HomeMy WebLinkAboutRESOLUTIONS-2010-019-R-10•
2/17/2010
19-R-10
A RESOLUTION
Authorizing the City Manger to Execute a Letter of Agreement with
Robert L. Canel for the Sale of Real Estate Transfer Tax Stamps and
the Issuance of Real Estate Transfer Tax Exemptions
WHEREAS, the ability to sell City of Evanston real estate transfer tax
stamps and issue real estate transfer tax exemptions provided for by Title 3, Chapter 29
of the Evanston City Code of 1979, as amended, in downtown Chicago would be a
service to the numerous property sellers and buyers who would find it convenient to
purchase such stamps and obtain such exemptions there; and
WHEREAS, Robert L. Canel has offered to sell City of Evanston real
• estate transfer tax stamps and issue real estate transfer tax exemptions at his office
located in downtown Chicago; and
WHEREAS, Robert L. Canel has represented to the City that he is
experienced in the sale of real estate transfer tax stamps and the issuance of real
estate transfer tax exemptions; and
WHEREAS, an Agreement with Robert L. Canel providing for the sale of
City of Evanston real estate transfer tax stamps and the issuance of real estate transfer
tax exemptions is in the best interests of the citizens of Evanston;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS:
SECTION 1: That the City Manager is hereby authorized and directed to
• sign, and the City Clerk is hereby authorized and directed to attest on behalf of the City
19-R-10
of Evanston, a Letter of Agreement between the City of Evanston and Robert L. Canel
for the sale of City of Evanston real estate transfer tax stamps and the issuance of real •
estate transfer tax exemptions, a copy of which is attached hereto as Exhibit A and
incorporated herein by reference.
SECTION 2: That the City Manager is hereby authorized and directed to
negotiate any additional terms of the Agreement as may be determined to be in the best
interests of the City.
SECTION 3: That this Resolution 19-R-10 shall be in full force and effect
from and after its passage and approval in the manner provided by law.
Eliza eth B. Tisdahl, Mayor
Attest:
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Rodn Gree0e, City Clerk
Adopted: , 2010
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19-R-10
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Exhibit A
Letter of Agreement between the
City of Evanston and Robert L. Canel
February 17, 2010 •
Letter of Agreement between the
City of Evanston and Robert L. Canel for the
Sale of Real Estate Transfer Stamps and the
Issuance of Real Estate Transfer Tax Exemptions
THIS AGREEMENT is entered into this day off A... h 2010, by
and between the City of Evanston, an Illinois municipal corporation (the "City"),
located at 2100 Ridge Avenue, Evanston, Illinois, and Robert L. Canel ("Canel"), an
individual; and
WHEREAS, the City of Evanston has found it desirable to be able to sell
its real estate transfer tax stamps and to issue real estate transfer tax exemptions at a
location in downtown Chicago; and
WHEREAS, Robert L. Canel has offered to sell City of Evanston real estate
transfer tax stamps and issue real estate transfer tax exemptions at his office in •
downtown Chicago; and
WHEREAS, Robert L. Canel has represented to the City of Evanston that
he is experienced in selling real estate transfer tax stamps and issuing real estate
transfer tax exemptions; and
WHEREAS, the City Council of the City of Evanston has authorized the
City Manager to execute this Letter of Agreement by Resolution 19-R-10,
NOW, THEREFORE, the City of Evanston and Robert L. Canel agree
as follows:
1. The foregoing recitals are found as fact and made a part hereof.
2. That transactions for the sale of City of Evanston real estate transfer tax stamps
and the issuance of City of Evanston real estate transfer tax exemptions shall be
conducted at Canel's office located at Stewart Title Company, 2 North LaSalle Street, •
Suite 1400, Chicago, Illinois 60602, during regular office hours, 9:00 a.m. to 4:00 p.m.
• 3. That the City will provide Canel with its real estate transfer tax stamps and
other articles required for the issuance of said stamps and exemptions. Canel will
maintain all such articles in a secure location and will allow no one else to use
them. Canel will return all such articles to the City Clerk promptly upon
termination of this Agreement for any reason and as a condition to City payout of
his final compensation.
4. That Canel shall be compensated at the rate of fifteen dollars ($15.00) per
transaction involving the issuance of City of Evanston real estate transfer tax
stamps or exemptions. The City will pay Canel on a monthly basis by check issued
within five (5) days after City Council approval of each payment application
submitted by Canel.
