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HomeMy WebLinkAboutORDINANCES-1975-066-O-750 • 66-0-75 AN ORDINANCE Authorizing the Sale of Municipally Owned Real Property WHEREAS, the City of Evanston owns,.or will acquire, the following described real property: Parcel Lots 8, 9, 10, and 11 in P. Judson's Subdivision of Lot 1 in Langworthy's Subdivision of Block 64 in Evanston in the South West 1/4 of Section 18, Township 41 North, Range 14 East of the Third Principal Meridian, in Cook County, Illinois: Parcel 2 All of Lot 9, and that part of Lots 7, 8, and of Lot 11 (except the North 7 feet of the East 148 feet of said Lot 11) and of the vacated alleys in said lots and of the vacated alley lying South and adjoining said Lot 7 and North and adjoining said Lots 8 and 9 all in Langworthy's Subdivision of Block 64 in Evanston lying East of a line described as follows: Commencing at the.South East corner of Lot 8 aforesaid, thence North 89 degrees 56' 20 West along the South line of said'Lot 8, 7.13 feet to the place of beginning of the herein described line, then North 20 degrees 32' 30" West to the North line of Lot 7, in Langworthy's Subdivision aforesaid, all in the South West 1/4 of Section 18, Township 41 North, Range 14 East of the Third Principal Meridian, in Cook County, Illinois. ! which property is generally located at the northwest corner of the intersection i� 1 of Sherman and Grove, in the City of Evanston, Illinois, and is currently i used as a municipal parking lot; and WHEREAS, the City Council of the City of Evanston has determined that ,.it is no longer necessary, appropriate, or in the best interest of the City of Evanston that it retain title to said real estate, and that said real s,estate is not required for the use of, or profitable to, the City of Evanston; i and !` WHEREAS, the City Council of the City of Evanston has determined i i E; that the best interest of the City of Evanston would be served by the conveyance of said property to qualified parties who will develop said property for an office building an.d related facilities; and F 66-0-75 WHEREAS, pursuant to Ordinance 70-0-71 of the City of Evanston, notice has been given of the proposal to sell such real estate and bids have been invited for the purchase of said real estate, said notice having first ;been published on the 15th day of May, 1975, and having been published for. 'three (3) successive weeks in The Evanston Review, a newspaper published in 'the City of Evanston;.and WHEREAS, pursuant to said notice, bids were opened at the regular ;meeting of the City Council of the City of Evanston, held on June 16, 1975; land WHEREAS, the following bids for the purchase of such property have jbeen received: Hawthorn Realty Group,Inc. - $840,000.00; and ' WHEREAS, the City Council finds and determines that the best interest i of the City of Evanston and its residents will be served by the acceptance !of the bid submitted by the Hawthorn Realty Group, Inc., and the sale of the i aforesaid real estate to such bidder in the amount bid of $840,000.00, which I j 'amount reDresents the sole bid. i �j. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF !EVANSTON, COOK COUNTY, ILLINOIS: j SECTION 1: The City Council finds as fact the recitals hereinabove i set forth. {i SECTION 2: The bid of Hawthorn Realty Group,Inc., in the amount.of $840- ;; 000.00 is hereby accepted by the City Council of the City of Evanston for the sale of the following described real estate: Parcel 1 Lots 8, 9, 10 and 11 in P. Judson's Subdivision of Lot 1 in ' Langworthy's Subdivision of Block 64 in Evanston in the South West 1/4 of Section 18, Township 41 North, Range 14 East of .the Third Principal Meridian, in Cook County, Illinois. z; Parcel 2 r All of Lot 9, and that part of Lots 7, 8, and of Lot 11 (except the North 7 feet of the East 148 feet of said Lot 11) and of the it vacated alleys in said lots and of the vacated alley lying South n U • -3- and adjoining said Lot 7 and North and adjoining said Lots 8 and 9 all in Langworthy's Subdivision of Block 64 in Evanston lying East of a line described as follows: Commencing at the South East corner of Lot 8 aforesaid, thence North 89 degrees 56' 20" West along the South line of said Lot 8, 7.13.feet to the place of beginning of the herein described line, then North 20 degrees 32'30" West to the North