HomeMy WebLinkAbout036-R-19 Authorizing the City Manager to Execute a Deed in Lieu of Foreclosure Agreement for the Acquisition of a Vacant Lot Located at 1805 Church Street in Evanston, Illinois4/13/2019
36-R-19
A RESOLUTION
Authorizing the City Manager to Execute a Deed in Lieu of
Foreclosure Agreement for the Acquisition of a Vacant Lot Located at
1805 Church Street in Evanston, Illinois
WHEREAS, the City of Evanston wishes to acquire a vacant lot at 1805
Church Street, Evanston, Illinois, ("The Subject Property"), and legally described as:
The South 106.00 feet of lots 9 and 10 in block 3 in Merril Ladd's second addition
to Evanston, said addition being a subdivision of the West 112 of the Southwest
114 of the Northeast 114 of section 13, Township 41 North, Range 13, East of the
third Principal Meridian, in Cook County, Illinois; and
WHEREAS, the City seeks to utilize the Subject Property at a later date
for affordable housing and other development opportunities; and
WHEREAS, the City Council hereby finds and determines that the best
interests of the City of Evanston and its residents will be served by acquiring the
aforesaid Subject Property, on terms consistent with the Deed in Lieu of Foreclosure
Agreement, attached hereto as Exhibit A and incorporated herein by reference
(hereinafter, the "Agreement"); and
NOW BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
EVANSTON, COOK COUNTY, ILLINOIS, THAT:
SECTION 1: The City Manager or his designee is hereby authorized to
acquire the vacant lot located at 1805 Church Street, Evanston, Illinois based on the
terms set forth in the Deed in Lieu of Foreclosure Agreement.
36-R-19
SECTION 2: The City Manager is hereby authorized and directed to
negotiate any additional conditions of said agreement to close the purchase transaction
as he may be determine to be in the best interests of the City.
SECTION 3: This resolution shall be in full force and effect from and after
its passage and approval in the manner provided by law.
Attest: C>
Devon Reid, City Clerk
Adopted:T'l7 , 2019
Stephen 9. Hag V. or
Approved as to form:
Ar
Michelle 1... Masoncup, Co pora#ion
Counsel
2—
36-R-19
EXHIBIT A
DEED IN LIEU OF FORECLOSURE AGREEMENT
AGREEMENT FOR DEED IN LIEU OF FORECLOSURE
This Agreement is made and entered into this day of , 2019
("Effective Date"), by and between the City of Evanston, a home rule Illinois municipality and
body corporate and politic (hereinafter "the City") and E-Town Community Ventures, LLC, a
dissolved Illinois limited liability company (hereinafter "Owner" ).
Recitals
WHEREAS, the City is a home rule municipality in Cook County, Illinois;
WHEREAS, Owner holds fee simple title to the property legally described in Exhibit A
hereto and commonly known as 1805 Church Street, Evanston, Illinois 60201(collectively, the
"Property"):
WHEREAS, the City holds the following liens on the Property, securing the following
judgment debts and costs owed by the Owner (collectively, "Liens"):
1. Judgment lien recorded May 24, 2006 as document 0614456136, in favor of the City of
Evanston, against E-Town Community Ventures in the amount of $150.00.
2. Judgment lien recorded November 17, 2008 as document 0614456136, in favor of the City
of Evanston, against E-Town Community Ventures in the amount of $150.00.
3. Judgment lien recorded June 6, 2012 as document 1215856014, in favor of the City of
Evanston, against E-Town Community Ventures in the amount of $300.00.
4. Judgment lien recorded November 8, 2012 as document 1301450014, in favor of the City
of Evanston, against E-Town Community Ventures in the amount of $800.00.
WHEREAS, City intended to foreclose on the Liens, but in order to avoid the time and
expense of a foreclosure suit, to minimize further financial losses to the Parties, and to expedite
the orderly transfer of ownership of the Property from the Owner to City, the Parties agree to a
conveyance of the Property to City in lieu of foreclosure, subject to the terms and conditions set
forth herein; and
WHEREAS, City intends to hold the property for future development that will advance the
City's goals for affordable housing, as set forth below;
NOW THEREFORE, the Parties agree as follows:
Agreement
1. Recitals. All above -stated recitals are incorporated by reference herein.
2. Conveyance of Property. Subject to the terms and conditions in this Agreement, the
City will accept and record a Quit Claim Deed from the Owner ("Deed"), substantially in the form
of Exhibit B to this Agreement, conveying the Property to the City in lieu of foreclosing the Liens,
and in exchange for the full release and satisfaction of the Liens.