5. That the City Clerk will provide Canel with training in the issuance of City
of Evanston real estate transfer tax stamps and exemptions. Canel will issue said
stamps and exemptions in accordance with Title 3, Chapter 29 of the Evanston
City Code of 1979, as amended, attached hereto as Exhibit #1 and incorporated
herein by reference.
6. That Canel shall accept no cash from real estate transfer tax applicants. All
payments therefor must be by check or money order made payable to the
• "City of Evanston".
7. That Canel shall transmit all real estate transfer tax funds, applications, and
related information to the City Clerk, no less often than once each -week, by
reliable delivery service at the City's expense. The City Clerk and Canel shall agree
on a schedule for such transmissions, which they may modify.
8. The City will indemnify Canel, his successors and heirs, for any loss or
damage to Canel and the Stewart Title Company and Canel arising out of or in
connection with the grant of this Agreement. The City will not indemnify Canel or
the Stewart Title Company and Canel for any wrongful or negligent acts of Canel,
their officers, agents, or employees.
9. That the parties agree to a trial period of ninety (90) days, beginning on
'-MLQ)LC%_� 9 , 2010. If neither party terminates this Agreement by giving five (5)
business days notice thereof, in writing, effective no later than ,L'111.��_, 2010,
said Agreement shall remain in force until terminated as provi for herein.
10. That this -Agreement may be terminated by either party upon a written
notice forty-five (45) days prior to said termination provided, however, that either
Is material
terminate this Agreement upon five (5) days' written notice in the event of
material breach or for Canel's inability to perform under this Letter of Agreement.
7
11. That the City, at its cost, shall obtain a bond to secure the faithful
performance of his duties under this Agreement in the amount of twenty-five •
thousand dollars ($25,000.00). Said bond shall be in form and content satisfactory to
the City, and with a surety acceptable to the City. The City shall audit Cartel's
records made and practices and procedures conducted or required to be made or
conducted pursuant to this Agreement no less often than once each year
throughout its term. The City may conduct such an audit more frequently than
annually if circumstances require or the surety so demands. Canel shall cooperate
fully with the City in all audits. His failure to do so is a material breach of this
Agreement for which the City may invoke the five (5) day termination period
provided for in paragraph 10 above.
12. That Canel shall have the status of independent contactor and not that of an
agent or employee of the City of Evanston.
13. That this Agreement is non -assignable.
14. That, except as stated in paragraph 7 above, this Agreement may be modified
only by an instrument of like formality.
15. That this Letter of Agreement was made in the City of Evanston, County of
Cook, State of Illinois. In the event of litigation between the parties, venue shall be
within Cook County. •
16. Notice required or given under this Agreement shall be in writing and sent
by first-class mail, proper postage prepaid as indicated below:
to the City: City Clerk
City Clerk's Office
Morton Civic Center
2100 Ridge Avenue
Evanston, Illinois 60201
with a copy to: City Attorney
Law Department
Morton Civic Center
2100 Ridge Avenue
Evanston, Illinois 60201
and to: Mr. Robert L. Cartel
Stewart Title Company
2 North LaSalle Street, Suite 1400
Chicago, Illinois 60602 •
(Signature page follows)
3
LJ
Wally BobkIcz
City Manager, City of Evanston
gu-uo-j') ci 2010
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Robert L. Canel
MARLd 9 , 201,0
Exhibit #1
Title 3, Chapter 29 of the Evanston City Code of 1979, as amended
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3-29-1
3-29-1
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CHAPTER 29
REAL ESTATE TRANSFER TAX
SECTION:
3-29- 1:
Definitions
3-29- 2:
Imposition Of Tax
3-29- 3:
Primary Liability For Tax
3-29- 4:
Declaration Forms
3-29- 5:
Deeds
3-29- 6:
Exempt Transactions
3-29- 7:
Exemptions
3-29- 8:
Revenue Stamps Required
3-29- 8-1:
Exempt Transaction Charge
3-29- 9:
Real Estate Transfer Declaration; Filing
3-29-10:
Transfer In Trust
3-29-11:
Lien Created; Enforcement
3-29-12:
Enforcement; Suit For Collection
3-29-13:
Interest And Penalties
3-29-14:
Proceeds Of Tax
3-29-15:
Penalty For Violation
3-29-16:
Effective Date
3-29-17:
Severability
3-29-18:
Payment Of Delinquent Water And Sewer Charges
3-29-19:
Payment Of Obligations
3-29-1: DEFINITIONS:
PERSON: Any natural person, receiver, administrator,
executor, conservator, assignee, trust in
perpetuity, trust, estate, firm, copartnership,
joint venture, club, company, joint stock com-
pany, business trust, municipal corporation,
political subdivision of the state of Illinois,
domestic or foreign corporation, association,
syndicate, society or any group of individuals
acting as a unit, whether mutual, cooperative,
fraternal, nonprofit, or otherwise, and the
United States or any instrumentality thereof.
