HomeMy WebLinkAboutORDINANCES-1994-089-O-94• 8/15/94
8/25/94
89-0-94
t
AN ORDINANCE
AUTHORIZING THE CITY MANAGER TO ENTER INTO
A REAL ESTATE CONTRACT FOR THE SALE OF
PROPERTY AT 1816 DODGE AVENUE, EVANSTON, ILLINOIS
WHEREAS, the City of Evanston owns the real property
commonly known as 1816 Dodge Avenue, Evanston, Illinois, legally
described as follows:
See Exhibit A
WHEREAS, the City Council of the City of Evanston has
determined that ownership of the aforesaid real estate is no longer
necessary, appropriate, required or in the best interest of 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 would be
served by the sale of said real estate to a qualified party for
private use; and
WHEREAS, pursuant to Ordinance 81-0-94, the City Council
by a vote of 2/3 of the elected Aldermen then holding office did
direct that the process to sell said Property be by negotiation on
behalf of the City; and
WHEREAS, pursuant to said Ordinance said negotiations
have occurred; and
WHEREAS, the City Manager recommends that a sale between
• theCityof Evanston, as seller, and Uptown Habitat for Humanity
as buyer, be hereby accepted by the City Council of the City of •
Evanston for the aforesaid real property legally described in •
Exhibit A; and
WHEREAS, the City Council finds and determines that the
best interest of the City of Evanston and its residents will be
served by conveying the aforesaid real property to Uptown Habitat
for Humanity on terms consistent with the Redevelopment Agreement
set forth in attached Exhibit B, attached hereto and incorporated
herein by reference;
WHEREAS, the notice of intent to sell City property has
been published in a newspaper of general circulation in the City of
Evanston as required by ordinance; and
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF EVANSTON, COOK COUNTY, ILLINOIS: •
SECTION 1. The City Council of the City of Evanston
finds as fact the recitals hereinabove set forth.
SECTION 2: The negotiated sale to Uptown Habitat for
Humanity as buyer, is hereby accepted by the City Council of the
City of Evanston for the real property legally described in Exhibit
A and commonly known as vacant land located at 1816 Dodge Avenue,
Evanston, Illinois.
SECTION 3: The City Manager is hereby authorized and
directed to sign, and the City Clerk is hereby authorized and
directed to attest, the Redevelopment Agreement in Exhibit B,
pursuant
to the terms of
which the
subject property shall
be
conveyed.
The City Manager
is further
authorized to negotiate
any
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• changes or additional terms and conditions with respect to the sale
of the aforesaid real property as he may deem fit and proper.
SECTION 4: The City Manager and the City Clerk,
respectively, are hereby authorized and directed to execute, attest
and deliver such other documents, agreements and certificates as
may be necessary to the sale herein authorized, including other
documents referred to in said contracts.
SECTION 5: All ordinances or parts of ordinances
in conflict herewith are hereby repealed.
SECTION 6: This ordinance shall be in full force and
effect from and after its passage, approval, and publication in
the manner provided by law.
Introduced j��
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Adopted:
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City Cl tk
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CCounsel
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, 1994
1994
Approved:
_,1994
Mayor
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Ordinance 89-0-94
Exhibit A
The North half of Lot Eighty Nine (89) and all of Lot Ninety (90)
in Block One (1) in J.S. Hovland's Evanston Subdivision of the
South East Quarter of the North West Quarter of Section Thirteen
(13), Township forty-one (41) North, Range Thirteen, East of the
Third Principal Meridian, in Cook County, Illinois.
(commonly known as 1816 Dodge Avenue, Evanston, Illinois)
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• REDEVELOPhEM AGREEMENT
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This Redevelopment Agreement ("Agreement") is entered into as of this day
of , 1994, by and between the City of Evanston, a municipal corporation (the "City")
and Uptown Habitat for Humanity ("Uptown").
