village of Mount Prospect will publish a notice for alternative proposals or bids in accordance with the pro- visions of the Real Property Tax Increment Allocation Redevelop- ment Act and review and consider the same before determining that the attached agreement should be implemented; and WHEREAS, the implementation of the aforementioned DISTRICT NO. 1 TAX INCREMENT REDEVELOPMENT PROJECT AND PLAN would~ for the Village of Mount Prospect, strengthen the property and non- property tax and income bases, and would provide jobs for Village residents. NOW,:THEKEFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE"OF MOUNT FROSP.ECT; COOK: COUNTY, ILLINOIS, IN THE EXERCISE[OF ITS HOME RULE POWERS, a.s follows: SECTION 1: The Mayor and Clerk of the Village of Mount Prospect be ar/d they are hereby authorized and directed to execute the Redevelopment Agreement and supplementary Agreement thereto dated February 2, 1988, a copy of which is attached hereto and made a part hereof as Exhibit A. SECTION 2: This Ordinance and each of its terms shall be the effective legislative act of a home rule municipality without regard to whether such ordinance should (a) contain terms contrary to the provisions of current or subsequent non- preemptive State law; (b) legislate in a manner or regarding a matter not delegated to municipalities by State law. It is the intent of the Corporate Authorities that to the extent that the terms of this Ordinance should be inconsistent with a non- preemptive State law, that this Ordinance shall supersede State law in that regard within its jurisdiction. SECTION 3: The Village Clerk is directed to publish a notice of a Redevelopment Agreement between the Village of Mount Prospect and Home by Hemphill, Inc., and a request for alternate bids and proposals for the same property to be submitted to the Village for review at the regular Board meeting to be held March 1, 1988. SECTION 4: This Ordinance shall be in full force and effect from and after its passage and approval as provided by law. AYES: Arthur, Farley, NAYS: None ABSENT: None PASSED AND APPROVED this Floros, Murauskis, 2nd day of Van Geem, Wattenberg February , 1988. ATTE ST: Pre - 2 - REDEVELOPMENT AGREEMENT THIS REDEVELOPMENT AGREEMENT, is made and entered into as of the 2~D day of /r~ , 1988, by and between the Village of Mount Prospect, Illinois, a home rule unit of local government located in Cook County, Illinois (the "Village"), and Home by Hemphill, Inc., an Illinois corporation (hereinafter referred to as the "Developer"). The term "Developer" as used herein shall include any nominee or assignee or any successors in title to all or any part of the Subject Property (as defined below) permitted under the terms of this Agreement. ae careful consideration, have concluded that real property legally described in Exhibit hereto and made a part hereof (hereinafter RECITALS The corporate authorities of the Village, after due and the development of the 1 which is attached "Subject Property") as provided in this Agreement will further the growth of the Village, facilitate the redevelopment of the Area, improve the environment of the Village, enable the Village to control the development of the Subject Property and otherwise be in the best interests of the Village. B. Pursuant to the terms and conditions of this Agreement, the Village will convey the Subject Property to the Developer who intends to develop the Subject Property with a townhouse project containing not less than forty-eight (48) units nor more than fifty one (51) units plus adequate off street parking, landscaping and other amenities, all as shown on Exhibits 2 and 3 which are attached hereto and made a part hereof. The Development of the Subject Property pursuant to this Redevelopment Agreement, and the fulfillment generally of this Redevelopment Agreement, are in the vital and best interests of the Village and the health, safety, morals and welfare of its residents and taxpayers. NOW, THEREFORE, in consideration of the premises set forth above, and the mutual agreements hereinafter set forth below, it is hereby agreed by and between the parties hereto as follows: 1. INCORPORATION OF RECI~AL~ The representations 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 therein. 2. EARNEST MONEY Upon the execution of this Agreement the Developer will pay earnest money in the amount of Fifty Thousand ($50,000.00) Dollars. Said earnest money shall be held by Chicago Title and Trust Company in a joint order money market escrow account with all interest paid to developer. The escrow will be created by the parties within five (5) days of the execution of this Agreement. 3. SOIL AND SUB-SURFACE TESTING The Developer shall have ninety days from the execution of this Agreement to perform soil and sub-surface testing including 2 hazardous waste studies on the Subject Property all at the Developer's expense. The Developer agrees to fully and completely indemnify the Village for any claim, cost, or expense that is related in any way to such testing. The Developer shall immediately provide the Village with copies of all such test results. In the event the soil and sub-surface testing conducted by or for the Developer conclude that the development of the Subject Property as provided in this Agreement will require additional construction costs due to soil or sub-surface conditions in the Subject Property, and those additional construction costs exceed by 10% the Developer's estimated cost of utilities, footings foundation and site improvements, the Developer may terminate this Agreement in the following manner. The Developer shall deliver to the Village within ninety (90) days of the execution of this Agreement written notice that due to the soil or sub-surface conditions of the Subject Property the Developer is terminating this Agreement. Upon receipt of such a notice the Village will immediately execute a direction to the escrow agent to refund the Earnest Money and all interest it has earned to the Developer. In the event of such termination, the costs of such escrow shall be equally divided by the Village and Developer. In the event of such termination, the parties will have no further liability to each other under this Agreement. If the Developer does not terminate this Agreement, as provided in this paragraph, then the Developer shall be deemed to have accepted the soil and sub-surface condition of the subject Property. 3 4. ZONING CONTINGENCIES The parties hereto have jointly applied for the appropriate zoning classification, special use permits and variations to permit the construction of the ~roposed development described in this Agreement and depicted on Exhibits 2 and 3. 