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ORDINANCES-1999-132-O-99
November 3,1999 • ORDINANCE NO.132-0-99 AN ORDINANCE Approving the Terms and Authorizing - The City Manager to Execute A Redevelopment Agreement With Evanston Plaza L.L.C. For the Redevelopment of the Dempster & Dodge Shopping Center (Evanston Plaza) Whereas, the Evanston Plaza L.L.C. (referred to herein as the "Developer") has proposed a plan for the redevelopment of Evanston Plaza also known as the Dempster & Dodge Shopping Center: and Whereas Evanston Plaza has been a blighted shopping center with excessive long term vacancies that in some cases exceed four years: and Whereas the Developer has created a Redevelopment grogram anchored by a new • Dominick's Grocery Store that will revitalize the shopping center and attract new tenants: and Whereas the Developer will incur extraordinary costs stated in the Redevelopment Agreement herein: and Whereas the Economic Development Committee, (7-0), unanimously recommended approval to the City Council of the Redevelopment Agreement (attached as Exhibit A) during it's meeting of October 27, 1999: and Whereas, the City has determined that said proposed redevelopment plan is consistent with and complies with the City's policies for appropriate economic development: and 0 Whereas, the Corporate Authorities of the City of Evanston have reviewed the • - provisions of this redevelopment agreement and have deemed that it is in the best interest of the City to Enter into, such agreement for redevelopment. — - NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF ' THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS: SECTION 1: That the City Manager be and is hereby authorized and directed to execute a redevelopment agreement governing the redevelopment of the Dempster & Dodge Shopping Center properties which is in substantial conformity with the redevelopment agreement marked as Exhibit A, attached hereto and incorporated herein by reference. SECTION 2: All ordinances or parts of ordinances in conflict herewith are hereby repealed. • SECTION 3: That this ordinance shall be in full force and effect from and after it's passage, approval and publication in the manner provided by law. Introduced: , 1999 Adopted: Z?,- , 1999 Approved: L,3 , l999 ayor C ty of Evanston GT�IRVIA imm lved as to o ration Co el RA -FREED wloaa1499 EXHIBIT A REDEVELOPMENT AGREEMENT • THIS REDEVELOPMENT AGREEMENT (this "Agreement") is made and entered into this day of , 1999, by and between the CITY OF EVANSTON, Illinois, an Illinois home rule municipal corporation (the "City"), and Evanston Plaza L.L.C. ("Developer"). RECITALS: WHEREAS, Developer is the owner of certain real estate commonly known as Evanston Plaza Shopping Center located within the City, which real estate is legally described and depicted in Exhibit A attached hereto and made a part hereof (the "Property"); and WHEREAS, the City has adopted Ordinance No. -O -99, a copy of which is' - attached hereto and made a part hereof as Exhibit B, authorizing the City Manager to execute a redevelopment agreement for the redevelopment of the Evanston Plaza Shopping ,Center; and WHEREAS, Developer desires to re -develop and relet the space in the Shopping Center consisting of 228,286 square feet located on the Property. Said redevelopment shall consist, in part, of the renovation of a new Dominicks Grocety Store contm.ning not less than 55,000 square feet, a retail space containing approximately 18,000 squwe feet, • the renovation of the existing Office Depot space containing approximately 27,000 square feet to be initially occupied by Office Depot and parking lot and landscaping improvements (the "Project"); and WHEREAS, the parties agree that extraordinary costs associated with the redevelopment of the Property and the attraction of Dominicks require certain incentives from the City, and the incentives that will be offered to offset these extraordinary costs shall be in the form of rebates from the City of portions of local sales taxes generated on the Property; and WHEREAS, the City has determined that providing financial assistance in the form of such rebates is a proper exercise of its home rule powers; and WHEREAS, the City desires to increase sales tax revenues, property tax revenues, diversification of the tax base, the creation of new jobs, the funding of neighborhood improvement programs, and general enhancement of the tax base of City to the benefit of City and other governmental entities, and in conjunction therewith has received certain sales tax projections prepared by its financial consultant, Kane, McKenna and Associates, Inc., copies of which are attached hereto and made a part hereof as Exhibit C, setting forth certain potential real estate and sales tax revenues to the City and • Certain other governmental bodies, and the power exercised under Ordinance No. - 18 RA-FREED/M IO/MI999 0-99 and under this Agreement are found to be in furtherance of the public use and essential to the public interest; and • WHEREAS, but for the undertakings of the City as set forth in this Agreement, Developer would not construct the Project on the Property and the City has agreed, pursuant to the terms of this Agreement, to provide certain sales tax sharing provisions in --- order to insure the economic feasibility of the Project which will have the benefits described above. LJ • 19 f Y Sa d d 3 07i d 11 nrZdi L•?�: AGREEMENTS: • NOW, THEREFORE, in consideration of the Recitals, the covenants, terms and conditions hereinafter set forth and other valuable consideration, the receipt and sufficiency of which are acknowledged, it is mutually agreed by the parties hereto as follows: 1. Recitals: The parties hereby agree that the Recitals set forth F hereinabove are incorporated herein by reference, as if fully set forth herein. 2. Develoaer Resuonsibilities: Developer agrees that the renovation of the existing retail space to be occupied by the new Dominicks Grocery Store containing not less than 55,000 square feet, the new retail space containing approximately 18,000 square feet and the renovation of the existing Office Depot store will commence on or before January 1, 2000, and shall be thereafter diligently pursued in accordance with a site plan dated May 20, 1999, and approved on June 2, 1999, attached hereto as Exhibit "D". Developer agrees that certificates of occupancy for the shell and core of the Dominicks Store, the new retail space and the existing Office Depot store will be obtained on or before July 1, 2000. Developer further agrees to renovate the remainder of the 228,286 square foot shopping center as described in Exhibit E, and to use all commercially reasonable efforts to lease or relet the vacant spaces located therein. • Before commencement of construction of the project as described herein, Developer or their tenants shall, at their expense, secure or cause to be secured any and all permits, documents or plats which may be required for the initial construction by City Ordinances existing as of the date of this Agreement, and any other governmental agencies having jurisdiction over such construction, development or work, or such portion of the work being performed, including, without limitation, any applications and permits, documents or plats which may be required to be obtained from any local, federal or state environmental protection agency, the Metropolitan Water Reclamation District of Greater Chicago, or from any other agency which may have or exercise any Jurisdiction of any type whatsoever which may affect the Property. The City shall not oppose any such application pending before another governmental body or agency, provided such application is consistent with all lawful requirements. The City shall provide all proper assistance to Developer in securing such permits and shall promptly issue all permits required to be issued by the City, and agrees to sign other permits, documents or plats which require execution by the City, provided such permits, documents or plats comply with all lawful requirements. Except as provided in this Agreement, the costs of the Project and all improvements on the Property shall be borne and paid for by the Developer or their tenants. Developer further covenants and agrees that Dominicks and other retail stores, when completed, shall have on site water, gas and electrical supply, and on site storm and sanitary sewerage facilities and any other required utilities as required by permit. • W11 yew-iorz0/1999 Developer further agrees to satisfy all applicable City of Evanston ordinances and • requirements, including but not limited to subdividing or resubdividing the Property, in the event of sale of any portion of the Property. 