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Home My WebLink About7.3 A Resolution Authorizing the Execution of an Intergovernmental Agreement with the VMP, District 214 and the Mount Prospect Park DistrictBoardDocs® Pro Page I of 2 Agenda Item Details Meeting Apr 17, 2018 - REGULAR MEETING OF THEM UT PROSPECT VILLAGE BOARD - 7:00 p.m. Subject 7.3 A RESOLUTION AUTHORIZING THE EXECUTION OF AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT, HIGH SCHOOL DISTRICT 214 AND THE MT. PROSPECT PARK DISTRICT REGARDING THE MOUNT PROSPECT PROSPECT AND MAIN TAX INCREMENT FINANCING DISTRICT Access Public Type Action Preferred Date Apr 17, 2018 Absolute Date Apr 17, 2018 Recommended Action Approve an intergovernmental agreement between the Village of Mount Prospect, High School District 214 and the Mt. Prospect Park District regarding the Mount Prospect Prospect and Main Tax Increment Financing District, and to authorize the Mayor and Village Clerk to execute the agreement. Public Content As previously summarized to the board in Memorandum by Klein, Thorpe and Jenkins, Ltd (Corporation Counsel) of March 29, 2018, the draft settlement agreement for the School District 214 TIF litigation has been circulated and approved by all parties in principle. It is expected that the High School District 214 Board will formally approve the agreement its regular meetims" on April 12, 2018. The Mt. Prospect Park District, which is a party to the litigation on the side of the Village, is scheduled to approve the agreement at a Park District Board meeting on April 25, 2018. 1 Triplicate originals will be executed as authorized the various boards as the agreement is approved. The essence of the agreement is that the Village will begin declaring 100% of the EAV of properties that were previously in a TIF District as surplus beginning with the execution of the agreement, with the exception of the key parcels needed for success of the goals of the TIF. The Village will retain all increment generated by these key parcels. All other properties in the new TIF are also unaffected. In return, the School District will dismiss the pending litigation challenging the TIF with prejudice. Alternatives 1. Approve an intergovernmental agreement between the Village of Mount Prospect, High School District 21 and the Mt. Prospect Park District regarding the Mount Prospect Prospect and Main Tax Increment Financing, District, and to authorize the Mayor and Village Clerk to execute the agreement. 2. Action at discretion of Village Board. I Staff Recommendation https://www.boarddocs.com/il/vomp/Board.nsf/Private?open&login 6/12/2018 BoardDocs® Pro Page 2 of 2 Staff recommends the Board approve the intergovernmental agreement between the Village of Mount Prospect, High School District 214 and the Mt. Prospect Park District regarding the Mount Prospect Prospect and Main Tax Increment Financing District, and authorize the Mayor and Village Clerk to execute the agreement. )1�ZA1F ".'[GA SIIIl...:III III III.�.�.�.�.. IIIIII III'IIN��-�-�--III �-�-�-�� 1.,. '.3 �.:::: :::: I.,.,.,.,. [GA d 2".11A. (002) df (I.A. K[3) A �1 [:: N 4 2 8 d �f ( 4 7 0 K Administrative Content Executive Content Motion & Voting Approve an intergovernmental agreement between the Village of Mount Prospect, High School District 214 and the Mt. Prospect Park District regarding the Mount Prospect Prospect and Main Tax Increment Financing District, and to authorize the Mayor and Village Clerk to execute the agreement. Motion by Michael Zadel, second by Paul Hoefert. Final Resolution: Motion Carries Yea: William Grossi, Eleni Hatzis, Paul Hoefert, Richard Rogers, Colleen Saccotelli, Michael Zadel https://www.boarddocs.com/il/vomp/Board.nsf/Private?open&login 6/12/2018 AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT, HIGH SCHOOL DISTRICT 214 AND THE MOUNT PROSPECT PARK DISTRICT REGARDING THE MOUNT PROSPECT PROSPECT AND MAIN TAX INCREMENT FINANCING DISTRICT THIS INTERGOVERNMENTAL AGREEMENT entered into as of the last date of signature hereto, between the VILLAGE OF MOUNT PROSPECT, a