'The parties shall continue to diligently pursue and attempt to obtain these zoning, special use and variation approvals. In the event the Village has not granted the necessary zoning to permit construction of the development within one hundred eighty (180) days from the execution of thisagreement then the Developer may terminate this Agreement in the following manner. The Developer shall deliver to the Village within one hundred eighty (180) days of the execution of this Agreeemnt written notice that due to the Village's failure to grant the necessary zoning to permit the development of the Subject Property as described herein, the Developer is terminating this Agreement. Upon receipt of such a notice, provided the Developer has complied with all of the other terms and provisions of this Agreement, the Village will immediately execute a direction to the escrow agent to refund the Earnest Money and all interest it has earned to the Developer. In the event of such termination the costs of such escrow shall be equally divided by the Village and Developer and the parties will have no further liability to each other under this Agreement. The zoning relief that is the subject of this paragraph does not include approval for any signs or fences. The Developer shall not be entitled to terminate this Agreement because of the Village's failure to approve a sign or fence on 4 the Subject Property that does not comply with Village ordinances and regulations. 5. PROPERTY CONVEYANCE The Village agrees to convey to the Developer by recordable warranty deed in duplicate subject only to the permitted exceptions described in Exhibit 4 contained elsewhere in this Redevelopment Agreement the property described in Exhibit 1 consisting of approximately 4.5 acres in accordance with all the terms and provisions of this Redevelopment Agreement. 6. PURCHASE PRICE The purchase price the Developer shall pay the Village for the Subject Property subject to the terms of this Agreement shall be Eight Hundred Thousand ($800,000.00) Dollars. The earnest money described in paragraph 2 is to be applied on the purchase price. The balance of Seven Hundred Fifty Thousand ($750,000.00) Dollars shall be paid by cash or by certified or cashier's check at the time of closing. 7. CLOSING Provided all of the terms and conditions of this Agreement have been complied with, the closing herein shall take place within thirty (30) days after the Subject Property has been rezoned as provided in paragraph 4 hereof, unless otherwise mutually agreed by the parties. The closing will be through an escrow with Chicago Title and Trust Company. 8. DEVELOPMENT The Developer intends to develop the Subject Property with a minimum of forty eight (48) townhouse units and a maximum of 5 fifty one (51) townhouse units, which will be contained in nine (9) separate buildings, all in compliance with the zoning approval given by the Villag~ pursuant to paragraph four (4) of this Agreement (Development). The Development shall include the amenities listed on Exhibit 2 and 3 which are attached hereto and made a part hereof and shall be a first class townhome Development project similar to other such Developments in the Chicago Metropolitan Area. The Developer covenants and agrees to commence construction of the Development within 60 days of the closing and to utilize its best efforts to diligently complete the Development, in phases, in accordance with the following schedule: a. On or before June 1, 1989 three (3) of the nine (9) aforementioned buildings will be substantially completed ("Substantially Completed" is defined as being ready for occupancy). b. On or before June 1, 1990 three (3) additional buildings will be substantially completed. c. On or before June 1, 1991, the final three (3) buildings will be substantially completed. The Developer covenants, agrees and warrants that provided its construction lender is providing the funds for construction of any building in the Development the Developer will complete construction of such building or buildings. 9. DEVELOPMENT COSTS~ PERMITS AND FEES Before commencement of construction, by the Developer of any buildings, structures or other work or improvement upon the 6 Subject Property, the Developer shall, at its own expense, secure or cause to be secured any and all permits which may be required by the Village and any other governmental agencies having jurisdiction over such construction, development or work, or such portion of the work being performed, including, without limitation, any applications and permits which may be required to be obtained from any local, federal or state Environmental Protection Agency, the Metropolitan Sanitary District of Greater Chicago, or from any other agency which may have or exercise any jurisdiction of any type whatsoever which may affect the Subject Property. The Village shall provide all prope~ assistance to the Developer in securing such permits and shall promptly issue all permits required to be issued by the Village, and agrees to sign other permits which require execution by the ViLlage, provided such permits are in proper form and comply with all lawful requirements. As permits are issued, Developer shall have the right to commence construction of the work, or such portions of the work, covered by such permits. All of the costs of developing the Subject Property and constructing the Development shall be borne and paid for exclusively by the Developer except for the follDwing actions which the Village shall perform at no cost to th~ Developer: a) Demolition of all buildings to grade, remove foundations and remove the same from the Subject Property no later than thirty days after closing; b) Provide water, sanitary sewer, and storm sewer service of adequate capacity for the Development at the perimeter of the Subject Property prior to completion of construction of any units; c) Legally vacate those portions of Evergreen Avenue and 7 ~lm Street within the Subject Property prior to closing herein; d) Remove that portion of Evergreen Avenue within the Subject Property prior to completion of construction of any units. e) The Village shall remove or cause to be removed, at its cost, those portions of Elm Street in which the existing storm sewer need not be relocated as indicated on the preliminary engineering plans prepared by Fletcher Engineering Company which are attached hereto as Exhibit 5. The Developer shall remove or cause to be removed, at its cost, those portions of Elm Street at which the existing storm sewer needs to be relocated as indicated on said Exhibit 5. f) The Village shall cause the Subject property to be subdivided into three (3) lots as shown on Exhibit 6 attached hereto and made a part of this agreement in accordance with all applicable provisions of the Village's ordinances and the statutes of the State of Illinois. g) The Village has the responsibility to insure, at no cost to the Developer, that Commonwealth Edison and Illinois Bell Telephone Company, will relocate and reroute any electric and telephone lines currently existing on that portion of Elm Street and Evergreen Avenue within the Subject Property which are to be vacated in accordance with paragraph c. above and which interfere with the construction of the Developer's proposed improvements. The Village will use its best efforts to coordinate