3. City Obligations. In consideration for Owner's conveyance in lieu of foreclosure, the
City will:
a. Pay or otherwise resolve all recorded fees;
b. Pay all City -approved closing costs, including but not limited to title policy
premiums, surveys, Phase I environmental assessments, etc.;
c. Make best efforts to redevelop the Property, along with the adjacent City -owned
property, for affordable housing;
d. Require the City -approved developer of the Property to utilize local Iabor in any
construction and contracting work on the Property;
Use proceeds from the sale of the Property to ay a negotiated amount to Chevron Environmental
Management Company in exchange for the release of its remediation lien recorded May 29, 2015
as Document No. 1514956032, and assigned to Chevron Environmental Management Company
on June 29, 2014 as Document No. 1518044060;
4. Owner Obligations. In addition to other obligations set forth herein, Owner will
execute and/or provide to the City any and all documents necessary to clear title encumbrances, as
identified on the Chicago Title ALTA Commitment No. 19GSC006218LP, attached hereto as
Exhibit C.
S. Owner Acknowledgment and Representation. Owner acknowledges that the fair market
value of the Property may exceed the value of Liens, and nevertheless Owner believes and
represents that the deed in lieu of foreclosure conveyance set for the herein is a reasonable,
intended and voluntary act.
6. Closing. Closing shall take the following form:
a. Owner shall mail an original, notarized copy of the following documents to Denzin
Soltanzadeh LLC, 190 South LaSalle, Ste. 2160, Chicago Illinois 60603: 1) this
Deed in Lieu of Foreclosure Agreement; 2) the attached Quit Claim Deed; and 3)
title clearance documents provided to Owner by the City (collectively "Closing
Documents"); and
b. City provides Owner written acknowledgement that the City has: 1) received all
necessary Closing Documents; and 2) accepted the Property conveyance.
7. Tinte is of the Essence. This Agreement shall become null and void and of no further
force or effect in the event that the obligations of either Party set forth herein are not fully met and
the conveyance closed within thirty (30) days of the date of this Agreement.
8. Counterparts. The Parties agree that this Agreement may be executed in multiple
counterparts, which may be signed and delivered separately.
9. Successors and Assigns. This Agreement shall be binding on the heirs, administrators,
executors, and assigns of the respective parties hereto.
10. Hold Harmless. Pursuant to 735 ILCS 5i I5-1401, the City relieves and holds the Owner
harmless from any and all personal liability with respect to said Liens, including but not limited to
any liability on the part of the Owner to pay the costs incurred by the City which are described in,
and secured by, the Liens recorded against the Property.
11. Condition of Property. THE CITY ACKNOWLEDGES AND AGREES TO ACCEPT
THE PROPERTY IN "AS IS" CONDITION AT THE TIME OF CLOSING, INCLUDING,
WITHOUT LIMITATION, ANY DEFECTS OR ENVIRONMENTAL CONDITIONS
AFFECTING THE PROPERTY, WHETHER KNOWN OR UNKNOWN, WHETHER SUCH
DEFECTS OR CONDITIONS WERE DISCOVERABLE THROUGH INSPECTION OR NOT.
The City acknowledges that Owner, its agents and representatives have not made, and the Owner
specifically negates and disclaims, any representations, warranties, promises, covenants,
agreements or guarantees, implied or express, oral or written with respect to the Property condition
or use.
12. Termination. Either Party may terminate this Agreement at any time prior to Closing.
13. Remedies. If either Party defaults in the performance of this Agreement, the non -
defaulting Party's sole and exclusive remedy shall be to either: (i) terminate this Agreement; or
(ii) pursue specific performance, at the non -breaching party's discretion.
14. Attorney Review. Purchaser's execution of this Agreement shall constitute
acknowledgement by the Purchaser that Purchaser had the opportunity to retain and consult with
legal counsel regarding the Agreement and the Exhibits attached hereto. Further, the terms of the
Agreement are not to be construed against any party because that party drafted the Agreement or
construed in favor of any Party because that Party failed to understand the Iegal effect of the
provisions of the Agreement.
(Remainder Left Blank]
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day
and year set forth above (the "Effective Date").
CITY OF EVANSTON
11Y 1 9 1 K9&wN64zM-wh~U--
Prepared by and Return to:
Brent O. Denzin
Denzin Soltanzadeh LLC
190 S. LaSalle St., Suite 2160
Chicago, Illinois 60603
bdenzin&Menzinlaw.com
E-TOWN COMMUNITY VENTURES
proved as to Corm
1c
Michele LI/. Mas�p
Corporation Counsel
EXHIBIT A
LEGAL DESCRIPTION
THE SOUTH 106.00 FEET OF LOTS 9 AND 10 IN BLOCK 3 IN MERRIL LADD'S SECOND
ADDITION TO EVANSTON, SAID ADDITION BEING A SUBDIVISION OF THE WEST
1f2 OF THE SOUTHWEST 1i4 OF THE NORTHEAST 14 OF SECTION 13, TOWNSHIP 41
NORTH, RANGE 13, EAST OF THE THIRD PRINCIPAL MERIDIAN, IN COOK COUNTY,
ILLINOIS.
