Summary: Resolution to approve of a Downtown Grant Agreement to allow for improvements to the Batavia Library District Facility.

Transcription

1 CITY OF BATAVIA DATE: April 10, 2015 TO: Committee of the Whole-CD FROM: Bill McGrath, City Administrator Scott Buening, Community Development Director SUBJECT: Resolution R Authorizing Execution of a Downtown Grant Agreement with the Batavia Library District Summary: Resolution to approve of a Downtown Grant Agreement to allow for improvements to the Batavia Library District Facility. Background: The City was approached by representatives of the Batavia Library District regarding various improvements they are planning to make at their site on Batavia Avenue and Wilson Street. They indicated that they were looking to make various improvements to the building and grounds, and that they were seeking assistance from the TIF District to assist in these efforts. The Library is located on the entirety of TIF #2, and is adjacent to TIF #3. TIF #2 does not generate any tax increment because all the properties in that TIF are tax exempt. However, tax increment can be transferred between contiguous TIF districts. The Library indicated that they would like to receive a TIF grant for some of the improvements being made. Their request was for reimbursement up to $100,000 for these improvements. The City can reimburse the Library for qualified TIF improvement. Items that rehabilitate the building façade, signage, public improvements, stairway improvements and architectural or engineering costs may all be reimbursed. The Library would provide funding for the rest of the project which would be around $1,000,000 in total. This amount would be reimbursed to the Library upon completion of the relevant portions of the project. Alternatives: a. Pros- Approval of the Resolution would provide funding to assist the Library in completing their renovation project using funds that would have otherwise been generated by property taxes if the TIF was not established. The renovation may attract more people to the downtown area thus generating sales for existing businesses. b. Cons- The funding for this project would use funds that would have gone towards other streetscape or redevelopment projects. No new TIF revenues will be generated directly by this project. c. Budget Impact- This grant will reduce the revenues in the TIF #3 fund by $100,000, and will not be recaptured by additional increment or property taxes. However, this is similar to streetscape projects that do not directly generate additional incremental property taxes.

2 d. Staffing Impact- No staffing impact. Timeline for actions: The Library is looking to begin this project as soon as possible, and building permits are under review currently. They would like the grant decision to be made prior to starting work. Staff recommendation: Staff recommends approval of Resolution R Authorizing Execution of a Downtown Grant Agreement with the Batavia Library District. Attachments: 1. Resolution R Authorizing Execution of a Downtown Grant Agreement with the Batavia Library District. 2. Downtown Grant Agreement with the Batavia Library District. Cc: Mayor & City Council File