its construction activities with the Developer's construction activities. The Developer shall pay all of the permit fees and costs required bY the Village's ordinances, codes and regulations except that the Developer and Village have agreed upon the following which shall constitute all additional payments required of Developer unless otherwise provided in this agreement: a) b) Developer agrees to contribute $2,000.00, upon Village's receipt of the bill, toward the cost of reconstructing the sidewalk adjacent to the Subject Property on Northwest Highway; Developer will pay $12,400.00 upon Village's receipt of the bill, for the reconstruction of School Street 8 ¢) d) adjacent to the Subject Property; Developer will pay $64,800.00 upon approval of the final engineering plans as the only development donation; Developer will pay $700.00 per unit at the time application for building permits is made for tap on fees for sanitary sewer, storm sewer and water connection. The Developer shall receive a $4,200.00 credit on the total tap on fee due for the Development under this paragraph. 10. RIGHT TO PURCHASE The Village agrees during the term of the Developer shall have the the Subject Property subject 11. ESCROW this Agreement that sole and exclusive right to develop to the terms of this Agreement. The purchase of the Subject Property shall be consur~nated through an escrow with Chicago Title and Trust Company in accordance with the general provisions of the usual form of Deed and Money Escrow Agreement then used by such company with such special provisions inserted in the escrow agreement as may be required to conform with this Agreement. Upon the creation of such an escrow, anything herein to the contrary notwithstanding, the payments of the purchase price for and the delivery of title to, the Subject Property shall be made through escrow. The Developer and the Village agree to cooperate in good faith with one another and with the escrow agent to provide such escrow agreement at least 15 days prior to closing. The cost of the escrow shall be divided equally between the Developer and Village. 12. TRANSFERS PRIOR TO CERTIFICATE OF OCCUPANCY Subsequent to the conveyance of the Subject Property to the 9 Developer, mortgages, deeds of trust, sales and leases-back, ground lease or any other form of financing conveyance required for any method of financing are permitted before issuance of a Certificate of Occupancy of the construction of the improvements for the purpose of securing loans or funds to be used for financing the acquisition of the Subject Property or any portion thereof, the construction of improvements on the Subject Property, and any other expenditures necessary and appropriate to complete the Development under this Development Agreement. The Developer shall notify the Village in advance of any mortgage, deed of trust, sale and lease-back or other form of conveyance for financing if the Developer proposes to enter into the same before issuance of a Certificate of Occupancy of the construction of the improvements on the Subject Property. The words "mortgage" and "deed of trust" as used herein include all other appropriate modes of financing real estate acquisition, construction, and land development, and the words "sale and lease-back" shall include sales and subleases-back. Any such lease, transfer, sale, or conveyance for financing shall not relieve the Developer from any obligation or responsibility hereunder unless the Village specifically, and in writing, releases the Developer from any such obligation or responsibility. Except to the extent provided in paragraph 21 a.), any such subsequent owner shall take subject to and be bound by the terms and conditions of this Redevelopment Agreement. Except as provided in this paragraph, the Developer shall not, prior to the issuance of a Certificate of Occupancy for a unit, l0 sell, transfer, convey, assign or lease the Subject Property or said unit without Compliance with paragraph 29 of this Agreement. 13. NOTICES All notices herein required shall be in writing and shall be served on the parties, unless otherwise specified, either personally or mailed by certified or registered mail, return receipt requested, if to the Village: if to Developer: copy to : Village Clerk Village of Mount Prospect 100 South Emerson Mount Prospect, Illinois 60056 James D. Hemphill Home by Hemphill 330 West Frontage Northfield, Illinois 60093 Michael S. Kurtzon Miller, Shakman, Nathan & Hamilton 208 South LaSalle Street Suite 1200 Chicago, Illinois 60604 Either party's address may be changed from time to time by such party giving notice as provided above to the other party. 14. PRORATIONS Upon consummation of the conveyance of the Subject Property to the Developer, general real estate taxes and assessments and any other similar items customarily prorated between a purchaser and seller of real property in the State of Illinois shall be adjusted ratably as of the time of the closing. If the amount of the general taxes for the current tax year is not then ascertainable, the adjustment thereof shall be on the basis of the amount of ten percent above the most recent ascertainable ll taxes and shall be reprorated based on the final tax bill subject to tax exemption credits. The Developer shall pay the amount of any stamp tax or transfer tax imposed by the Village on the transfer of the title and shall furnish a completed Real Estate Transfer Declaration in the form required pursuant to the Real Estate Transfer Tax Act of the State of Illinois. 15. PROGRESS REPORT Upon request, from time to time by the Village or by the Developer, the party to whom such request is directed agrees to make periodic written progress reports informing the other party in all matters and of all studies made by the reporting party relating to the acquisition or development of the Subject Property. 16. a.) TITLE INSURANCE The Village shall deliver or cause to be delivered to the Developer, or to the Developer's attorneys, not less than fifteen (15) days prior to closing a title commitment for an ALTA Form B Owners Title Insurance Policy issued by Chicago Title Insurance Company in the amount of the purchase price of the Subject Property covering title to the Subject Property on or after the applicable date showing title in the intended grantee subject only to the general exceptions contained in the policy and subject only to the title exceptions pertaining to liens or encumbrances of a definite or ascertainable amount which may be removed by the payment of money at the time of closing and which the Developer may so remove at that time by using the funds to be paid upon the delivery of the deed, and subject to permitted 12 exceptions This title commitment shall be conclusive evidence of good title as therein shown as to all matters insured by the policy, subject only to the exceptions as therein stated. If this title commitment discloses no unpermitted exceptions that render the title unmarketable, the Developer shall