line of Lot 7, in Langworthy's Subdivision aforesaid, all in the South West 1/4 of Section 18, Township 41 North, Range 14 East of -the Third Principal Meridian, in Cook County, Illinois. s SECTION 3: The City Manager is hereby authorized and directed to sign, and the City Clerk is hereby authorized and directed to attest, a contract for the sale and purchase of the aforesaid real estate, which contract shall be substantially in the form attached hereto as Exhibit "A". ii SECTION 4: Upon satisfaction of the terms of the aforesaid contract, jiand upon the payment or securing of the aforesaid bid price in the manner i 1i�provided in said contract, the Mayor is hereby authorized and directed to convey and transfer the aforesaid real estate to the Hawthorn Realty Group, Inc., i 11by a proper deed of conveyance, stating therein the aforesaid consideration, I . ,;and the City Clerk is hereby authorized to acknowledge and attest such deed, ,land to affix thereto the Seal of the City of Evanston. SECTION 5: The Mayor and the Clerk are hereby authorized, ! respectively, to execute and attest such j 1 J,other documents as may be necessary to the conveyance herein authorized. SECTION 6: This ordinance shall be in full force and effect from I! i and after its passage by a vote of at least three -fifths_ ff '!of the elected Alderman now holding office, and approval in the manner i provided by law. i i 1975 :Introduced July-7 � + Adopted i ATTEST: Julv 21 ,1975 Approved July 21 • ,1975 /.c/ RAVrar 112pnPman Tr Mayor 1sl Maurice F. Brown Approved as to form: IG/ Jack M. SieQel Exhibit "A" A G R E E M E N T WHEREAS, the City of Evanston, an Illinois municipal corporation, hereinafter referred to as "Seller", owns or has contracted to acquire certain real property located in the City of Evanston, all which is hereinafter legally described and hereinafter referred to as the "property"; and WHEREAS, said property is presently used for public off-street parking facilities and an electrical vault; and WHEREAS, the City Council of the City of Evanston has determined that it is no longer necessary, appropriate, or in the best interest of the City of Evanston that it retain title to said property and that said property is not required for the use of, or profitable to, the City of Evanston; and WHEREAS, the City Council of the City of Evanston has determined that the best interest of the City of Evanston is to be served by the convey- ance of said property to qualified parties for the development of said -property for an office building and related facilities; and WHEREAS, notice has been given of the proposal to sell such property and bids have been invited for the purchase of said property; and WHEREAS, pursuant to said notice, bids were opened at a regular meeting of the City Council of the City of Evanston; and WHEREAS, Hawthorn Realty Group, Inc., an Illinois business corporation, with offices at 120 South LaSalle Street, Chicago, Illinois, submitted a bid to purchase and develop said property; and WHEREAS, the City Council has determined that the best interest of the City of Evanston and its residents will be served by the acceptance of the bid submitted by the Hawthorn Realty Group, Inc. and a sale of the hereinafter described property to such bidder for the sum of $840,000.00 for development as is hereinafter provided. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES AND COVENANTS CONTAINED HEREIN, THE PARTIES AGREE AS FOLLOWS: 1. The Hawthorn Realty Group, Inc., hereinafter referred to as the "Purchaser", agrees to purchase at a price of $840,000.00, on the terms set forth herein, the following described real estate, in the City of Evanston, Cook County, Illinois: Parcel 1: Lots 8, 9, 10 and 11 in P. Judson's Subdivision of Lot 1 • in Langworthy's Subdivision of Block 64 in Evanston in the South West 1/4 of Section 18, Township 41 North, Range 14 East of the Third Principal Meridian,in Cook County, Illinois. Parcel 2: - All of Lot 9, and that part of Lots 7, 8, and of Lot 11 (except the North 7 feet of the East 148 feet of said Lot 11) and of the vacated alleys in said lots and of the vacated alley lying South and adjoining said Lot 7 and North and adjoining said Lots 8 and 9 all in Langworthy's Subdivision of Block 64 in Evanston lying East of a line described as follows: Commencing at the South East corner