3 CITY OF BATAVIA, ILLINOIS RESOLUTION R AUTHORIZING EXECUTION OF A DOWNTOWN GRANT AGREEMENT WITH THE BATAVIA PUBLIC LIBRARY DISTRICT FOR A PUBLIC IMPROVEMENT WHEREAS, the City has established tax increment financing redevelopment areas within the downtown of the City in order to stimulate growth; and WHEREAS, among other projects, the City has invested in public infrastructure, not only under the jurisdiction of the City such as including streets, water, sewer, and sidewalks, but public infrastructure under the jurisdiction of other local government entities such as the Batavia Park District with investments in a pedestrian bridge and bicycle path, the Batavia Riverwalk and the Bond Center; and WHEREAS, the Batavia Public Library District ( District ) constructed a library facility (Library) located in TIF #2, otherwise known as the Batavia Junior High Redevelopment Area, which is contiguous to TIF #3, otherwise known as the Batavia Downtown Redevelopment Area; and WHEREAS, the City Council FINDS that the siting and construction of the Library within TIF 2 furthers the purpose and intent of both TIF 2 and TIF 3 in that it locates a major institution in the downtown area of the City, which facility draws thousands of residents and other visitors to the downtown; and WHEREAS, the District is currently spending approximately $1,000,000 to refurbish the exterior of the Library; and WHEREAS, the District contemplates widening a certain stairway connecting the public sidewalk to the Library premises, particularly, its reading garden, said widening referred to as Project Improvements ) and the cost of which is approximately $100,000; and WHEREAS, the City Council hereby FINDS that the Project Improvements further the purposes and intents of both TIF 2 and TIF 3, in that they help secure the downtown as the location for government institutions, helps create a safer, attractive pedestrian environment, will help the downtown develop a distinctive image and identity, strengthen the downtown residential function by making better connections with in the downtown, and, as said improvements to the public property are planned to occur at the same time as extensive work on the Library building itself, as well as maintenance of certain railings, concrete, pillars and landscaping, leverages the funds spent by both units of government to the benefit of the community; and WHEREAS, the City is authorized under the provisions of the Tax Increment Allocation Redevelopment Act, Sections et seq., of Ch. 24, 111. Rev. Stat., as amended (the "Act"), to finance redevelopment in accordance with the conditions and requirements set forth in the Act, including the authority to make and enter into agreements with other taxing bodies within the district necessary or incidental to the implementation and furtherance of its redevelopment plan and project, and to assist with renovation or rehabilitation or construction of public property within the development area; and WHEREAS, the parties have negotiated an agreement by which the City would reimburse the District Page 1 of 2 Excluding Exhibit 1

4 in an amount up to $100,000 for completion of the Project Improvements, a copy of which is attached hereto as Exhibit 1 and made a part hereof; and WHEREAS, the City Council Finds that it is in the best interest of the city to enter into such agreement; NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council of the City of Batavia, Kane and DuPage Counties, Illinois, as follows: SECTION 1: The recitals set forth above are incorporated herein as materials facts and a material component of this Resolution. SECTION 2: The Mayor and City Clerk are hereby authorized to execute the Downtown Redevelopment Grant Agreement attached hereto as Exhibit 1 on behalf of the City, and to take whatever other actions are necessary and appropriate to carry out the provisions thereof. PRESENTED to and PASSED by the City Council of the City of Batavia, Illinois, on the 6th day of April, APPROVED by me as Mayor of said City of Batavia, Illinois, on the day of April, Jeffery D. Schielke, Mayor Ward Aldermen Ayes Nays Absent Abstain Aldermen Ayes 1 O'Brien Fischer Nays Absent Abstain 2 Callahan Wolff 3 Hohmann Chanzit 4 Saam Stark 5 Botterman Thelin 6 Cerone Clark 7 McFadden Brown Mayor Schielke VOTE: Ayes Nays Absent Abstention(s) counted as Total holding office: Mayor and 14 aldermen ATTEST: Heidi Wetzel, City Clerk Page 2 of 2 Excluding Exhibit 1

5 DOWNTOWN IMPROVEMENT GRANT AGREEMENT (Batavia Public Library, Tax Increment Financing District 2) This Agreement made this day of, 2015, by and between the City of Batavia, an Illinois municipal corporation, ("City"), and Batavia Public Library District an Illinois Municipal Corporation ("Library"). R EC I T A L S A. The City has the authority to promote the health, safety and welfare of the City and its inhabitants, to prevent the spread of blight and to encourage private development in order to enhance the local tax base and create employment, and to enter into contractual agreements with third parties, including public entities, for the purpose of achieving the aforesaid purposes. B. By means of Ordinance , the City adopted the Junior High Development Plan and Project, and later established a Tax Increment Development area, otherwise referred to as TIF 2. C. The Batavia Public Library, an Illinois municipal corporation, following establishment of TIF 2, took title to the property commonly known as TIF 2, and since that time has constructed a public library, with attendant amenities including parking lots, patios, walkways and in particular a certain stairway which connect to the public sidewalk at the Southwest corner of Wilson Street and Water Street in the City. D. TIF 2 is adjacent to another Tax Increment Redevelopment area commonly known as TIF 3, created in E. Due to the limited funding of said Library, said stairway is only 4 wide at the top of the stairway, and bears no signage identifying it as leading to the library or its reading garden. In combination with the change in elevation in that area, this narrowness serves to block the public s view of the library plaza adjacent thereto, and is a visual deterrent to people contemplating use of said stairway and entry which also leads to an external book drop-off. F. Widening said stairway to a minimum of 8 at the top, and installing appropriate signage would benefit those using the downtown in that it would give them a shorter route to the library, its parking lots as well as the book return. It would also enhance a direct pedestrian connection from the public walk to the library reading garden, and promote the use thereof by more of the public. Said improvements are hereinafter referred to as the Project Improvements. G. The Batavia Public Library has requested to enter into an Agreement with the City by which the City would reimburse it approximately $100,000 in tax increment funding from TIF 3 to assist with the Project Improvements; 1