submit a written statement to the Village that it accepts the title as shown in said title commitment, and the condition of the Subject Property as shown in said Plat of Survey, and that it will close this purchase and sale based upon such title and condition of the property. The owner shall deliver owners duplicate torrens certificate or, in the alternative registration receipts for the Subject Property together with special tax searches. It shall be the responsibility of the Developer to obtain and pay for any extended coverage over all of the general exception contained in this title insurance policy. The Village agrees to cooperate with the Developer in obtaining said coverage, and will, promptly on request, furnish such ALTA statements, owners sworn statements, contractor's affidavits, lien waivers and other documents as to any work on the Subject Property contracted for by the Village as the Title Company shall require to issue such coverage. If the Developer is unable to obtain extended coverage over all general exceptions on or before the date of closing, Developer may terminate this agreement and be entitled to a return of the earnest money with all interest earned thereon. b.) The Village, shall deliver or cause to be delivered to the Developer or Developer's attorneys, within fifteen (15) days 13 from the date herein all plats of survey it currently has of the Subject Property in its possession. c.) If the title commitment or survey discloses ~npermitted exceptions that render the title unmarketable the Village shall, within thirty (30) days from the date of delivery thereof, attempt to have the exceptions removed from the title commitment or have the title insurer commit to insure against loss or damage that may be occasioned by such exceptions and, in such event, the time of closing shall be extended for such period of time. If the Village fails, for any reason, to have the exceptions removed or in the alternative, to obtain the commitment for title insurance specified above as to such exceptions within the specified time, the Developer may terminate this Agreement or may elect, upon notice to the Village, within twenty (20) days after the expiration of the thirty (30) day period, to take title as it then is with the right to deduct from the purchase price liens or encumbrances of a definite or ascertainable amount. If the Developer does not so elect to complete the purchase of the Subject Property, either party shall have the right to terminate this Agreement, and the parties will have no further liability to each other under this Agreement. 17. BROKERS COMMISSION The Village and the Developer each represent and warrant one to the other that neither has dealt with any real estate broker in connection with the transaction contemplated herein, and that no commission or fee is due as a consequence of the execution of this Agreement, or the conveyance of the Subject Property from 14 the Village to the Developer. Each party hereto agrees to indemnify, defend and hold harmless the other party from any and all claims for real estate broker commissions or fees in connection with any aspect of the transactions contemplated hereunder arising as a consequence of the acts or omissions of the party from whom such indemnification is sought. 18. MEMORANDUM Neither party shall record this Agreement, but each party agrees to execute and to deliver to the other party when this Agreement is executed and delivered, multiple copies of a Memorandum in a form acceptable to their respective counsel. Either party, at its sole expense, may record the Memorandum in the Offices of the Recorder of Deeds of Cook County, Illinois. 19. LEGAL CONFORMITY The parties shall carry out the construction of the improvements in conformity with all applicable laws and ordinances, including all applicable Village, federal and state standards, except as to Developer's donations, contributions and fees as described in paragraph 9. The laws of the State of Illinois shall govern the interpretation and enforcement of this Agreement. 20. PERMITTED DELAY~ Performance by either party hereunder, including without limitation, performance of Developer's obligations under paragraph 8, shall not be deemed to be in default where delays or defaults are due to war, insurrection, strikes, lockouts, riots, floods, earthquakes, fires, casualties, acts of God, acts of the 15 public enemy, epidemics, quarantive restrictions, freight e~bargoes, unusual adverse weather conditions, unavailability of materials as specified or of comparable quality, labor disputes, except those caused by the developer and lack of transportation. An extension of time for any such cause shall be for the period of the delay, which period shall commence to run from the time of the commencement of the cause, provided that written notice by the party claiming such extension is sent to the other party not more than twenty (20) days after the commencement of the cause. 21. MORTGAGE HOLDERS a.) The holder of any mortgage, deed of trust or other security interest and the lessor under a lease-back or grantee under any other conveyance for financing referred to in paragraph 12 of this Agreement shall not be obligated by the provisions of this Agreement to construct or complete the improvements or to guarantee such construction or completion, notwithstanding the assignment of this Agreement to such party by Developer. Nothing in this Agreement shall be deemed to permit or authorize any such holder to devote the Property to any uses, or to construct any improvements thereon, other than those use~ or improvements provided for or authorized by this Agreement, any such unauthorized use or improvements being expressly prohibited, b.) Whenever the Village shall deliver any notice or demand to the Developer with respect to any alleged breach or default by the Developer hereunder, the Village shall at the same time deliver to each holder of record of any mortgage, deed of trust or other security interest and the lessor under a lease-back or 16 grantee under any other conveyance for financing authorized by paragraph 12 of this Agreement, a copy of such notice or demand, provided the Village has been advised of the name and address of any such holder. Each such holder or other entity shall (insofar as the rights of the Village are concerned) have the right at its option within thirty (30) days after the receipt of the notice, to cure or remedy or commence to cure or remedy any such default and to add the cost thereof to the security interest debt and the lien on its security interest or to the obligations of the lessee under the lease-back or of the grantor under any other conveyance for financing; provided, however, in the event of a default by the Developer hereunder which is not curable by such holder or other entity (e.g., insolvency or bankruptcy of the Developer), such holder or other entity shall be deemed to have cured such noncurable defaults by the execution of the assumption agreement by the holder's