3. City Responsibilities: A. In consideration of Developer's redevelopment of the Project including the renovation of the existing retail space to be occupied by the new Dominicks, 18,000 square feet of additional renovated retail space, and the renovated Office Depot space, the City agrees to remit to Developer certain monies as follows. For each Revenue Year (as hereinafter defined), or portion thereof, during the term hereof and at the times set forth in Section 4(B) hereof, the City shall, provided Developer has complied with the provisions of Section 6 hereafter, disburse the City's Tax Revenue Share (as hereinafter defined) for each such year in the following order of priority: - - - (1) First to the City all sales taxes equal to the base year sales tax revenue generated by the Shopping Center. The base year shall be defined as beginning on July 1, 1998, and ending on June 30, 1999. (2) Second, to the City, an amount up to (but not exceeding) $175,000 in incremental sales tax revenue as adjusted. Incremental sales tax revenue is defined as that portion of the sales tax revenue generated by the Shopping Center which is in excess of said sales tax revenue generated thereby in the base year. is After the first revenue year, the amount paid to the City pursuant to this paragraph 3A(2) shall be adjusted annually pursuant to the consumer price index for the Chicago metropolitan area on an annual basis. (3) Third, an amount up to (but not exceeding) $20,000 (the "Neighborhood Improvement Contribution") but only until such time as the aggregate Neighborhood Improvement Contributions disbursed hereunder shall equal $200,000; such Neighborhood Improvement Contributions shall be deposited by the City into a fund (the "Neighborhood Improvement Fund") to be applied as set forth in Section 3 (C) hereof; (4) Fourth, the balance to Developer and to the City on the ratable basis of 75% to Developer (in reimbursement for Eligible Project Costs as defined in Section 4 (A) hereof) and 25% to the City. The disbursements hereinabove set forth shall be prorated on a daily basis for partial Revenue Years. For purposes hereof, the "City's Tax Revenue Share" shall mean any and all Retailers Occupation Taxes, Retailers Service Occupation Taxes, Retailers Use Tar. Retailers Service Use Tax, or any other "sales tax" or successor tax that may be enacted by the State of Illinois or any governmental agency or body created under the • laws of the State of Illinois and located within the State of Illinois which City is able to verify by reference to the documents described in Section 10 hereinafter as being 21 RA -FREED M/1O/2a1999 assessed, accruing or arising as a result of retail operations on or about the Property • during the term hereof and received by the City from the State of Illinois or such other governmental agency or body created as aforesaid. Also for purposes hereof, "Revenue Year" shall mean each twelve-month period during the term hereof, commencing on the first day of the calendar month immediately following the opening of business of Dominick's. B. Notwithstanding anything to the contrary herein contained, the City shall have no obligation to disburse to Developer any portion of the City's Tax Revenue Share accruing or arising after the Expiration Date (as defined in Section 20 hereof). C. The City covenants and agrees that all funds held in the Neighborhood Improvement Fund shall be used in conjunction with input from the community and as determined by the Evanston City Council. 4. Developer's Use of Cnty Sales Tax reimbursement A. Eligible Prop ect Costs. All monies paid to Developer by the City pursuant to this Agreement shall be utilized by Developer for the payment of or reimbursement for the actual aggregate identified extraordinary costs (the "Eligible Project Costs") listed below which total $1,305,516: (1) Building shell dernolitiorV- prepandtion casts: $127,766 • (2) Parking Lot improvement costs: $355,000 (3) Anchor Tenant Allowance Costs: $822,750 The amounts paid for building shell demolition/preparation costs and anchor tenant allowance costs may vary up to five percent (5%) of the aggregate. Notwithstanding the foregoing, in no event shall Eligible Project Costs exceed the sum of $1,305,516. The Developer's Project Budget identifying these costs is attached hereto as Exhibit F. It is further agreed between the parties that upon submittal of Developer's Eligible Project Costs and prior to the receipt of any City sales tax reimbursement, Developer will provide the City with the following: (1) executed copies of all Project leases; (2) a certification of Developer's project costs and supporting documentation including but not limited to disbursement statements from the lender or title company; (3) any and all construction loan agreements and notes. The City shall have sixty (60) days after receipt of these documents within which • to verify the sufficiency of the information contained therein as to Eligible Project Costs. 22 RA•FREEDMlOM/1999 If it is determined that an audit of said costs is necessary, an independent auditor, • agreeable to both parties, shall conduct said audit within ninety (90) days of said determination. The expense of said audit shall be borne by Developer, who will cooperate in all reasonable ways with the conduct of the audit. Within thirty (30) days after delivery of the aforesaid certificate and documentation, Developer agrees to deliver to City reasonably satisfactory evidence of payment of such Eligible Project Costs and waivers of lien claims from all contractors and suppliers who provided either labor or materials for the completion of such work. B. Manner of Funding Eligible Project Costs. City's payment or reimbursement of Eligible Project Costs shall be made on a semi-annual basis, within thirty (30) days after the last day of the first six (6) months and then the last six (6) months of each Revenue Year. The City shall make all reasonable efforts to ascertain the sales tax increment from the Illinois Department of Revenue for each Revenue Year. Developer agrees to obtain and provide the City with the ST-1 forms for the new Dominicks Store and for all new tenants in the Shopping Center after the date of this Agreement. Developer further agrees to use all reasonable efforts to obtain and provide the City with the ST-1 forms for all other tenants. Provided the City obtains the tax increment information from the Department of Revenue or, failing that, provided the Developer has caused the ST-1 forms or other similar information to be delivered, the City shall provide Developer with a report of all of the City's Tax Revenue Share for the Property received during the prior six (6) month period, together with a payment in the • amount of Developer's pro rats share of any and all of the City's Tax Revenue