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HomeMy WebLinkAbout7.2c Redevelopment Agreement between VMP and Park Terrace Mount Prospect LLC BoardDocs® ProPage 1 of 2 Agenda Item Details MeetingMar 06, 2018 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - 7:00 p.m. Category7. NEW BUSINESS Subject7.2c A RESOLUTION AUTHORIZING THE EXECUTION OF A REDEVELOPMENT AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND PARK TERRACE MOUNT PROSPECT LLC FOR THE PARK TERRACE ROWHOME PROJECT LOCATED AT 15-19 N. ELMHURST RD AccessPublic TypeAction Preferred DateMar 06, 2018 Absolute DateMar 06, 2018 Fiscal ImpactYes Dollar Amount400,000.00 BudgetedYes Budget SourceGeneral Fund and Water and Sewer Fund Recommended ActionApprove the resolution authorizing the execution of a Redevelopment Agreement. Public Content Information Attached to this memorandum is a draft redevelopment agreement (RDA) for the proposed 12-unit rowhome project for the property located at 15 - 19 N. Elmhurst Avenue, "Park Terrace". The subject property is a vacant one-acre parcel that is located immediately north of the Post Office facility on Elmhurst Avenue. The RDA obligates the Village to provide up to $400,000 of incentives towards the $7 million project. These incentives would include the following TIF-eligible expenses: 1.A waiver of up to Eighty Thousand and No/100 Dollars ($80,000.00) of permit fees payable to the Village for the Project. 2.Payment of up to One Hundred Twenty Thousand Dollars ($120,000.00) for installation of storm water detention system, curbs, and paving for the Project. 3.Payment of up to Forty Thousand and No/100 Dollars ($40,000.00) by the Village for demolition, tree removal, construction fencing and/or site preparation fees for the Project. 4.Payment of up to One Hundred Thousand and No/100 Dollars ($100,000.00) by the Village for a sewer extension in the public right-of-way adjacent to the Property to serve the Project. 5.Payment of up to Sixty Thousand and No/100 Dollars ($60,000.00) by the Village for water, sewer and utility work to serve the Project. Under the terms of the RDA, the developer is responsible for installing the above detailed improvements and then the Village will reimburse them once they have been inspected and approved. https://www.boarddocs.com/il/vomp/Board.nsf/Private?open&login6/21/2018 BoardDocs® ProPage 2 of 2 At the time that the Village established the Prospect and Main TIF District, the TIF Joint Review Board requested that we maintain a set of metrics to measure the positive impact that the TIF has on the downtown district. The table below lists the metrics that the Village will continue to measure as we move forward with the numerous redevelopment projects in the downtown. The projected figures are estimates that are based upon industry standards for similar developments in the region. Park Terrace MetricBaseProjected New residential units-12 Population growth-30 Growth in EAV$76,943$1,200,000 Sales tax generation-0 Retail and commercial base-0 Number of building permits -1 Projects benefiting impacted local governments-1 Retail and commercial vacancyNANA Infrastructure improvements-$160,000 Metra ridership-Yes TOD Alternatives 1. Approve the resolution authorizing the execution of a Redevelopment Agreement. 2. Action at discretion of Village Board. Staff Recommendation Staff recommends that the Village Board approve the resolution authorizing the execution of a Redevelopment Agreement for Park Terrace Mount Prospect, LLC. RDA- park terrace 15-19 elmhurst ave.pdf (10 KB)Park Terrace RDA.pdf (2,343 KB) Administrative Content Executive Content https://www.boarddocs.com/il/vomp/Board.nsf/Private?open&login6/21/2018 RESOLUTION NO. A RESOLUTION AUTHORIZING THE EXECUTION OF A REDEVELOPMENT AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND PARK TERRACE MOUNT PROSPECT LLC. WHEREAS, the Village of Mount Prospect has established a TaxIncrement Financing District for the purpose of redeveloping the downtown district; and WHEREAS, in order to prepare the best plan for the redevelopment area, the Village of Mount Prospect has determined that it would be in the best interest of the Village to enter into a redevelopment agreement with Park Terrace Mount Prospect LLC. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: The Board of Trustees of the Village of Mount Prospect do hereby authorize execution of an Agreement between the Village of Mount Prospect and Park Terrace Mount Prospect LLCfor the proposed 12-unit rowhome project for property located at 15-19 N. Elmhurst Avenuebeing subject of this Resolution, a copy of which is attached hereto and hereby made a part hereof as Exhibit “A”. SECTION TWO: That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided by law. AYES: NAYS: ABSENT: th PASSED and APPROVED this 6day of March, 2018. __________________________________ Arlene A. Juracek Mayor ATTEST: ______________________________ Karen M. Agoranos Village Clerk REDEVELOPMENT AGREEMENT FOR THEPARK TERRACE MOUNT PROSPECT, LLC DEVELOPMENT COMPRISING A PART OF THE PROSPECT AND MAIN TIF DISTRICT OF THE VILLAGE OF MOUNT PROSPECT, ILLINOIS This Redevelopment Agreement For The Smart Builders Development Comprising A Part Of TheProspect And Main TIF DistrictOf The Village Of Mount Prospect, Illinois (the “Agreement”) is made and entered into as of the _____ day of ______________, 201_ (the “Effective Date”) by and between the Village of Mount Prospect, Illinois, an Illinois home rule municipal corporation (the “Village”) andPark Terrace Mount Prospect, LLC , an Illinois limited liability company, (the “Developer”) (theVillageand the Developer are sometimes referred to herein individually as a “Party,” and collectively as the “Parties”). WITNESSETH: IN CONSIDERATION of the Preliminary Statements, the mutual covenants herein contained, and other good and valuable consideration, the sufficiency and receipt of which is hereby acknowledged, the Parties hereto agree as follows: I.PRELIMINARY STATEMENTS Among the matters of mutual inducement which have resulted in this Agreement are the following: A.TheVillageis a home rule unit of government in accordance with Article VII, Section 6 of the Constitution of the State of Illinois, 1970. B.TheVillagehas the authority, pursuant to the laws of the State of Illinois, to promote the health, safety and welfare of theVillageand its inhabitants, to prevent the presence of blight, to encourage private development in order to enhance the local tax base and increase additional tax revenues realized by theVillage, to foster increased economic activity within theVillage,to increase employment opportunities within theVillage, and to enter into contractual agreements with third parties for the purpose of achieving the aforesaid purposes, and otherwise take action in the best interests of the Village. C.TheVillageis authorized under the provisions of the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1, et seq., as amended (the “Act”), to finance redevelopment in accordance with the conditions and requirements set forth in the Act. D.Pursuant to Ordinance Numbers 6293, 6294 and 6295, adopted January 17, 2017, theVillagedesignated the tax increment redevelopment project area (the “Redevelopment Project Area”), approved a tax increment 387385_4 1 redevelopment plan and project (the “TIF Plan”), and adopted tax increment financing relative to theVillage's Prospect and MainTax Increment Financing District (the “TIF District”); said TIF District being legally described and depicted as set forth in EXHIBIT A-1and EXHIBIT A-2, respectively, attached hereto and made part hereof. E.The Developer desires to acquire ownership of certain real property, consisting of a parcel, located within the Redevelopment Project Area, said property being legally described on EXHIBIT B, attached hereto and made a part hereof (the “Property”). F.The Developer desires toredevelop the Property with a twelve (12) unit townhome project to be built in two (2) stages (“Stage One” and “Stage Two”) of six units each , as depicted on the site planattached hereto as EXHIBITC, and made part hereof, and as described in further detail in EXHIBITD, attached hereto and made part hereof (the “Project”). G.It is necessary for the successful completion of the Project that theVillage enterinto this Agreement with the Developer to provide for the redevelopment of the Property, thereby implementing the TIF Plan. H.The Developer has been and continues to be unable and unwilling to undertake the redevelopment of the Property with the Project, but for certain tax increment financing (“TIF”) incentives, with regard to waiver of certain Village-imposed fees and assistance from the Village in defraying certain of the extra ordinary costs of development of the Project, to be provided by the Villagein accordance with the Act and the home rule powers of theVillage, which theVillageis willing to provide under the terms and conditions contained herein. The Parties acknowledge and agree that but for the aforementioned incentives, to be provided by theVillage, Developer cannot successfully and economically develop the Property with the Project in a manner satisfactory to theVillage. TheVillagehas determined that it is desirable and in theVillage's best interest to assist Developer in the manner set forth herein, and as this Agreement may be supplemented and amended from time to timepursuant to the mutual agreement of the Parties and in the manner as herein provided. I.TheVillage, in order to stimulate and induce development of the Property with the Project, has agreed to provide the incentivesto the Developer in accordance with the terms and provisions of the Act and this Agreement. J.This Agreement has been submitted to the Corporate Authorities of the Village(as defined below) for consideration and review, the Corporate Authorities have taken allactions required to be taken prior to the execution of this Agreement in order to make the same, and any and all actions taken by the Village in furtherance hereof, binding upon theVillageaccording to 387385_4 2 the terms hereof, and any and all actions of the Corporate Authorities of the Villageprecedent to the execution of this Agreement have been undertaken and performed in the manner required by law. K. This Agreement has been submitted to the Members of the Developer for consideration and review, the Developer’s Members havetaken all actions required to be taken prior to the execution of this Agreement in order to make the same binding upon the Developer according to the terms hereof, and any and all action of the Developer's members precedent to the execution of this Agreement have been undertaken and performed in the manner required by law. L.TheVillageis desirous of having the Redevelopment Project Area rehabilitated, developed and redeveloped in accordance with the TIF Plan, and particularly the Project as a part thereof, in order to serve the needs of theVillage, arrest physical decay and decline inthe Redevelopment Project Area, increase employment opportunities, stimulate commercial growth and stabilize the tax base of theVillageand, in furtherance thereof, theVillage is willing to offer Developer the TIF incentives referenced in subsection H. above, under the terms and conditions hereinafter set forth, to assist such development. II.DEFINITIONS For the purposes of this Agreement, unless the context clearly requires otherwise, words and terms used in this Agreement shall have the meanings provided from place to place herein, and as follows: A.