Whenever the term "person" is used in any
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RECORDATION:
clause prescribing and imposing a penalty, the
term as applied to associations shall mean the
owners or part owners thereof, and as applied
to corporations, the officers thereof.
The recording of deeds with the office of the
recorder of deeds or the registration of deeds
with the registrar of titles of Cook County,
Illinois.
VALUE: The amount of the full actual consideration for
any transfer covered hereunder, including the
amount of any mortgage or other lien assumed
by the grantee or purchaser. (Ord. 33-0-86)
3-29-2: IMPOSITION OF TAX: A tax is imposed on the transfer of
title to real property located in the city as evidenced by the
recordation of a deed by any person or by the delivery of any deed or
assignment of interest of said real property, made after May 1, 1986,
whether investing the owner with the beneficial interest in or legal title to
said property or merely the possession or use thereof for any purpose or to
secure future payment of money or the future transfer of any such real
property.
(A) The tax imposed shall be five dollars ($5.00) for every one thousand
dollar ($1,000.00) value or fraction thereof as stated in the
declaration.
(B) The term "deed" .as used in this section shall mean all documents
transferring or reflecting the transfer of legal title, equitable title, or
both legal and equitable title to real property, or the beneficial
interest in a land trust. Delivery of any deed shall be deemed to have
occurred when the transferee or purchaser, or his representative or
agent, receives possession of the deed or in the case of a land trust
when the trustee receives possession of a valid assignment of a
beneficial interest. (Ord. 120-0-91)
3-29-3: PRIMARY LIABILITY FOR TAX: The primary liability for
payment of said tax shall be borne by the grantor or seller
involved in any such transaction unless otherwise negotiated by contract;
provided, however, it shall be unlawful for the grantee or purchaser to
accept a conveyance if the transfer tax has not been paid. If the tax has not
been paid and the stamps affixed to the deed, then the grantee's title shall
be subject to the lien provided in section 3-29-11 of this chapter and the
grantee or purchaser shall be'liable for payment of the tax. The tax herein
levied shall be in addition to any and all other taxes. (Ord. 33-0-86)
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3-29-4 3-29-6
3-29-4: DECLARATION FORMS: At the time the tax is paid, or an ex-
• emption applied for, there shall also be presented to the
director of finance or his designee, on a form prescribed by him, a
declaration signed by at least one of the sellers or grantors and also signed
by at least one of the purchasers or grantees involved in the transaction, or
by their attorneys or agents, or by a licensed real estate salesperson or
broker having knowledge of the terms of the transaction, which declaration
shall state the full consideration for the property so transferred and shall be
deemed a confidential record by the city clerk. Where the declaration is
signed by an attorney, agent, licensed real estate salesperson or broker, on
behalf of sellers or buyers who have the power of direction to deal with the
title to the real estate under a land trust agreement, the trustees being the
mere repository of record legal title with a duty of conveying the real estate
only when and if directed in writing by the beneficiary or beneficiaries
having the power of direction, said attorney, agent, licensed real estate
salesperson, or broker need only identify the. land trust which is the
repository of record legal title and not the beneficiary or beneficiaries
having the power of direction under the land trust agreement. (Ord.