Share received by the City and then due and owing Developer, pursuant to Section 3 (a) hereof. Within sixty (60) days after each Revenue Year, the City shall notify Developer of the actual amount of the City's Tax Revenue Share received for such Revenue Year. If the total portion of the City's Tar Revenue Share paid to Developer for such Revenue Year is less than the actual amount to which Developer is entitled hereunder for such Revenue Year, then the City shall pay to Developer concurrent with its delivery of the foregoing notice to Developer the amount of such deficiency. If the total portion of the City's Tax Revenue Share paid to Developer for such Revenue Year exceeds the actual amount to which Developer should have received for such Revenue Year, then the City shall be entitled to credit the excess amount received by Developer for such Revenue Year against future installments of the City's Tax Revenue Share to be paid to Developer hereunder until such excess has been recovered in full. 5. Permit Processing. The City shall diligently process all applications by Developer for all approvals, permits and inspections relating to the redevelopment of the Property in accordance with the provisions of this Agreement, including, but not limited to, grading permits, building permits, occupancy permits, site work improvements and all required engineering plans and specifications. A reasonable failure on the part of the City to grant any required approval or issue any required permit shall not be deemed a default, • or the cause of a default, by the City under this Agreement provided the City is acting in accordance with its ordinances and codes. 23 Rn-FREED/wior20/1999 • 6. Signage. The signage for the Project shall be substantially as depicted and set forth on Exhibit G which has been approved. 7. Access to Utilities. The City shall permit Developer to make the usual and normal connections to water and storm sewer facilities to serve the Project in accordance with approved engineering plans and all applicable City ordinances and requirements. ' 8. Certificate of Completion. Upon application of Developer, the City will make a determination as to Developer's satisfaction of its obligations under this Agreement pertaining to the completion of the Project in accordance with the Site Plan and upon such reasonable determination shall certify as to such satisfaction. The certification by the City shall be conclusive determination of the satisfaction and termination of such obligations of Developer under this Agreement, including the obligations set forth in this Section 4 with regard to the verification of Eligible Project Costs. Their certification shall be in such form as will enable it to be recorded. Upon written request by the Developer for any such certificate of completion, the City shall within sixty (60) days after receipt of the same provide the Developer, as the case may be, either -with a certificate of completion or a written statement indicating in adequate detail how Developer has failed to satisfy said obligations in accordance with this Agreement, or is otherwise in default, and what measures or acts i0l}_ use necessary, in, the opinion of • the City, for 1eveloper to obtain the certification. if the City requires additional measures or acts of Developer to assure compliance, Developer shall resubmit a written request for a certificate of completion upon compliance with the City's response, and such certificate shall be issued by the City in accordance with the provisions hereof. 41 9. Ownershio of the Property: Restrictions on Transfer. A. During the initial five (5) revenue years of the term of this Agreement, Developer agrees that it will not sell, convey, or transfer ownership of any portion of the property without written consent of the City, which will not be unreasonably denied or delayed. As a minimum, the City shall be entitled to reasonably require the following regarding any transfer: 1. Any proposed transferee shall have the experience and financial responsibility to fulfill the obligations undertaken by the Developer in this Agreement; 2. Any such proposed transferee shall have expressly assumed the obligations, of the Developer under this Agreement. 24 tta-eREEDnVIOW19" B. Developer further agrees to maintain the Property on the public tax rolls • during Developer's ownership thereof for the period during which Developer is receiving a percentage of the City's tax revenue share. C. Developer further agrees that should it convey the Property or any part thereof, said conveyance shall be subject to the following restrictive covenants or deed - restrictions which shall run with the land and shall terminate on the expiration date as defined in Paragraph 20 of this Agreement: 1. Neither the property nor any portion thereof shall be sold to any entity which may cause the property conveyed to be removed from the public tax rolls or change the use thereof so as to eliminate the sales tax revenue generated therefrom without the prior express written approval of the City for the period of time within which Developer is receiving any portion of the incremental sales tax revenue. 2. No portion of the Property shall be, or become, exempt from the public tax rolls for the period of time within which Developer is receiving any portion of the incremental sales tax revenue. 10. Sales Tax Reports: Concurrent with the filing of any and all reports with the Illinois Department of Revenue or any successor agency, Developer shall furnish or cause to be furnished and shall use its reasonable efforts to cause the occupants of the Shopping Center to furnish to the City (to the attention of the City's Finance Director) copies of any and all sales tax returns, sales tax reports, amendments, proof of payment or any other sales tax information filed with the State of Illinois or other applicable governmental entity. In the event the State of Illinois is unable or unwilling to provide such information to the City, Developer shall, upon at least thirty (30) days prior written request therefor, provide the City with all documentation available to Developer that the City reasonably deems necessary to accurately determine the amount of the City's Tax Revenue Share. To the extent permitted by law, City shall maintain the confidentiality of the information contained in such reports. Developer acknowledges and agrees that the provisions of this Agreement shall be a matter of public record, as shall any and all payments made by the City to Developer pursuant to this Agreement. Developer further covenants and agrees, that upon the request of City, Developer shall furnish such consents or waivers as may be required by the Illinois Department of Revenue, including but not limited to, a Consent to Disclosure Statement in form and content satisfactory to Developer, in order to release the above -described sales tax information to the City. Developer and City agree and acknowledge that any disbursements of City's Tax Revenue Share due it for any Revenue Year can only be made from and to the extent of sales data submitted in accordance with this Section. Developer agrees to make the obligations contained in this Section a part of any contract to sell any portion of the Property. • 25 RA-FREED/M/ I Or-0/ 1999 • 11. Reimbursement Mechanism: The City shall remit in full to Developer the portion of the City's Tax Revenue Share to which Developer is entitled as determined in Section 3, Section 4 (B) and Section 10 above. The City shall be liable to Developer for disbursement of monies hereunder only to the extent of the City's Tax Revenue Share actually received from the Illinois Department of Revenue or other _ applicable governmental agency or body, provided, however, that the City reserves the right to make such earlier and additional payments in such amounts and at such times as the City, in its sole discretion, deems appropriate. Any payments determined to be due to Developer from the City based upon sales tax returns of retailers conducting business on the Property shall be reduced by the amount of any and all collection fees imposed upon City by the State of Illinois or the Illinois Department of Revenue or other applicable governmental agency or body, for collection of the Sales Tax Revenue. 