“Change in Law”means the occurrence, after the Effective Date, of an event described below in this definition, provided such event materially changes the costs or ability of the Party relying thereon to carry out its obligations under this Agreement and such event is not caused by the Party relying thereon: Change in Law means any of the following: (1) the enactment, adoption, promulgation or modification of any federal, State or local law, ordinance, code, rule or regulation (other than by theVillage,or,with respect to those made by theVillage, only if they violate the terms of this Agreement); (2) the order or judgment of any federal or State court, administrative agency or other governmental body(other than theVillage); or (3) the adoption, promulgation, modification or interpretation in writing of a written guideline or policy statement by a governmental agency (other than theVillage, or, with respect to those made by theVillage, only if theyviolate the terms of this Agreement). Change in Law, for purposes of this Agreement, shall also include the imposition of any conditions on, or delays in, the issuance or renewal of any governmental license, approval or permit (or the suspension, 387385_4 3 termination, interruption, revocation, modification, denial or failure of issuance or renewal thereof) necessary for the undertaking of the actions to be performed under this Agreement (except any imposition of any conditions on, or delays in, any such issuance orrenewal by theVillage, except as provided herein). B.“VillageCode”means theVillageof Mount Prospect Village Code, as amended. C.“Corporate Authorities”means the MayorandBoard of Trustees of the Villageof Mount Prospect, Illinois. D.“Day”means a calendar day. E.“Effective Date”means the day on which this Agreement is executed by theVillage, with said date appearing on page 1 hereof. F.“Eligible Costs”means certain costs of the Incentives (as defined in Section VI. Below), to the extent permitted under 65 ILCS 5/11-74.4-3(q). G.“Party”or“Parties”means theVillageand/or the Developer, individually/collectively, and their respective successors and/or assigns as permitted herein, as the context requires. H.“Person”means any individual, corporation, partnership, limited liability company, joint venture, association, trust, or government or any agency or political subdivision thereof, or any agency or entity created or existing under the compact clause of the United States Constitution. I.“State”means the State of Illinois. J.“TIF Ordinances”means those Ordinances referenced in subsection I.D. above. K.“Uncontrollable Circumstance”means any event which: 1.is beyond the reasonable control of and without the fault of the Party relying thereon; and 2.is one or more of the following events: a.a Change in Law; b.insurrection, riot, civil disturbance, sabotage, act of the public enemy, explosion, fire, nuclear incident, war or naval blockade; 387385_4 4 c.epidemic, hurricane, tornado, landslide, earthquake, lightning, fire, windstorm, other extraordinary or ordinary weather conditions or other similar act of God; d.governmental condemnation or taking other than by the Village; e.strikes or labor disputes, or work stoppages not initiated by the Developer or theVillage; f.unreasonable delay in the issuance of building or other permits or approvals by theVillageor other governmental authorities having jurisdiction other than theVillageincluding but not limited to the Illinois Department of Transportation (“IDOT”),the Metropolitan Water Reclamation District of Greater Chicago (“MWRD”)and/or the Illinois Environmental Protection Agency (“IEPA”); g.shortage or unavailability of essential materials, which materially change the ability of the Party relying thereon to carry out its obligations under this Agreement; h.unknown or unforeseeable geo-technical or environmental conditions; i.major environmental disturbances; j.vandalism; or k.terrorist acts. Uncontrollable Circumstance shall not include: economic hardship; unavailability of materials (except as described in subsection 2.g. above); or a failure of performance by a contractor (except as caused by events which are Uncontrollable Circumstances as to any applicablecontractor). For each day that theVillageor the Developer is delayed in its performance under this Agreement by an Uncontrollable Circumstance, the dates set forth in this Agreement shall be extended by one (1) day without penalty or damages to either Party. L. “Unit”means each of the individual units in the Project. III.CONSTRUCTION OF TERMS 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. C.The words “include,” “includes,” and “including” shall be deemed to be followed by the phrase “without limitation”. 387385_4 5 D.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. E.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. In the event of a conflict between any exhibit and the terms of this Agreement, the Agreement shall control. F.Any certificate, letter or opinion required to be given pursuant to this Agreement means a signed document attesting to or acknowledging the circumstances, representations, opinions of law or other matters therein stated or set forth. Reference herein to supplemental agreements, certificates, demands, requests, approvals, consents, notices and the like means that such shall be in writing whether or not a writing is specifically mentioned in the context of use. G.TheVillageManager, unless applicable law requires action by the Corporate Authorities, shall have the power and authority to make or grant or do those things, certificates, requests, demands, notices and other actions required that are ministerial in nature or described in this Agreement for and on behalf of theVillageand with the effect of binding theVillageas limited by and provided for in this Agreement. The Developer isentitled to rely on the full power and authority of the Persons executing this Agreement on behalf of theVillageas having been properly and legally given by the Village. H.In connection with the foregoing and other actions to be taken under this Agreement, and unless applicable documents require action by Developer in a different manner Developer hereby designates Richard Bondarowicz as its authorized representatives who shall individually have the power and authority to make or grant or do all things, supplemental agreements, certificates, requests, demands, approvals, consents, notices and other actions required or described in this Agreement for and on behalf of the Developer and with the effect of binding the Developer in that connection (such individual being designated as an “Authorized Developer Representative”). The Developer shall have the right to change its Authorized Developer Representative by providing theVillagewith written notice of such change from both authorized representatives which notice shall be sent in accordance with Section XVIII.B. of this Agreement. IV.COOPERATION OF THE PARTIES 387385_4 6 TheVillageand the Developer agree to cooperate in implementing the Project in accordance with the Parties' respective obligations set forth in this Agreement, and specific approvals by theVillagein the future, relative to the development of the Property and the Project, including zoning applications relative thereto, and Village-issued permits and approvals relative thereto. V.ACQUISITIONOF THE PROPERTY The Developer shall acquire the Property on or before the commencement of the construction as provided in Section VI.A.3. below (“Acquisition Deadline”). The date the Developer acquires title to the Property shall be the “Acquisition Date.” VI. DEVELOPMENT OF THE PROPERTY A.Approvals, Permits, Construction, and Completion.The Developer shall, subject to Uncontrollable Circumstances: 1.On or before April 1, 2018, appear before the Village’s Planning and ZoningCommissionfor all zoning entitlements and/or zoning approvals necessary for the construction of the Project. 2.On or before August 1, 2018, apply for all necessary permits and approvals from all governmental agencies having jurisdiction over the Project as may be required to commence construction of the Project. 3.Subject to unreasonable delays as provided in Section II.K.2.f. of this Agreement, on or before September 1, 2018,commence construction of Stage One of the Project, and on or before September 1, 2020 commenceconstruction of Stage Two of the Project. 4.On or before May 1, 2020, complete construction of Stage One of the Project, and on or before May 1, 2022 complete Stage Two of the Project. 5.On or before July 1, 2020, obtain a Certificate of Project Completion (as defined in Section XI.A. below) for Stage One of the Project and on or before July 1, 2022 obtain a Certificate of Completion for Stage Two of the Project. The Village may extend, in its sole and absolute discretion, any deadline in this Section VI.A. upon request from the Developer, upon such terms and conditions as the Village may require for such extension. 387385_4 7 B.Incentives.So long as the Developer is in compliance with all its obligations in this Agreement, the Developer shall be entitled to the following incentives (the “Incentives”): 1.A waiver of up to Eighty Thousand and No/100 Dollars ($80,000.00) of permit fees payable to the Village for the Project. 2.Payment of up to One Hundred Twenty Thousand Dollars ($120,000.00) for installation of storm water detention system, curbs, and paving for the Project. 3.Payment of up to Forty Thousand and No/100 Dollars ($40,000.00) by the Village for demolition, tree removal, construction fencing and/or site preparation fees for the Project. 4.Payment of up to One Hundred Thousand and No/100 Dollars ($100,000.00) by the Village for a sewer extension in the public right- of-way adjacent to the Property to serve the Project. 5.Payment of up to Sixty Thousand and No/100 Dollars ($60,000.00) by the Village for water, sewer and utility work to serve the Project. C.Procedure for Payment of Incentives. 1.The Incentives are available and/or payable from the Village only upon satisfaction by Developer of all the following conditions precedent: (i)Acquisition of all necessary Villagezoning approvals for the Project; (ii)Acquisition of the Property on or before the Acquisition Deadline and in compliance with all deadlines in Section VI.A., as such deadlines may be extended from time to time; (iii)Being current with all Federal, State and local tax obligations; (vi)Complying with the covenants, obligationsand agreements in Sections VIII, IX, XandXIIof this Agreement; and (vii)Otherwise being in compliance with all of the terms of this Agreement andthe laws and regulations of the Village. 2.The Villageshall authorize the payment of the Incentives in Section VI.B.3.-5. Directly tocontractors or subcontractors on the Project, as the case may be, uponsatisfaction of all the following conditions: 387385_4 8 (i)The disbursement is authorized by this Agreement and the disbursement is an Eligible Cost; (ii)Developer has satisfied the conditions in Section VI.C.1.; (iii)Developer has submitted to the Village’s Director of Finance asworn disbursement request, along with appropriate supporting documentation in relation thereto, requesting payment of a portion of the Incentive, including Developer’s representation that the requested disbursement is an Eligible Cost; (iv)Developer is not in default of any material provision of this Agreement; (v)The Developer shall, upon request by the Village, provide the Village with all reasonable and customary documentation required by the Village to evidence the cost of the Incentive, such records to include, but not be limited to, all invoices for the claimed Incentive, all contracts with the Developer’s contractors, subcontractors, their affidavits, lien waivers with invoices, copies of checks and any other documentation reasonably requested by the Village and/or in the possession of the Developer; and (vi)The Village has validated the costs associated with the disbursement request which shall be done within the ten (10) business day period following the submission of the disbursement request. D.Payback by Developer.If this Agreement terminates due to the breach of anyof the Developer’s obligations, Developer shall repay the Village the Incentives incurred by the Village: 1.The Agreement is terminated before Developer commences construction of the Project: One Hundred Percent (100%). 2.The Agreement is terminated after Developer commences construction of the Projectbut before the Developer completes construction of the Project: Seventy Five Percent (75%). 