of Lot 8 aforesaid, thence North 89 degrees 56'20" West along the South line of said Lot 8, 7.13 feet to the place of beginning of the herein described line, then North 20 degrees 32'30" West to the North line of Lot 7, in Langworthy's Subdivision aforesaid, all in the South West 1/4 of Section 18, Township.41 North, Range 14 East of the Third Principal Meridian, in Cook County, Illinois. commonly known as the Sherman and Grove Parking Lot. 2. Seller shall sell the property to Purchaser at the price and terms set forth herein, and shall convey or cause to be conveyed to Purchaser, or its nominee, title thereto by a recordable quit claim deed. 3. At or prior to closing, Seller shall release any possible easements for city and public utility mains, sewers, pipes, conduits, wires, cables, and gasoline storage tanks of the City of Evanston as disclosed by a certain deed from the City of Evanston to William F. Krahl and Dorothy Krahl, dated February 16, 1937 and recorded February 23, 1937 as Document 11953143, conveying the north 7 feet of the east 148 feet of lot 11 aforesaid, and a certain lease from William F. Krahl and Dorothy Krahl to Balaban and Katz Corporation, dated January 22, 1937 and recorded February 23, 1937 as Document 11053144. 4. Prior to closing Seller shall execute such adverse possession affidavits as may be required by the Chicago Title Insurance Company to establish title in the City of Evanston over such property as is described in exceptions #29 and #33 of the report of title of the Chicago Title Insurance Company dated February 7, 1975 and identified as #63-59-561. 5. At or prior to closing, Seller shall provide Purchaser with -2- i • • the written opinion of the Corporation Counsel of the City of Evanston to the effect that Seller has full legal authority to convey the property to Purchaser and that the authorization, execution, and delivery of this Agreement is duly authorized pursuant to the laws and ordinances of the State of Illinois and City of Evanston, and that this Agreement is binding upon Seller and enforceable according to its terms. Seller shall also exercise its best efforts to provide such legal opinions as may be required in connection with Purchas6r's con- struction and permanent loans as applied to the property. 6. Purchaser has deposited with Seller the sum of $84,000.00 as bid security as required by Seller's notice of proposal to sell real estate. At closing, Seller shall apply $25,000.00 of such bid security to the purchase price. The remaining $59,000.00, plus or minus customary closing prorations, shall be retained by Seller until Purchaser opens its construction loan, at which time such sum shall be returned to Purchaser. Real estate taxes for the years 1974 and 1975 shall be reprorated when the actual bills therefor are issued. 7. The remaining $815,000.00 of the purchase price shall be paid as follows: 1) the sum of $25,000.00 on the first anniversary date of the closing, to be secured by a one year Letter of Credit acceptable to Seller in the amount of $25,000.00 from a bank or savings and loan association, drawn in favor of Seller; 2) $790,000.00 at closing to be evidenced by a promissory note in the amount of $790,000.QO by the First National Bank and Trust Company of Evanston, not individually, but solely as Trustee under Trust Agreement No. R-1809, which note shall be secured by a 27-year purchase money mortgage and shall be payable, in monthly installments, with interest at the rate of 7-3/4% for the first ten (10) years and with interest at the rate of 10% for the remaining fifteen (15) years, in accordance with the payment schedule attached hereto as Exhibit "B". The unpaid principal balance of the note may be prepaid at any time subject to a 3% prepayment penalty. At closing Pur- chaser shall furnish Seller with an ALTA loan policy issued by Chicago Title Insurance Company, in the amount of $790,000.00, insuring the mortgage. Said purchase money mortgage shall be subordinate to any construction loan obtained by Purchaser for development of the subject property as hereinafter provided -3- f r s .. �..r. ..ram in this Agreement. Purchaser's construction lender shall not be obligated to protect Seller's interests in the property. At Purchaser's request, Seller shall execute a subordination agreement in form satisfactory to Purchaser's construction