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HomeMy WebLinkAboutFinancial Assistance for Development of Southeast Corner of Main Street and Chicago AvenueMEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF EVANSTON AND OMS EVANSTON LLC This MEMORANDUM OF UNDERSTANDING ("MOU'), dated UN,, 011, is entered into between the City of Evanston ("the City"), OMS Evanston CLC ("OMS"), (collectively "the Parties"), to describe the understandings of the Parties regarding the proposed development of the property located at the southeast corner of the intersection of Chicago Avenue and Main Street (Permanent Identification Number: 11-19-401-024- 0000), Evanston, IL 60202 (the "Property"). The terms of this Memorandum shall be in force and effect until OMS and the City agree to enter into a more formal MOU, or until the Parties no longer wish to pursue the currently contemplated development of the Property, whichever happens first. The Parties agree as follows: 1. OMS holds title to the Property. OMS intends to develop the Property to create an approximately 100,000 square foot mixed -use development comprised of ground floor retail uses with upper floor office uses expressly for the purpose of locating high technology firms and entrepreneurs at the Property, This intent follows extensive dialog by and between the City and OMS relative to the future development of the Property. The terms and conditions of this MOU are contingent upon the Parties' joint cooperation. 2. The City and OMS agree that predevelopment activities will be required to induce the tenants and capital necessary to develop the Property. After the date upon which this MOU is in full force, the City will provide two (2) payments of $20,000 to OMS to complete marketing activities and materials based on the following conditions set forth below: a) The City's financial participation in predevelopment activities will be offered in two (2) equal payments of $20,000. The first payment of $20,000 to OMS from the City will be expressly for payment of marketing materials that include renderings of the proposed mixed -use development. The payment will be provided to OMS by the City in a timely manner following the execution of this document. b) The second $20,000 payment will be expressly for the payment of additional marketing activities. The second payment will be provided to OMS by the City after approval at the regularly scheduled September 2011 Economic Development Committee meeting. OMS will provide a status update on the progress of this development to the Economic Development Committee at its regularly scheduled September meeting. 3. Upon request, OMS shall promptly provide all information to the City relative to the ongoing status of development, tenant acquisition and respond to all inquiries regarding same. 4. These terms may be modified as required to meet the evolving nature of the negotiations regarding developing the Property, and the Parties mutually understand and agree that none of the terms of this MOU are to be considered binding upon the Parties. J 5. OMS hereby acknowledges that it holds title to the Property in "as -is, where - is" condition with no representations or warranties respecting the Property by the City whatsoever. 6. This MOU shall only be amended in a writing signed by all Parties which may be accomplished by electronic written means of communication. The delivery of notice by certified mail, return receipt requested, hand delivery, facsimile, e-mail, or nationally recognized over -night courier, shall all be deemed sufficient methods of notice. 7. The Parties recognize that all information and documents regarding the development of Property may be subject to disclosure under the Illinois Freedom of Information Act ("FOIA"). OMS shall reasonably cooperate with the City in the City's fulfillment of its legal obligations to respond to all such FOIA requests. 8. The City acknowledges that OMS will work diligently to develop a high -quality mixed -use development with ground floor retail and upper floor office uses. In the event that by December 1, 2011, it has been mutually determined that this development is not financially feasible, the City acknowledges that it will work harmoniously with OMS to move forward on other financially feasible development concepts. 9. OMS acknowledges that they will not seek reimbursement for expenditures made while pursing the proposed mixed -use retail/office development. The City also acknowledges that it will not seek reimbursement for funds expended during this time. (Remainder of this page intentionally left blank). IN WITNESS WHEREOF, the Parties agree to the above terms and have executed this Memorandum of Understanding as follows: OMS LLC Jolin O' hell Managin ember �City of (Evanston t✓ " " 7! Wally Bo .ewicz City Manager Approved as to form: W. Grant Farrar Corporation Counsel