3.The Agreement is terminated after Developer completes construction of the Projectbut before Developer obtainsa Certificate of Project Completion: Twenty Five Percent (25%). 387385_4 9 If this Agreement is cancelled or terminated pursuant to Section XVIII.A., Developer shall repay the Village all of the Incentives paid by the Village pursuant toSection VI.B.3.-5. Any repayment owed by Developer to the Village hereunder shall be made by Developer within thirty (30) days of a written demand by the Village for such repayment. VII.UNDERTAKINGS ON THE PART OF THE VILLAGE A.TheVillageagrees to: 1.Cooperate with Developer in Developer's attempts to obtain all necessary approvals, licenses and/or permits from any governmental or quasi-governmental entity other than theVillage and, upon request of Developer, will promptly execute any applications or other documents (upon their approval by theVillage) which Developer intends to file with such other governmental agencies, quasi-governmental agencies and/or utility companies in regard to the Project. 2.Waive the fee for the connectionof the Subject Property to the Village’s water supply occurring during the construction of the Project. B.TheVillageshall further promptly respond to, and/or process, and consider reasonable requests of Developer for applicable building approvals and/or permits, driveway permits, drive thru permits, special use permits (if and to the extent applicable), curb cut permits, or other approvals, permits and/or licenses necessary for the construction of the Project. Approval of any building approvals and/or permit applications and/or engineering plans and/or operating licenses (including liquor licenses, subject to the applicant therefor being qualified to receive same under both State law and the Village’s ordinances) shall be contingent on the Developer providing all required and requested documentation including, but not limited to, building plans required to substantiate that said improvements fully conform with all applicable State statutes and also allVillageordinances and codes, as well as receipt of all required building approvals from any federal, state, regional or county agencies having applicable jurisdiction. VIII.DEVELOPER’S OBLIGATIONS Developer shall have the obligations set forth below, in addition to those set forth elsewhere in this Agreement, for the development, construction, financing, completion and furtherance of the Project: 387385_4 10 A.The Developer shall construct the Project materially and substantially in conformance with the approvals therefor from theVillage. The Developer shall pay or cause to be paid all building-related fees required by theVillage Code. B.The Developer shall at all times acquire, install, construct, operate and maintain the Project in substantial conformance with all applicable laws, rules, ordinances,andregulations.All work with respect to the Project shall substantially conform to all applicable federal, State and local laws, regulations and ordinances, including, but not limited to, zoning, subdivision and planned development codes, building codes, environmental laws (including any law relating to public health, safety and the environment and the amendments, regulations, orders, decrees, permits, licenses or deed restrictions now or hereafter promulgated thereafter), life safety codes, property maintenance codes and any other applicable codes and ordinances of theVillage, or any of its rules or regulations or amendments thereto which are in effect from time to time during the construction and maintenance of the Project and/or during the term of this Agreement. C.During the initial construction of the Projectas herein contemplated, the Developer shall stage its construction of the Project to avoid to the fullest extent possible any material community disruption. During construction, the Developer shall also keep all public streets used by the Developer clean on a daily basis, and for each day in which such public streets are not properly cleanand such condition is not remedied within twenty four (24) hours of written notice to Developer, the Developer shall pay theVillagethe sum of Two Hundred Fifty and No/100 Dollars ($250.00) for each such violation. D.Developer shall park and stage all construction equipment, materials and vehicles to be used in relation to the construction of the Project on the Property. E.Developer shall submit written evidence to theVillage, in a form and substance reasonably satisfactory to theVillage, that Developer has access to sufficient funds to pay any costs of the Project within ninety (90) days after the Effective Date. Such evidence can include, without limitation, commitments for financing and/or letters of credit from a lender, and/or investor commitments, for the anticipated costs of such Project. F.Developer shall meet with the Corporate Authorities andVillagestaff and make presentations to the Corporate Authorities andVillagestaff as reasonably requested by theVillageMayor orVillage Managerin order to keep theVillageapprised of the progress of the Project. G.The Developer shall have a periodof ninety (90) days after the Effective Date (the “Due Diligence Period”) to perform investigations of the Property, 387385_4 11 including, but not limited to environmental investigations, and determine, in Developer’s sole and absolute discretion, whether the Property is suitable for Developers use. Developer shall have the right to terminate this Agreement, at any time prior to the expiration of the Due Diligence Period, as a result of an adverse environmental condition on the Property, which is discovered by the Developer and which either prevents the construction of the Project by the Developer, in Developer’s reasonable judgment, or materially increases the cost of the construction of the Project. IX.ADDITIONAL COVENANTS OF DEVELOPER A.Developer Existence.Developer will do or cause to be done all things necessary to preserve and keep in full force and effect its existence and standing as a an Illinois limited liability company, so long as this Agreement is in effect, and for so long as Developer maintains aninterest in the Property or has any other remaining obligation pursuant to the terms of this Agreement. B.Further Assistance and Corrective Instruments.TheVillageand Developer agree that they will, from time to time, execute, acknowledge and deliver,or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may be reasonably required for carrying out the intention of or effectuate or facilitating the performance of this Agreement to the extent legallypermitted and within the Village's and the Developer's sound legal discretion. C.No Gifts.Developer covenants that no director, employee or agent of Developer, or any other Person connected with Developer, has made, offered or given, either directly or indirectly, to any member of the Corporate Authorities, or any officer, employee or agent of theVillage, or any other Person connected with theVillage, any money or anything of value as a gift or bribe or other means of influencing his or her action in his or her capacity with theVillage. D.Disclosure.Concurrently with execution of this Agreement, Developer shall disclose to theVillagethe names, addresses and ownership interests of all Persons that have an ownership interest in the Developer, together with such supporting documentation that may be reasonably requested by theVillage. Developer further agrees to notify theVillagethroughout the term of this Agreement of the names, addresses and ownership interests of any changes ofowners of the Developer. E.Prevailing Wage.Developer agrees to pay the Prevailing Wage under the Illinois Prevailing Wage Act to the extent improvements relative to the Projectare, upon completion, owned by the Village. 387385_4 12 X.ADHERENCE TO VILLAGECODES AND ORDINANCES Except as otherwise provided for in this Agreement, all development and construction of the Project shall comply in all respects with the provisions in the building, plumbing, mechanical, electrical, storm water management, fire prevention, property maintenance, zoning and subdivision codes of theVillageand all other germane codes and ordinances of theVillagein effect from time to time during the course of construction of the Project. XI.SPECIAL CONDITIONS A.Certificate of Project Completion.Within thirty (30) days after written request from Developer, and provided that Developer has not received any notice of default under this Agreement or notice of non-compliance with any Villagecodes with respect to Developer’s construction obligations, any of which have not been cured, and after theVillagehas issued the final certificate of occupancy for the proposed building on the Property, and has confirmed that the proposed buildingon the Property has been constructed in substantial and material compliance with allVillagecodes and this Agreement, theVillageshall deliver a certificate of completion and satisfaction of all construction terms, covenants and conditions contained in this Agreement (the “Certificate of Project Completion”) or, if not complete or satisfied, a written statement as to what deficiencies exist, and upon Developer’s correction of such issues, the Village shall then promptly issue to Developer a Certificate of Project Completion. B.Certification of Developer’s Project Cost.Within thirty (30) days of the issuance of the Certificate of Project Completion, the Developer shall certify, in writing, to theVillage, the amount spent by the Developer (inclusive of all hard and soft costs) to complete the Project,and an estimate of the number of jobs to be generated or created by the Project. C.Release of Sales Tax Information.The Developer shall take all reasonable actions necessary to cause, and/or shall take all reasonable actions necessary to require,any tenants or business entity occupant(s)of the Project to cause, the Illinois Department of Revenue to release the sales tax information/documentation, relative to the Project, to theVillage. In the alternative, the Developer can file with theVillage, or cause the business entity occupant(s)of the Project to file with theVillage, copies of the sales tax returns filed by said business entity occupant(s)of the Project with the Illinois Department of Revenue (currently the ST-2 form filed with the Illinois Department of Revenue on a monthly basis). For purposes of this subsection, sales tax means taxes generated from the Project, and received by theVillage, from the Retailers’ Occupation Tax Act, 35 ILCS 120/1,et seq.and the Service Occupation Tax Act, 35 ILCS 115/1,et seq. 387385_4 13 D.Employment Opportunities.To the extent feasible, the Developer shall makereasonable efforts to notifyVillageresidents of employment opportunities that are available relative to the Project, and, to the extent permitted by law, make reasonable efforts to employ qualified residents of theVillagein relation to the Project. XII.REPRESENTATIONS AND WARRANTIES OF DEVELOPER Developer represents, warrants and agrees as the basis for the undertakings on its part herein contained that as of the date hereof and until completion of the Project: A.Developer is an Illinois limited liability company, and is authorized to and has the power to enter into, and by proper action has been duly authorized to execute, deliver and perform, this Agreement. Developer is solvent, able to pay its debts as they mature and financially able to perform all the terms of this Agreement. To Developer's knowledge, there are no actions at law or similar proceedings which are pending or threatened against Developer which would result in any material and adverse change to Developer's financial condition, or which would materially and adversely affect the level of Developer's assets as of the date of this Agreement or that would materially and adversely affect the ability of Developer to proceed withthe construction and development of the Project. B.Neither the execution and delivery of this Agreement by Developer, the consummation of the transactions contemplated hereby by Developer, nor the fulfillment of or compliance with the terms and conditions of this Agreement by Developer conflicts with or will result in a breach of any of the terms, conditions or provisions of any offerings or disclosure statement made or to be made on behalf of Developer (with Developer's prior written approval), any organizational documents, any restriction, agreement or instrument to which Developer or any of its partners, directors, or venturers is now a party or by which Developer or any of its partners, directors or venturers is bound, or constitutes a default under any of the foregoing, or results in the creation or imposition of any prohibited lien, charge or encumbrance whatsoever upon any of the assets or rights of Developer, any related party or any of its partners, directorsor venturers under the terms of any instrument or agreement to which Developer, any related party or any of its partners, directorsor venturers is now a party or by which Developer, any related party or any of its partners, directorsor venturers is bound. C.Developer has, or will have within sixty (60) days of the Acquisition Date, sufficient financial and economic resources to implement and complete Developer's obligations contained in this Agreement. 