6 H. The City Council hereby FINDS: 1. that the siting and construction of the Batavia Public Library within TIF 2 furthers the purpose and intent of TIF 3 in that it locates a major institution in the downtown area of the City, which facility draws thousands of residents and other visitors to the downtown. 2. that the Project Improvements further the purposes and intents of both TIF 2 and TIF 3, in that it maintains the downtown as the location for government institutions, helps create a safer, attractive pedestrian environment, will help the downtown develop a distinctive image and identity, strengthen the downtown residential function by making better connections with in the downtown, and, as said improvements to the public property are planned to occur at the same time as extensive work on the Library building itself, as well as maintenance of certain railings, concrete, pillars and landscaping, leverages the funds spent by both units of government to the benefit of the community. I. The estimated cost of the Project Improvements is approximately $100,000. The estimated cost of other improvements to the Library which are outside the purview of this Agreement is approximately $1 million dollars. J. The City is authorized under the provisions of the Tax Increment Allocation Redevelopment Act, Sections et seq., of Ch. 24, 111. Rev. Stat., as amended (the "Act"), to finance redevelopment in accordance with the conditions and requirements set forth in the Act. This includes the power to make and enter into agreements with other taxing bodies within the district necessary or incidental to the implementation and furtherance of its redevelopment plan and project, and to assist with renovation or rehabilitation or construction of public property within the development area. K. For the purpose of paying a portion of the costs of the Project Improvements, the City Council contemplates a grant of up to $100,000 to the Batavia Library District upon completion of the improvements to the stairway and signage. FOR AND IN CONSIDERATION of the mutual covenants described above and the agreements contained below, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: I INCORPORATION OF RECITALS The recitations set forth in the foregoing recitals are material to this Agreement and are hereby incorporated into and made a part of this Agreement as though they were fully set forth in this Section I, and this Agreement shall be construed in accordance therewith. 2

7 II 2.01 The Library shall be governed by, adhere to and obey any and all applicable federal, state and local laws, statutes, ordinances, rules, and regulations applicable to the Project Improvements as may be in effect from time to time, including the ordinances referred in the recitals to this agreement The Library shall proceed diligently to carry out the construction of the Project pursuant to the plans and permits to be issued by the City. III CITY'S COVENANTS 3.01 The City represents and warrants that it has authority under Illinois Statutes to execute and deliver and perform the terms and obligations of this Agreement. In no event shall the City be liable for more than $100,000 total cumulative costs. The parties acknowledge that the Library would not move forward with the Project, nor would the Project Improvements occur without the payments toward the Project Improvement costs made by the City under this Agreement, to the detriment of the City and its goals for downtown redevelopment. IV 4.01 Compliance with Laws. The Project Improvements shall be constructed in accordance with the requirements of this Agreement and shall be in conformity with all applicable laws, ordinances and regulations. V COMPLETION After completion of the construction of the Project Improvements in accordance with this Agreement, the issuance by the City of its approval of the Project Improvements shall be a conclusive determination of satisfaction with respect to the obligations of the Library. VI 6.02 Permit Fees. City agrees that the Library shall be obligated to pay, in connection with the construction of the Development, only those building, permit, engineering, right of way and inspection fees that are assessed on a uniform basis throughout the City for governmental entities pursuant to the Batavia Municipal Code and are of general applicability to other property within the City. 3