designee, contemplated in the later portions of this paragraph. Nothing contained in this Agreement shall be deemed to permit or authorize such holder or other entity to undertake or continue the construction or completion of the improvements (beyond the extent necessary to conserve or protect the improvements or construction already made) without first having expressly assumed the Developer's obligations (with respect to the portion of the Subject Property on which the holder or other entity has an interest) to the Village by written agreement satisfactory to the Village. The holder's designee or other entity in this event must agree to complete, in the manner provided in this Agreement, the improvements to which the lien or 17 title of such holder or other entity relates, and submit evidence satisfactory to the Village that it has the qualifications and financial responsibility necessary to perform such obligations. Such holder and its successors ~n interest shall only be deemed to have assumed the Developer's obligations for as long as they have an interest in the Subject Property, and the sole remedy for breach of this assumption agreement will be limited to the equity interest of such holder or successor in the Subject Property. No such assumption agreement will relieve the Developer of any of its obligations under this Agreement. Any such holder or other entity properly completing such improvement shall be entitled, upon written request made to the Village, to a Certificate of Occupancy per unit from the Village with respect to such improvements. Nothing in this paragraph 21 shall be deemed to grant to any such holder or other entity referred to in this paragraph any rights or powers beyond those granted under their underlying agreement with the Developer. c.) In the event of a default or breach by the Developer, or any entity permitted to acquire title hereunder, in the construction or completion of construction of the improvements contemplated hereunder, which is also a default under any mortgage, deed of trust, other security instrument or lease-back or obligations to the grantee under any other conveyance for financing with respect to the Subject Property or a portion thereof, prior to the completion of the Development and the holder, lessor or grantee, as the case may be, has not exercised its option to complete the Development, the Village may cure the default or cause the same to be cured prior to completion of any foreclosure as a result of such default or termination of the lease or other interest retained or granted back as a result of such default. In such event, the Village or its nominee shall be entitled to reimbursement from the Developer or such other entity of all reasonable costs and expenses incurred by the Village in curing the default, including reasonable attorneys' fees. The Village shall also be entitled to a lien upon the Subject Property to the extent of such reasonable costs and expenses including reasonable attorneys' fees. Any such lien shall be subject to mortgages, deeds of trust or other security instruments and the interest of a lessor under any lease-back and grantees under other conveyances for financing executed for the sole purpose of obtaining funds to purchase and develop the Subject Property, construct the improvements, finance such costs and to pay all cost reasonably related to Developer's obtaining and performing this Agreement. Notwithstanding the foregoing, the Village shall not have the right to cure a default as specified above by completing construction of the Development. 22. VILLAGE RIGHT TO SATISFY LIENS After the conveyance of title and prior to the issuance of a Certificate of Occupancy for the Development, and after the Developer has had a reasonable time to challenge, cure or satisfy any liens or encumbrances on all or any portion of the Subject Property, the Village shall have the right to satisfy any such liens and encumbrances, if non-payment of such liens and encumbrances will subject the Subject Property to forfeiture or 19 sale; provided, however, that nothing in 'this Agreement shall require the Developer to pay, or make provisions for the payment of any assessment, lien or charge, so long as the Developer ~n good faith shall contest the validity or amoun~ thereof, and so long as such delay in payment shall not subject the Subject Property ora portion thereof to forfeiture or sale. 23. CERTIFICATES OF OCCUPANCY Certificates of Occupancy shall be issued on a per unit basis in accordance with the Village Code, upon written request of the Developer or other permittee. 24. NO DISCRIMINATION-CONSTRUCTION The Developer for itself and its successors and assigns agrees that in the construction of the improvements on the Subject Property provided for in this Agreement: a.) The Developer shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, physical handicapped, or national origin. The Developer shall take affirmative action to require that applicants are employed and that employees are treated during employment, without regard to their race, creed, color, religion, sex, physical handicapped or national origin. Such action shall include, but not be limited to, the following: employment upgrading, demotion, or transfer; recruitment or recruitment advertising, solicitations or advertisements of employees; layoff or termination; rates of pay or other forms of compensation, and selection for training, including apprenticeship. The Developer agrees to post in conspicuous places, available to employees and 20 applicants for employment, notices which may be provided by the Village setting forth the provisions of this nondiscrimination clause. b.) Notwithstanding the foregoing provisions, Developer shall be entitled to employ union labor hereunder pursuant to the rules, regulations and practices of applicable unions. 25. NO DISCRIMINATION-USE There shall be no discrimination against or segregation of any person, or group of persons, on account of sex, physical handicapped, race, color, creed, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Subject Property, nor shall the Developer himself or any person claiming under or through him establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of any portion of the Property. 