RECITALS:
A. The City has the authority to promote the health, safety and welfare of its
inhabitants, to develop affordable housing and to enter into contractual agreements with third
parties for the purpose of achieving the aforesaid purposes.
E. The City owns three (3) vacant parcels of real estate commonly brown as
1928 Foster, 1616 Darrow and 1816 Dodge, Evanston, Illinois (individually, a "Lot" and
collectively, the "Lots") the development of which for affordable housing is desirable.
• C. Uptown is experienced in the development of single family housing and desires
to construct affordable housing residences upon the Lots.
D. The City desires to convey fee simple title to the Lots to Uptown provided
Uptown agrees to construct single-family housing on the Lots to be made available for low-
income families as provided herein.
E. This Agreement sets forth the terms and conditions upon which the City and
Uptown shall develop such affordable housing on the Lots.
NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties agree as follows:
1. Transfer of Title. In accordance with the terms of this Agreement and upon
the request of Uptown, the City shall convey to Uptown by Quit Claim Deeds (individually, a
4ODeed-) fee simple title to each Lot. The conveyance and title of each Lot shall be subject to
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real estate taxes not yet due and payable, covenants, restrictions and easements of record and •
any and all liens recorded against the property by the City, the amount of such liens not to •
exceed $5,000.00 per Lot. The City shall deliver to Uptown the Deed to each Lot within ten
(10) days of such request. If Uptown shall fail to request the transfer of title to any Lot within
thirty (30) months of the date hereof, Uptown shall have waived its rights to obtain ownership
of such lot, and this Agreement shall be of no force and effect with respect to such Lot.
Prior to conveyance by the City to Uptown, the City shall permit Uptown access
to the Lots for purposes of planning, surveying, conducting environmental inspections and
testing and similar purposes.
2. Closine Documents. At the time of transfer for each Lot requested by Uptown,
the parties shall deliver to each other the following:
(a) Uptown's documents:
(i) Written request for transfer;
(ii) ALTA Statement.
(b) City's documents:
(i) Deed to the Lot requested by Developer (with appropriate
transfer tax exemptions);
(ii) ALTA Statement;
(iii) Statement of amount of liens, if any, in favor of the City
to which title to such Lot shall be subject;
(iv) Such other documents as may be reasonably required by
Uptown to obtain good and marketable title to the Lot and
appropriate title insurance insuring the same.
3. Conditions to Transfer. As conditions precedent to the transfer of title to the
each Lot requested to be conveyed by Uptown, Uptown shall provide the City with the
following:
(a) evidence reasonably satisfactory to the City that Uptown has
obtained a commitment for financing or has sufficient funds available for the cost
of the development of the Lot;
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• (b) evidence of builder's risk, liability, worker's compensation and
other insurance reasonably requested by the City;
(c) copies of the plans prepared by Uptown in connection with
development of the Lots; and
(d) copies of the form of deed by Uptown in favor of any initial
purchaser of a Dwelling Unit or Lot and form of the note and mortgage
evidencing and securing any seller financing provided by Uptown to such
purchasers, all in form reasonably satisfactory to the City.
4. Construction of Dwelling Units. Uptown shall develop residential housing
("Dwelling Units") on each of the Lots in accordance with applicable statutes, regulations,
codes and ordinances. Uptown shall diligently proceed with the construction of the Dwelling
Units to completion, which construction shall commence as to each Lot within three (3) months
from the date of delivery of the Deed for such Lot from the City to Uptown, and shall be
completed by Uptown within thirty-six (36) months of the date of this Agreement. For
purposes hereof, "diligently proceeding" shall mean that the foundation for each Dwelling Unit
shall be poured and framing in place pursuant to and in accordance with permits within six (6)
months after transfer of title to the underlying Lot. Receipt by Uptown of a temporary
certificate of occupancy (conditional only upon seasonal or insubstantial details of construction)
or a final certificate of occupancy for the Dwelling Unit(s) located on a Lot and occupancy by
a family selected in accordance herewith within such thirty-six (36) month period shall be a
conclusive determination of satisfaction and termination of the covenant to proceed diligently
contained in this Section 4 with respect to the construction of the Dwelling Unit(s) on such Lot.