municipal corporation ("Village"), HIGH SCHOOL DISTRICT 214 and the MOUNT PROSPECT PARK DISTRICT (which are referred to individually by each's respective name, and which are collectively referred to as the "Taxing Districts"). The Village and the Taxing Districts are individually referred to as a "Party" and collectively referred to as the "Parties." RECITALS WHEREAS, pursuant to Ordinance Numbers 6293, 6294 and 6295, adopted January 17, 2017, the Village approved a tax increment redevelopment plan and project, designated the tax increment redevelopment project area and adopted tax increment financing relative to the Village's Prospect and Main Tax Increment Financing District ("Prospect and Main TIF District"); and WHEREAS, the Prospect and Main TIF District consists of the property legally described and depicted in EXHIBITS A-1 and A-2, respectively, attached hereto and made part hereof ("Redevelopment Project Area"); and WHEREAS, on June 19, 2017, High School District 214 filed a lawsuit against the Village, entitled Board of Education of Township High School District No. 214 v. 3930322 1 Village of Mount Prospect, 2017 CH 08478, which is pending in the Circuit Court of Cook County ("Lawsuit"); and WHEREAS, High School District 214 alleges in the Lawsuit that the Prospect and Main TIF District does not qualify for designation as a tax increment financing district under the Illinois Tax Increment Allocation Redevelopment Act ("TIF Act"), 65 ILCS 5/11-74.4-1, et seq.; and WHEREAS, the Village denies the allegations of High School District 214 in the Lawsuit, and the Mount Prospect Park District intervened in the Lawsuit and denies the allegations of High School District 214 in the Lawsuit, and both the Village and the Mount Prospect Park District have defended the validity of the designation of the Prospect and Main TIF District as a tax increment financing district under the TIF Act in the Lawsuit; and WHEREAS, portions of the Redevelopment Project Area are properties among those included in the Village's Downtown Tax Increment Financing District, as identified in EXHIBIT B, attached hereto and made part hereof (collectively the "Subject Properties"), which Downtown Tax Increment Financing District has been dissolved; and WHEREAS, the Taxing Districts have no objection to the creation or inclusion of the Subject Properties within the Redevelopment Project Area, provided that incremental real estate tax revenues received by the Village, pursuant to the Prospect and Main TIF District, in relation to the Subject Properties, are, on an annual basis, declared surplus revenues pursuant to Section 7 of the TIF Act, 65 ILCS 5/11-74.4-7; and DRAFT 393032_2 2 DIZAI'l" u um WHEREAS, the Constitution of the State of Illinois, 1970, Article VII, Section 10, authorizes units of local government and school districts to contract or otherwise associate among themselves in any manner not prohibited by law or by ordinance; and WHEREAS, the Intergovernmental Cooperation Act, 5 ILCS 220/1, et seq., provides that any power or powers, privileges or authority exercised or which may be exercised by a unit of local government or school district may be exercised and enjoyed jointly with any other units of local government or school districts; and WHEREAS, Section 4(b) of the TIF Act, 65 ILCS 5/11-74.4-4(b), authorizes municipalities to enter into contracts with overlapping taxing bodies necessary or incidental to implementing or maintaining a tax increment financing redevelopment plan and/or project; and WHEREAS, the Parties desire to resolve the issues presented in the Lawsuit, and that dismissal of the Lawsuit with prejudice is appropriate given the terms of this Agreement; and WHEREAS, the Parties have determined that it is in their respective best interests to enter into this Agreement; NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants and agreements herein contained, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by all the Parties hereto, the Parties hereto agree as follows: 1. RECITALS. The recitals set forth above are hereby incorporated herein by reference as though fully set forth herein. 