12. Casualty / Extensiorn of Term: In the event of a casualty or destruction of substantially all improvements on the Project within the first five Revenue Years, and Dominicks fails to promptly commence, diligently pursue reconstruction of said improvements and recommence its retailing operations on the Property within twelve (12) months after the date of said casualty, Developer shall be obligated to refund to the City, in the same semi-annual amounts in the same order over the same period of time as said funds were received by Developer, any and all portions of the City's Tax Revenue Share theretofore receive. by Developer. If (i) upon. the occurrence of destruction of any or all of improvements on the Property during the term. hereof that results in a, material • reduction of the City's Tax Revenue Share, Dominicks elects to rebuild said improvements, and Dominicks promptly commences and diligently pursues said reconstruction, or (ii) if Dominicks retailing operations on the property cease due to force majeure, then, in each case, provided the conditions set forth in Section 17(ii) hereof have not been satisfied, the term of this Agreement shall be automatically extended for a period equal to the period commencing on the date of said casualty, or the date said force majeure commences (as applicable), through the date of final completion of the reconstruction of said improvements, or the date of cessation of said force majeure (if applicable), and the City's payment obligations hereunder shall, with respect to the City's Tax Revenue Share arising or accruing during said extended term, continue for said period. Provided Developer is not in default hereunder, the City shall continue to make any and all disbursements during any period of reconstruction or force majeure referred to hereinabove to which Developer would be otherwise entitled hereunder for said period. 13. Indemnification: Developer agrees to indemnify and hold harmless the City, its officials, whether appointed or elected, and whether or not serving at the time of commencement of this Agreement, its officers, employees, volunteers and agents, from any and all claims, actions and suits (together with the City's reasonable attorneys' fees isand costs) at law or in equity arising out of or alleged to have arisen solely out of acts of Developer, or related to this Agreement, provided, however, that said indemnification is FW P A-FAEEDAV t orzo/ 1999 hereby expressly limited to the extent of reimbursement payments actually made or owed • by the City to Developer hereunder. 14. Mutual Assistance: Developer and the City agree to do all things practicable and reasonable to carry out the terms and provisions of this Agreement and to aid and assist each -other in- carrying out the terms hereof. 15. Additional Agreements and Covenants of Developer. In accordance with the City's financial commitment to the redevelopment of the Project Area, Developer agrees and covenants with the City as follows: A. That it will cause the improvements to the Property other than the renovation of the existing retail space to be occupied by the new Dominicks Store shown on the. Site Plan to be constructed and completed in a good and workmanlike manner and in compliance with all applicable federal, state, county, and City laws, regulations, and ordinances covering same. Developer or its tenants shall be responsible for securing all required permits and approvals for such work and paying all applicable fees relating thereto; B. That the sums to be paid or reimbursed to Developer hereunder for the Eligible Costs represent only a portion of the overall development costs to Developer; and C. Developer will notify City of the intended opening dates of Dominicks and the retail space containing 18,000 square feet not less than four (4) weeks prior to said date. Developer further agrees to attend and participate in a meeting to be arranged by the City, with appropriate local agencies for the purpose of notifying those agencies of the employment opportunities. In addition, prior to the hire of employees for the Dominicks -and the 18,000 square foot retailers within the Project, Developer shall place employment advertisements within newspapers or publications of local distribution at least three (3) weeks in advance of advertising such employment opportunities in newspapers or publication of general distribution. Developer shalt coordinate this advertisement and initial employment interview process with City staff in order to make jobs available for City residents. Developer further covenants and agrees that the general contractor hired by Developer to complete the Project shall hire, train and retain, or cause to be hired, trained or retained, during such construction contract at least three (3) laborers who reside in the City. 16. Anti -Discrimination. Minoritv Business Enterprises. Etc. A. Developer agrees that in the construction of the improvements on the Property provided for in this Agreement: 1. Developer shall not, with respect to the Project, discriminate against any • employee or applicant for employment because of race, color, religion, sex, national original origin or sexual orientation. Developer shall, with respect to the 27 ItA-FREEDMIO/20/1999 • Project, take affirmative action that will require that applicants are employed and that employees are treated fairly during employment, without regard to race, creed, color, religion, sex national original, disability or sexual orientation. Such action shall include, but not be limited to, the following: employment upgrading, demotion, or transfer, recruitment or recruitment advertising, solicitations or advertisement of employees, layoff or terminations; rates of pay or other forms of compensation, and selection for training, including apprenticeships. Developer agrees to post in conspicuous places, in and on the Project available to employees and applicants for employment, notices which may be provided by the City setting forth the provisions of this nondiscrimination clause. (2) In addition to the foregoing, as more fully provided in Paragraphs below, in the construction of all Project improvements for which Developer is _ - responsible, on the Property provided for in this Agreement, Developer shall use its good faith efforts to secure participation by minority businesses enterprises (L6MBEs"), as hereinafter defined, with a goal of 25% of the aggregate dollar volume of all such construction and all project improvements to be let to MBEs. Such good faith efforts should include, without limitation, utilizing its good faith efforts to secure participation by a joint venture consisting of an MBE and a non - MBE entity in a least one portion of the construction of the project improvements on the Property. This joint venture participation shall be included as MBE participation in deterfnining whether the 25% participation goal has been satisfied. In the event that Developer fails to use good faith efforts and the goal of 25% MBE participation is not meet, the City shall retain from the final disbursement to Developer of its portion of the City's Revenue share, a sum equal to $50,000.00, to be utilized by the City to create a job training and MBE Technical Assistance Program. B. Developer further