26. COVENANT RUNNING WITH LA~.D The Developer covenants and agrees for itself, its successors, its assigns and every successor in interest, that during construction and thereafter, the Developer, such successors and such assigns shall devote the subject Property to the uses specified in the Mount Prospect Tax Increment Redevelopment Plan (Redevelopment Plan). The Deed conveying the Property to Developer shall contain a covenant incorporating a provision, which states that the conveyance is subject to the terms of this Agreement and the foregoing Redevelopment Plan 21 which shall not merge. The foregoing covenant shall constitute a covenant running with the land and terminate upon the termination of the Mount Prospect Tax Increment Redevelopment Plan. 27. REMEDIES-LIABILI.TY a.) In the event that the Developer, for any reason other than the refusal of its construction lender to fund the Development, fails to meet any of the completion deadlines required by sections a.), b.) and c.) of paragraph 8 of this agreement, the Village shall have the option of reacq~iring that portion of the Subject Property on which, as of the date of the exercise of said option, no construction of any buildings or foundation has occurred ("Take Back Parcel"). The purchase price of said Take Back Parcel shall be an amount equal to twenty-five (25%) percent of the pro rata cost of the original acquisition price of the Take Back Parcel plus twenty-five (25%) percent of the pro rata cost of the grading and earth work on the Take Back Parcel and the cost of the installation of any public utilities in the Take Back Parcel previously paid for by the Developer. b.) In the event that the Developer, because of the refusal of its construction lender to fund the Development, fails to meet any of the completion deadlines required by sections a.), b.) and c.) of paragraph 8 of this agreement, the Village shall have the option of reacquiring that portion of the Subject Property on which, as of the date of the exercise of said option, no construction has occurred ("Take Back Parcel"). The purchase price of said Take Back Parcel shall be an a~ount equal to one hundred (100%) percent of the pro rata cost of the original 22 acquisition price, without any interest, plus one hundred (100%) percent of the pro rata cost of the grading and earth work on the Take Back Parcel and the cost of the installation of any public utilities in the Take Back Parcel previously paid for by the Developer. c.) In addition to any other rights or remedies, either party may institute legal action to cure, correct or remedy any default, to recover damages for any default, or To obtain any other remedy consistent with the purposes of this Agreement, either at law or in equity, including, but not limited to the equitable remedy of an action for specific performance. Notwithstanding the foregoing, the Village shall not have the right to specific performance to compel the Developer to complete any buildings in the Development for which the Developer has not commenced construction of a foundation. In the event either party shall institute legal action because of a breach of any agreement or obligation contained in this Agreement, and a breach shall be established by a final, non-appealable judgment the prevailing party shall be entitled to recover all damages, costs and expenses, including reasonable attorneys' fees incurred therefor. d.) The rights and remedies of the Village and the Developer are cumulative, and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same time or different times, of any other rights or remedies for the same default or for any other default by the Developer. 23 e.) Subject to the extensions of time set forth in Paragraph 20 failure or delay by either party to perform any term or provision of this Agreement shall constitute a default under this Agreement. The party who so fails or delays must, upon receipt of written notice of the existence of such default, immediately commence to cure, correct or remedy with diligence. The party claiming such default shall give written notice of the alleged default to the party alleged to be in default, specifying the default complained of by the injured party. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. Except as required to protect against further damages, and except as otherwise expressly provided in this Agreement, the injured party may not institute proceedings against the party in default until thirty (30) days after giving such notice. If such default is cured within such thirty (30) day period, the default shall not be deemed to constitute a breach of this Agreement. If the default is one which cannot reasonably be cured within thirty (30) days, and if the defaulting party shall commence curing the same within such thirty (30) day period, the said thirty (30) day period shall be extended for such time as is reasonably necessary for the curing of the same, so long as the defaulting party diligently proceeds therewith; if such default is cured within such extended period, the default shall not be deemed to constitute a breach of this Agreement. A default not cured as provided above shall constitute a breach of this Agreement. Except as otherwise expressly provided in this Agreement, any 24 failure or delay by either party in asserting any of its rights or remedies as to any default or alleged default or breach shall not operate as a waiver of any such default or breach of any rights or remedies it may have as a result ~f such default or breach. f.) Each of the following acts or omissions ~f the Developer shall also constitute a breach or default under this Agreement: 1.) the Developer transfers, or suffers any involuntary transfer of the Subject Property, or any party thereof, in violation of this Agree~nt; 2.) the filing or execution or occurrence of: a petition filed by the Developer seeking any debtor relief; the making of an assignment for the benefit of creditors by the Developer; or Developer's execution of any instrument for the purpose of effecting a composition of creditors; or if the Developer is adjudicated as bankrupt. g.) It is agreed by and between the parties hereto that should the Developer breach or default under this agreement, at any time prior to the closing herein, the earnest money in the amount of Fifty Thousand ($50,000.00) Dollars will be paid to the Village as liquidated damages for said breach or default. 28. ASSIGNMENT During the term of any covenant in this Agreement, excepting sales of units in the ordinary course of business, any transfer of all or any interest in the subject Property, any improvements on the Subject Property, and this Agreement, (including the 25 beneficial interest under any land trust which may take title to the Subject Property and stock ownership in the Developer) is only permitted upon the prior written approval of the Village which approval shall not be unreasonably withheld. As a mln~mum, the Village shall be entitled to require the following regarding any transfer: 1. Any proposed transferee shall have the experience and financial responsibility necessary to fulfill the obligations undertaken by the Developer in this Agreement. 2. Any proposed transferees shall have expressly assumed the obligations of the Developer hereunder in writing. 3. Ail instruments and legal documents involved and affecting any transfer from the Developer to any transferee shall be submitted to the Village for review and, if approved, shall be indicated as such in writing to the Developer. In such event, the Developer shall be relieved from all further liability hereunder. 