393032_2 3 2. SURPLUS DECLARATION. The Village shall, as of the Effective Date (as defined in Section 9 below) and during the life of the Prospect and Main TIF District, upon receipt of the incremental real estate tax revenues generated by the Subject Properties each year, declare said incremental real estate tax revenues generated by the Subject Properties as surplus, as defined in 65 ILCS 5/11-74.4-7 ("Surplus Revenue") 3. SURPLUS PAYMENT. In accordance with Section 7 of the TIF Act, 65 ILCS 5/11-74.4-7, the Village shall annually pay said the Surplus Revenue to the Cook County Collector. In regard thereto, partial payments of the Surplus Revenue shall be made by the Village to the Cook County Collector within thirty (30) days of the receipt by the Village of any incremental real estate tax revenue payments, relative to the Prospect and Main TIF District, from the Cook County Treasurer. After payment of Surplus Revenue, the Parties anticipate that, pursuant to Section 7 of the TIF Act, 65 ILCS 5/11- 74.4-7, as of the Effective Date: The County Collector shall thereafter make distribution to the respective taxing districts in the same manner and proportion as the most recent distribution by the county collector to the affected districts of real property taxes from real property in the redevelopment project area. 4. SUCCESSORS. This Agreement shall be binding upon the Parties hereto and their successors. 5. INTEGRATION. This Agreement represents the entire agreement between the Village and the Taxing Districts regarding the subject matters hereof. No amendment, waiver or modification of any term or condition of this Agreement shall be binding or effective for any purpose unless expressed in writing and adopted by each of 3930322 4 the Parties as required by law. No express or implied covenants or representations have been made concerning the subject matter of this Agreement unless expressly stated herein. Any prior written or oral negotiations not contained in this Agreement are of no force or effect whatsoever. In signing this Agreement, the Parties have not and do not rely on any statements, inducements, promises, or representations made by any other Party hereto or the agents, representatives, or attorneys or any Party with regard to the subject matter, basis, or effect of this Agreement, except those specifically set forth in this Agreement. 6. RELEASES AND WAIVERS. A. Except for obligations arising under this Agreement, High School District 214, and its successors, assigns, insurers and representatives of any kind and all other persons, firms, or corporations that may claim a right in the Lawsuit on behalf of High School District 214 unconditionally release and forever discharge the Village, and its agents, employees, elected and appointed officials, and attorneys, and the Mount Prospect Park District, and its agents, employees, elected and appointed officials, and attorneys, liable or who might be claimed to be liable, from any and all claims, demands, damages, attorney's fees, expenses, costs, actions, causes of action or suits of any kind or nature whatsoever that could have been alleged by High School District 214 in the Lawsuit. The release given by High School District 214 herein includes all past, present, and future claims, whether known or unknown, relating in any manner to the subject matter of the Lawsuit. High School District 214 intends that the releases given by it herein be construed as broadly as possible, in accordance with the terms above. 