HomeMy WebLinkAboutRESOLUTIONS-1993-072-R-935/17/93
5/18/93
5/19/93
6/17/93
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A Resolution
Concerning Conceptual Approval of
City's Proposed Financial
Participation in Redevelopment
of Washington National Site
WHEREAS, in connection with redevelopment of the
Washington National Insurance site at 1660 Chicago Avenue
("Project"), the Church and Chicago Limited Partnership submitted
an application for a planned unit development; and
WHEREAS, the Planning and Development Committee of the
City Council has considered the application, submitted documents,
and testimony; and
WHEREAS, the City Council has determined that the
approval of the aforesaid planned unit development is in the best
interests of the City; and
WHEREAS, certain agreements and understandings between
the City and the Developer, The John Buck Company, need to be
reached to allow predevelopment and financing efforts to proceed;
WHEREAS, the Economic Development Committee has
discussed and conceptually approved a proposal by the John Buck
Company for City financial participation in the Project (Attached
as Exhibit A and incorporated herein)
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
72-R-93
THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS:
SECTION 1: The City Council accepts in concept the
following proposal:
ECONOMIC DEVELOPMENT PROGRAM
A. Capital Contribution
$3;500,000 provided from T.I.F. bond issue for site
preparation and public infrastructure benefits (e.g.,
building demolition, on -site roadway to reduce queuing,
public sidewalk improvements, etc.)
B. Payment Priorities Upon Condominium Conversion, Sale or
Transfer of the Property or Distribution of Capital
In the event of conversion of rental apartments to
condominium ownership or the sale or transfer of the
property, or the distribution of any capital proceeds,
the proceeds from sale, transfer or distribution shall
be distributed as available in the following
priorities:
1. Payment of all costs of conversion.
2. Return of all New Private Capital.
3. Return of all New Private Capital providing a 15%
internal rate of return.
4. Return of $3.5 million capital contribution to the
City.
5. Payment of $250,000 to Housing Fund
6. Payment of remaining proceeds as follows:
• City at 20%
• Developer at 80%
SECTION 2: In response to issues raised by the Economic
Development Committee when it recommended conceptual approval of
the proposal, the City Manager will work with the Developer to
clarify the following:
a) The definition of "costs of condominium conversion";
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72-R-93
b) The steps the Developer will take to effect the
conversion from rental units to condominiums;
SECTION--3: That the City Manager will retain a
consultant to address issues of feasibility identified at the May
61 1993 Economic Development Committee Meeting. The consultant
will make a written report to be provided to the Economic
Development Committee and City Council before final action by the
City Council on the Project.
SECTION 4: Within nine months of approval of this
Resolution, it is expected that City Council consideration of
this Project will be completed.
SECTION 5: The City Manager is authorized to proceed
with the necessary studies, analyses, etc. in order to establish
a tax increment finance district.
SECTION 6: The City Manager is authorized to negotiate
a Redevelopment Agreement in accordance with said business points
and to provide said Redevelopment Agreement to the Economic
Development Committee and City Council.
SECTION 7: This Resolution shall be in full force
and effect from and after the date of its passage and approval in
the manner provided by law.
ATTE Mayof
Ci Clerk
Adopted: 1993
Y/"'�
3
EXHIBIT A
1660 CHICAGO AVENUE
Evanston, Illinois
ECONOMIC DEVELOPMENT PROPOSAL*
5105/93' 8
This Economic Development Proposal for the 1660 Chicago Avenue project outlines the
economic parameters needed to allow the projects predevelopment and financing efforts to
Proceed. Presented herein are the economic outline and several specific deal points which must
be incorporated in the redevelopment agreement.
ECONOMIC DEVELOPMENT PROGRAM
A. Capital Contribution
$3.500,000
Sa--�� provided from T.I.F. bond issue for site preparation and public infrastructure
benefits (e.g., building demolition, on -site roadway to reduce street queuing, public
sidewalk improvements, etc.)
i ine-of-&edit • j ' w i _ 1L"4 itte&.trJ-tl' V rdfM
• tramaunt-aeean-be
drawn-enneftRy
•-�`.�::ba'. dry-$�ae�nt-�en�et•ejceeed-ine��ntal-takes-rer�raining�f::,. Yu, .......t�-
�f-� -F. y,;,l..;pat•- -interest-arrd pay,,,cnr-C&tWL-re2± estaTL-taxes-ltB,-nar
,,.,,�;1�1 ,11.,1��� a„a;laLl� f,V,,, ,c,,,a;,,;l,r� LaA ►,►.,,c,,,c„►)
• AFL exceed-di£€er-ern ryyqe*I-estate taxes aid -and
�1�°/�-ofj.ravi �v(.:rS ss n-vemres-(. ;—VrVJ"c�.L Jay-12/o-mi,&imiu11, real-estate
`• I"
• ,i li�lat+v8-total (be€eFe-
salculation-ofsimp�e-:.f..... �.:, :.....)