33-0-86)
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3-29-5: DEEDS: Every deed shall show the date of the transaction
which it evidences, the names of the grantor and grantee, and
a legal description of the property to which it relates. (Ord. 33-0-86)
3-29-6: EXEMPT TRANSACTIONS: The tax imposed by this chapter
shall not apply to the following transactions, provided said
transaction in each case is accompanied by a certificate setting forth the
facts or such other certificate of record or sworn statement as the director
of finance may require at the time of filing of the declaration form:
(A) Transactions involving property acquired by or from any govern-
mental body;
(B) Transactions in which the deeds secure debt or other obligations;
(C) Transactions in which the deeds, without additional consideration,
confirm, correct, modify or supplement deeds previously recorded;
(D) Transactions in which the actual consideration covering the sale of
any owner occupied residential unit is less than fifty thousand dollars
($50,000.00) and the seller qualifies under section 8 housing
assistance payment program income guidelines of the U.S. housing
act of 1937, as amended from time to time;
• (E) Transactions in which the actual consideration is less than five
hundred dollars ($500.00);
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(F) Transactions in which the deeds are tax deeds;
(G) Transactions in which the deeds are releases of property which is •
security for a debt or other obligation;
(H) Transactions in which the deeds are pursuant to a court decree;
(1) Transactions made pursuant to mergers, consolidations, or transfers
or sales of substantially all of the assets of a corporation pursuant to
plans of reorganization;
(J) Transactions between subsidiary corporations and their parents for
no consideration other than the cancellation or surrender of the
subsidiary corporation's stock;
(K) Transactions representing transfers subject to the imposition of a
documentary stamp tax imposed by the government of the United
States; and
(L) A transfer by lease. (Ord. 119-0-05)
3-29-7: EXEMPTIONS: The taxes imposed by this chapter shall not
be imposed on or transferred by an executor or administrator
to a legatee, heir or distributee where the transfer is being made pursuant •
to will or by intestacy. The tax imposed by this chapter shall further be
exempt where the transaction is effected by operation of law or upon
delivery or transfer in the following instances, provided, however, that a
declaration form is filed:
(A) From a decedent to his executor or administrator;
(B) From a minor to his guardian or from a guardian to his ward upon
attaining majority;
(C) From an incompetent to his conservator, or similar legal representa-
tive, or from a conservator or similar legal representative to a former
incompetent upon removal or disability;
(D) From a bank, trust company, financial institution, insurance company
or other similar entity, or nominee, custodian, or trustee therefor, to a
public officer or commission, or person designated by such officer or
commission or by a court, in the taking over of its assets, in whole or
in part, under state or federal law regulating or supervising such
institutions, nor upon redelivery or retransfer by any such transferee
or successor thereto;
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(E) From a bankrupt or person in receivership due to insolvency to the •
trustee in bankruptcy or receiver, from such receiver to such trustee
or from such trustee to such receiver, nor upon redelivery or
retransfer by any such transferee or successor thereto;
(F) From a transferee under subsections (A) through (E) of this section,
to his successor acting in the same capacity, or from one such
successor to another;
(G) From a foreign country or national thereof to the United States or
any agency thereof, or to the government of any foreign country
directed pursuant to the authority vested in the president of the
United States by section 5(b) of the trading with the enemy act', as
amended, by the first war powers act;
(H) From trustees to surviving, substitute, succeeding or additional
trustees of the same trust;
(1) Upon the death of a joint tenant or tenant by the entirety to the
survivor or survivors. (Ord. 33-0-86)
3-29-8: REVENUE STAMPS REQUIRED: The tax herein levied and
imposed shall be collected by the director of finance or his
• designee for the city through the sale of revenue stamps, which shall be
caused to be prepared by said director of finance in such quantities and
denominations as said director of finance may from time to time prescribe.
Such revenue stamps shall be available for sale at and during the regular
business hours of the city offices or at other locations designated by the
director of finance. Upon payment of the tax herein levied and imposed, the
revenue stamps so purchased shall be affixed to the deed or other
instrument of conveyance. Any person so using and affixing a revenue
stamp or stamps shall cancel it and so deface it as to render it unfit for use
by marking it with his initials and the day, month and year when the affixing
occurs. Such markings shall be made by writing or stamping in indelible ink
or by perforating with a machine or punch. However, the revenue stamp(s)
shall not be so defaced as to prevent ready determination of its
denomination and genuineness. (Ord. 11-0-87, eff. 4-1-1987)
3-29-8-1: EXEMPT TRANSACTION CHARGE: An exempt stamp shall
be required for all real estate transfers which are exempt
pursuant to sections 3-29-6 and 3-29-7 of this chapter. There shall be a one
hundred dollar ($100.00) administrative charge for any exempt transaction
enumerated in said sections 3-29-6 and 3-29-7 of this chapter. The property
owner shall be responsible for payment of said charge. (Ord. 39-0-06)
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1. 40 Stat. 415.
2. 55 Stat. 839.