agrees, with respect to the Project, to comply with all applicable laws prohibiting discrimination against, or segregation of, any person, or group of persons, on account of sex, race, color, creed, national origin, disability or sexual orientation in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of any portion of the Property. In addition, Developer, or any person claiming under or through it shall not establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of any portion of the Property. C. Developer, shall exercise its good faith efforts to secure MBEs in its achieving commercially reasonable participation in all service contracts on any portion of this Project. A minority business enterprise shall mean any entity which is owned and controlled by one or more Minorities (including, without limitation women), who, to the extent possible, reside in Evanston. Developer shall exercise its good faith efforts to identify appropriate MBEs. 28 wA-FRFEnnwwu2011999 D. Developer will make available to the City's designated Coordinator, • during the construction period, a monthly report indicating the amount of MBE participation; which includes MBE name, address, contact person, phone number, total contract amount, amount paid to date and percent of contracts. E. -- Notwithstanding the foregoing provisions, Developer and its contractors, tenants, subtenants, sublessees and vendees shall be entitled to employ union labor in the construction and development of the Project in accordance with the rules, regulations, ` and practices of any applicable unions. F. Developer agrees to comply with the provisions of all applicable federal, state, and local laws pertaining to people with disabilities. 17. Default Remedies. Except as otherwise provided in this Agreement, in the event of any default or breach of this Agreement or any terms or conditions by any party hereto, such party shall, upon written notice from the non - defaulting party, proceed promptly to cure or remedy such default or breach within sixty (60) days after receipt of such notice. If any such default is incapable of being cured within said sixty (60) day period, and the defaulting party commences to cure the default within said sixty (60) day period and proceeds with due diligence, then such party shall not be deemed to be in default under this Agreement. Notwithstanding the foregoing, with respect to the City's obligations under Paragraph 3 hereof, the City shall have five (5) business days after receipt of notice to cure or remedy a default. In case any action • hereunder is not taken or not diligently pursued or the default or -breach shall not be cured or remedied within the above periods, the aggrieved party may institute such proceedings as may be necessary or desirable in its opinion to cure and remedy such default or breach, including, but not limited to, an action to restrain any such default or breach of its obligations, an action to compel specific performance by the party in default or breach of its obligations, an action to recover damages against any party liable pursuant to the provisions hereof, or any other action at law or in equity. However, notwithstanding the foregoing, the sole remedy of Developer in the event of a default by the City in any of the terms of this Agreement is to institute legal action for specific performance against the City. Under no circumstance will the City have any monetary liability or damages, compensatory or punitive, under the provisions, terms and conditions of this Agreement, except for payment of Developer's reasonable attorneys fees in the event it obtains final non -appealable judgment against the city for specific performance to cure a breach of this Agreement. Except as otherwise set forth in this Agreement, the rights and remedies of the parties to this Agreement, whether provided by law or this Agreement, shall be cumulative and the exercise by any party of any one or more of such remedies shall not preclude the exercise by it at the same time or different times of any other remedies for the same default or breach by any other party. Any delay by any party in instituting or prosecuting any actions or proceedings or asserting its rights under this Agreement shall not operate as a waiver of such rights in any way; it being the intent of this provision that such party should not be constrained so as to avoid the risk of being deprived of or, limited in the exercise of the remedies provided in this Agreement because of the default 29 RA-FREEDlMJ1O=1999 involved. No waiver made by any party with respect to any specific default by any other • party under this Agreement shall be construed as a waiver of rights with respect to any other default by the defaulting party under this Agreement or with respect to the particular default except to the extent specifically waived in writing. 18. Entire Agreement. This Agreement sets forth all the promises, inducements, agreements, conditions and understandings between Developer and City relative to the subject matter hereof, and there areno promises, agreements, conditions or understandings, either oral or written, express or implied, between them, other than are herein set forth. 19. Survival of Terms. Bindine upon Successors. The covenants, terms, conditions, representations, warranties, agreements and undertakings set forth in this Agreement (and specifically including, without limitation, those covenants, terms, conditions, representations, warranties, agreements and undertakings which survive the termination of this Agreement) shall be binding upon and inure to the benefit of the parties hereto and their respective successors, assigns and legal representatives, and the covenants, provisions and agreements herein contained shall run with the property. 20. 'Term of Agreement and Redevelonffient Plan. The term of this Agreement shall commence as of the date of execution hereof and shall expire upon the eadier.of the following (the 6`EzpinadaLm B&t "): (i) twenty (2GQ) years froxn the date hereof, subject to extension as provided in Section 8 hereof; or (ii) the date on which the • aggregate amount of all payments received by Developer from. the (City pursuant to this Agreement, equals the lesser of (x) $1,305,516 or (y) the actual amount of the Eligible Project Costs. 21. Govern_ ing Law. The validity, meaning and effect of this Agreement shall be determined in accordance with the laws of the State of Illinois (without giving effect to Illinois choice of law principles). 22. SunDlemental Agreements. The parties agree to cooperate in order to execute such supplemental agreements, memoranda and similar documents as may be necessary to implement the terms of this Agreement. 23. Force Maieure. Performance by any party hereunder shall not be deemed, to be in default where delays or defaults are due to war, insurrection, strikes, lockouts, riots, floods, earthquakes, fires, casualties, acts of God, acts of the public enemy, restrictive governmental laws and regulations, epidemics, quarantine restrictions, freight embargoes or lack of transportation. An extension of time for any such cause shall be for the period of the delay, which period shall commence to run from the time of the commencement of the cause, provided that written notice by the party claiming such extension is sent to the other party not more than twenty (20) days after the commencement of the cause or not more than twenty (20) days after the party claiming 30 nn_FREEDMIO/2011999 such extension could have first reasonably recognized the commencement of the cause, • whichever is later. 