387385_4 14 D.Developer represents and warrants that it has not received any notice from any local, State or federal official that the activities of Developer with respect to the Property and/or the Project may or will be in violation of any environmental law or regulation. Developer is not aware of any State or federal claim filed or planned to be filed by any Party relating to any violation of any local, State or federal environmental law, regulation or review procedure, and Developer is not aware of any violation of any local, State or federal law, regulation or review procedure which would give anyperson a valid claim under any State or federal environmental statute. E.Developer represents and warrants to theVillagethat Developer, and its respective principals, are experienced in the design, construction and completionof housing developmentssimilar or comparable to the Project, and are able to provide the Project with the necessary skill, knowledge and expertise as well as input from other experts and consultants in the construction and operation of such a Project. F.Developer and successor owners agree to pay or cause to be paid all general and special real estate taxes levied during their respective period of ownership against their respective interest in the Project on or prior to the date same is due and said taxes shall not become delinquent. Developer and successor owners shall deliver evidence of payment of such taxes to theVillageupon request. G.Consistent with its covenant in subsection F. above, the Developer and successor owners shall not assert a tax-exempt status during their respective period of ownership. This prohibition shall run with the land and shall expire on the date the Redevelopment Project Area expires or an earlier date if agreed by theVillageand Developer. H.Developer represents and warrants to theVillagethat, in connection with this transaction, no third-party broker or finder has been engaged or consulted by it, or its subsidiaries or agents or employees, or, through such the Developer’s actions (or claiming through such party), which is entitled to compensation as a consequence of this transaction. XIII.REPRESENTATIONS AND WARRANTIES OF THE VILLAGE TheVillagerepresents, warrants and agrees as the basis for the undertakings on its part herein contained that: A.TheVillageis an Illinois home rule municipal corporation duly organized and validly existing under the laws of the State of Illinois, and has all requisite corporate power and authority to enter into this Agreement. 387385_4 15 B.The execution, delivery and performance of this Agreement and the consummation by theVillageof the transactions provided for herein and the compliance with the provisions of this Agreement: 1.have been duly authorized by all necessary corporate action on the part of theVillage; 2.require no other consents, approvals or authorizations on the part of theVillagein connection with theVillage's execution and delivery of this Agreement; and 3.shall not, by lapse of time, giving of notice or otherwise result in any breach of any term, condition or provision of any indenture, agreement or other instrument to which theVillageis subject. C.To the best of theVillage's knowledge, there are no proceedings pending or threatened against or affecting theVillageor the TIF District in any court or before any governmental authority which involves the possibility of materially or adversely affecting the ability of theVillageto perform its obligations under this Agreement, except for the case of Board of Education of Township High School District No. 214 v. Village of Mount Prospect, 2017 CH 08478, pending in the Circuit Court of Cook County. D.TheVillagehas sufficient financial and economic resources to implement and complete theVillage’s obligations contained in this Agreement. E.TheVillagerepresents and warrants to the Developer that, in connection with this transaction, no third-party broker or finder has been engaged or consulted by it, or its subsidiaries or agents or employees, or, through such theVillage’s actions (or claiming through such party), is entitled to compensation as a consequence of this transaction. XIV.INSURANCE A.The Developer, and any successor in interest to the Developer, shall obtain and continuously maintain insurance on the Property and the Project and, from time to time at the request of theVillage, furnish proof to theVillage evidence that the premiums for such insurance have been paid and the insurance is in effect. The insurance coverage described below is the minimum insurance coverage that the Developer must obtain and continuouslymaintain, provided that the Developer shall obtain the insurance described in subsection 1. below prior to the commencement of construction of any portion of the Project: 1.Builder's risk insurance, written on the so-called “Builder's Risk - CompletedValue Basis,” in an amount equal to one hundred percent 387385_4 16 (100%) of the insurable value of the Project at the date of completion, and with coverage available in non-reporting form on the so-called “all risk” form of policy. 2.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 on a primary non-contributory basis naming theVillageand its officers, agents and employees as additional insureds, with limits against bodily injury and property damage of not less than $5,000,000.00 for each occurrence (to accomplish the above-required limits, an umbrella excess liability policy may be used), written on an occurrence basis. 3.Workers compensation insurance, with statutory coverageif applicable to the Developer. B.All insurance required in this Section XIV. shallbe obtained and continuously maintained through responsible insurance companies selected by the Developer or its successors that are authorized under the laws of the State to assume the risks covered by such policies. Unless otherwise provided in this Section XIV., cancellation relative to each policy shall be as provided by the policy; however, theVillagemust be named as a cancellation notice recipient. Not less than fifteen (15) days prior to the expiration of any policy, the Developer, or its successor or assign, must renew the existing policy or replace the policy with another policy conforming to the provisions of this Section XIV. In lieu of separate policies, the Developer or its successor or assign, may maintain a single policy, blanket or umbrella policies, or a combination thereof, having the coverage required herein. XV.INDEMNIFICATION, HOLD HARMLESS AND RELEASE PROVISIONS A.Developer releases from and covenants and agrees that theVillage, its governing body members, officers, agents, including independent contractors, consultants, attorneys, servants and employees thereof (for purposes of this Section XV., collectively the “VillageIndemnified Parties”) shall not be liable for, and agrees to indemnify and hold harmless theVillage Indemnified Parties 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 Project or the Property or arising pursuant to the Developer’s obligations or warranties under this Agreement or actions in furtherance thereof to the extent not attributable to the gross negligence or willful misconduct of the VillageIndemnified Parties; provided, that this waiver shall not apply to the warranties made or obligations undertaken by theVillagein this Agreement. 387385_4 17 B.Except for gross negligence or willful misconduct of theVillageIndemnified Parties, Developer agrees to indemnify theVillageIndemnified Parties, now and forever, and further agrees to hold the aforesaid harmless from any claims, demands, suits, costs, expenses (including reasonable attorney's fees), actions or other proceedings whatsoever by any person or entity whatsoever arising or purportedly arising from the actions or inactions of Developer (or if other Persons acting on their behalf or under its direction or control) under this Agreement, or the transactions contemplated hereby or the acquisition, construction, installation, ownership, and operation of the Project. C.Except as otherwise set forth herein, theVillagemakes no warranties or representations regarding, nor does it indemnify the Developer with respect to, the existence or nonexistence on or in the vicinity of the Property, or anywhere within the TIF District of any toxic or hazardous substances of wastes, pollutants or contaminants (including, without limitation, asbestos, urea formaldehyde, the group of organic compounds known as polychlorinated biphenyls, petroleum products including gasoline, fuel oil, crude oil and various constituents of such products, orany hazardous substance as defined in the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), 42 U.S.C. §§ 9601- 9657, as amended) (collectively, the “Hazardous Substances”). The foregoing disclaimer relates to any Hazardous Substance allegedly generated, treated, stored, released or disposed of, or otherwise placed, deposited in or located on or in the vicinity of the Property, or within the TIF District, as well as any activity claimed to have been undertaken on or inthe vicinity of the Property, that would cause or contribute to causing (1) the Property to become a treatment, storage or disposal facility within the meaning of, or otherwise bring the Property within the ambit of, the Resource Conservation and RecoveryAct of 1976 (“RCRA”), 42 U.S.C. §6901 et seq., or any similar State law or local ordinance, (2) a release or threatened release of toxic or hazardous wastes or substances, pollutants or contaminants, from the Property, within the meaning of, or otherwise bring the Property within the ambit of, CERCLA, or any similar State law or local ordinance, or (3) the discharge of pollutants or effluents into any water source or system, the dredging or filling of any waters or the discharge into the air of any emissions, that would require a permit under the Federal Water Pollution Control Act, 33 U.S.C. §1251 et seq., or any similar State law or local ordinance. Further, theVillagemakes no warranties or representations regarding, nor does theVillageindemnify the Developer with respect to, the existence or nonexistence on or in the vicinity of the Project, or anywhere within the Property or the TIF District, of any substances or conditions in or on the Property, that may support a claim or cause of action under RCRA, CERCLA, or any other federal, State or local environmental statutes, regulations, ordinances or other environmental regulatory requirements. TheVillagemakes no representations or 387385_4 18 warranties regarding the existence of any above ground or underground tanks in or about the Property, or whether any above or underground tanks have been located under, in or about the Property have subsequently been removed or filled. TheVillagewarrants and represents to Developer that it has not received notice, other than as already provided to the