8 VII PROJECT IMPROVEMENTS 7.01 Library Authorized to Construct Certain Project Improvements. In order to further the development of the Redevelopment Project Area, City hereby authorizes Library, acting under the authority of City, to cause the Project Improvements to be constructed in accordance with this Agreement and the plans and specifications approved by the City pursuant to Section IV, part of the costs of which shall be reimbursed to Library under the conditions set forth in this Agreement Bid Requirement. All construction work shall be performed pursuant to competitive bidding or requests for proposals to be conducted by the Library. The City shall have the right to inspect all bids or proposals submitted. Library shall enter into a contract with approved contractor(s) in accordance with this Agreement to design and build said Project. The contract shall provide for payment in accordance with this Agreement Separate Invoice Requirement. To assist with implementation of this Agreement, Library shall require its contractors to prepare invoices in such a manner that invoices presented for reimbursement by the City contain only charges for Project improvements qualified to be reimbursed under this agreement. VIII USE OF MULTIPLE CONTRACTORS 8.01 Notwithstanding anything to the contrary herein contained, Library has the right to enter into separate contracts for the Project Improvements. XI DISBURSEMENT AND OBLIGATIONS 9.01 Source of Funds for Payment of City s Contribution to Project Costs On March 15, 2004, the City adopted City of Batavia Ordinance 04-10, entitled "Ordinance Adopting Tax Increment Financing for the City of Batavia, Kane and DuPage Counties, Illinois, In Conjunction with the Designation of the Riverfront Tax Increment Finance District ", (the "Real Estate Tax Increment Ordinance"). The Real Estate Tax Increment ordinance provides, in part, that ad valorem taxes, if any, arising from the levies upon taxable real property in the Redevelopment Project Area by taxing districts and tax rates determined in the manner provided in Sections (c) of the Act, for each year after the effective date of the Real Estate Tax Increment Ordinance until the obligations issued in respect to the Redevelopment Project Area have been paid, or the termination of the TIF district by operation of law, whichever occurs earliest, which are attributable to the increase in the current equalized assessed valuation of each lot, block, tract or parcel of real property in the Redevelopment Project Area as certified by the Kane County Clerk, all as provided in Sections and of the Act (hereinafter the "Real Estate Tax Increment") shall be allocated to and when collected shall be paid to the County Collector who shall deposit the Real Estate Tax Increment in a special fund entitled Batavia TIF District No. 1" (the "Special Fund") for the purpose of paying redevelopment project costs and obligations incurred by the City. As of the date of this Agreement, the City has available on deposit in the Special Fund, the full amount of $100,000. 4