• -reaehing-m imes; ne-mExie-ifrterestcomputed-
* Appropriate sections have been deleted or added to this Exhibit, consistent
with the action of City Council on June 14, 1993.
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1660 CHICAGO AVENUE 5/05/93
ECONOMIC DEVELOPMENT PROGRAM
Page Two
C. Payment Priorities Upon Condominium Conversion
In the event of conversion of rental apartments to condominium ownership, proceeds from
sale will be distributed as available in the following priorities:
1. Payment of all costs of conversion
2. Return of all New Private Capital
3. Return on all New Private Capital providing a 15% internal rate of return
$3.5 million to the City
4. Return -on-end of {pfeperieffaf*l l@ -70/w-per7annwn-simple-
• 0ity* Line -of-Credit{from-dat�offnnziing�
• -3„ ...l. , -. -Eontributet}E-quity'of 34,35 00 6t�i ��arF oT"cons ucfionj-
€a¢ a3033m11-irnrrepaymnf a23fi1F,888a}3it�atiiii'�ufior�j
• limper-@-�o°f�-$9-minitstr
5. IV $250,000 to Housing Fund
6. XK - City @ 20%
• Developer @ 80%
Item 1 provides for the payment of the costs of converting the property to condominiums
including any capital improvement costs needed to consolidate units, as well as
transaction, marketing, and financing costs.
Item 2 provides for the return of all New Private Capital employed for the project
including the initial development costs, as well as fundings of future operating deficits,
capital improvements, etc.
Item 3 provides for distribution sufficient to provide a 15% internal rate of return on the
New Private Capital employed for the project The calculation of this distribution
recognizes any earlier net cash flows from property operations prior to the conversion.
1660 CHICAGO AVENUE
ECONOMIC DEVELOPMENT PROGRAM
Page Three
5/05/93
$3.5 million TIF proceeds.
Item 4 provides for the return to the City of any -aa t&4miAm.undw:
d-tc� e.-DavetopeF-e�-its- -Ceatr b ted-F t�;-ea•-a-basi�pr-epo;tioaate4o-*w.
ctnst}a:�+,, y, es�provided-with iirten�-at 7%pef�eat,-simple.
ThL'tX'Velvper 114Z tt"QJZ4yt�matile.-ertyt-.#ZgUCJI� � izdu-.UUtii the Liu--V1-eredir
llla.\1111 LL1U, iV D*,P00-,0ftin-cum tat'ive draw : TIIITcouth Ues-t+6"bL—a-m-qj I-e1=ent-of
4 evepesal-and-any-€uFtheF-feduetiea-c-euaat-be--aec-epted.
JtM4-pF0;ides-%r the�et�ua-to-the-Gii3�-0f-tbe �A' ' rapital_coatrihutec�&our.
he m--bOITW-preeeeds-Vlds--an ft"i{ionel-retasr- element, all -an-s-prepeftienste-basis
witlr-the-C--itygetting-36° oftional-rtl{ellar-until•-receiving-aa-tot1-
taal-of-S3;000•,99
Atso�vided-providedlyt4111 1V Llly Dy�ylV'tJyl For E41,. 11JkJ ,4nchnfingconstiaction
wM-leasing}-that-contimt,--ta�berne•4y-gie-Develeperand-projeetimresters-
5
Item fit provides for the next $250,000 to be distributed to the Housing Fund.
6
Item 1provides for all proceeds remaining at this point to be distributed 20% to the City
and 80% to the Developer.
*c*aehed-ire--two--r*ms-ladies -low-4ve-Eeerrerfrie-l•}eve}apnretrt-�regr'art�-mill-�perate-
-eneehenie&lly,;- ieeludi'ng--th net-�i�rium- �-pmeeeds-Jundef
conversion JyGual sw 111 ,i Zna C and-irr'Yem 1-1-}:
OTHER PROGRAM ELEMENTS
Housine Fund
Upon receipt of the occupancy permit for the project, the Developer will contribute $50,000 to
the Housing Fund. Also note that a payment of $250,000 to the Housing Fund has been provided
in the Payment Priorities Upon Condominium Conversion.