5. Uptown's Covenants. Uptown acknowledges and affirms the goals of the City
with regard to the creation of affordable housing for local families and the involvement of local
minority owned contractors. Uptown agrees that it shall (a) use its best efforts to cause
occupancy of the Dwelling Units by families that contain at least five (5) members, of which
two (2) members have been Evanston residents for a minimum of two years, and to involve
• Evanston -based minority contractors (provided, however, Uptown shall not be required to do
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or perform any act that would be in contravention of any federal, state, or local law, statute, •
ordinance, or regulation with regard to non-discrimination in the constriction, sale and •
marketing of the Dwelling Units and Lots), (b) counsel, through a committee established by
Uptown (the "Homeowner Development Committee"), all initial purchasers of the Dwelling
Units in matters of budgeting, property maintenance and home ownership responsibilities and
issues, and (c) establish, prior to the sale of any Dwelling Unit, a Family Selection Committee
a majority of which shall be Evanston residents and at least one Evanston Housing Commission
Member, which committee shall be responsible for the review and selection of families
identified by Uptown in accordance with subparagraph (a) above. Uptown shall not
discriminate based upon age, handicap, race, color, religion, sex, or national origin in the
marketing and sale of any Dwelling Unit(s) constructed on any of the Lots pursuant to the terms
of this agreement.
6. Income Limitations. Each of the Dwelling Units shall be occupied by families
chosen by Uptown whose income at the initial time of occupancy as certified by such family •
to Uptown, does not exceed the median income of the area in which the Lots are located, as
such median income is determined by the Department of Housing and Urban Development from
time to time, with adjustments for smaller and larger families. Uptown shall require all
families initially purchasing any of the Dwelling Units to covenant and agree that any
subsequent purchasers of any Dwelling Unit shall meet the initial occupancy income and family
size guidelines set forth above until the Termination Date.
7. Renavment of Liens in Favor of the Citv. The City agrees that it shall
subordinate its lien arising pursuant to Section 1 herein to any seller financing provided by
Uptown to any purchasers of a Lot. The City shall be repaid, if at all, from any proceeds
remaining from a sale of the applicable Lot and any Dwelling Unit thereon, after repayment in
full of any seller financing provided by Uptown to such purchasers.
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8. Seller Financing: Shared Annreciation. Any seller financing provided by
Uptown to any initial purchaser of any Dwelling Unit or Lot shall be evidenced and secured
by a note (each a "Note", and collectively, the "Notes") and mortgage substantially in a form
satisfactory to the City. The City hereby agrees to the form of Note attached hereto as Exhibit
B. The seller financing shall not exceed eighty percent of the value of the Dwelling Unit or
Lot secured by the mortgage. Uptown agrees that any sums constituting the Shared
Appreciation Amount under any of the Notes secured by a mortgage encumbering a Lot or
portion thereof upon which a Dwelling Unit is located shall, when repaid, be deposited into a
joint escrow account at an F.D.I.C. insured lending institution satisfactory to Uptown and the
City of Evanston. Such funds shall be made available to Uptown on an as -needed basis for the
planning, development and financing of subsequent low-income housing projects located within
the City of Evanston for City of Evanston residents or, if so desired by Uptown, for the
repurchase of any Dwelling Unit pursuant to any right of first refusal contained in the
• documents evidencing the seller financing. Such projects (other than for the right to
repurchase) shall be subject only to the ministerial approval of the City of Evanston City
Council'to confirm conformance with the foregoing requirements. In the event Uptown or its
successors or permitted assigns fail to propose such a project for Evanston, or if any proposed
project does not receive approval as required above within two (2) years of the date of deposit
of such funds, such funds and any interest earned thereon shall revert to the City to be used for
the development or promotion of development by others of low-income housing.
