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HomeMy WebLinkAbout120-R-21 Authorizing the Interim City Manager to Execute an Intergovernmental Agreement between the City of Evanston and Evanston-Skokie School District No. 65 Regarding the Five-Fifths Tax Increment Finance District10/25/2021 120-R-21 A RESOLUTION Authorizing the Interim City Manager to Execute an Intergovernmental Agreement with Evanston/Skokie School District No. 65 Regarding the Five -Fifths Tax Increment Finance District WHEREAS, the City of Evanston ("City"), located in Cook County, Illinois, is a home rule unit of government under the provisions of the 1970 Constitution of the State of Illinois, can exercise any power and perform any function pertaining to its government affairs, including but not limited to the ability to enter into agreements; and WHEREAS, Article VII, Section 10 of the Illinois Constitution of 1970, the Intergovernmental Cooperation Act (5 ILCS 22/1 et seq.) and Sections 1-4-6 and 11-1- 2.1 of the Illinois Municipal Code (65 ILCS 5/11-1-2.1), authorize and encourage intergovernmental cooperation among enforcement agencies to provide police protection; and WHEREAS, the City intends to redevelop and encourage residential use, retail, commercial and institutional uses to upgrade, expand and modernize facilities within the City as part of its ongoing economic development planning; and WHEREAS, the City has proposed a Five -Fifths Redevelopment Project Area (the "TIF District") located in the north central portion of Evanston; and WHEREAS, the proposed TIF District includes approximately two hundred eighty-four (284) tax parcels located to the east and west of Green Bay Road, to Ridge Avenue to the east, to Darrow Avenue to the west, and to Leonard Place to the north and Emerson Street to the south. A map of the proposed TIF District is attached hereto as Exhibit A; and Page 2 of 15 120-R-21 WHEREAS, City staff and officials have engaged extensively in multiple meetings with members of the community and Evanston/Skokie School District No. 65 ("District 65") regarding the proposed Five -Fifths TIF District; and WHEREAS, community members and District 65 have expressed concerns with the proposed TIF District, including potential displacement and gentrification in the community, and with the potential benefits it will provide the community; and WHEREAS, the City believes that the proposed Five -Fifths TIF District will provide numerous benefits to the community; and WHEREAS, the City and District 65 negotiated an Intergovernmental Agreement which includes commitments by both parties to address the concerns; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS: SECTION 1: The foregoing recitals are hereby found as fact and incorporated herein by reference. SECTION 2: That the Interim City Manager is hereby authorized and directed to sign, and the City Clerk is hereby directed to attest on behalf of the City, the IGA with District 65, attached hereto as Exhibit 1 and incorporated herein by reference. SECTION 3: The Interim City Manager is hereby authorized and directed to negotiate any additional conditions of the Agreement that she deems to be in the best interest of the City. SECTION 4: 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. --2- Page 3 of 15 120-R-21 Attest: Stephanie Mendoza, Deputy City Clerk Adopted: October 26 , 2021 halud A.11i Daniel Biss, Mayor Approved as to form: ✓✓cMolas E. Camm,iks Nicholas E. Cummings, Corporation Counsel -3- Page 4 of 15 120-R-21 EXHIBIT 1 Intergovernmental Agreement Between the City of Evanston and Evanston/Skokie School District No. 65 Regarding the Five -Fifths Tax Increment Financing District Page 5 of 15 AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF EVANSTON AND EVANSTON/SKOKIE SCHOOL DISTRICT NO. 65 REGARDING THE FIVE -FIFTHS TAX INCREMENT FINANCING DISTRICT This INTERGOVERNMENTAL AGREEMENT (the "Agreement") is between the City of Evanston (the "City") and Evanston/Skokie School District No. 65 (the "School District"). Individually, the City and District 65 shall be referred to in this Agreement as a "Party" and collectively referred to as the "Parties." In consideration of the mutual covenants and agreements contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Parties, the Parties agree as follows: Section 1. Background. A. The City is pursuing and intends to further pursue, private and public investment, development, and redevelopment of properties within the boundaries of the City. B. The City, to further such investment, development, and redevelopment, may approve and create a tax increment redevelopment plan and project, designate the tax increment redevelopment project area, and adopt tax increment financing relative to the City's proposed Five -Fifths Redevelopment Project Area (the "TIF District"), which includes approximately two hundred eighty- four (284) tax parcels located to the east and west of Green Bay Road, to Ridge Avenue to the east, to Darrow Avenue to the west, and to Leonard Place to the north and Emerson Street to the south legally described and depicted in Exhibit A and Exhibit B, respectively, attached hereto and made a part hereof, in accordance with the Illinois Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1, et seq. ("TIF Act"). C. The School District has agreed to support the establishment of the TIF District and the City's use of tax increment financing within the TIF District provided the Parties enter into this 1 Page 6 of 15 Agreement, the agreements described in Section 3.17 below. and perform their respective obligations hereunder. D. 