lender. Notwithstanding the foregoing, the Seller shall not be required to sign a subordination agreement or subordinate the lien of the purchase money mortgage to the lien of the construction lender's mortgage until Purchaser shall have delivered to Seller an irrevocable Letter of Credit, acceptable to Seller, in the amount of $790,000.00 from a bank or savings and loan association, drawn in favor of Seller. Said Letter of Credit shall remain in full force and effect until the project is substantially completed and Purchaser shall have released, or caused to be released, the aforesaid subordination agreement. Said Letter of Credit shall stand as additional security for•the note during the period for which the subordination agreement is in effect.' 8. Closing shall be within thirty (30) days after the date hereof, or such other date as shall be mutually agreed, at the office of Chicago Title Insurance Company. Prior to closing, Seller shall provide Purchaser with an updated letter of commitment issued by Chicago Title Insurance Company • showing title to the property in Seller. At closing Seller shall provide Purchaser with an ALTA 1970B Owners Title Insurance Policy in the amount of $840,000.00 showing title to property in Purchaser, subject only to exceptions set forth in Exhibit "C" attached hereto and made a part hereof. 9. Purchaser agrees to improve the subject property with con- struction of a multi -story office building containing no less than 280,000 rentable square feet, exclusive of off-street parking facilities, and to provide a minimum of 50,000 gross square feet of retail/commercial area. Said improvement shall include provisions for off-street parking facilities in accordance with the existing requirements of the zoning ordinance of the City of Evanston. Said improvement shall be made substantially in accordance with the plans submitted as part of'the written bid of the Hawthorn Realty Group, Inc. dated June 16, 1975, and modified June 26, 1975. 0 10. The property shall remain open and available for municipal use without cost to Seller as a parking lot until the property is rendered -4- Y unusable for such purpose by Purchaser's construction. Construction shall commence as soon as reasonably practicable. Seller shall indemnify and hold harmless Purchaser for any claim or loss arising out of Seller's continued use and occupancy of the property after closing and shall further provide evidence of such indemnification by delivering to Purchaser a certificate of insurance showing Purchaser as an additional insured. 11. Transfer of the subject property to Purchaser shall be subject' to a covenant running with the land providing that the property development and improvements made thereon shall not be exempt from general taxes notwithstanding the identity or status of subsequent owners and/or users. Said covenant may be waived by the Evanston City Council. 12. Purchaser agrees to commence construction of a parking garage as soon as reasonably possible after closing so as to provide no less than 250 parking spaces for the use of the public, commencing in the summer of 1976. Said parking garage shall, upon completion, contain a total of not less than 380 parking spaces. 13. Within 180 days of closing, Purchaser shall commence or cause the commencement of the construction of the improvements upon the.property and shall cause the completion thereof with due diligence, acts of God, strikes, lockouts, material or fuel shortages, unusual weather conditions or other causes beyond the control of Purchaser considered. 14. In the event that this contract is terminated because of Purchaser's default, and upon written notice„ all money deposited shall be paid to the Seller as liquidated damages. 15. Transfer of the subject property shall be completed through an escrow at the Chicago Title and Trust Insurance Company in accordance with the terms of Chicago Title and Trust Insurance Company standard deed and money escrow as modified in accordance with the terms of this Agreement. All payments, deeds, and other pertinent documents shall be deposited therein and the escrow cost shall be equally borne by the Purchaser and Seller. 16. At Purchaser's request, Seller shall issue Industrial Revenue • Bonds to finance acquisition and construction in the form and to the extent -5- e permitted by law. Said election shall be made not later than thirty (30) days following closing. 