9. Reversion to City. In the event (a) Uptown fails to "diligently proceed" or
complete construction of any Dwelling Unit within the time period allowed, subject to force
majeure delays or other matters beyond the reasonable control of Uptown, or (b) any transfer
of title to a Dwelling Unit during the term of this Agreement is made to a family exceeding
the initial income limitations set forth herein, then, in either instance, title to the Lot upon
• which such Dwelling Unit is to be constructed shall revert to the City after thirty (30) days
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prior written notice from the City to Uptown or the then current owner of the Dwelling Unit
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of such failure. Uptown shall be entitled to remedy such failure within such thirty (30) day
period, and upon doing so, title shall not revert to the City.
10. Environmental Conditions. Uptown agrees that it will not initiate any action
against the City arising out of the presence of any hazardous waste or other environmental
condition found on any Lot after the date on which Uptown accepts title to such lot. The first
sale by Habitat to any purchaser shall be subject to this waiver of claims against the City.
Uptown agrees to indemnify and hold harmless City, its successors and assigns, against any and
all damages, claims, losses, liabilities and expenses, and settlements and compromises of
litigation, including without limitation, reasonable legal, accounting, consulting, engineering and
other expenses, which may be imposed upon or incurred by City, arising out of or in
connection with any environmental contamination or pollution found or occurring on any Lot
after the date on which Uptown accepts title to such Lot, including the exposure of any person
to any such environmental contamination or pollution regardless of whether such environmental
contamination or pollution resulted from any activities of any third party. This indemnity shall
survive the transfer of title.
11. Term of Agreement. The covenants and agreements set forth in this Agreement
shall be deemed to run with, bind and burden each of Lots and shall be deemed to bind any
future owners of any of the Lots and the holder of any legal, equitable or beneficial interest
therein until October 31, 2004 (the "Termination Date"). Effective as of the Termination
Date, this Agreement shall terminate without further action on the part of either parry hereto
and shall be of no further force and effect, provided, however, the City agrees to execute and
deliver a release of this Memorandum in recordable form upon the request of Uptown or any
successor in interest to any of the Lots.
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0 12. Agignability. This Agreement is not assignable by Uptown without the express
written approval of the City, provided, however, Uptown may assign this Agreement to any
local chapter of Habitat for Humanity, Inc. without such consent.
13. Tax-Exemot Status. Uptown will not seek tax-exempt status for real estate tax
purposes any of the Lots transferred to Uptown pursuant to this Agreement.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the •
day and year set forth above.
CITY OF EVANSTON, a municipal
corporation
By:.
Its:
UPTOWN HABITAT FOR HUMANITY,
an Illinois not for profit corporation
By:
Its:
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STATE OF ELLINOIS )
) SS
COUNTY OF COOK )
I, , a Notary Public in and for the County
and State aforesaid, do hereby certify that , personally known to me to
be the of Uptown Habitat for Humanity, and personally known to
me to be the same person whose name is subscribed to the foregoing instrument, appeared
before me this day in person and acknowledged that as such he/she
signed and sealed such instrument, duly authorized on behalf of such corporation as his/her free
and voluntary act and the free and voluntary act of such corporation for the uses and purposes
therein set forth.
Given under my hand and Notarial Seal this day of
1994.
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Notary Public
My Commission Expires:
L
STATE OF M NOIS )
) SS
COUNTY OF COOK )
a Notary Public in and for the County
and State aforesaid, do hereby certify that , personally known to me to
be the of the City of Evanston, and personally known to me to be
the same person whose name is subscribed to the foregoing instrument, appeared before me this
day in person and acknowledged that as such he/she signed and sealed
such instrument, duly authorized on behalf of the City of Evanston as his/her free and voluntary
act for the uses and purposes therein set forth.
1994..