4. In the absence of specific written agreement by the Village, no transfer shall be deemed to relieve the Developer or any other party bound in any way by this Agreement. Notwithstanding any other provision in the Agreement the Developer may without prior Village approval transfer all or any portion of the Subject Property or this Agreement to a joint venture or any other entity in which a Corporation owned by James D. Hemphill maintains control and ownership of 50% of said interest. The Developer shall in any event notify the Village of any transfer of any interest in the Subject Property (including the 26 beneficial interest under a land trust, and stock interest in any corporation). 29. DEDICATION AND EASEMENTS The Developer shall grant and provide all reasonable street dedications and permanent and temporary easements and rights for the development of the Subject Property requested by the Village, including but not limited to an access easement for Busse Florists into the Subject Property and easements and rights of vehicular access, pedestrian access, parking, sanitary sewers, storm drains, water lines, electrical power, telephone, natural gas and cable television cables. 30. INDEMNIFICATION a.) The Developer shall indemnify and hold harmless the Village, its agents, officers and employees against all injuries, deaths, losses, damages, claims, suits, liabilities, judgments, costs and any expenses of consultants, lawyers and other expenses of any type (including any liability under the Illinois Structural Work Act, known as the Scaffolding Act), which are related in any way to this Agreement including but not limited to those which may arise directly or indirectly from the transfer and development of the Subject Property by the Developer, any default or breach of the terms of this Agreement by the Developer and from the construction of the Development, and from any negligence or from the reckless or willful misconduct of the Developer, general contractor or their employees and agents, or of a subcontractor of the general contractor or his employees, if any, in connection therewith, but excluding those arising from 27 the negligence of the Village, its officers, agents, employees and contractors, and the Developer shall, at its own expense, appear, defend and pay all charges of attorneys and costs and other expenses arising therefrom or incurred in connection therewith, and, if any judgment shall be rendered against the Village of Mount Prospect, its agents, officials or employees in any such action, the Developer shall, at his own expense, satisfy and discharge the same. The Developer expressly understands and agrees that the insurance protection required by this Agreement shall in no way limit the responsibility to indemnify, hold harmless and defend as herein provided in this paragraph. The Village shall indemnify and hold harmless the Developer against all injuries, deaths, losses, damages, claims, suits, liabilities, judg~nents, costs and any expenses of consultants, lawyers and other expenses which may result from the Village having to perform the following work on the Subject Property after the date of closing: the demolition of all buildings to grade; the removal of foundations thereto; the removal of that portion of Evergreen Avenue within the Subject Property and the removal of that portion of Elm Street within the Subject Property in which the existing storm sewe~ need not be relocated. 31. INSURANCE During the term of any covenant in this Agreement, the Developer shall carry and maintain, and shall require the successor owners of the Development to carry and maintain property insurance covering the Development with a responsible insurance company or companies, against physical loss or damage, 28 including fire and extended coverage, vandalism, malicious mischief, collapse, boiler and sprinkler leakage, and against such other risks as may be deemed necessary or advisable by Developer or Developer's successors, with such exceptions as are ordinarily required by insurers of structures of similar type, ~n an amount not less than one hundred percent (100%) of the replacement value thereof, and, to the extent necessary, the proceeds from such insurance shall, subject to the rights of Developer's lender, be pledged and shall be applied for the purpose of repair, replacement or reconstruction of the damaged or destroyed portion of the Development. 32. TITLE The Developer shall take title to the Subject Property in an Illinois land Trust, the beneficiary of which will be the Developer or a permitted assignee. Nothing contained in this paragraph shall prevent the Developer from making an assignment or transfer of the Subject Property that is permitted by this Agreement. 33. AMENDMENT This Agreement, and any exhibits attached hereto, may be amended only by the mutual consent of the parties with the adoption of an ordinance or resolution of the Village approving said amendment as provided by law, and by the execution of said amendment by the parties or their successors, in interest. Except as otherwise expressly provided herein, this Agreement supersedes all prior agreements, negotiations and discussions relative to the subject matter hereof and is a full integration 29 of the agreement of the parties. 34. DUPLICATE ORIGINALS This Agreement is executed in six (6) duplicate originals, each of which is deemed to be an original. 35. TIME Time is of the essence of this Agreement. 36. CERTIFICATE OF COMPLETION Promptly after completion of the construction of each unit of the Development in accordance with this Agreement, the Village shall furnish the Developer with an appropriate instrument so certifying. The certification by the Village shall be conclusive determination of satisfaction and termination of only the covenants in the Agreement with respect to the obligations of the Developer and its successors and assigns to construct the Development. The certification shall be in such form as will enable it to be recorded. Upon written request by the Developer for a certificate of completion, the Village shall within thirty (30) days after receipt of the same provide the Developer either with a certificate of completion or a written statement indicating in adequate detail, how the Developer has failed to complete the construction in conformity with this Agreement, or is otherwise in default, and what measures or acts will be necessary, in the opinion of the Village, for the Developer to take or perform in order to obtain the certification. If the Village requires additional measures or acts of the Developer to assure compliance, the Developer shall resubmit a written request for a certificate of completion upon compliance with the 3O illage's response. 37. HAZARDOUS SUBSTANCES The Village has received no notice of and to the best of its knowledge, there are no toxic waste or hazardous substances including asbestos on or in the Subject Property. 38. AUTHORITY The Developer and Village both represent that they are fully authorized to enter into this Agreement and perform their various obligations hereunder. 