24. Notices. Any notice, request, demand or other communication made in connection with this Agreement shall_ be in writing and shall be deemed to have been duly given on the date of delivery, if delivered to the persons identified below in person, by courier service or by facsimile copy (with original copy mailed the same day in accordance with the provisions of this Paragraph), or five (5) business days after mailing if mailed by certified mail, postage prepaid, return receipt requested, addressed as follows: If to the City: City of Evanston Civic Center 2100 Ridge Avenue Evanston, IL 60201 Attention: City Manager Facsimile: 847-448-8083 Copy to: Ryan and Ryan 33 North Dearborn Street, Suite 402 Chicago, IL 60602 Attention: William E. Ryan and Arthur N. Christie Facsimile: 312-236-13 86 If to Developer: Joseph Freed & Associates, Inc. 1400 S. Wolf Road Bldg. 100 Wheeling, IL 60090 Attention: Dennis A. Harder and Thomas H. Fraerman Facsimile: 847-215-5282 Copy to: Krasnow Sanberg Comblath & Hobbs 444 North Michigan Avenue Suite 2050 Chicago, IL 60611 Attention: Glen R. Comblath Facsimile: 312-755-5720 • 31 nn•FREEnawia20/1999 • U w 25. Severability. If any provision, condition, covenant or other clause, sentence or phrase of this Agreement is held invalid by a court of competent jurisdiction, such provision shall be deemed to be excised and the invalidity thereof shall not affect any other provision, condition, covenant or other clause, sentence or phrase contained herein. Notwithstanding the foregoing, if any such invalid provision goes to the essence of this Agreement so that the purposes of the Agreement cannot be fulfilled, then this Agreement shall terminate as of the date of such judgment. ' 26. City Aaoroval. A copy of the ordinance (or other City action) approving of the terms and conditions of this Agreement and authorizing and directing the City Manager to execute this Agreement on the City's behalf, certified by the City Clerk, shall be provided to Developer. 27. Amendments; Recordation. This Agreement may be amended from time to time with the written consent of the parties hereto. The parties shall cause a memorandum of this Agreement to be recorded in the Office of the Cools County Recorder of Deeds. 28. MisceUa-neous. The parties hereto acknowledge and agree that the individuals who are members of the group constituting the corporate authorities of the City are entering into this Agreement in their corporate capacities as members of such group and shall have no personal liability in their individual capacities. 29. Execution of this Agreement. This Agreement shall be signed last by the City and the City Manager shall affix the date on which he signs and approves this Agreement on the first page hereof, which date shall be the effective date of this Agreement. IN WITNESS WHEREOF this Agreement has been duly authorized and approved by the City Council of the City of Evanston, Cook County, Illinois, and duly authorized,, approved and executed by as of the date and year first above set forth. EVANSTON PLAZA L.L.C. IM CITY OF EVANSTON CITY MANAGER 32 RA-FRFFDJM IOW1999 f ATTEST CITY CLERK i • • 33 • 11 -EBIT A • r� U EXHIBIT A LOT 1 IN SAbMURY THIRD CONSOLIDATION, RECORDED MARCH 27, 1987 AS DOCU1`MENT 87162463 BEING A CONSOLIDATION OF PART OF LOT 1 IN SAMURY SECOND CONSOLIDATION AND PART -OF =_KAN IN CALHOON NORTON CONSOLIDATIONr BOTH IN TER NORTH-WEST 1/4 OF SECTION 241 TQWNSlap 41 NORTH, RANGE 13 MAST OF THE THIRD PRnMIPAL MERIDIAN, S2i COOK carsTY, TLLngoxs EXCEPT m' TF3EREFROM THAT PART OF BAMMY THIRD CONSOLIDATION,. BEING A CONSOLIDATION PLAT RECORDED AS DOCIMNT NMMER 87162463, LECIALLY DESCRIBED AS FOISANS: THAT PART OF TOTS 8, 9, 10, 11 AND 12 IN SLOClt . Z IN GROVFR AND Pr=R' S AlM=XON TO EVANSTON, A SSBDMSION OF THE SOUTHWEST 1/4 OF THE NORTHM= 1/4 OF THE - Juxa.awAQ`J.- 1/4 OF SECTION 24, TOWNSHIP 41 NORM RAGS 13 EST OF TBH TZ= PRINCIPAL MERIDIAN DESCRIBED AS FOLLOWS: B£dra aura ar�i AT A POINT ON %`HS SOUMH LnM OF SAID 1,07 12 AT ITS INTERSECTION VITH A LnM DRAWN 45.00 FEET NORTHnSTHRLY OF PM PARALLEL WrM THE CERTER LINE ERTWEEN _ THE TWO MAN TRACKS (T= NORTMSTERLY OF TWO MA= TRACKS HAVING BMW D8 OF THE CHICAGO AND NORTHWESTERN TFIANSPORTATION COMPANY, AS SAID CSHZTR LINE WAS ORIGINALLY TACATED AND ESTABL=SHED; TH6NC'E NORTHEMSTMRLY PARALLML WITH SAID ORICsnML CENTER L= A DISTANCE OF 241 a 64 FEET S Y AT PXMT AIMTZS TO TSB LAST DESCM10 L+ a A DIS`iM= OF 5 a 09 FEET; TKUM SO&MMSTBRLY Ay4&G A LM D 40.00 FEET WRTfiiaSTEMY OF AND P Rk r. L WXM M ORIGINAL CENTER LINE; A DISTANCE OF 239.38 FEET TO THE -POINT OF nqTMZC== WI`YEi THE SOOTH LINE OF LOT 12'AFORESAID: TMWCE WEST, ALOW SAID SOUT$ Lnt� % DISTAL OF 5.49 FEET TO THE H8Rt12D rom DESCRIBED POiRT OF BEGINNING IN COOK COgN2X, ILLI24OIS 0 ORDINANCE NO. 132-0-99 November 3,1999• AN ORDINANCE Approving the Terms and Authorizing The City Manager to Execute A Redevelopment Agreement With Evanston Plaza L.L.C. For the Redevelopment of the Dempster & Dodge Shopping Center (Evanston Plaza) Whereas, the Evanston Plaza L.L.C. (referred to herein as the "Developer") has proposed a plan for the redevelopment of Evanston Plaza also known as the Dempster & Dodge Shopping Center: and Whereas Evanston Plaza has been a blighted shopping center with excessive long term vacancies that in some cases exceed four years: and Whereas the Developer has created a Redevelopment Program anchored by a new . Dominick's Grocery Store that will revitalize the shopping center and attract new tenants: and Whereas the Developer will incur extraordinary costs stated in the Redevelopment Agreement herein: and Whereas the Economic Development Committee, (7-0), unanimously recommended approval to the City Council of the Redevelopment Agreement (attached as Exhibit A) during it's meeting of October 27, 1999: and Whereas, the City has determined that said proposed redevelopment plan is consistent with and complies with the City's policies for appropriate economic development: and 10 w Whereas, the Corporate Authorities of the City of Evanston have reviewed the provisions of this redevelopment agreement and have deemed that it is in the best interest of the City to Enter into such agreement for redevelopment. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS: SECTION 1: That the City Manager be and is hereby authorized and directed to execute a redevelopment agreement governing the redevelopment of the Dempster & Dodge Shopping Center properties which is in substantial conformity with the redevelopment agreement marked as Exhibit A, attached hereto and incorporated herein by reference. SECTION 2: All ordinances or parts of ordinances in conflict herewith are hereby repealed. SECTION 3: That this ordinance shall be in full force and effect from and after it's passage, approval and publication in the manner provided by law. Introduced: , 1999 Adopted: .1999 Attest: City Clerk Approved as to form: Corporation Counsel Approved: Mayor City of Evanston ,1999 r � _ ... _ �_� �y,A",ylr�.::t's+-.�,t.5•: �i 9=5�?ifSwk*::..