Given under my hand and Notarial Seal this day of
Notary Public
My Commission Expires:
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Exhibit A
(Legal Description]
Exhibit B •
[Form of Note] •
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• PROMISSORY NOTE INCLUDING SHARED APPRECIATION
$ , 199
Chicago, Illinois
1. Promise to Pay. In return for a loan that I have received, the proceeds of which
will be used to purchase (the "Unit"),
I promise to pay to Uptown Habitat for Humanity, Inc., its successors or its assigns (the
"Noteholder"), c/o North Park College, 3225 West Foster Avenue, Chicago, Illinois 60625,
the sum of U.S. $ (the "Loan Principal"), plus an amount equal to the
Noteholder's Preference Return plus Shared Appreciation Amount (as defined below), all
pursuant to the terms of this Note.
2. Security. This Note is secured by a mortgage dated , 199
(the "Mortgage") encumbering the Unit in favor of the Noteholder on the terms contained 1
the Mortgage.
3. Pavment of Loan Principal. I will repay the Loan Principal by making equal
monthly payments of principal in the amount of [$ ] on or before the first day
of each month beginning , 199 and will continue to make such monthly
payments on or before the first day of every month thereafter until I have paid all the Loan
Principal and any other charges described below that I may owe under this Note. If I have not
• paid the entire amount of the Loan Principal on or before , 20_ (the "Final
Payment Date") then I will pay the balance of the Loan Principal on such date.
4. Pavment of Noteholder's Preference Return and Shared Appreciation,
Amount. I shall also pay to the Noteholder when required herein the Noteholder's Preference
Return and the "Shared Appreciation Amount". The Shared Appreciation Amount is an amount
which can be determined from time to time and is equal to the product of the Net Appreciated
Value of the Unit multiplied by the applicable Appreciation Percentage. The Shared
Appreciation Amount shall become due and payable when (x) the entire outstanding amount of
the Loan Principal becomes due and payable pursuant to the terms of this Note or the Mortgage
because I have defaulted in payment of this Note or I have defaulted under the Mortgage, or
(y) I voluntarily prepay the entire outstanding amount of the Loan Principal prior to the Final
Payment Date.
As used herein:
(a) "Appraised Value" means the value of the Unit as determined (i) by the
agreement of the Noteholder and me ten (10) days prior to any payment of the full amount
under this Note or my election to prepay this Note in full, or (ii) if we cannot so agree within
such ten (10) day period, by an independent appraiser selected by the Noteholder.
(b) "Appreciation Percentage" means one hundred percent (100 %) until the
sixth anniversary date of this Note and ninety-three percent (93 %) until the seventh anniversary
date of this Note. The Appreciation Percentage shall continue to decrease by seven percent
• (7 %) on each subsequent anniversary date of this Note thereafter until the Appreciation
Percentage equals fifty percent (50%).
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(c) "Homeowner's Equity Return" means a sum equal to the total amount of •
monthly principal and interest payments made by me pursuant to this Note until I voluntarily
prepay the entire outstanding amount of the Loan Principal due to a sale of the Unit up to the
maximum amount of $[sum equal to 3 years of payments]. From and after the fifth anniversary
of the date of this Note, the Homeowner's Equity Return shall be deemed to mean Zero and
N6/100 Dollars ($0.00).
(d) "Homeowner's Preference Return" means a sum equal to $1,000.00
beginning on the fourth anniversary of this Note. The Homeowner's Preference Return shall
increase by $1,000.00 on each subsequent anniversary of this Note.
(e) "Net Appreciated Value" means the positive difference, if any, between
(i) the Net Sales Price of the Unit, and (ii) the sum of the Loan Principal, Homeowner's Equity
Return, if any, Homeowner's Preference Return, Noteholder's Preference Return, and the
repayment of any subordinate lien existing as of the date hereof in favor of the City of
Evanston.
(f) "Net Sales Price" means (i) the gross sales price of the Unit pursuant to
a bona fide arms -length contract of sale minus the expenses I incur and pay in connection with
the sale, including, for example, real estate brokerage commissions, real estate transfer taxes,
attorney's, recording and escrow fees and title insurance premiums, or (ii) if I am required or
if I choose to pay the entire amount of this Note pursuant to the terms of this Note or the
Mortgage, but I do not sell the Unit, the Appraised Value of the unit at the time of such
payment.