39. PENDING LITIGATION The Village represents that ~he Subject Property is not the subject of any pending lawsuits. IN WITNESS WHEREOF this Agreement has been duly authorized and approved by the Board of Trustees of the Village of Mount Prospect, Cook County, Illinois, and executed by the Developer as of the date and year first above set forth. Developer: aC/President Attest Secr, Village: Village of Mount Prospect Cook County, Illinois a municipal corporation, Village ~resident Village Clerk This is a supplementary agreement (here].nafter referred 'to as the "Supplemental Agreement") made by and between the Village of Mount Prospect, Cook Cou?~y, Illinois (the "Village"), and Homes by Hemphill, Inc. (the "Developer"). The Village and the Developer have entered into a separate agreement entitled "Redevelopment Agreement," dated as of this date (the "Agreement"), and relating to the disposition and redevelopment of a portion of the "District No. 1 Tax Increment Redevelopment Project Area." The Agreement relates generally to the disposition by the Village to, and redevelopment of, property (the "Subject Property" in the Agreement) by the Developer. The Developer recognizes that the Subject Prope~¥ is ~thin a "redevelopment project are" designated by the Village pursuant to the Real Property Tax Increme~t the State of Illinois, as amended (the "Act"). Developer recognizes that the Subject Property and is being disposed of by the Allocation }~edeveloi~ment Act of Further, the has been acquired Village pursuant to a "redevelopment plan" Pursuant to the no conveyance, lease, adopted as provisions mortgage, provided in of the Act, disposition the Act. the Village may make or agreement relating to the development of the disclosure of the terms of such disposition proposals made in response to the Village's regarding said disposition. Under the Act, Subject Property without making public arid of all bids and request for proposals the procedures for obtaining such bids and proposals must provide reasonable opportunity for any person to submit an alternative proposal or bid. In order to comply with the Act, the provide an opportunity for alternate bids respect to the Subject Prope.rty. Insofar Village is going to or proposals with as the Village is under a statutory duty to provide reasonable opportunity for any person to submit an alternative proposal or bid, the Developer understands and agrees that the Agreement is specifically subject to and shall not be valid or binding on or effective as against the Village until the Village has advertised for alternative bids and proposals and received and reviewed same pursuant to such advertisement. The Developer further specifically understands and agrees that the Village must in good faith review any such alternative bids or proposals and may, in its judqment, terminate the Agreement in favor of an alternative bid or proposal. The Village agrees that it will advertise for such alternative bids or proposals and received and review the same on or before March 1, 1988 and if possible, adopt an ordinance at its regularly scheduled meeting on that date to determine which proposal will be finally adopted by the Village. IN WITNESS WHEREOF, the parties hereto have affixed their official signatures to this Supplemental Agreement all as of the date and year first above written. DEVELOPER Pr~e §'~den~ AtteSt:s/ce e VILLAGE: VILLAGE OF MOUNT PROSPECT COOK COUNTY, ILLINOIS Pres~den~ ~, At test: Vi~l~Or k~.~_~ EXHIBIT 1 LEGAL DESGRIPTION TIF DISTRICT TAROET AREA "A" HEMPHILL REDEVELOPMENT PARCEL Lots 2, 3, and 4 in Tax Increment FinanCe Subdivision No, 1 a subdivision in the Northwest 1/4 of Section 12, Township 41 North Range 11 East of the Third Principal Meridian lying in the Village of Mount Pyospect, Cook County, Illinois; also further described as Lots 13, 14, 15, and 16 in Block 11 of Busse and Wille's Resubdivision in Mount Prospect, according to the plat thereof recorded 3/31/1906 as Document #3839591 and as Torrens Document No. 3945 together with Lots "A" and "B" of the resubdlvision of Lots 2 to 6 in the resubdivision of Block 10 of Busse and Wille's resubdivision in Mount Prospect, according to the plat thereof recorded 3/6/1910 as Torrens Document #81952 and Lot One (1) (except that part taken for Highway purposes as per Document No. 3356102) in the Resubdivision of Block 10 in Busse and Wille's Resubdivlsion in Mount Prospect~ also that part of Block 9 in Busse and Wille's Resubdivision in Mount Prospect according to the plat thereof recorded 3/31/1906 as Document #3839591 and 4/18/1906 as Torrens Document #3945 except that part resubdivided as George R. Busse Resubdivision recorded 1/23/79 as Torrens Document #3072416 and further except that part of Block 9 in Busse and Wille's Resubdivision in Mount Prospect in the West Half of Section 12, Township 41 North, Range 11 East of the Third Principal Meridian, described as follows: Beginning at the southwest corner of aforesaid Block 9; said corner being the intersection of the northerly line of Northwest Highway with the easterly line of Elm Street, and running thence North 31 degrees, 22 minutes, 5 seconds East perpendicular to the aforesaid Northerly line of Northwest Highway, 126 feet; thence South 58 degrees, 37 minutes, 55 seconds East, parallel with the said Northerly line of Northwest Highway to the Northeasterly extension of the Northwesterly line of Lot A of George R. Busse's Resubdivision, being a Resubdivision of part of Block 9 of Busse and Wille's Resubdlvision, in Mount Prospect in the West Half of Section 12, Township 41 North, Range 11 East of the Third Principal Meridian; thence South 31 degrees, 22 minutes, 05 seconds West, along the Northeasterly extension of the North- westerly line and the Northwesterly line of said Lot A, 126.00 feet to the Southerly line of said Block 9, said line being the Northerly line of Northwest F~%hway, thence North 58 degrees, 37 minutes, 55 seconds West along said Northerly line a distance of 198.29 feet to the point of beginning; said lot containing 0.574 acres more or less; and further including that portion of Elm Street located South' of the Southerly right-of-way of Evergreen Avenue and North of the Northerly right-of-way of Northwest Highway together with that part of Evergreen Avenue located West of the Westerly right-of- way of Elm Street, and located adjacent to Lots 13, 14, and 15 in Block 11 in the aforesaid Busse and Wille's Resubdlvision and adjacent to Lots "A" and "B" in the resubdivision of Lots 2 to 6 in the resubdivision of Block 10 of aforesaid Busse and Wille's Resubdlvision; all lying in the East 1/2 of the Northwest 1/4 of Section 12, Township 41 North Range 11 East of the Third Principal Meridian in the Village of Mount Prospect, Cook County, Illinois. SO. O0 ' N¥]~ ZN~dO3~A~Q 3a¥OSQNW Z Ill 0 0 _J L~ Z c~ o o _J LL Z 0 I.~ EXHIBIT 4 PERMITTED EXCEPTIONS Real Estate Taxes not due as of the date of closing. Provisions of the Torrens Act Public utility easement along North and West boundaries of Subject Property. i'rl f-- U~