MBE/WBFJEBE
The Developer agrees to pursue an affirmative action plan for the construction of the project
similar in scope to other MBE/WBE/EBE programs implemented in the City of Evanston.
Streetscaoe
The property will coordinate its public sidewalk treatments with the downtown program being
pursued through Evmark.
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I660 CHICAGO AVENUE 5/05/93
ECONOMIC DEVELOPMENT PROGRAM
Page Four
OTHER ISSUES AGREED IN PRINCIPLE
Anin.tbitity,-af-E- Rmet
T+ris-agreement must-be-assignable-ortm-ferfrabie-- te &new-ewner— The-Gitr4wa sttggested-thK
att-s�i�-t�r tr�tsfer;Zhis ..�„�, oL: utd-btrvttided-mTd- kar zil abtigadons-msuhhyg-franrsaid
=nsacticroshatztd-b�triad �c}ralE-fi�-,-tegaytnerrt-of y.,:..,,�at£-ityFarti..lraL:v1.).
��{L. Wl`V►1�l\r .la 1V' 4►V ,.fri`V,'VlJ N1. JBE�noL �.` JV�xry o.7sets-i-. V W v- ,,- L CHV.
Hcrw6 V %;.►, l..the'Merrttltat-'dl%. rr.vj-ect cr'pw tnen neeedtoTal,.. atTrt-thevventof 1►c...r{i.11ut.
allc. 1r,111Q1 atic.saylJ iV tall,. l ..k d,.. aJJG�, YV►.11il`, dlL UC,lblr.l.�...t Y.%Jul1 h"vY J/sla.i.Vaaut
negative zrrrpactorthe-value-Oftke pr0pertq7-1i1iT-C1e21townersi12'p him- 1Q'
Way" to 2,1., �1iCie l,y.l,l,lf'ta-their yw:l;.... a..1 " Sitrratian-to-++-lending .,.,.....w lhai'71'r6te3'tt
impossiihicto-.1:...4.A.;,-the-transaetiort.
�sbe�rld-€t}�e�-be-�e���l�-tba-�CTi�s-or�gi��re�ise was-ta-pesitio�-seUce�ta-
Participate-Twarr, .;,.1,%Firrthe-event ofconversion-14mDeveleper obligations weeld transfer-
to-timfQ-in -the -everrt-that-tlre-property-r.s ..,;.: ta�orrtiorniitit:ms--3-ttis potentia�-
abfigaL.,.. l...Yacts-the-w-Atte-of-tl.., et reduced sa e-val=-Nan-
transferability ofthis-2.5.co.....Frertders�fie-fr$ttsseticxr-t t€etraneeable-
itfTf?tRRt}@R-tt�-rJtRfiET�-�R�iESr�-��e�R�}9iF•
I�-is-gessibl$�t-�e-b�ildi�g-v�l-§e-c�erat�d.asaaaz�l-:��:�s-€a�a��ea�e�ed�a�ied--�-
tttatr't- Y. d. Of-crrr�bligatibn-to-�epap-the-Linn-of-Eredit�o--the-E-ity-,-irr
Carnbination WLdI a viopefty-facing-signifli..al.l o&t.,catt creator a-passibii.ty d..L die"Eityls-ciaint
exceedr+e--net-valtre-of-the -developer-E�trity-frr-tlte-httildi�tg- As tch;-wirer the-o ne
Efedit�esehe��ts-rtre�c��ruia-��a{RteFest-�e�e-Lime-e€�re�-a��re�evelope��eat�bttte�
Equity will lea flu'.oll �.vu'�. ualolady. Tl.L. w oyllilatAr- tv all ValiabJ a1.1 a.V11J a W%J&K .-t J,t144aaV..
pba..7 l..�nt
New Private Capital to Aid the Pmiect
The original New Private Capital (estimated at approximately S32•S33 million) may require an
additional infusion as the project leases up or in the event of a capital improvement resulting
from emergencies or building deterioration. In order to attract this additional private capital, it
must be in a position at least equal to the New Private Capital. This must be included in the
agreement.
Sense! P -
Th. as..,..111en-tmztst-incinde-wroutside-date-fbrr�teezz, iinatiiorr-2eyyears-yewsthe-r-r...►ttj
�w�VlVrwl �.41a a•w lvilCJws dra on Yle�aa.V V. �wT dallirlV ,llt'V,�rIt N!l Y!V
i✓i11t�f�redit a..1 d.;. £... �.:L.rted L.i..:t, -vrii��l...a�,w. La-cabcniatech-