Developer by theVillagein the environmental reports provided to the Developer by the Village, from any agency, individual or entity of any violation of any environmental law relating to any Hazardous Substances affecting the Property. D.The Developer waives any claims against theVillageIndemnified Parties, and their members and boards, for indemnification, contribution, reimbursement or other payments arising under federal, State and common law relating to the environmental condition of the land comprising the Property. E.No liability, right or claim at law or inequity shall attach to or shall be incurred by theVillage’s Mayor,Trustees, officers, officials, attorneys, agents and/or employees, and any such rights or claims of the Developer against the Village’s Mayor,Trustees, officers, officials, attorneys, agents and/or employees are hereby expressly waived and released as a condition of and as consideration for the execution of the Agreement by theVillage. F.TheVillagereleases from and covenants and agrees that Developer, its members, shareholders, officers, directors, agents, including independent contractors, consultants, attorneys, servants and employees thereof (for purposes of this Section XV., collectively the “Developer Indemnified Parties”) shall not be liable for, and agrees to indemnify and hold harmless the Developer Indemnified Parties against any loss or damage to property or any injury to or death of any person arising pursuant to theVillage’s obligations or warranties under this Agreement or actions in furtherance thereof to the extent not attributable to the gross negligence or willful misconduct of the Developer Indemnified Parties. XVI.EVENTS OF DEFAULT AND REMEDIES A.DeveloperEvents of Default.The following shall be Events of Default with respect to this Agreement: 1.If any material representation made by Developer in this Agreement, or in any certificate, notice, demandor request made by a Party hereto, in writing and delivered to theVillagepursuant to or in connection with any of said documents, shall prove to be untrue or incorrect in any material respect as of the date made; provided, however, that such default shall constitute an Event of Default only if Developer does not remedy the default, within thirty (30) days after 387385_4 19 written notice from theVillageand in any event (subject to Uncontrollable Circumstances)cures such default within ninety (90) days after such notice. 2.Default by Developer for a period of thirty (30) days after written notice thereof in the performance or breach of any material covenant contained in this Agreement concerning the existence, structure or financial condition of Developer; provided, however, that such default or breach shall not constitute an Event of Default if such default cannot be cured within said thirty (30) days and Developer, within said thirty (30) days, initiates and diligently pursues appropriate measures to remedy the default and in any event (subject to Uncontrollable Circumstances) cures such default within sixty (60) days after such notice. 3.Default by Developer for a period of thirty (30) days after written notice thereof in the performance or breach of any material covenant, warranty or obligation contained in this Agreement; provided, however, that such default shall not constitute an Event of Default if such default cannot be cured within said thirty (30) days and the Developer, within said thirty (30) days initiates and diligently pursues appropriate measures to remedy the default and in any event (subject to Uncontrollable Circumstances) cures such default within sixty (60)days after such notice. 4.The entry of a decree or order for relief by a court having jurisdiction in the premises in respect of Developer in an involuntary case under the federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal or State bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of Developer for any substantial part of its property, or ordering the winding-up or liquidation of its affairs and the continuance of any such decree or order unstayed and in effect for a period of forty five(45) consecutive days. 5.The commencement by Developer of a voluntary case under the federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal or State bankruptcy, insolvency or other similar law, or the consent by Developer to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or similar official) of Developer or of any substantial part of the Property, or the making by any such entity of any assignment for the benefit of creditors or the failure of Developer generally to pay such entity’s debts as such debts become due or 387385_4 20 the taking of action by Developer in furtherance of any of the foregoing, or a petition is filed in bankruptcyby others. 6.Failure to have funds as timely required to meet Developer’s obligationsto construct the Project and obtain a Certificate of Project Completion. 7.A sale, assignment, or transfer of the Project, except in accordance with this Agreement. 8.Material change in the managementof Developer, except in accordance with this Agreement. 9.Developer abandons the Project on the Property. Abandonment shall be deemed to have occurred when work stops on the Property for more than thirty (30) consecutive days for any reason other than Uncontrollable Circumstancesand such work is not resumed within thirty (30) days of written demand by the Village. 10.Developer fails to comply with applicable governmental codes and regulations in relation tothe construction and maintenance of the Project contemplated by this Agreement and such failure continues for more than thirty (30) days after written notice thereof from the Village; provided, however, that such default or breach shall not constitute an Event of Default if such default cannot be cured within said thirty (30) days and Developer, within said thirty (30) days, initiates and diligently pursues appropriate measures to remedy the default and in any event (subject to Uncontrollable Circumstances) cures such default within sixty (60)days after such notice. The maintenance requirement of this provision shall not be covered by and shall survive any Certificate of Project Completion or Estoppel Certificate of any kind issued during the term of this Agreement. 11.A material representation or warranty of Developer is not true for a period of thirty (30) days after written notice from theVillage; provided, however, that such default or breach shall not constitute an Event of Default if such default cannot be cured within said thirty (30)days and Developer, within said thirty (30) days, initiates and diligently pursues appropriate measures to remedy the default and in any event (subject to Uncontrollable Circumstances) cures such default within sixty (60)days after such notice. B.VillageEvents of Default.The following shall be Events of Default with respect to this Agreement: 387385_4 21 1.If any material representation made by theVillagein this Agreement, or in any certificate, notice, demand or request made by a Party hereto, in writing and delivered to Developer pursuant to or in connection with any of said documents, shall prove to be untrue or incorrect in any material respect as of the date made; provided, however, that such default shall constitute an Event of Default only if theVillagedoes not remedy the default, within thirty(30) days after written notice from Developer and in any event (subject to Uncontrollable Circumstances) cures such default within ninety (90) days after such notice. 2.Default by theVillagein the performance or breach of any material covenant contained in this Agreement concerning the existence, structure or financial condition of theVillage; provided, however, that such default or breach shall constitute an Event of Default only if the Villagedoes not,within thirty (30) days after written notice from Developer, initiate and diligently pursue appropriate measures to remedy the default and in any event (subject to Uncontrollable Circumstances) cures such default within forty five(45) days after such notice. 3.Default by theVillagein the performance or breach of any material covenant, warranty or obligation contained in this Agreement; provided, however, that such default shall not constitute an Event of Default if theVillage, commences cure within thirty (30) days after written notice from Developer and in any event cures such default within forty five(45) days after such notice, subject to Uncontrollable Circumstances. 4.A material representation or warranty of theVillageis not true for a period of thirty (30) days after written notice from Developer; provided, however, that such default or breach shall not constitute an Event of Default if such default cannot be cured within said thirty (30) days and theVillage, within said thirty (30) days, initiates and diligently pursues appropriate measures to remedy the default and in any event (subject to Uncontrollable Circumstances) cures such default within forty five(45) days after such notice. C.Remedies for Default.In the case of an Event of Default hereunder: 1.The defaulting Party shall, upon written notice from the non- defaulting Party, take prompt action to cure or remedy such Event of Default. If, in such case, any monetary Event of Default is not cured, or if in the case of a non-monetary Event of Default, except for circumstances contemplated under Section XVI.A.1.,action is not taken or not diligently pursued, or if action is taken and diligently 387385_4 22 pursued but such Event of Default or breach shall not be cured or remedied within the cure periods specified therefor, unless extended by mutual agreement, the non-defaulting Party may institute such proceedings as may be necessary or desirable in its opinion to cure or remedy such default or breach, including, but not limited to, proceedings to compel specific performance of the defaulting Party’s obligations under this Agreement. 2.In case a Party shall have proceeded to enforce its rights under this Agreement and such proceedings shall have been discontinuedor abandoned for any reason, then, and in every such case, the Parties shall be restored respectively to their several positions and rights hereunder, and all rights, remedies and powers of Developer and the Villageshall continue as though no such proceedings had been taken. 