9 The parties agree that tax increment allocation financing implemented in accordance with the terms and provisions of the Act shall be a source of City funding for its portion of the costs of Project Improvements Payments to Library. The City shall pay a sum not to exceed $100,000, that sum to be known as the Total City Contribution. The Total City Contribution shall be in the form of a grant, and shall be paid upon certification by the City that the Project Improvements have been constructed in conformance with the plans and specifications approved by the City, and that the costs thereof have been fully paid, and all liens and claims relating thereto have been released. X LIBRARY RESPONSIBILITY FOR PAYMENT Beyond City s payment to Library of its share of Project Improvements costs, Library agrees to pay all costs for the Project Improvements as may be required for completion. XI LIBRARY RESPONSIBILITY FOR PREVAILING WAGE COMPLIANCE Library acknowledges that any work performed in connection with the Project Improvements under this Agreement must be in compliance with the Illinois Prevailing Wage Act ( Act ), and that each contract, subcontract and or invoice or purchase order ( in the event there is no contract) contain the requirement that all work done under that contract and any subsidiary contracts must be done in compliance with said Act, including the obligation to furnish monthly certified payroll records as required by the Act. XII PERFORMANCE Time of the Essence. It is understood and agreed by City and Library that time is of the essence of this Agreement, and that all parties shall make every reasonable effort to expedite the subject matters hereof. It is further understood and agreed that the successful consummation of this Agreement shall require the continued cooperation of City and Library. Whenever the consent or approval of City is required in order for Library to accomplish the purposes and intent hereof, such consent shall not be unreasonably withheld or unduly delayed. If such consent or approval is denied, such denial shall be in writing, and shall specify the reason or reasons for such denial Delay. For the purposes of any of the provisions of this Agreement, neither the City nor Library, as the case may be, nor any successor in interest, shall be considered in breach of, or default in, its obligations under this Agreement in the event of any delay caused by damage or destruction by fire or other casualty, strike, shortage of material, unusually adverse weather condition such as, by way of illustration and not limitation, severe rain storms or below freezing temperatures of abnormal degree or quantity for an abnormal duration, tornadoes or cyclones and other like event or condition beyond the reasonable control of the party affected which in fact interferes with the ability of such party to discharge the respective 5

10 obligations hereunder; nor shall either the City or Library be considered in breach of, or default in its obligations under this Agreement in the event of a delay resulting from the conduct of any judicial, administrative or legislative proceeding or caused by litigation or proceedings challenging the authority or right of the City to act under the Redevelopment Plan, any of the ordinances, or perform under this Agreement. The City shall diligently contest any such proceedings and any appeals therefrom. The City may settle a contested proceeding at any point, so long as the settlement results in the City's ability to perform pursuant to this Agreement and so long as any such settlement does not impose additional obligations on Library or increase its obligations under this Agreement, unless by agreement with the Library. Provided, however, that the party seeking the benefit of the provisions of this Section shall, within ten (10) days after the beginning of any such enforced delay, have first notified the other party thereof in writing, and of the cause or causes thereof, and requested an extension for the period of the enforced delay Inspection Rights. Any previously identified and agreed upon duly authorized representative of the City, at all reasonable times during normal business hours, shall have access at his/her sole risk to the Property for the purpose of confirming Library s compliance with the Agreement. XIII INDEMNITY Library hereby agrees to indemnify, defend and hold the City harmless from and against any losses, costs, damages, liabilities claims, suits, actions, causes of action and expenses (including without limitation, reasonable attorneys' fees and court costs) suffered or incurred by the City arising from or in connection with (i) the failure of Library to perform its obligations under this Agreement or (ii) the failure of Library or any contractor to pay contractors, subcontractors, or materialmen in connection with the Project Improvements, including payment in compliance with the Illinois Prevailing Wage Act or (iii) material misrepresentations or omissions in the Redevelopment Plan, this Agreement or any financing documents related thereto which are the result of information supplied or omitted by the Library or by agents, employees, contractors, or persons acting under the control or at the request of the Library, or (iv) the failure of Library to cure any misrepresentations or omissions in this Agreement or any other agreement relating hereto. XIV CITY'S RIGHT TO AUDIT LIBRARY S BOOKS AND RECORDS Library agrees that the City shall have the right and authority to review and audit, from time to time, Library s such books and records as relate to the Project Improvements (including Library s general contractor's sworn statements, general contracts, subcontracts purchase orders, waivers of lien, paid receipts and invoices and any documentation required for compliance with the Illinois Prevailing Wage Act) in order to confirm that the City s Funds are or have been expended for purposes of undertaking the Project Improvements. Library agrees to incorporate the City's right to audit books and records as described herein into all contracts entered into by Library with respect to the Project Improvements. 6