393032,2 5 B. Except for obligations arising under this Agreement, the Mount Prospect Park District, and its successors, assigns, insurers and representatives of any kind and all other persons, firms, or corporations that may claim a right in the Lawsuit on behalf of the Mount Prospect Park District unconditionally release and forever discharge the Village, and its agents, employees, elected and appointed officials, and attorneys, and High School District 214, and its agents, employees, elected and appointed officials, and attorneys, liable or who might be claimed to be liable, from any and all claims, demands, damages, attorney's fees, expenses, costs, actions, causes of action or suits of any kind or nature whatsoever that could have been alleged by the Mount Prospect Park District in the Lawsuit. The release given by the Mount Prospect Park District herein includes all past, present, and future claims, whether known or unknown, relating in any manner to the subject matter of the Lawsuit. The Mount Prospect Park District intends that the releases given by it herein be construed as broadly as possible, in accordance with the terms above. C. Except for obligations arising under this Agreement, the Village, and its successors, assigns, insurers and representatives of any kind and all other persons, firms, or corporations that may claim a right in the Lawsuit on behalf of the Village unconditionally release and forever discharge the Mount Prospect Park District, and its agents, employees, elected and appointed officials, and attorneys, and High School District 214, and its agents, employees, elected and appointed officials, and attorneys, liable or who might be claimed to be liable, from any and all claims, demands, damages, attorney's fees, expenses, costs, actions, causes of action or suits of any kind or nature whatsoever that could have been alleged by the Village in the Lawsuit. 393032,2 6 DRAFT The release given by the Village herein includes all past, present, and future claims, whether known or unknown, relating in any manner to the subject matter of the Lawsuit. The Village intends that the releases given by it herein be construed as broadly as possible, in accordance with the terms above. D. The Taxing Districts, and their respective successors, assigns, insurers and representatives of any kind and all other persons, firms, or corporations that may claim a right in the Lawsuit on their behalf, by their execution and approval of this Agreement, hereby waive, unconditionally release and forever forgive any and all right to set aside, modify or contest in any manner the creation of the Prospect and Main TIF District, including, but not limited to, the redevelopment plan and project, the Redevelopment Project Area, and any redevelopment agreements or professional services agreements as now or hereafter constituted or entered into by the Village related to the Prospect and Main TIF District. Notwithstanding the foregoing, the Taxing Districts shall fully retain their rights to contest in any manner permitted by law any amendments to the Prospect and Main TIF District and/or the administration of the Prospect and Main TIF District to the extent contrary to the TIF Act, any other applicable law or this Agreement. Nothing contained herein shall be construed to give the Taxing Districts any right to participate in the administration of the Prospect and Main TIF District. 7. DISMISSAL. High School District 214 shall dismiss the Lawsuit with prejudice, with the parties thereto to bear their own costs, within ten (10) days of the Effective Date. 393032_2 7 8. SEVERABILITY AND NO WAIVER. If any section, subsection, sentence, clause or phrase of this Agreement is for any reason held to be invalid, such decision or decisions shall not affect the validity of the remaining portions of this Agreement. The failure of any Party to enforce any provision in this Agreement shall not be construed as a waiver of any such provision, or prevent such Party thereafter from enforcing such provision or any other provision of this Agreement. 9. EFFECTIVE DATE. This Agreement shall be effective when approved by the Village of Mount Prospect Village Board and the governing boards of each of the Taxing Districts, and after its execution by the Village and the Taxing Districts (the "Effective Date"). 10. TERM. This Agreement will remain in effect until the dissolution of the Prospect and Main TIF District. 