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. E. 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. F. Section 4(b) of the TIF Act, 65 ILCS 5/11-74.4-4(b), authorizes municipalities to enter into agreements with overlapping taxing bodies necessary or incidental to implementing or maintaining a tax increment financing redevelopment plan and/or project. G. The Parties believe that racial equity forms the foundation for this proposed TIF plan, and the intended investments and the restrictions contained in this Agreement provide assurance that TIF funding should be devoted to those most in need. H. The Parties have determined that it is in their respective best interests, and the best interests of their constituents, to enter into this Agreement. Section 2. Definitions. The following words and phrases in this Agreement have the following meanings, whether the words and phrases are used in the singular or plural: A. "Incremental Property Taxes" means that portion of the ad valorem real estate taxes, if any, arising from the taxes levied upon equalized assessed valuation ("EAV") which taxes are actually collected and paid to the City, and which are attributable to the increase in the EAV of the TIF District over and above the EAV of the TIF District in question at the time of the formation of the TIF District, 2 Page 7 of 15 all as reported by the Cook County Clerk, pursuant to and in accordance with 65 ILCS 5/11-74.4-8 of the TIF Act and the ordinances creating the TIF District. Section 3. City Obligations. A. Home Ownership Retention. The City shall prioritize the use of Incremental Property Taxes for residential repairs and improvements to encourage home ownership retention, to improve and maintain existing rental housing as desired by existing homeowners and allow aging in place, and to discourage the displacement of current residents residing in the TIF district due to increased tax burdens The types of repairs and improvements contemplated in this Agreement are intended to maintain affordable housing and not to unreasonably increase the equalized assessed value of residential properties. The City may accomplish this commitment by implementing the following, including but not limited to: 1. The use of Incremental Property Taxes for structural repairs, such as roofing, chimney, and window repairs; 2. The use of Incremental Property Taxes for systems improvements, such as HVAC, electrical, and plumbing systems; 3. The use of Incremental Property Taxes to encourage climate resiliency measures, such as energy efficiency upgrades and the use of solar panels; 4. The use of Incremental Property Taxes to prioritize senior citizens, members of the disabled community, long-time homeowners, and low-income residents; and 5. Educate TIF District residents regarding the property tax appeal processes. B. Affordable Housing. The City shall use Incremental Property Taxes for affordable housing (which shall align with the City's ordinances regarding the type of housing that constitutes affordable housing) measures to help retain existing homeowners and renters and to support current small and mid -sized landlords. The City may accomplish this commitment by implementing the following, include but are not limited to: 3 Page 8 of 15 1. The use of Incremental Property Taxes to fund the construction of affordable housing development in accordance with the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-3(q)(I 1)(E); 2. The use of Incremental Property Taxes to assist small and mid -sized landlords with repairs and renovation to existing "naturally occurring" affordable rental housing units; 3. The use of Incremental Property Taxes to expand the number of accessory dwelling units; 4. The use of Incremental Property Taxes to expand homeowner community land trust programming; and 5. The use of Incremental Property Taxes to offer homeowners, especially the elderly, licensed real estate and financial services. C. Workforce Development. The City shall use Incremental Property Taxes to support workforce development by assisting small businesses with programs to train employees for current and future jobs and focusing that training on residents of the proposed TIF District. The City may accomplish this commitment by implementing the following, including but not limited to: 1. Use of Incremental Property Taxes to train residents of the proposed TIF District; 2. Use of Incremental Property Taxes to support creation of job training programs for businesses located within the TIF district; 3. Use of Incremental Property Taxes to focus on training for new infrastructure jobs and top workforce opportunities as defined by large local employers within the TIF district; and 4. Use of Incremental Property Taxes for childcare space expansion and support. D. Infrastructure Improvement. The City shall use Incremental Property Taxes for infrastructure by funding new infrastructure and maintaining existing infrastructure, some of which has suffered from deferred maintenance. The City may accomplish this commitment by focusing on El Page 9 of 15 including but not limited to the following: water, sewer, street, sidewalk, bike path, walking path and wayfinding projects. E. Public Spaces. The City shall use Incremental Property Taxes for public spaces, including community centers and recreational spaces, to a high -quality standard that is equal to or exceeds the quality of facilities in other areas of the City. F. Business District Improvement. The City shall use Incremental Property Taxes for Business District