��-"M �� .ti cr CONFIDENTIAL„ October 20, 1999 TO: Chair and Members Economic Development Committee FROM: Dennis Marino, Assistant Director for Planning _ Morris Robinson, Economic Development Planner SUBJECT: Confidential Financial Analysis of Proprietary Information by Dane McKenna of Proposed Fades Tax Pelmbmrse me -an Suppopi of efie DOePsporp Dodge Redevelopment = The enclosed memorandum prepared by Bob Rychlicki presents information concerning the developer rate of return analysis which is considered proprietary information. o ae w OCT n *9610:06 TO.44744W20 FFaHWE lOf111A 6 ADO INK IX KANE. MCKENNA AND ASSOCIATES, INC. 150 NORTH WACUR DRIVE SUITS 15W C=WO. UJMOIS GM 1314 444^: • 0 T-M P. ;�_' ♦♦;�.mapy^5:.: _ 703 PAX MW (314 46"M MEMO COnFICERTIR To: Dennis Marino - Morris Robinson From: Kane, McKenna and Associates, Inc. Date: October 22,1999 Re: Chwfflatk= and Revisions to Evmtm Plm (DempvwriIl a) Bmian I. rro ( f: x for g ales b bne- - 3 r The Joseph Freed Company (tM "Developeel bas indicated that a threshold mwm on investment required by dwir or on is is the amp of 13% w fl411/®o The WM of. thn prqjm' c"A deft &Wd" NUIV Ydeadfied as $id,407fl7?A (the Pw�ga on We amount is divided Uo die Pmjecs mbilind Net Opaadng Income (N01) of SZO57,552, the mtwa as 1160%. `1°his return is sligWy below the DefelaWs tagat awe, but close enough W wa rmt the investumt. Industry averages will be in the range of 1 I "A to 15®f. depending on the risk characteristics of the Project. The Developer assesses that the Project is at the up r past of the range, due to the mull -tenant character of the Project and its past experience (such 3S on -going vacancies, the endironmentai issues, etc.). The NOI is to be supported by rentals documented in lease abstracts as well as the draft Dominick's� lease. The rentals are within market ranges. Cost irtfornlation sublitted by dw Developer is al:o with madW was for coae qz,ojeau. the lewinj cammimdow are ropresestted to be paid to t1drd parties. and the Developer fee is within industry ranges. Developer cost and economic projections were reviewed by Kane, McKenna and Associatm Inc. Exhibit A, attached, indicated that the sales tax assistance proposed by the City provides the Project with returns that arc still in the range described above. - OCT 22 'S 10:09 TO-INT4488120 FUM ME 1M11W i ANMTE3,i1M. KANE. MCKENNA AND ASS(CIATES. IVC. •-=S�'�:;��'":��`.,�„ass` ..4,:_ .. .'1. .ya .•:e+i-�R "emu: %Q.:� • Memo- Pa2*2 O"er 22,1999 a) prior to the City Amding of the sales tax sharin& the developumt Agreca=t will s*ify that the Developer will need to provide: (i) Copies of Project leases and/or lease abstracts. 01) Certification and back up docmaantatioa as to Project com aced expemditurea. (iii) Landes commitments. b) The orighW Developer request of $1,600,00 wo mduced to 51,305,000 (rounded) based upon the follo%ing methodology. — Developer List of Extreordinary Costs S3,170.516 (4, 9/99) Submission) Un: Eaviwm=tal RemzHadan Co= Consultanr costs and Testing costs [SI.755.Q00� Revised Amount of City Sales Tax Assistance for non-eavimnmental cof 51,305,516 Prior to the Developw's receipt of sales taxes, there will be funding of the City "base°' which will remain at $173,000 per year (adjusted for inflation annually) and existing shopping center and sales totes for the period 6/30/99 to 7/ 99 (as determined by the City). In addition, $20.000 per year for a NeighUorhood Improvement Fund (not to exceed $200,000 will also be aside). After the componentrdescribed above are tanded, the remaining Was taxes are to tv shwed an a 25% basis to City and 75% to the Developer —not to exceed $1,305,516. All sales taxes are to be gsnerated by &M tenants located at the Center. Any relocations within the City are not to be included in the sharing amounts. No interest rate is attached to the payment and acc derated payments *111 not be included. t02Z94 11 40 if I iI/Iia�, Cvwwr% .vvm I�laiT�lm Fi IWE kVW i ANIC oft 8� ' Pr ono Vat" cO+�+tohsOli Assumes Kana�McKe�nnA halos Tax Propc"ns Bales Taus to Project (1) Year I.avai CUMIdafte low payn arf 9,331 BPI — 0,331 2000 2001 1066ow = 116,237 2002 12AW9 128,469 241,220 369, 715 2003 2004 132,076. 801.791 2005 135, 753 130,522 337, 543 777,oe5 2008 -2097 143,385 920,450 200a 147, 151,E 1, 7,794 �. .. 1.210.107 - 2009 W,303 1,306,000 Prmsnt Vilue (PV) PV at 12% Analysli 655,469 R*VIW ern Anaysis (2) Return on 12.90% PV at 7.5% t131,508 Costs Retum on - 1&05% Notes: (1) Utilizes s� Costs Projections (2) Uwiaea pr"mred by Kane McKerms. get And U- mme infamrotbn by provIdw f . • 0 07r26W- EVDDPL5.WK4 Sales and Inflation Rate: 2.50% '%alender Year MUM SALES ESTIMATES Does not include existing tenants a) Annual Sales Subject to 1 % Sales Tax o) Annual Sales Subject to Home Rule Sales Tax (.75%) IL SALES TAX SUMMARY Assumes 3 month lag In City Receipts a) Local Sales Taxes: 1.00% Cumulative b) Home Rule Sales Taxes: 0.75% Cumulative c) Total City Sales Taxes: Cumulative Note: Tax receiatts include 3 month lao from State III. Sales Tax Sharing Allocation a) City Base Amount 175,000 Cumulative Adjusted annually for Inflation b) Amount After City Base c) City Neighborhood Fund Cumulative I d) Amount After City Base and Neigh. Fund e) City Share 25.00% Cumulative f) Project Share 75.00% Cumulative Project Cap Amount: 1.305.000 g) Amount to City After Project Cap is Achieved Cumulative • No Interest Accrual on 0wlopw Request �!Nq,Kff �AL SALES T� �� (1)... _ (2) (3) (01) (5) (S) -...__ `7) (8) (9) (10) 2000 2001 2002 2CO3 2004 2005 2006 2007 2008 2009 22,454,805 27,598,417 28,288,378 20,995,587 29,720,477 30,463,489 31,225,076 32,005.703 32,805,845 33,625,991 6,938,693 11,694,402 11,986,762 12,266,631 12,593,592 12.908,431 13,231,142 13,561,921 13,900.969 14,248,493 168,411 263,125 281,159 288,138 295,393 302,777 310,347 316,105 328.058 334.210 168,411 431,5W 712,695 1,0=663 1,296.275 1,599,053 1.9M,400 2,227.505 2.553,563 2,887.773 39,030 78,791 89,353 91,586 93,876 96,223 98.628 101,094 103,822 108,212 39,030 117.821 207,174 298,760 392,636 488,859 587,488 688,582 792,203 898,415 207,441 341,9111 370,511 379,774 389,269 399,000 408,975 419,200 429,680 440,422 207,441 549,357 919,869 1,299,843 1,688,912 2,087,912 2,496,667 2,916,067 3,345,766 3,786,183 175,000 179,375 183,859 188,456 193,167 197,996 202,946 208,020 213,221 216,551 175,000 354,375 638,234 726,690 919,857 1,117,854 1,320,800 1,528,820 1,742,041 1,960,592 32,"1 162,541 186,652 191,318 196,101 201,004 206,029 211,180 216,459 221,871 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 40,000 60,000 69,000 100,000 120,000 140,000 160,000 180,000 200,000 12,441 142,541 160,652 171,318 176,101 181,004 186,029 191,180 196,459 201,871 3,110 35,635 41,663 42,830 44,025 46,251 46,507 47,795 49,115 50,468 3,110 38,746 80,409 123,238 167,264 212,514 259,022 308,817 355,931 406,399 9,331 106,906 124,989 128,480 132,076 135,753 139,522 143,385 147,344 161,403 9,331 116,237 241,226 309,715 501,791 637,543 777,065 920,450 1,067,794 1,219,197 0 0 O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 07/Z099, EVDDPL5.WK4 • i • Sales and No Interest Acomal on Devalopw Request Inflation Rate: 2.50% EvainsFtgn Plueo Oempsltet-and Woo . ..... INCRJMENTAt. SALE E1411E PROJECTIONS .... _. . (11) (12) (13) (14) (15) _ . (16)' .._ (17) (18) (19) (20) slender Year 2010 2011 2012 2013_ 2014 2015 2016 2017 2018 2018 . RE AIL SALES ESTIMATES Does not include existing tenants a) Annual Sales Subject to 1% Sales Tax 34,466,641 35,328,307 36,211.515 37,116.803 38,044,723 38,995,841 39.970,737 40,.970,005 41,994.256 43.044.112 �) Annual Sales Subject to Home Rule Sales Tax 14,604,705 .14,969,823 15,344,069 15,727,670 16.120,862 16,523,884 16,936,981 17,360.405 17.794.415 18,239,276 (.75%) 1. SALES TAX SUMMARY Assumes 3 month lag in City Receipts a) Local Sales Taxes: 1.00% 342,565 351,129 359,907 368.905 378.127 387,581 397.270 407,202 417,382 427,816 Cumulative 3,230,337 3.581,466 3,941,374 4,310,278 4,688,406 5,075,986 5,473.256 5,880.458 6.297,840 6,725,657 b) Home 4ule Sales Taxes: 0.75% 108,867 111,589 114,379 117,238 120,169 123,173 126.253 129.409 132,644 135,960 Cumulative 1.007,283 1,118.872 1,233,251 1,350.489 1,470,658 1,593.832 1,720,084 1,849,493 1,982.138 2,118.098 c) Total City Sales Taxes: 451,4f 462,718 474,286 499,143 498,297 510,754 523,523 536,611 $50,026 663,777 Cumulative 4,237,620 4,700,338 5,174,624 9,660,767 6,159,064 6,669,818 7,193,341 7,729,952 8,279,973 8,843,766 Note: Tax reosipts include 3 month lao from State ill. Sales Tax Sharing Allocation a) City Base Amount 175,000 224,015 229,616 235,356 241,239 247,270 253,452 259,788 260,283 272,940 279,764 Cumulative 2,184,607 2,414,222 2,649,577 