3.In no event shall either Party be liable to the other for any consequential or punitive damages suffered as a result of a default under this Agreement. D.Agreement to Pay Attorneys’ Fees and Expenses.In the event an Event of Default is not cured within the applicable cure periods and the Parties employ an attorney or attorneys or incur other expenses for the collection of the payments due under this Agreement or the enforcement of performance or observance of any obligation or agreement herein contained, the non-prevailing Party shall pay, on demand, the prevailing Party’s reasonable fees of such attorneys and such other reasonable expenses in connection with such enforcement action. E.No Waiver byDelay or Otherwise.Any delay by any Party in instituting or prosecuting any actions or proceedings or otherwise asserting its rights under this Agreement shall not operate to act as a waiver of such rights or to deprive it of or limit such rights in any way (it being the intent of this provision that any Party should not be deprived of or limited in the exercise of the remedies provided in this Agreement because of concepts of waiver, laches or otherwise); nor shall any waiver in fact made with respect to any specific Event of Default be considered or treated as a waiver of the rights by the waiving Party of any future Event of Default hereunder, except to the extent specifically waived in writing. No waiver made with respect to the performance, nor the manner or time thereof, of any obligation or any condition under the Agreement shall be considered a waiver of any rights except if expressly waived in writing. F.Rights and Remedies Cumulative.The rights and remedies of the Parties to this Agreement, whether provided by law or by this Agreement, shall be cumulative, and the exercise of any one or more of such remedies shall not 387385_4 23 preclude the exercise by such Party, at that time or different times, of any other such remedies for the same Event of Default. G.Legal and Other Fees and Expenses.Other than for demands, suits, costs, expenses (including reasonable attorney's fees), actions or other proceedings covered by Section XV. above, in the event that any third party or parties institute any legal proceedings against the Developer and/or the Village, which relate to the terms of this Agreement, then, in that event, the Parties shall cooperate in the defense of any such lawsuit, with each Party assuming, fully and vigorously, its own defense of such lawsuit, and all costs and expenses of its own defense, of whatever nature (including attorney’s fees). XVII.EQUAL EMPLOYMENT OPPORTUNITY A.No Discrimination.Developer shall comply with all federal, state and local laws relating to equal employment opportunity. To the extent permitted by law, Developer shall use reasonable efforts to employ qualified residents of theVillage as to any direct hires by the Developer, if applicable. B.Advertisements.Developer shall, in all solicitations or advertisements for employees placed by or on behalf of Developer, if applicable, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. C.Contractors.Any contracts made by Developer with any general contractor, agent, employee, independent contractor or any other Person in connection with the Project shall contain language similar to that recited in subsections A. and B. above. The Developer shall make reasonable efforts to incorporate language similar to that recited in subsections A. and B. in any leases made by Developer in connection with the Project. XVIII.MISCELLANEOUS PROVISIONS A.Cancellation.Notwithstanding any terms in this Agreement to the contrary, in the event Developer or theVillageshall be prohibited, in any material respect, from performing covenants and agreements or enjoying the rights andprivileges herein contained, or contained in the TIF Plan, including Developer's duty to build the Project and operate the Project, by the order of any court of competent jurisdiction, or in the event that all or any part of the Act or any ordinance adopted by theVillagein connection with the Project, shall be declared invalid or unconstitutional, in whole or in part, by a final decision of a court of competent jurisdiction and such declaration shall materially affect the Project or the covenants and agreements or rights and privileges of Developer or theVillage, then and in any such event, the 387385_4 24 Party so materially affected may, at its election, cancel or terminate this Agreement in whole (or in part with respect to that portion of the Project materially affected) by giving written notice thereof to the other Parties withinone hundred twenty(120) days after such final decision or amendment. Further, the cancellation or termination of this Agreement shall have no effect on the authorizations granted to Developer for buildings, or the remodeling of any building, permitted and under construction, to the extent permitted by said court order; and the cancellation or termination of this Agreement shall have no effect on perpetual easements contained in any recorded, properly executed document. B.Notices.All notices, certificates, approvals, consents or other communications desired or required to be given hereunder shall be given in writing at the addresses set forth below, by any of the following means: (1) personal service, (2) electronic communications, whether by electronic mail, telex, telegram or telecopy, but only if followed up, within one (1) business day, by another method of notice, (3) overnight courier, or (4) registered or certified first class mail, postage prepaid, return receipt requested. If to Village:Arlene Juracek, Mayor Village of Mount Prospect 50 S. Emerson Street Mount Prospect, Illinois 60056 Email: ajuracek@mountprospect.org With a copy to:Michael Cassady, Village Manager Village of Mount Prospect 50 S. Emerson Street Mount Prospect, Illinois 60056 Email: mcassady@mountprospect.org and:Klein, Thorpe and Jenkins, Ltd. 20 North Wacker Drive, Suite 1660 Chicago, Illinois60606-2903 Attention: Lance C. Malina /Gregory T. Smith Email: lcmalina@ktjlaw.com/gtsmith@ktjlaw.com If to Developer:Park Terrace Mount Prospect, LLC Attn: Richard Bondarowicz Email: rich@smartgroupchicago.com 11 W. College Drive, Unit J Arlington Heights, Illinois 60004 With a copy to:John A. Kukankos One S. Wacker, Ste. 2500 387385_4 25 Chicago, IL 60606 Email: john.kukankoslawpc@pretzel-stouffer.com The Parties, by notice hereunder, may designate any further or different addresses to which subsequent notices, certificates, approvals, consents or other communications shall be sent. Any notice, demand or request sent pursuant to either clause (1) or (2) hereof shall be deemed received upon such personal service or upon dispatch by electronic means. Any notice, demand or request sent pursuant to clause (3) shall be deemed received on the day immediately following deposit with the overnight courier, and any notices, demands or requests sent pursuant to clause (4) shall be deemed received forty-eight (48) hours following deposit in the mail. C.Time is of the Essence.Time is of the essence of this Agreement. Notwithstanding the foregoing, if the date for performance of any of the terms, conditions and provisions of this Agreement shall fall on a Saturday, Sunday or legal holiday, then the date of such performance shall be extended to the next business day. D.Integration.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 of the agreement of the Parties. E.Counterparts.This Agreement may be executed in any number of counterparts, but in no event less than two (2) counterparts, each of which shall be an original and each of which shall constitute but one and the same Agreement. F.Recordation of Agreement.The Parties agree to record this Agreement with the Cook County Recorder’s Officeagainst title to the Property. The Villageand the Developer shall equally share the cost of the recording charges.The Developer’s rights and obligations in this Agreement are covenants running with title to the Property and successor owners of the Property shall be and are bound by this Agreement to the same extent as Developer. G.Severability.If any provision of this Agreement, or any Section, sentence, clause, phrase or word, or the application thereof, in any circumstance, is held to be invalid, the remainder of this Agreement shall be construed as if such invalid part were never included herein, and this Agreement shall be and remain valid and enforceable to the fullest extent permitted by law. H.Choice of Law / Venue.This Agreement shall be governed by and construed in accordance with the laws of the State of Illinois,and any court 387385_4 26 proceedings between the Parties hereto shall be brought in Cook County, Illinois. I.Entire Contract and Amendments.This Agreement (together with the exhibits attached hereto) is the entire contract between theVillageand the Developer relating to the subject matter hereof, supersedes all prior and contemporaneous negotiations, understandings and agreements, written or oral, between theVillageand the Developer, and may not be modified or amended except by a written instrument executed by the Parties hereto. J.Third Parties.Nothing in this Agreement, whether expressed or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any other Person other than theVillageand the Developer, nor is anything in this Agreement intended to relieve or discharge the obligation or liability of any thirdparties to theVillageand the Developer, nor shall any provision give any third parties any rights of subrogation or action over or against theVillageor the Developer. This Agreement is not intended to and does not create any third party beneficiary rights whatsoever. K.Waiver.Any Party to this Agreement may elect to waive any right or remedy it may enjoy hereunder, provided that no such waiver shall be deemed to exist unless such waiver is in writing. No such waiver shall obligate the waiver of any other right or remedy hereunder, or shall be deemed to constitute a waiver of other rights and remedies provided pursuant to this Agreement. L.Cooperation and Further Assurances.TheVillageand the Developer each covenant and agree that each will do,execute, acknowledge and deliver or cause to be done, executed and delivered, such agreements, instruments and documents supplemental hereto and such further acts, instruments, pledges and transfers as may be reasonably required for the better clarifying,assuring, mortgaging, conveying, transferring, pledging, assigning and confirming unto theVillageor the Developer, or other appropriate Persons, all and singular the rights, property and revenues covenanted, agreed, conveyed, assigned, transferred and pledged under or in respect of this Agreement. M.No Joint Venture, Agency or Partnership Created.Nothing in this Agreement, or any actions of the Parties to this Agreement, shall be construed by the Parties or any third party to create the relationship of a partnership, agency or joint venture between or among such Parties. N.No Personal Liability of Officials of theVillageor the Developer.No covenant or agreement contained in this Agreement shall be deemed to be the covenant or agreement of the Corporate Authorities,Village Manager, 387385_4 27 any elected official, officer, partner, member, shareholder, manager, director, agent, employee or attorney of theVillageor the Developer, in his or her individual capacity, and no elected official, officer, partner, member, director, agent, employee or attorney of theVillageor the Developer shall be liable personally under this Agreement or be subject to any personal liability or accountability by reason of or in connection with or arising out of the execution, delivery and performance of this Agreement, or any failure in that connection. O.Repealer.To the extent that any ordinance, resolution, rule, order or provision of theVillage's code of ordinances, or any part thereof, is in conflict with the provisions of this Agreement, the provisions of this Agreement shall be controlling, to the extent lawful. P.Term.This Agreement shall remain in full force and effect until the termination of the Redevelopment Project Area. Q.Estoppel Certificates.Each of the Parties hereto agrees to provide the other, upon not less than fifteen (15) days prior request, a certificate (“Estoppel Certificate”) certifying that this Agreement is in full force and effect (unless such is not the case, in which case such Party shall specify the basis for such claim), that the requesting Party is not in default of any term, provision or condition of this Agreement beyond any applicable notice and cure provision (or specifying each such claimed default) and certifying such other matters reasonably requested by the requesting Party. If either Party fails to comply with this provision within the time limit specified, and if, after an additional seven (7) days’ notice there still is no compliance, then said non-complying Party shall be deemed to have appointed the other as its attorney-in-fact for execution of same on its behalf as to that specific request only. R.Assignment.This Agreement, and the rights and obligations hereunder, may not be assigned by Developer prior to the expiration of one (1) year from the date the Village issues Developer a Certificate of Project Completion, unless the Villageconsents in writing to such assignmentwhich consent shall not be unreasonably withheld or delayed, and unless the assignee consents in writing to be bound by the terms of this Agreement. Thereafter, Developer may sell or transfer the Property,and assign its right, duties and obligations hereunder, without the consent or approval of the Village. S.Municipal Limitations.AllVillagecommitments hereunder are limited to the extent required by law. 387385_4 28 