improvement by supporting small businesses in the TIF District, including in areas in or around Simpson/Ashland; Emerson/Asbury and Green Bay Road. The City may accomplish this commitment by doing the following, including but not limited to: a. Using Incremental Property Taxes for fagade improvement programs including awnings, tuck -pointing, storefront glass, doors and signage; b. Using Incremental Property Taxes for Storefront Modernization programs focused on interior renovations and leasehold improvements affixed to the property including HVAC, plumbing, and electrical systems; c. Using Incremental Property Taxes to aid in improving business capacity; d. Using Incremental Property Taxes for streetscape improvements; e. Using Incremental Property Taxes for Business District identity, signage and lighting improvements. G. Prohibited Uses for Incremental Propertv Taxes. The City shall not use or support the use of Incremental Property Taxes for: eminent domain, neighborhood clearance, funding for a new Civic Center, or luxury residential development out of character with the existing community. H. Revenue Sharing. The City will negotiate in good faith with taxing entities, including the School District, revenue sharing agreements that contemplate the appropriate distribution to taxing E Page 10 of 15 entities of Incremental Property Taxes attributable to the TIF District, including specifically, the fair distribution of Incremental Property Taxes attributable to 1815 Ridge Road and the Civic Center. I. Surolus. The City shall annually analyze non -committed incremental property taxes generated within the TIF District and consider whether to declare some or all such incremental property taxes as surplus revenue pursuant to Section 7 of the TIF Act, 65 ILCS 5/11-74.4-7 Section 4. School District Obligations. A. Fifth Ward School. The School District shall make good faith efforts to pursue the establishment of a school within the TIF District or the Fifth Ward without a referendum to the extent permitted by law. B. MWBE Contractors. The School District shall implement goals substantially similar to the City's current goals regarding contracting with minority and women and Evanston based business enterprises related to purchasing, construction, contracting, and workforce development to the extent permitted by law. Section 5. Miscellaneous. A. Consent, Approval and Waiver. A Party's consent, approval or waiver shall be made in writing, be signed by the chief administrative officer of the Party, or his or her designee, and sent to the other Party. B. Successors. This Agreement shall be binding upon the Parties and their successors, including, without limitation, successor corporate authorities of the City and the School District. C. Integration. This Agreement represents the entire agreement between the City and the School District 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 the Parties as required by law. No express or implied covenants or 0 Page 11 of 15 representations have been made concerning the subject matter of this Agreement unless expressly stated in this Agreement. 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 regarding the subject matter, basis, or effect of this Agreement, except those specifically set forth in this Agreement. D. Severability and No Waiver. If any material section, subsection, sentence, clause, or phrase of this Agreement is for any reason held to be invalid either Party may terminate this Agreement upon 30 days written notice. If any non -material 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. E. Term. This Agreement shall remain in effect until the dissolution of the TIF District or until such other time as the Parties may mutually agree in writing. F. Injunctive Relief. It is hereby agreed and acknowledged that it will be impossible to measure in money the damage that would be suffered if either Party fails to comply with any of the obligations or commitment contained in this Agreement. In the event of any such failure, the aggrieved Party will be irreparably damaged and will not have an adequate remedy at law. The aggrieved Party shall, therefore, be entitled (in addition to any other remedy to which it may be entitled in law or in equity) to injunctive relief, including specific performance, to enforce such obligations and commitment, and if any action should be brought in equity to enforce any of the provisions of this Agreement, none of the parties hereto shall raise the defense that there is an adequate remedy at law. 7 Page 12 of 15 G. Governing Law. This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Illinois without regard to conflict of law principles. Jurisdiction and venue for all disputes shall be the Circuit Court located in Cook County, Illinois, or the federal district court for the Northern District of Illinois. H. Counterparts. This Agreement may be executed by the Parties in multiple counterparts which, when taken together, shall be deemed on and the same instrument. I. Effective Date. This Agreement shall be effective after approval by the City Council and the Board of Education, and on the date the last of the Parties executes this Agreement (the "Effective Date") IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their authorized officials. CITY OF EVANSTON, Cook County, Illinois IRA Interim City Manager Attest: Clerk Date: BOARD OF EDUCATION, EVANSTON/SKOKIE SCHOOL DISTRICT NO.65, Cook County, Illinois By: President Attest: Secretary Date: Page 13 of 15 EXHIBIT A "al Descrintion Page 14 of 15 EXHIBIT B Depiction 10 Page 15 of 15