2,890,817 3,138,097 3,391,639 3,651,323 3,917,611 4.190,661 4,470.315 Adjusted annually for Inflation b) Amount After City Base 227,417 233,103 238,930 24e4,904 251,026 257,302 263,734 270,328 277,086 264,013 c) City Neighborhood Fund Cumulative d) Amount After City Base and Neigh. Fund \ 227,417 233,103 238,930 244,904 261,026 267,302 263,734 270,328 277,086 284.013 e) City Share 25.00% 56,854 58,276 59,733 81,226 62,767 64,325 65,934 67,682 69,271 71,003 Cumulative 463,253 521,529 581,262 942,438 705,244 769,570 835,503 903,085 972,367 1,043.360 f) Project Share 75.00% 85,803 0 0 0 0 0 0 0 0 0 Cumulative 1,305,000 1,305,000 1,305,000 1,3305,000 1,305,000 1,305,000 1,305,000 1,305,000 1,305,000 1,306,000 Project Cap Amount: 1,305,000 g) Amount to City After Project 94,760 174,827 119,198 183,978 188,270 192,976 197,801 202,746 207,814 213,010 Cap is Achieved 94,760 259,587 438,785 622,463 810,733 1,003,709 1,201,610 1,404,256 1.612,070 1,325,080 Cumulative y 111 P. I I Fri • Vr, loo, E V41 1. J--; + + 0.. Or D., CFFW MOT aAVOO- Z-1 Ddai*kg 15tore orlo ���.IIIII��I}i{alll�lllllllllllllt�ab`��--- — � __ � __- �� � �,� ,.,:,���m.;��: �.e —�'�Illllllil:illllllll�llllllll��� - � � --a - _. C Lk �-— wa— Ave Cl CL LIJnc Land%,4e Plan Evanston Plaza L.L.G. C9 jo 10 1 if*m _ EYT E • C, EXHIBIT E • GENERAL SHOPPING -CENTER RENOVATION CONCEPT PROGRAM Background Evanston Plaza Shopping Center had been in decline for before it was purchased late in 1998 by Evanston Plaza L.L.C. after extended negotiation and due diligence. The Center declined because bankruptcies and consolidations in the retail industry affected a significant number of tenants, reducing rental income and payments to common area maintenance and taxes. In addition to having a large number of vacant stores, the Center has a high level of deferred maintenance. The combination of reduced cash flow and major repair/replacement requirements make the rehabilitation program complex, economically marginal and therefore very risky. The Applicant's principal objective is to revive the Center and give it an entirely new image and retail function. This will make it economically viable and better able to serve its neighborhood and community. The Applicant proposes to improve the Property through rehabilitation and retenanting of existing buildings and spaces, rehabilitation of and in -fill additions to site landscaping, rehabilitation • of the parking lot and drives, and replacement of the pylon signs. The Applicant has planned and organized the improvement program to attract quality tenants, including a new Dominick's Food Store. The Applicant has strong relationships with national and local retail tenants and will lease space to an appropriate mix of such tenants. In order to accomplish the improvement program, the Applicant must organize a construction program that involves specific costs for goods and services, some of which are "ordinary" costs of shopping center rehabilitation, and some of which are `extraordinary" costs. Ordinary costs are those which reasonably recur in project -after -project, while extraordinary costs are those which are unique to a project or the vicinity of a project. The Applicant can finance the project through conventional sources to cover ordinary costs, but without additional resources the Applicant has no way to finance the extraordinary cost items. The Applicant has explored all means to cover the extraordinary costs, and, finding no other financing sources, is turning. to the City of Evanston to explore the potential for establishing a Sales Tax Rebate Program to support the rehabilitation of this important community shopping center. 0 Phvsical Improvement Plan and Proaram (Refer to Site Plan Exhibit) • Areas Scheduled for Basic Cleaning, Repair and Interior Renovation • The north -south leg of the Center will not be changed in either configuration or area. There will be interior changes to relocate demising walls and to renovate spaces for new tenants. Several of the existing tenants — including Franks Nursery and Crafts- will remain. - -- • The building at the corner of Dempster and Dodge and its current occupant — Kids 'R' Us --will remain. • The small building along Dodge formerly occupied by Pizza Hut will remain but will be re -tenanted. • Most of the existing landscaping will be preserved and repaired, although the location of some parking lot landscaping will be changed. • Area Scheduled for Environmental Remediation An area in the southwest corner of the parking lot in front of the stores has significant lead contamination. The degree and general extent of the contamination has been assessed and a remediation program plan has been prepared. Work will be completed in accordance with the Revised — Remediation Action Plan (RRAP) approved by the Illinois Environmental Protection Agency (IEPA). Remediation will be undertaken in phases to minimize disruption to existing business operations. .. Areas in the Center Scheduled for Major Exterior and Interior Renovation © The three buildings running east -west at the south end of the Center will undergo extensive internal and external renovation- • A new Dominick's Store (57,950 SF) will be developed within the building formerly occupied by Toys `R' Us and a portion of the space currently occupied by Office Depot. A new fagade for the food store will be constructed across the front of these spaces. Office Depot will remain but will shrink from 40,000 SF to 27,000 SF. • The 18,900 SF space formerly owned by Fretted Silo will be refurbished and retenanted. New landscaping materials will be added in appropriate locations. • The entire parking lot will be resurfaced following completion of the environmental remediation program. This will include some revisions to parking lot landscaping and lighting. • New pylon signs will be installed. The design of these signs and all new building signs will be consistent with -an over-all signage plan for the Center. [NOTE: THOSE ACTIVITIES SHOWN IN BOLD ABOVE ARE THE CATEGORIES WITHIN WHICH THE "ELIGIBLE PROJECT COSTS" WILL BE INCURRED. SEE EXHIBIT "F"] K EXHIBIT F • • • EXHIBIT F Developers Proiect Budget The following table contains information excerpted from the Developer's analyses of the economic feasibility of redevelopment of Evanston Plaza Shopping Center. The categories of costs shown below are consistent with those defined as Eligible Project Costs in this Redevelopment Agreement: Cateaory Total Proiect Cost* Eligible Proiect Costs Building SheU/®emolition $ 510,600 $ 127,766 Parking Lot Improvements $ 355,000 $ 355,000 Anchor Tenant Allowance $ 1,106,250 $ 822,750 * as contained in the Developer's project feasibility analysis. • 0 19 4:11 • • -♦ i 99 im r c A "S ppPROVED- - . i mom 1® I • New i;snding rj:un Roof E. • match building Roof Rece.ises Single neon tube. • New L--er-%:ut meta letter.; Color: «Lute tale With F[_:., illuminat om.; \ppli: ::im CUM%: otUEIFS or equal Color:*catch DryviE 4103 -snadtsi-uE finish • b[easunr- to match Center Niew %[dtal sign name with m ldple divisIons for Wmg= afallws fur full .Lnels — Tenant Sean Letter, La ser ,: .: from opaque metal panel _. Panel u o same C;otor: To mace' [C-`[ ?-;?V I -,Gulf 1 4w, L. uer F®,•d White Pleiteliz a 3•- Car et For haai1'r&fiel,q Tenant Seen Lours kLser : �::r0m upaque metal panel Panel 3: Frame C:ult,r: To mat.:- 'C: [,*124 t-C:ulf Blue 9l9 f.ette, White Ple:ch,u, Quantity: 1 VOTE: --- Sign Contractor to provide Architect Note: Orivinal Art work W �� iith Shop Drawings for .approval. be supplied by Architect. Iftuo A40WWI.ae y=�^• Plaza 352-090 _Evanston OvIon Soo m Des,gn ARCHITECTS 0 INK21I PV•NNERS 8 OWGII - iY+ 122.99 Al THE OEPAaM A GROUP INC Us w CHESrNur Sr CHICAGO It 61 312.133.144 FAX 733.04" - :,a.n 9v JLM 3hwt r E • • 4