(g) "Noteholder's Preference Return" means a sum equal to $10,000.00, .
payable to the Noteholder.
5. Failure to Pav as Reauired.
(a) Late Charge for,.Overdlie Payments. If the Noteholder has not received
the full amount of any monthly payment by the fifteenth (15th) day after the date it is due, I
will pay a late charge of $15.00 to the Noteholder. I will pay this late charge promptly.
(b) Default. If I do not pay the full amount of each monthly payment within
five (5) days after the date it is due, I will be In default under this Note. If I do not perform
as I am obligated to perform under the Mortgage, I will be in default under this Note.
(c) Notice of Default. If I am in default under this Note, the Noteholder may
send me a written notice telling me that if I do not pay the overdue amount or cure any other
kind of default under the Note or the Mortgage within thirty (30) days of the date on which the
notice is delivered or mailed to me, the Noteholder may require me to pay immediately the full
amount of the outstanding Loan Principal, including the full amount of the Shared Appreciation
Amount.
(d) No Waiver. Even if the Noteholder does not require me to pay this Note
in full as described above at any time when I am in default under this Note, the Noteholder will
still have the right to do so at any time if I am in default and the Noteholder has given me •
notice of such default as described above.
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• (e) Pavment of Costs and Expenses. If the Noteholder has required me to
pay in full all amounts owing under this Note as described above, I will also reimburse the
Noteholder for all of its costs and expenses in enforcing this Note to the extent not prohibited
by applicable law. Those expenses include, for example, costs of suit on this Note, foreclosure
under the Mortgage, court costs and reasonable attorneys' fees.
6. Notices. Any notice that is given to me under this Note must be given by
delivering it personally or by first class mail to me at the address of the Unit. Any notice that
I give to the Noteholder must be given by first class mail to the Noteholder at:
Uptown Habitat for Humanity, Inc.
6580 North Sheridan
Chicago, Illinois 60626
with a copy to:
City of Evanston
2100 Ridge Avenue
Evanston, Illinois 60201
Attention: Director of Community Development
or at such other address as the Noteholder may designate to me in writing.
7. Prenavtnent. I agree to give the Noteholder sixty (60) days prior written notice
of any prepayment in full of this Note. I agree that this Note can be prepaid in whole or in
part only after calculating and paying the Loan Principal, including the Shared Appreciation,
and costs and other charges due hereunder.
8. Qbligations of Persons Under this Note. If more than one person signs this
Note, each person is fully and personally obligated to keep all of the promises made in this
Note, including the promise to pay the full amount owed. The Noteholder may enforce its
rights under this Note against each person individually or against all of us together. This means
that any one of us may be required to pay the full amount owed under this Note. Neither I nor
any other person who signs this Note may assign an interest in this Note or the Mortgage to
any other person.
9. Waivers. I and every other person who has obligations under this Note each
waiver the rights of presentment and notice of dishonor. "Presentment" means the right to
require the Noteholder to demand payment of amounts due. "Notice of dishonor" means the
right to require the Noteholder to give notice to other persons that amounts due have not been
paid.
10. Loan Char=. If a law, which applies to this loan and which sets maximum
loan charges, is finally interpreted so that the interest or other loan charges collected or to be
collected in connection with this loan exceed the permitted limits, then: (i) any such loan charge
shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (ii)
any sums already collected from me which exceeded permitted limits will be refunded to me.
The Noteholder may choose to make this refund by reducing the principal I owe under this Note
•or by making a direct payment to me. If a refund reduces principal, the reduction will be
treated as a partial prepayment.
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11. Governing Law. This Note is made under and governed by, and shall be
construed and enforced in accordance with, the laws of the State of Illinois.
[HOMEOWNER]
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