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed on or as of the day and year first above written. VILLAGE OF MOUNT PROSPECT, an Illinois home rule municipal corporationATTEST: By:_______________________________By:________________________ Arlene Juracek,Mayor Karen Agoranos, Deputy Village Clerk ________________________________ a ___________ __________________ By:_______________________________ ________________,its _________ PARK TERRACE MOUNT PROSPECT, LLC By:__________________________ Member By:__________________________ Member 387385_4 29 ACKNOWLEDGMENT State of Illinois) ) SS County of Cook) I, the undersigned, a Notary Public, in and for the County and State aforesaid, DO HEREBY CERTIFY that Arlene Juracek and Karen Agoranos, personally known to me to be the Mayor and Deputy Village Clerk of the Village of Mount Prospect, and personally known to me to be the same persons whose names are subscribed to the foregoing instrument, appeared before me this day in person and severally acknowledged that as such Mayor and Deputy Village Clerk, they signed and delivered the said instrument and caused the corporate seal of said municipal corporation to be affixed thereto, pursuant to authority given by the Board of Trustees of said Illinois home rule municipal corporation, as their free and voluntary act, and as the free and voluntary act and deed of said Illinois home rule municipal corporation, for the uses and purposes therein set forth. GIVEN under my hand and official seal, this _____ day of _______________, 201_. _____________________________________ Notary Public 387385_4 30 ACKNOWLEDGMENT State ofIllinois) ) SS County of Cook) I, the undersigned, a Notary Public, in and for the County and State aforesaid, DO HEREBY CERTIFY that Richard Bondarowicz and Slawomir Miodowski, personally known to me to be the Membersof Park Terrace Mount Prospect LLC , and personally known to me to be the same personswhose names aresubscribed to the foregoing instrument, appeared before me this day in person and severally acknowledged that as such they signed and delivered the said instrument and caused the seal of said limited liability company to be affixed thereto, pursuant to authority given by the members of said limited liability company , as their free and voluntary act, and as the free and voluntary acts and deeds of said limited liability company, for the uses and purposes therein set forth. GIVEN under my handand official seal, this _____ day of _______________, 201_. ________________________________ Notary Public 387385_4 31 EXHIBIT A-1 Prospect and MainTIF District Legal Description THAT PART OF SECTIONS 11 & 12 IN TOWNSHIP 41 NORTH, RANGE 11 EAST AND SECTIONS 33 & 34 IN TOWNSHIP 42 NORTH, RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN, IN COOK COUNTY, ILLINOIS, BOUNDED AND DESCRIBED ASFOLLOWS: BEGINNING AT THE INTERSECTION OF THE EAST LINE OF THE SOUTHEAST QUARTER OF SECTION 12 AFORESAID, BEING ALSO THE CENTER LINE OF MT. PROSPECT ROAD, AND THE SOUTHWESTERLY LINE OF NORTHWEST HIGHWAY, BEING ALSO THE NORTHEASTERLY LINE OF THE CHICAGO & NORTHWESTERN RAILWAY RIGHT OF WAY; THENCE SOUTH ALONG SAID EAST LINE OF THESOUTHEAST QUARTER OF SECTION 12 AND THE CENTER LINE OF MT. PROSPECT ROADTO THE SOUTHWESTERLY LINE OF THE CHICAGO & NORTHWESTERN RAILWAY RIGHTOF WAY, BEING ALSO THE NORTHEASTERLY LINE OF PROSPECT AVENUE; THENCE SOUTHWESTERLYTO THE INTERSECTIONOF THE WEST LINE OF MT. PROSPECT ROAD WITH THE SOUTHWESTERLY LINE OF PROSPECT AVENUE; THENCE NORTHWESTERLYALONG SAID SOUTHWESTERLY LINE OF PROSPECT AVENUE TO THE WEST LINE OF THE EAST 205 FEET OF LOT 1 IN GLEICH’S INDUSTRIAL PARK, A SUBDIVISION OF PART OF THE WEST HALF OF THE NORTHEAST QUARTER AND PART OF THE WEST HALF OF THE SOUTHEAST QUARTER OF SECTION 12AFORESAID; THENCE SOUTH ALONG SAID WEST LINE OF THEEAST 205 FEET OF LOT 1 IN GLEICH’S INDUSTRIAL PARK TO THE SOUTHERLY LINE OFLOT 1 AFORESAID; THENCE NORTHWESTERLY ALONG SAID SOUTHERLY LINE OF LOT 1 IN GLEICH’S INDUSTRIAL PARK TO THE EAST LINE OF SCHOOL STREET; THENCE SOUTH ALONG SAID EAST LINE OF SCHOOL STREET TO THE NORTHEASTERLY LINE OF LINCOLN STREET; THENCE SOUTHEASTERLYALONG SAID NORTHEASTERLY LINE OF LINCOLN STREET AND THE SOUTHEASTERLY EXTENSION THEREOF TO THE EAST LINE OF WILLIAM STREET; THENCE SOUTH ALONG SAID EAST LINE OF WILLIAM STREET TO THE SOUTH LINE OF SHA-BONEE TRAIL; THENCE WEST ALONG SAID SOUTH LINE OF SHA-BONEE TRAIL TO THE EAST LINE OF SCHOOL STREET; THENCE SOUTH ALONG SAID EAST LINE OF SCHOOL STREET TO THE SOUTH LINE OF COUNCIL TRAIL; 387385_4 32 THENCE WEST ALONG SAID SOUTH LINE OF COUNCIL TRAIL TO THE SOUTHERLY EXTENSION OF THE EAST LINE OF LOT 12 IN ELLENDALE, A SUBDIVISION IN THE SOUTHWEST QUARTER OF SECTION 12 AFORESAID; THENCE NORTH ALONG SAID SOUTHERLY EXTENSION AND THE EAST LINE OF LOT 12 IN ELLENDALE TO THE NORTH LINE THEREOF; THENCE WEST ALONG SAID NORTH LINE OF LOT12 IN ELLENDALE TO THE EAST LINE OF LOT 3 IN ELLENDALE AFORESAID; THENCE NORTH ALONG SAIDEAST LINE OF LOT 3 IN ELLENDALE AND THENORTHERLY EXTENSION THEREOF TOTHE NORTH LINE OF MOEHLING DRIVE; THENCE WEST ALONG SAID NORTH LINE OF MOEHLING DRIVE AND THE WESTERLY EXTENSION THEREOF TOTHE WEST LINE OF MAPLE STREET; THENCE NORTH ALONG SAID WEST LINE OF MAPLE STREET TO THE NORTH LINEOF THE SOUTH 270 FEET OF LOT 2 IN ETHEL BUSSE’S SUBDIVISION OF PART OF THE EAST HALF OF THE NORTHWEST QUARTER OF SECTION12 AFORESAID; THENCE WEST ALONG SAID NORTH LINE OF THESOUTH 270 FEET OFLOT 2 IN ETHEL BUSSE’S SUBDIVISION TO THE EAST LINE OF LOTS 35 THRU 42 IN BUSSE’S RESUBDIVISION OF LOT“A” IN BLOCK 11 IN BUSSE & WILLE’S RESUBDIVISION IN MT. PROSPECT AFORESAID; THENCE NORTH ALONG SAID EAST LINE OF LOTS 35 THRU 42 IN BUSSE’S RESUBDIVISION TO THE EAST LINE OF LOT 2 IN MILLER RESUBDIVISION OF LOTS1 TO 3 & 43 IN BUSSE’S SUBDIVISION OF LOT “A”IN BLOCK 11 IN BUSSE & WILLE’S RESUBDIVISION IN MT.PROSPECT AFORESAID; THENCE NORTH ALONG SAID EAST LINE OF LOT2 IN MILLER RESUBDIVISION TO THE SOUTHWESTERLY LINE OF PROSPECT AVENUE; THENCE NORTHWESTERLYALONG SAID SOUTHWESTERLY LINE OF PROSPECT AVENUE TO THE WESTERLY LINE OF LOT 2 IN MILLER RESUBDIVISIONAFORESAID; THENCE SOUTHEASTERLYALONG SAID WESTERLYLINE OF LOT 2 IN MILLER RESUBDIVISION TO A BEND THEREIN; THENCE SOUTH ALONG SAID WESTERLY LINE OFLOT 2 IN MILLER RESUBDIVISION TO THE NORTH LINE OF LOT 3 IN MILLER RESUBDIVISION AFORESAID; THENCE EAST ALONG SAID NORTH LINE OF LOT3 IN MILLER RESUBDIVISION TO THE MOST EASTERLY WEST LINE OF LOT 2 IN MILLER RESUBDIVISION AFORESAID; THENCE SOUTH ALONG SAID MOST EASTERLY WEST LINE OF LOT 2 IN MILLER RESUBDIVISION TO A BEND THEREIN; THENCE SOUTHEASTERLYALONG SAID MOST EASTERLY WEST LINE OF LOT 2 IN MILLER RESUBDIVISIONTO THE EAST LINE THEREOF, AND THE NORTH LINE OF LOT 42 IN BUSSE’S RESUBDIVISION AFORESAID; 387385_4 33 THENCE WEST ALONG SAID NORTH LINE OF LOT42 IN BUSSE’S RESUBDIVISION AND THE WESTERLY EXTENSION THEREOF TO THE WEST LINE OF EMERSON STREET; THENCE NORTH ALONG SAID WEST LINE OF EMERSON STREETTO THE SOUTH LINE OF LOT 11 IN BUSSE’S RESUBDIVISION AFORESAID; THENCE WEST ALONG SAID SOUTH LINE OF LOT11 IN BUSSE’S RESUBDIVISION TO THE EAST LINE OF LOTS 5 THRU 9 IN BLOCK 1 INMEIER’S ADDITION TOMT. PROSPECT IN THE NORTHWEST QUARTER OF SECTION AFORESAID, LYING SOUTH OF THE RIGHT OF WAY OF THE CHICAGO &NORTHWESTERN RAILWAY; THENCE NORTH ALONG SAID EAST LINE OF LOTS 5 THRU 9 IN BLOCK 1 IN MEIER’S ADDITION TO MT. PROSPECT TO THE NORTH LINE OF LOT 5 AFORESAID; THENCE WEST ALONG SAID NORTH LINE OF LOT5 IN BLOCK 1 IN MEIER’S ADDITION TO MT. PROSPECT AND THEWESTERLY EXTENSION THEREOF TO THE WEST LINE OF MAIN STREET; THENCE NORTH ALONG SAID WEST LINE OF MAIN STREET TO THE NORTH LINE OF LOT 24 IN BLOCK 4 IN MEIER’S ADDITION TO MT.PROSPECT AFORESAID; THENCE WEST ALONG SAID NORTH LINE OF LOT 24 IN BLOCK 4 IN MEIER’S ADDITION TO MT. PROSPECT TO THE WEST LINE OF THE 20 FOOT WIDE ALLEY EAST OF WILLE STREET; THENCE NORTH ALONG SAID WEST LINE OF THE20 FOOT WIDE ALLEY EAST OF WILLE STREET TO THE SOUTH LINE OF EVERGREEN AVENUE; THENCE WEST ALONG SAID SOUTH LINE OF EVERGREEN AVENUE TO THEWEST LINE OF WILLE STREET; THENCE NORTH ALONG SAID WEST LINE OF WILLE STREET TO THE SOUTH LINE OF LOT 13 IN BUSSE’S RESUBDIVISION OF LOTS 1 TO6, INCLUSIVE, OF RESUBDIVISIONOF LOTS 1 TO 6, INCLUSIVE, IN BLOCK 4, ALOS OF LOTS 2 & 3 IN BLOCK 5, ALL OF BLOCK 6, LOT 13 TO 24, INCLUSIVE,IN BLOCK 7, LOTS 17TO 20 IN BLOCK 8 ALL IN MEIER’S ADDITION TO MT. PROSPECT IN THE NORTHWEST QUARTEROF SECTION 12 AFORESAID; THENCE WEST ALONG SAID SOUTH LINE OF LOT 13 IN BUSSE’S RESUBDIVISION TO THE WEST LINE OF LOTS 13AND 14 IN BUSSE’S RESUBDIVISION; THENCE NORTH ALONG SAID WEST LINE OF LOTS 13 AND 14 IN BUSSE’S RESUBDIVISION TO THESOUTHWESTERLY LINE OF THE 16 FOOT WIDE ALLEY SOUTHWESTERLY OF PROSPECT AVENUE; THENCE NORTHWESTERLYALONG SAID SOUTHWESTERLY LINE OF THE 16FOOT WIDE ALLEY SOUTHWESTERLY OF PROSPECT AVENUE AND THE NORTHWESTERLY EXTENSION THEREOF TOTHE WEST LINE OF PINE STREET; THENCE NORTH ALONG SAID WEST LINE OF PINE STREET TO THE SOUTHERLYLINE OF THE 16 FOOT WIDE ALLEY SOUTHWESTERLY OF PROSPECT AVENUE; 387385_4 34 THENCE WEST AND NORTHWESTERLY ALONG SAIDSOUTHERLY LINE OF THE 16 FOOT WIDE ALLEY SOUTHWESTERLY OF PROSPECT AVENUE AND THE NORTHWESTERLY EXTENSION THEREOF TOITS INTERSECTION WITH THE SOUTHLINE OF BUSSE AVENUE; THENCE WEST ALONG SAID SOUTH LINE OF BUSSE AVENUE TO THE SOUTHERLY EXTENSION OF THE WEST LINE OF THE 20 FOOT WIDE ALLEY WEST OFELMHURST AVENUE; THENCE NORTH ALONG SAID SOUTHERLY EXTENSION AND THE WEST LINE OF THE 20 FOOT WIDE ALLEY WESTOF ELMHURST AVENUE TO THE SOUTHWESTERLYLINE OF THE 16 FOOT WIDE ALLEY SOUTHWESTERLY OF PROSPECT AVENUE; THENCE NORTHWESTERLYALONG SAID SOUTHWESTERLY LINE OF THE 16FOOT WIDE ALLEY SOUTHWESTERLY OF PROSPECT AVENUE AND THE NORTHWESTERLY EXTENSION THEREOF TOTHE WEST LINE OF I-OKA AVENUE; THENCE NORTH ALONG SAID WEST LINE OF I-OKA AVENUE TO THE SOUTHERLY LINE OF THE 16 FOOT WIDE ALLEY SOUTHWESTERLY OF PROSPECT AVENUE; THENCE WEST AND NORTHWESTERLY ALONG SAIDSOUTHERLY LINE OF THE 16 FOOT WIDE ALLEY SOUTHWESTERLY OF PROSPECT AVENUE AND THE NORTHWESTERLY EXTENSION THEREOF TOTHE WEST LINE OF HI-LUSI AVENUE; THENCE NORTH ALONG SAID WEST LINE OF HI-LUSI AVENUE TO THE SOUTHWESTERLY LINE OF PROSPECT AVENUE; THENCE NORTHWESTERLYALONGSAID SOUTHWESTERLY LINE OF PROSPECT AVENUE TO THE SOUTH LINE OF CENTRAL ROAD; THENCE WEST ALONG SAID SOUTH LINE OF CENTRAL ROAD TO THE EAST LINE OF LOT 8 IN H.ROY BERRY CO.S’ COLONIAL MANOR, ASUBDIVISION OF PARTOF THE NORTHEAST QUARTER OFSECTION 11 AND PART OF THE NORTHWEST QUARTER OF SECTION 12 AFORESAID; THENCE SOUTH ALONG SAID EAST LINE OF LOT8 IN H.ROY BERRY CO.S’ COLONIAL MANOR AND THE SOUTHERLY EXTENSION THEREOF TO THE SOUTH LINE OF THE 16 FOOT WIDE ALLEY SOUTH OF CENTRAL ROAD; THENCE WEST ALONG SAID SOUTH LINE OF THE 16 FOOT WIDE ALLEY SOUTH OF CENTRAL ROAD TO THE WEST LINE OF THE EAST HALF OF THE NORTHEAST QUARTER OF SECTION 11 AFORESAID; THENCE NORTH ALONG SAID WEST LINE OF THEEAST HALF OF THE NORTHEAST QUARTER OF SECTION 11 TO THE SOUTH LINE OF CENTRAL ROAD; THENCE WEST ALONG SAID SOUTH LINE OF CENTRAL ROAD TO THE SOUTHERLY EXTENSION OF THE WEST LINE OF MILLERS LANE; 387385_4 35 THENCE NORTH ALONG SAID SOUTHERLY EXTENSION AND THE WEST LINE OF MILLERS LANE TO THE WESTERLY EXTENSION OF THE SOUTH LINE OF LOT 11 IN MILLERS STATION SUBDIVISION, A RESUBDIVISION OF LOT 1 IN TRADE SERVICE PUBLICATIONS SUBDIVISION AND PART OF THESOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OFSECTION 33 AFORESAID; THENCE EAST ALONG SAID WESTERLY EXTENSION AND THE SOUTHLINE OF LOT 11 IN MILLERS STATION SUBDIVISION AND THE EASTERLY EXTENSION THEREOF TO THE EAST LINE OF CATHY LANE; THENCE NORTH ALONG SAID EAST LINE OF CATHY LANE TO THE EAST LINE OF LOT 12 IN MILLERS STATION SUBDIVISION AFORESAID; THENCE NORTH ALONG SAIDEAST LINE OF LOT 12IN MILLERS STATION SUBDIVISION AND THE NORTHERLY EXTENSION THEREOF TO THE SOUTHWESTERLY LINE OF THE CHICAGO & NORTHWESTERN RAILWAY RIGHT OF WAY; THENCE SOUTHEASTERLYALONG SAID SOUTHWESTERLY LINE OF THE CHICAGO & NORTHWESTER RAILWAY RIGHT OF WAY TO THE EAST LINE OF THE SOUTHEAST QUARTER OF SECTION 33 AFORESAID; THENCE NORTH ALONG THE EAST LINE OF THE SOUTHEAST