17. Prior to issuance of building permits for the development, Purchaser shall provide Seller with proof of a completion bond in an amount • .equal to the cost of the improvements issued by a surety company licensed to do business in the State of Illinois. I 18. Time is of the essence of this agreement. 19. All notices shall be in writing and shall be served on the parties at the addresses following their signatures. Mailing of notice by registered or certified mail, return receipt requested, shall be sufficient service. Dated this i=day of 1975 CITY OF EV ON By: i City Manage):�� ;ATTEST: IP • r:F 1, 1 tj0'VVMMt" { City Clerk 1 HAWTHORN EALTY GROUP, INC. i By: _ President ATTEST: Secretary Is EXHIBIT B �i(} Balance Principal Interest 1 790000,00 5102.08 865,02 2 789134.98 5096,50 870.60 3 789264.33 5090.87 876.23 4 737368.15 5035.22 881.88 5 786506.27 5079.52 887.58 E. 785618'69 5073.79 893.01 7 784725.38 5068.02 O99.O8 8, 783826.30 '5062.21 904.89 9 782921.41 5056.37 910,73 10 782010.68 5050.49 916.61 11 781094.07 5044.57 922.53 12 780171.54 5038.61 928.49 '------'--- 1� 779243.05 5032.61 934.49 14 778308.56 5026.58 940,52 777368 04 5020 50 946 60 l5 . , , V 776421.44 5014.39 952,71 17 775468.73 5008.24 958.86 0 774509 87 5002 04 965 6 l8 ^ ^ ^ lq 773544.81 4995.81 971.29 20 772573.52 4989.54 977.56 31 771595.96 4983.22 983.88 770612.08 4976.97 990.23 769621.85 4970'47 996.63 768625.22 4964.04 1003.'06 �5 767622.16 4957.56 1009.54 3� 766612.62 4951.04 1016,06 27 765596.56 4944.48 1022.62 ZG 764573.94 4937.87 1029.23 Zq 763544.71 4931.23 1035.87 30 762508.84 4924.54 1042.56 761466.28 4917 O0 1049 30 3l ` ' ^ . 32 760416.98 4911,03 1056.07 759360 91 4904 21 1062 ]� ` ^ ^ 89 34 756298.02 4897.34 1069.76 35 757228.26 4S90.43 1076.67 36 756151.59 488S.48 1083.62 1� 755067.97 4876.48 1090.62 38 753977.35 4869.44 1097.66 39 752879.69 4862.35 1104.75 40 751774.94 4855'21 ' 1111.89 41 750663.05 4848.03 1119.07 43 749543.98 4840.80 1126,30 �� 748417.68 4S33'53 1133.57 S9 747284 11 48�6 21 1140 44 , , _ 45 746143.22 4818.84 1148.26 46 744994.96 4811'43 1155.67 47 743939.29 4S03,96 1163.14 O742676,15 4796.45 1110'65li; Payments T through I20` inclusive ='$5,467.I0 Payments 121 through 300' inclusive = $6,812.32 N v 1-+ 1--. 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In t J J . i N ^^ "r - 111 CO (:j-O — N M a+ Ln-.L) C'` Co C- O -1 N M-,V i!1 1,0 N CO 0-� O ., ,Z .o 0 1- 1- r` ;� C, ;. r- r- m 00 Co Co 00 0000 co co co rn ON a% cam^ ON ON CN rn C)N o N NN N 1NN NN fV N NN N N N N NN N NN N N N NN N N N N N M49 u i !�j • EXHIBIT "C" Conditions contai.ned in deed from Andrew J. Brown and his wife to Andrew T. Sherman dated November 1, 1857 and recorded December 12, 1857 as Document 95423 conveying Block 64 in the Village of Evanston i providing that no intoxicating drinks are to be manufactured or sold on the land. 2. Conditions and Limitations imposed by law. jj 3. Terms, powers, provisions and limitations of. the trust number which title to the land is held. j! 4. Rights of public or quasi -public utilities other than the City of Evanston, if any, for maintenance therein of poles, conduits, sewers, !� etc. in streets and alleys. 5. Easements for the following public utilities as shown on the Plat of Survey by B. H. Suhr and Co. Order 74-1481, dated January 24, 1975. (A) Telephone poles located in the alley as set forth in Document . 4553805 in the alley as set forth in Document 55753 in a part of Lot 7 (Ex the East 126.5 feet thereof) in Langworthy's Subdivision kkand in the westerly portion of Judson's Subdivision aforesaid. iq (B) Catch basins located in Lot 11 in Langworthy' s Subdivision afore- said and Lot 8 in Judson's Subdivision aforesaid. (C) Public service company vault located on the east side of alley jj as created by Document 55753. (D) Electric vault located in the westerly part of Lot ll in Lang - worthy's Subdivision. F 6. Taxes for the years 1974 and 1975 on permanent tax numbers: if 11-18-311-030 11-18-311-031 11-18-311-032 11-18-311-009 11-18-311-010 i 11-18-312-011 1' 11-18-312-022 ;,. 11-18-312-023 t. 7, The lien of additional taxes which may be assessed for 1975 by reason of the construction of new or additional improvements during that year and extended for collection on the 1976 or subsequent collector's warrant. is