1805 Church St., Evanston, IL
PIN: 10-13 -2 2 0-03 5 -0000
EXHIBIT B
FORM OF DEED
Quit Claim Deed
MAIL TO:
Brent O. Denzin
Denzin Soltanzadeh LLC
190 S. LaSalle St., Suite 2160
Chicago, Illinois 60603
MAIL TAX BILLS TO:
City of Evanston
2100 Ridge Avenue
Evanston, Illinois 6020I
THE GRANTOR, E-Town Community Ventures, for and in consideration of the full satisfaction and
release of, and in lieu of any foreclosure action taken with respect to, any and all lien(s) held by Grantee
relating to the real property conveyed herein, CONVEYS AND QUIT CLAIMS to:
City of Evanston, of
2100 Ridge Ave., Evanston, Illinois 60201
a home rule municipality and body politic under the laws of the State of Illinois ("GRANTEE"), all
interest in the following described Real Estate situated in the County of Cook, in the State of Illinois,
to wit:
THE SOUTH 106.00 FEET OF LOTS 9 AND 10 IN BLOCK 3 IN MERRIL LADD'S SECOND
ADDITION TO EVANSTON, SAID ADDITION BEING A SUBDIVISION OF THE WEST
1/2 OF THE SOUTHWEST 1/4 OF THE NORTHEAST 1/4 OF SECTION 13, TOWNSHIP 41
NORTH, RANGE 13, EAST OF THE THIRD PRINCIPAL MERIDIAN, IN COOK COUNTY,
ILLINOIS.
1805 Church St., Evanston, IL
PIN: 10-13-220-035-0000
SUBJECT TO: covenants, conditions, restrictions and easements of record, and all general real
estate taxes and assessments.
(Remainder ofpage intentionally left blanhj
In Witness Whereof, said Grantor has caused this instrument to be duly executed in its name and
behalf this day of , 2019.
GRANTOR:
0
Its:
State of Illinois }
)ss
County of Cook }
I, the undersigned, a Notary Public in and for said County, in the State aforesaid, DO HEREBY
CERTIFY that Daniel Cheifetz, personally known to me to be the same persons whose name is subscribed
to the foregoing instrument, appeared before me this day in person, and acknowledged that they signed,
sealed and delivered the said instrument as their free and voluntary act, for the uses and purposes therein
set forth, including the release and waiver of the right of homestead
Given under my hand and official seal, this
NOTARY PUBLIC
NAME and ADDRESS OF PREPARER
Brent 0. Denzin
Denzin Soltanzadeh, LLC
190 S. LaSalle St., Ste. 2160
Chicago, Illinois 60603
day of
, 2019
COOK COUNTY-ILLINOIS TRANSFER STAMP:
EXEMPT UNDER PROVISIONS OF 35 ILCS
200'31-45, PARAGRAPH (b), REAL ESTATE
TRANSFER ACT
DATE:
Signature of Buyer, Seller or Representative
STATEMENT BY GRANTOR AND GRANTEE
The grantor or his agent affirms that, to the best of his knowledge, the name of the grantor shown
on the deed or assignment of beneficial interest in a land trust is either a natural person, an Illinois
corporation or foreign corporation authorized to do business or acquire and hold title to real estate
in Illinois, a partnership authorized to do business or acquire and hold title to real estate in IIlinois,
or other entity recognized as a person and authorized to do business or acquire title to real estate
under the laws of the State of Illinois.
Dated Signature:
Grantor or Agent
SUBSCRIBED and SWORN to before me
this day of , 2019.
NOTARY PUBLIC
The grantee or his agent affirms and verifies that the name of the grantee shown on the deed or
assignment of beneficial interest in a land trust is either a natural person, an Illinois corporation or
foreign corporation authorized to do business or acquire and hold title to real estate in Illinois, a
partnership authorized to do business or acquire and hold title to real estate in Illinois, or other
entity recognized as a person and authorized to do business or acquire title to real estate under the
laws of the State of Illinois.
Dated Signature:
Grantee or Agent
SUBSCRIBED and SWORN to before me
this day of , 2019.
NOTARY PUBLIC
NOTE:Any person who knowingly submits a false statement concerning the identity of a grantee
shall be guilty of a CIass C misdemeanor for the first offense and of a Class A
misdemeanor for subsequent offenses.
(Attach to deed or ABI to be recorded in Cook County, Illinois, if exempt under the provisions of
Section 4 of the Illinois Real Estate Transfer Tax Act.)
EXHIBIT C
ALTA TITLE INSURANCE COMMITMENT