QUARTER OFSECTION 33 AFORESAID TO THE WESTERLY EXTENSION OF THE NORTH LINE OF HENRY STREET; THENCE EAST ALONG SAID WESTERLY EXTENSION AND THE NORTH LINE OF HENRY STREET TO THE EAST LINE OF FAIRVIEW AVENUE; THENCE SOUTH ALONG SAID EAST LINE OF FAIRVIEW AVENUE TO THE NORTHEASTERLY LINE OF THE 16 FOOT WIDE ALLEY NORTHEASTERLY OF NORTHWEST HIGHWAY; THENCE SOUTHEASTERLYALONG SAIDNORTHEASTERLY LINE OF THE 16 FOOT WIDE ALLEY NORTHEASTERLY OF NORTHWEST HIGHWAYTO THE WEST LINE OFPROSPECT MANOR AVENUE; THENCE EAST PERPENDICULAR TO THE WEST LINE OF FAIRVIEW AVENUE TO THE EAST LINE OF PROSPECT MANOR AVENUE; THENCE SOUTH ALONG SAID EAST LINE OF PROSPECT MANOR AVENUE TO THE NORTH LINE OF WALNUTSTREET; THENCE EAST ALONG SAID NORTH LINE OF WALNUT STREET AND THE EASTERLY EXTENSION THEREOF TOTHE EAST LINE OF RIDGE AVENUE; THENCE SOUTH ALONG SAID EAST LINE OF RIDGE AVENUE TO THE NORTH LINE OF LOT 1 IN FRIEDRICH’SSUBDIVISION OF LOTS4 & 5 IN BLOCK 25 IN PROSPECT MANOR, A SUBDIVISION OF THESOUTH 3/4 OF THE WEST HALF OF THE WEST HALF OF SECTION 34 AFORESAID; THENCE EAST ALONG SAID NORTH LINE OF LOT1 IN FRIEDRICH’S SUBDIVISION TO THE WEST LINE OF ELMHURST AVENUE; 387385_4 36 THENCE NORTH ALONG SAID WEST LINE OF ELMHURST AVENUE TO THE WESTERLY EXTENSION OF THE NORTH LINE OF THE PLAT OF CONSOLIDATION OF THE WEST 70 FEET OF LOTS 1 THRU 10 IN BLOCK 3 AND PART OF BLOCK 4 IN THEERNST BUSSE ADDITION TO MT. PROSPECT IN THE EAST HALF OF THE SOUTHWEST QUARTER OF SECTION 34 AFORESAID; THENCE EAST ALONG SAID WESTERLY EXTENSION AND THE NORTH LINEOF THE PLAT OF CONSOLIDATION TO THE EAST LINE OF LOT1 IN THE PLAT OF CONSOLIDATION AFORESAID; THENCE SOUTH ALONG SAID EAST LINE LOT 1IN THE PLAT OF CONSOLIDATION TO THE NORTH LINE OF CENTRAL ROAD; THENCE EAST ALONG SAID NORTH LINE OF CENTRAL ROAD TO THE EAST LINE OF PINE STREET; THENCE SOUTH ALONG SAID EAST LINE OF PINE STREET TO THE NORTHEASTERLY LINE OF NORTHWEST HIGHWAY; THENCE SOUTHEASTERLYALONG SAID NORTHEASTERLY LINE OF NORTHWEST HIGHWAY TO THE WESTERLY LINE OF LOT 3 INCLOCK TOWER PLACE RESUBDIVISION OF LOTS 18 & 19 AND THE NORTH 22 FEET OFLOT 17 IN BLOCK 2 OF BUSSE & WILDE’S RESUBDIVISION IN MT.PROSPECTTOGETHER WITH LOT “A” IN CORPORATE SUBDIVISION NO. 8 VILLAGE OF MT. PROSPECT AND LOT 1 IN WILLE’S RECONSOLIDATION IN THE NORTHWEST QUARTEROF SECTION 12 AFORESAID; THENCE NORTHEASTERLYALONG SAID WESTERLYLINE OF LOT 3 IN CLOCK TOWER PLACE RESUBDIVISION 38.06 FEET TO A BENDTHEREIN; THENCE EAST ALONG SAID WESTERLY LINE OF LOT 3 IN CLOCK TOWERPLACE RESUBDIVISION 28.07 FEET TO A BEND THEREIN; THENCE NORTHEASTERLYALONG SAID WESTERLYLINE OF LOT 3 IN CLOCK TOWER PLACE RESUBDIVISION 18.61 FEET TO A BENDTHEREIN; THENCE EAST ALONG SAID WESTERLY LINE OF LOT 3 IN CLOCK TOWERPLACE RESUBDIVISION 30.63 FEET TO A BEND THEREIN; THENCE NORTH ALONG SAID WESTERLY LINE OFLOT 3 IN CLOCK TOWER PLACE RESUBDIVISION 65.92 FEET TO THE NORTH LINE THEREOF; THENCE EAST ALONG SAID NORTH LINE OF LOT 3 IN CLOCK TOWER PLACE RESUBDIVISION TO THEWEST LINE OF WILLE STREET; THENCE EAST TO THE EAST LINE OF WILLE STREET AT THE SOUTHWEST CORNER OF LOT 1 IN PROSPECT PLACE PLAT OF RESUBDIVISION OF SUNDRY LOTSAND VACATED ALLEYS OF VARIOUS SUBDIVISIONSIN THE WEST HALF OFTHE NORTHWEST QUARTER OF SECTION 12 AFORESAID; 387385_4 37 THENCE EAST ALONG THE SOUTH LINE OF LOT 1 IN PROSPECT PLACE PLAT OF RESUBDIVISION TO THEEAST LINE THEREOF; THENCE NORTH ALONG SAID EAST LINE OF LOT1 IN PROSPECT PLACE PLAT OF RESUBDIVISION TO THESOUTH LINE OF CENTRAL ROAD; THENCE WEST ALONG SAID SOUTH LINE OF CENTRAL ROAD TO THE SOUTHERLY EXTENSION OF THE WEST LINE OF LOT 1 IN TRAPANI’S RESUBDIVISION OF LOT “A” IN BLOCK 1 IN THE ERNSTBUSSE ADDITION TO MT. PROSPECTAND LOT “A” IN HILLCREST SUBDIVISION IN THE SOUTHWEST QUARTER OF SECTION 34 AFORESAID; THENCE NORTH ALONG SAID SOUTHERLY EXTENSION AND THE WEST LINE OF LOT 1, AND THE WEST LINE OFLOT 2 IN TRAPANI’S RESUBDIVISION AND THE NORTHERLY EXTENSION THEREOF TOTHE NORTH LINE OF HENRY STREET; THENCE EAST ALONG SAID NORTH LINE OF HENRY STREET TO THE EAST LINE OF MAIN STREET; THENCE SOUTH ALONG SAID EAST LINE OF MAIN STREET TO THE NORTH LINE OF CENTRAL ROAD; THENCE EAST ALONG SAID NORTH LINE OF CENTRAL ROAD TO THEEAST LINE OF EMERSON STREET; THENCE SOUTH ALONG SAID EAST LINE OF EMERSON STREET TO THE NORTH LINE OF LOT 13 IN BLOCK 5 INBUSSE & WILLE’S RESUBDIVISION IN MT. PROSPECT IN THE EAST HALF OF THE NORTHWEST QUARTER OF SECTION12 AFORESAID; THENCE EAST ALONGSAID NORTH LINE OF LOT 13 IN BLOCK 5 INBUSSE & WILLE’S RESUBDIVISION IN MT.PROSPECT TO THE EAST LINE THEREOF; THENCE SOUTH ALONG SAID EAST LINE OF LOT13 IN BLOCK 5 IN BUSSE & WILLE’S RESUBDIVISION IN MT.PROSPECT TO THE NORTH LINE OF BUSSE AVENUE; THENCE EAST ALONG SAIDNORTH LINE OF BUSSEAVENUE TO THE EAST LINE OF MAPLE STREET; THENCE SOUTH ALONG SAID EAST LINE OF MAPLE STREET TO THE NORTH LINE OF LOT 9 IN BLOCK 11 INBUSSE & WILLE’S RESUBDIVISION IN MT. PROSPECT AFORESAID; THENCE EAST ALONG SAID NORTH LINE OF LOT 9 IN BLOCK 11 IN BUSSE& WILLE’S RESUBDIVISION IN MT.PROSPECT TO THE EAST LINE THEREOF; THENCE SOUTH ALONG SAID EAST LINE OF LOT9 IN BLOCK 11 IN BUSSE & WILLE’S RESUBDIVISION IN MT.PROSPECT TO THE SOUTH LINE THEREOF; THENCE SOUTHWESTERLYALONG SAID SOUTH LINE OF LOT 9 IN BLOCK11 IN BUSSE & WILLE’S RESUBDIVISION IN MT. PROSPECT TO THE EAST LINE OF LOT 12 IN BLOCK 11 IN BUSSE & WILLE’S RESUBDIVISION IN MT. PROSPECT, BEING ALSOTHE WESTERLY LINE OF VILLAGE COMMONS A PLANNED UNIT DEVELOPMENT OF LOTS 2, 3, 4 & OUT LOT 1 IN TAX INCREMENT FINANCE SUBDIVISION NO. 1, A RESUBDIVISION OF LOTS A & 387385_4 38 B IN THE RESUBDIVISION OF LOTS 2 TO 6, PART OF LOT 1 IN THE SUBDIVISION OF BLOCK 10, LOT 16 IN BUSSE’S SUBDIVISION,LOTS 13 TO 15 IN BLOCK 11 & PART OF BLOCK 9 IN BUSSE & WILLE’S RESUBDIVISIONIN MT. PROSPECT IN THE NORTHWEST QUARTER OF SECTION 12 AFORESAID; THENCE SOUTH ALONG SAID WESTERLY LINE OFVILLAGE COMMONS A PLANNED UNIT DEVELOPMENT 172.45 FEET TO A BEND THEREIN; THENCE WEST ALONG SAID WESTERLY LINE OF VILLAGE COMMONS A PLANNED UNIT DEVELOPMENT 4.63 FEET TO A BEND THEREIN; THENCE SOUTH ALONG SAID WESTERLY LINE OFVILLAGE COMMONS A PLANNED UNIT DEVELOPMENT 147.65 FEET TO A BEND THEREIN; THENCE SOUTHWESTERLYALONG SAID WESTERLYLINE OF VILLAGE COMMONS A PLANNED UNIT DEVELOPMENT TO THE NORTHEASTERLY LINE OF NORTHWEST HIGHWAY; THENCE SOUTHEASTERLYALONG SAID NORTHEASTERLY LINE OF NORTHWEST HIGHWAY TO THE NORTHWESTERLY LINE OF LOT1 IN TAX INCREMENT FINANCE SUBDIVISION NO. 1, ARESUBDIVISION OF PARTS OF BLOCKS 9, 10 & 11IN BUSSE & WILLE’S RESUBDIVISION IN THE NORTHWEST QUARTER OF SECTION 12AFORESAID; THENCE NORTHEASTERLYALONG SAID NORTHWESTERLY LINE OF LOT 1 IN TAX INCREMENT FINANCE SUBDIVISION NO. 1 TO THE NORTHEASTERLY LINE THEREOF; THENCE SOUTHEASTERLYALONG SAID NORTHEASTERLY LINE OF LOT 1 IN TAX INCREMENT FINANCE SUBDIVISION NO. 1 TO THE NORTH LINE OF LOTA IN GEORGE R. BUSSE’S RESUBDIVISION OF PART OF BLOCK 9IN BUSSE & WILLE’S RESUBDIVISION IN THE NORTHWEST QUARTER OF SECTION 12 AFORESAID; THENCE EAST ALONG SAID NORTH LINE OF LOTA IN GEORGE R. BUSSE’S RESUBDIVISION AND THE EASTERLY EXTENSIONTHEREOF TO THE EASTLINE OF SCHOOL STREET; THENCE SOUTH ALONG SAID EAST LINE OF SCHOOL STREET TO THE NORTH LINE OF THE SOUTH HALF OF LOT 33 IN MT. PROSPECT SUBDIVISION INSECTION 12 AFORESAID; THENCE EAST ALONG SAID NORTH LINE OF THESOUTH HALF OF LOT 33 IN MT. PROSPECT SUBDIVISIONAND THE EASTERLY EXTENSION THEREOF TO THE EAST LINE OF THE 16 FOOT WIDE ALLEY EAST OF SCHOOLSTREET; THENCE SOUTH ALONG SAID EAST LINE OF THE16 FOOT ALLEY EAST OF SCHOOL STREET TO THE NORTH LINE OF LOT 1 IN BRUCE’S RESUBDIVISION IN MT. PROSPECT OF LOTS 22 TO 27 IN BLOCK 20 IN MT. PROSPECT SUBDIVISION IN SECTION 12 AFORESAID; THENCE EAST ALONG SAID NORTHLINE OF LOT 1 IN BRUCE’S RESUBDIVISION IN MT. PROSPECT AND THE EASTERLY EXTENSION THEREOF TO THE EAST LINEOF OWEN STREET; 387385_4 39 THENCE SOUTH ALONG SAID EAST LINE OF OWEN STREET TO THE NORTHWESTERLY EXTENSION OF THE NORTHEASTERLY LINE OF THE 16 FOOT WIDE ALLEY NORTHEASTERLY OF NORTHWEST HIGHWAY; THENCE SOUTHEASTERLYALONG SAID NORTHWESTERLY EXTENSION AND THE NORTHEASTERLY LINE OF THE 16 FOOT WIDE ALLEY NORTHEASTERLY OF NORTHWEST HIGHWAY AND THE SOUTHEASTERLY EXTENSION THEREOF TOTHE EAST LINE OF LOUIS STREET; THENCE SOUTH ALONG SAID EAST LINE OF LOUIS STREET TO THE NORTHERLY LINE OF THE 16 FOOT WIDE ALLEY NORTHEASTERLY OF NORTHWEST HIGHWAY; THENCE EAST AND SOUTHEASTERLY ALONG SAIDNORTHERLY LINE OF THE 16 FOOT WIDE ALLEY NORTHEASTERLY OF NORTHWEST HIGHWAY ANDTHE SOUTHEASTERLY EXTENSION THEREOF TOTHE EAST LINE OF EDWARDS STREET; THENCE SOUTH ALONG SAID EAST LINE OF EDWARDS STREET TO THE NORTH LINE OF LINCOLN STREET; THENCE EAST ALONG SAID NORTH LINE OF LINCOLN STREET TO THE NORTHERLY EXTENSION OF THE EAST LINE OF LOT 1 IN OLIVER’S RESUBDIVISION OF LOTS 12 & 13 IN H. ROY BERRY COMPANY’S MAPLEWOOD HEIGHTS (EXCEPT THE SOUTHERLY 66 FEET FOR ROAD) ALSO BLOCK 26 IN BUSSE’S EASTERN ADDITION TO MT. PROSPECT IN THE EAST HALF OF SECTION 12 AFORESAID; THENCE SOUTH ALONG SAID NORTHERLY EXTENSION AND THE EASTLINE OF LOT 1 IN OLIVER’S RESUBDIVISION TO THE NORTHEASTERLY LINE OF THE 16 FOOT WIDE ALLEY NORTHEASTERLY OF NORTHWEST HIGHWAY; THENCE SOUTHEASTERLYALONG SAID NORTHEASTERLY LINE OF THE 16FOOT WIDE ALLEY NORTHEASTERLY OF NORTHWEST HIGHWAY TO THE EAST LINE OF GEORGE STREET; THENCE NORTH ALONG SAID EAST LINE OF GEORGE STREET TO THE NORTH LINE OF LOT 17 IN MAPLEWOOD HEIGHTS, A SUBDIVISION NORTH OF THE RAILROAD IN THE DIVISION OF THE SOUTHEAST QUARTER OF SECTION 12 AFORESAID; THENCE EAST ALONG SAID NORTH LINE OF LOT17 IN MAPLEWOOD HEIGHTS TO THE EAST LINE THEREOF; THENCE SOUTH ALONG SAID EAST LINE OF LOT17 IN MAPLEWOOD HEIGHTS TO THE NORTHEASTERLY LINE OF THE 16 FOOT WIDE ALLEY NORTHEASTERLY OF NORTHWEST HIGHWAY; THENCE SOUTHEASTERLYALONG SAID NORTHEASTERLY LINE OF THE 16FOOT WIDE ALLEY NORTHEASTERLY OF NORTHWEST HIGHWAYTO THE WEST LINE OFLOT 65 IN MAPLEWOOD HEIGHTS AFORESAID; THENCE NORTH ALONG SAID WEST LINE OF LOT65 IN MAPLEWOOD HEIGHTS TO THE NORTH LINE THEREOF; 387385_4 40 THENCE EAST ALONG SAID NORTH LINE OF LOT65 IN MAPLEWOOD HEIGHTS AND THE EASTERLY EXTENSION THEREOF TO THE EAST LINE OF THE SOUTHEASTQUARTER OF SECTION 12 AFORESAID, BEING ALSO THE CENTER LINE OF MT. PROSPECT ROAD; THENCE SOUTH ALONG SAID EAST LINE OF THE SOUTHEAST QUARTER OF SECTION12 AFORESAID, BEING ALSO THE CENTER LINE OFMT. PROSPECT ROAD, TO THE SOUTHWESTERLY LINE OF NORTHWEST HIGHWAY,BEING ALSO THE NORTHEASTERLY LINE OF THE CHICAGO & NORTHWESTERN RAILWAY RIGHT OF WAY, ANDTHE POINT OF BEGINNING; EXCEPTING THEREFROM THAT PART OF LOT 1 IN DESIDERATA SUBDIVISION OF BLOCK 1 IN BUSSE & WILLE’S RESUBDIVISION IN MT.PROSPECT IN SECTION12 AFORESAID, LYINGNORTH OF A LINE DESCRIBED AS FOLLOWS: BEGINNING ON THE WEST LINE OF SAID LOT 1AT POINT246.07 FEET SOUTH OF THE NORTHWEST CORNER THEREOF; THENCE EAST PERPENDICULAR TO THE WEST LINE OF SAID LOT 1, A DISTANCE OF 67.34 FEET; THENCE NORTHEASTERLYALONG A LINE DRAWN PERPENDICULAR TO THE SOUTHWESTERLY LINE OF LOT 1, A DISTANCE OF 65.76 FEET; THENCE EAST PERPENDICULAR TO THE WEST LINE OF SAID LOT 1, A DISTANCE OF 55.38 FEET TO THE MOST WESTERLY EAST LINE OF SAID LOT 1, ANDTHE POINT OF TERMINUS OF SAID LINE; ALSO EXCEPTING THEREFROM ALL OF VILLAGE CENTRE PHASE 1-B PLAT OF RESUBDIVISION OF LOTS6, 7, 8, 9 IN BLOCK 13 IN BUSSE & WILLE’S RESUBDIVISION IN MT. PROSPECT AND PARTS OF LOTS 8, 9, 10 IN BLOCK 15IN MT. PROSPECT SUBDIVISION IN SECTION 12 AFORESAID; IN COOK COUNTY, ILLINOIS. 387385_4 41 EXHIBIT A-2 Prospect and MainTIF DistrictMap 387385_4 42 EXHIBIT B Legal Description ofthe Property Park Terrace being a resubdivision of North 200 feet of the East 210 feet of the West 237 feet of Block 4 in Ernst Busse’saddition to Mount Prospect a subdivision in the Southeast Quarter of Section 34, Township 42 North Range 11 East of the Third Principal Meridian, in Cook County, Illinois P.I.N.:03-34-320-054-0000, 03-34-320-053-0000 Common Address:15-19 N. Elmhurst Avenue Mount Prospect, IL 60056 387385_4 43 EXHIBIT C Site Plan for the Project 387385_4 44 EXHIBIT D Description of the Project The project consists of two, six-unit luxury rowhome buildings and associated site improvements. 387385_4 45