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3-29-9 3-29-13
3-29-9: REAL ESTATE TRANSFER DECLARATION; FILING: A
signed copy of the real estate transfer declaration filed •
pursuant to section 3 of the real estate transfer act of the state shall be
filed with the city clerk by the grantee of any deed or assignee of beneficial
interest within ten (10) days after delivery of the deed or assignment of
beneficial interest, or at the time of payment of the tax herein levied or
imposed, whichever first occurs. (Ord. 33-0-86)
3-29-10: TRANSFER IN TRUST: No trustee of real estate shall accept
or acknowledge an assignment of beneficial interest in real
estate located in the city without first obtaining a real estate transfer
declaration from the assignor and assignee and unless revenue stamps in
the required amount, as set forth in this chapter, have been affixed to the
assignment. (Ord. 33-0-86)
3-29-11: LIEN CREATED; ENFORCEMENT: In the event a deed is
filed for recordation or there is an assignment of beneficial
interest conveying real estate within the corporate limits of the city without
the revenue stamps provided by this chapter, a lien is declared against said
real estate conveyed in the amount of the tax. The fact that the deed or
assignment does not contain an Evanston revenue stamp in an amount
equal to five (5) times the amount of state transfer taxes shall constitute
constructive notice of lien. The lien may be enforced by proceedings to •
foreclose, as in cases of mortgages or mechanic's liens. Suit to foreclose
this lien must be commenced within three (3) years after the date of
recording the deed. Nothing herein shall be construed as preventing the city
from bringing a civil action to collect the tax imposed by this chapter from
any person who has the ultimate liability for payment of the same, including
interest and penalties as hereinbelow provided. (Ord. 33-0-86)
3-29-12: ENFORCEMENT; SUIT FOR COLLECTION: Whenever any
person shall fail to pay any taxes herein provided, or any
purchaser or grantee shall accept a conveyance where the tax has not been
paid, the city's corporation counsel shall, upon request of the city manager,
bring or cause to be brought an action to enforce the payment of said tax,
including interest and penalties as hereinbelow provided, on behalf of the
city in any court of competent jurisdiction. (Ord. 33-0-86)
3-29-13: INTEREST AND PENALTIES: In the event of failure by any
person to collect and pay to the director of finance the tax
required hereunder when the same shall be due, interest shall accumulate
and be due -upon said tax at the rate of one percent (1%. ) per month
commencing as of the first day following the day when the tax becomes .
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3-29-13 3-29-18
• due. In addition, a penalty of ten percent (10%) of the tax and interest due
shall be assessed and collected against any person who shall fail to pay the
tax imposed by this chapter. (Ord. 33-0-86)
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3-29-14: PROCEEDS OF TAX: All proceeds resulting from the
imposition of the tax under this chapter, including interest and
penalties, shall be paid to the city and shall be credited to and deposited in
the general fund of the city. (Ord. 33-0-86)
3-29-15: PENALTY FOR VIOLATION: In addition to the remaining
provisions of this chapter, any person found guilty in a court
of competent jurisdiction of violating, disobeying, omitting, neglecting or
refusing to comply with or resisting or opposing the enforcement of any
provision of this chapter, upon conviction thereof, shall be punished by a
fine of not less than two hundred dollars ($200.00) nor more than one
thousand dollars ($1,000.00). (Ord. 33-0-86)
3-29-16: EFFECTIVE DATE: These provisions shall be in full force
and effect from May 1, 1986, provided, however, that these
provisions shall not apply to contracts for the transfer of title to real property
executed prior to April 1, 1986. (Ord. 33-0-86)
3-29-17: SEVERABILITY: If any provision, clause, sentence,
paragraph, section or part of this chapter, or application
thereof to any person or circumstance, shall for any reason be adjudged by
a court of competent jurisdiction to be unconstitutional or invalid, said
judgment shall not affect, impair or invalidate the remainder of this chapter
and the application of such provision to other persons or circumstances, but
shall be confined in its operation to the provision, clause, sentence,
paragraph, section or part thereof directly involved in the controversy in
which such judgment shall have been rendered and to the person or
circumstances involved. It is hereby declared to be the legislative intent of
the city council that this chapter would have been adopted had such
unconstitutional or invalid provisions, clause, sentence, paragraph, section
or part thereof not been included. (Ord. 33-0-86)
3-29-18: PAYMENT OF DELINQUENT WATER AND SEWER
CHARGES: The director of finance shall issue no transfer tax
stamps unless the city collector verifies that any delinquent water and
sewer assessments and penalties related thereto are paid in full, and
unless the declaration form contains information necessary for the billing
• and collection of the final water and sewer assessment charges. (Ord.
33-0-86)
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3-29-19: PAYMENT OF OBLIGATIONS: The director of finance shall
issue no transfer tax stamps unless the city collector verifies •
that there are no unpaid judgments in favor of the city, water bills, liens, or
other sums due and owing to the city. (Ord. 58-0-09)
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