11 XV RESTRICTIONS Library agrees for itself, its successors and assigns, and every successor in interest to the Property, or any part thereof, that Library and its successors and assigns shall: (a) install the improvements which constitute the Project Improvements by December 31, 2015; and (b) not discriminate based upon race, color, religion, sex, national origin or ancestry, age or handicap, in the sale, lease or rental, or in the use or occupancy of the Property or any improvements located or to be erected thereon, or any part thereof. XVI AMENDMENT This Agreement, and any exhibits attached hereto, may be amended only by the mutual consent of the parties by the adoption of an ordinance or resolution of the City approving said amendment, as provided by law, and by the execution of said amendment by the parties or their successors in interest. XVII CONSENT Except as otherwise provided in this Agreement, whenever herein consent or approval of either party is required, such consent or approval shall not be unreasonably withheld. XVIII EQUAL EMPLOYMENT OPPORTUNITY Library, for itself and its successors, assigns, contractors, subcontractors, tenants and lessees, agrees that until the final approval for the Project Improvements is issued (a) Library shall not knowingly discriminate against any employee or applicant for employment related directly to Project Improvements because of race, religion, color, sex, age, mental or physical disability, national origin or ancestry, sexual orientation, marital status, parental status, military discharge status or source of income, and (b) Library shall include the provisions of Section XVIII (a), in every contract, and shall require the inclusion of these provisions in every subcontract entered into by any of its contractors, so that such provision will be binding upon each such contractor, or sub-contractor, tenant or subtenant as the case may be. 7

12 XIX MUTUAL ASSISTANCE The Parties agree to take such actions, including the execution and delivery of such documents, instruments, petitions and certifications, as may be necessary or appropriate to carry out the terms, provisions and intent of this agreement. XX MISCELLANEOUS PROVISIONS Remedies Cumulative. The remedies of a party hereunder are cumulative and the exercise of any one or more of the remedies provided for herein shall not be construed as a waiver of any of the other remedies of such party unless specifically so provided herein Disclaimer. Nothing contained in this Agreement or any act of the City, shall be deemed or construed by any of the parties, or by third persons, to create any relationship of third-party beneficiary, or of joint venture, or of any association or relationship involving the City Notices. All notices, certificates, approvals, consents or other communications desired or required to be given hereunder shall be in writing and shall be sufficiently given on the date hand delivered or on the second day following the day on which the same shall have been mailed by registered or certified mail, postage and fees prepaid, return receipt requested addressed as follows: If to City: With Copies to: If to Library: With Copies to: Mr. William McGrath City of Batavia 100 North Island Avenue Batavia, IL Mr. Kevin Drendel 111 Flinn St. Batavia, Il Mr. George Scheetz Batavia Public Library District 10 S Batavia Ave. Batavia, IL Roger Ritzman 2029 Chatham Drive Wheaton, IL

13 The parties, by notice given hereunder, may designate any further or different addresses to which subsequent notices, certificates, approvals, consents or other communications shall be sent Paragraph Headings. The paragraph headings and references are for the convenience of the parties and are not intended to limit, vary, define or expand the terms and provisions contained in this Agreement and shall not be used to interpret or construe the terms and provisions of this Agreement Counterparts. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same agreement Severability. If any provision of the Agreement, or any paragraph, sentence, clause, phrase or word, or the application thereof, in any circumstance, is held invalid, the remainder of the Agreement shall be construed as if such invalid part were never included herein and the Agreement shall be and remain valid and enforceable to the fullest extent permitted by law. XXI TERM OF THIS AGREEMENT This Agreement shall terminate, and the Library s obligations under this agreement shall cease at the termination of the Riverfront Tax Increment Project Area or approval by the City of completion of the Project Improvements, which comes first. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on or as of the day and year first above written. CITY Of BATAVIA BY: Jeffery D. Schielke, Mayor ATTEST: Heidi Wetzel, City Clerk BATAVIA PUBLIC LIBRARY. BY: ATTEST: 9