11. COUNTERPARTS. That this Agreement shall be executed in a sufficient number of counterparts so that each Party hereto shall receive an original signature copy hereof. [THIS SPACE INTENTIONALLY LEFT BLANK — SIGNATURE PAGE FOLLOWS] 3930322 8 IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their authorized officials. VILLAGE OF MOUNT PROSPECT By: Mayor Date: ATTEST: Clerk MOUNT PROSPECT PARK DISTRICT 22 Date: ATTEST: President Secretary 393032_2 9 HIGH SCHOOL DISTRICT 214 By: President Date: ATTEST: Secretary EXHIBIT A-1 MOUNT PROSPECT PROSPECT AND MAIN TIF DISTRICT LEGAL DESCRIPTION (attached) �rmrvh, VMpiRsrrr�, i�u�im wu. M��mkP I Br u. 4gr�r� 393032_2 10 !""')RAFI 4110l(.',for EXHIBIT A-2 MOUNT PROSPECT PROSPECT AND MAIN TIF DISTRICT MAP (attached) 3930322 11 EXHIBIT B LIST OF SUBJECT PROPERTIES (attached) 393032_2 12 I)RAW1, OUIUIU� . . ................... -..- Parcel Identification ............ . . .......... Number Address 03-34-331-018-0000 2-38 N. MAIN ST 08-11-204-015-0000 310 W. NORTHWEST HW 08-11-204-016-0000 302 W. NORTHWEST HW 08-11-204-017-0000 301 W. CENTRAL RD 08-12-100-007-0000 201 W. CENTRAL RD 08-12-100-008-0000 4 S. PINE ST 08-12-100-013-0000 200-230 W. NORTHWEST HW 08-12-100-015-0000 10 S. PINE ST 08-12-100-016-8001 10 S. PINE ST 08-12-100-016-8002 10 S. PINE 08-12-101-023-0000 106-110 W. NORTHWEST HW 08-12-103-014-0000 30 S. EMERSON ST 08-12-103-017-0000 30 S. EMERSON ST 08-12-103-019-0000 12 E. BUSSE AV 08-12-103-020-0000 50 S. EMERSON ST 08-12-103-021-0000 50 S. EMERSON ST 08-12-103-025-0000 30 S. EMERSON ST 08-12-103-026-0000 50 S. EMERSON ST 08-12-103-027-0000 12 E. BUSSE AV 08-12-103-028-0000 10 S. EMERSON ST 08-12-103-031-0000 50 S. EMERSON ST 08-12-103-032-0000 50 S. EMERSON ST 08-12-104-009-0000 19 S. EMERSON ST 08-12-104-010-0000 21 S. EMERSON ST 08-12-110-031-0000 200 E. EVERGREEN AV 08-12-115-001-0000 0 08-12-115-005-0000 320 E. NORTHWEST HW 08-12-115-006-0000 320 E. NORTHWEST HW 08-12-116-006-0000 330 E. NORTHWEST HW 08-12-214-061-0000 406-408 E. NORTHWEST HW 08-12-214-062-0000 406-408 E. NORTHWEST HW 08-12-214-063-0000 406-408 E. NORTHWEST HW 08-12-214-065-0000 422 E. NORTHWEST HW 08-12-214-066-0000 410 E. NORTHWEST HW 393032_2 13 RESOLUTION NO. A RESOLUTION AUTHORIZING THE EXECUTION OF AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT, HIGH SCHOOL DISTRICT 214 AND THE MT. PROSPECT PARK DISTRICT REGARDING THE MOUNT PROSPECT PROSPECT AND MAIN TAX INCREMENT FINANCING DISTRICT WHEREAS, this Intergovernmental Agreement (the "Agreement) is made and entered into by and between High School District 214, Cook County, Illinois, the Mt. Prospect Park District and the Village of Mount Prospect, a municipal corporation; and WHEREAS, both the 1970 Illinois Constitution (Article VII, Section 10) and the Intergovernmental Cooperation Act (5 ILCS 220/1 et seq.) authorize and encourage intergovernmental cooperation; and WHEREAS, this agreement directs the Village of Mount Prospect to declare 100% of the Equalized Assessed Value of properties that were previously in a TIF District as surplus with the exception of key parcels; and WHEREAS, the key parcels, needed for success of the goals of the TIF, will retain all increment generated by these key parcels. NOW THEREFORE, BE IT RESOLVED by the Mayor and Board of Trustees of the Village of Mount Prospect, pursuant to Article VII, Section 10 of the 1970 Constitution of the State of Illinois and the Intergovernmental Cooperation Act, 5 ILCS 220/1 through 5 ILCS 220/9: SECTION ONE: That the Board of Trustees do hereby authorize the Village of Mount Prospect to enter into an Intergovernmental Agreement Between the Village of Mount Prospect, High School District 214 and the Mt. Prospect Park District Regarding the Mount Prospect Prospect and Main Tax Increment Financing District SECTION TWO: That the Mayor is authorized to sign the agreement and the Village Clerk to attest, attached and made part of this Resolution as Exhibit "A". SECTION THREE: That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided by law. /_\'/NK NAYS: ABSENT: PASSED and APPROVED this 17th day of April, 2018 Arlene A. Juracek Mayor ATTEST: Karen M. Agoranos Village Clerk