HomeMy WebLinkAboutOrdinance 44-O-26 Authorizing CM to Negotiate Sale of 801 Main St (1) (1)05/11/2026
44-O-26
AN ORDINANCE
Authorizing the City Manager to Negotiate the Sale of City-Owned
Properties at 801 -811 Main Street and 916-918 Sherman Avenue to
CityPads III, LLC
WHEREAS, the City of Evanston owns real properties located at 801-811
Main Street, and 916-918 Sherman Avenue, Evanston, Illinois, 60202 (the “Subject
Properties”); and
WHEREAS, the City Council of the City of Evanston has determined that
ownership of the aforesaid Subject Properties is no longer necessary, appropriate,
required, convenient, profitable, or in the best interests of the City of Evanston; and
WHEREAS, the City Council of the City of Evanston directs the City
Manager to negotiate the sale of the Subject Properties to CityPads III, LLC.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF EVANSTON, COOK COUNTY, ILLINOIS, THAT:
SECTION 1: The foregoing recitals are hereby found as fact and
incorporated herein by reference.
SECTION 2: The City Manager, or their authorized designee, is hereby
authorized and directed to negotiate the transfer of the Subject Properties.
SECTION 3: Pursuant to Subsection 1-17-4-2(B)(1) of the Evanston City
Code of 2012, as amended (the “City Code”), an affirmative vote of two -thirds (⅔) of the
elected Councilmembers is required to direct the process to negotiate such a transfer.
The City reserves the right to reject any and all negotiations.
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44-O-26
SECTION 4: The City Manager or their designee is directed to publish the
notice of intent to sell the Subject Properties on the City’s website and at least once in a
daily or weekly newspaper in general circulation in the City pursuant to City Code 1 -14-
4-2(B)(3).
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hereby repealed.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.
SECTION 7: If any provision of this ordinance or application thereof to any
person or circumstance is held unconstitutional or otherwise invalid, such invalidity shall
not affect other provisions or applications hereof that can be given effect without the
invalid provision or application, and each invalid application hereof is severable.
SECTION 8: The findings and recitals contained herein are declared to be
prima facie evidence of the law of the City and shall be received in evidence as provided
by the Illinois Compiled Statutes and the courts of the State of Illinois.
Introduced:_________________, 2026
Adopted:___________________, 2026
Approved:
__________________________, 2026
_______________________________
Daniel Biss, Mayor
Attest:
_____________________________
Stephanie Mendoza, City Clerk
Approved as to form:
_______________________________
Alexandra B. Ruggie,Corporation Counsel
May 11
May 26
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.J‘
“-CityPads
To:The City of Evanston Economic Development Committee &City Council 2100 Ridge
Avenue Evanston,IL60201
From:CityPads
2000 N Leavitt St,Chicago,IL60647
citypadsre.com
RE:Proposal to Purchase and Redevelop 801-811 Main Street
Executive Summary
CityPads is pleased to submit this letter of intent and proposal to purchase the property
located at 801-81 1 Main Street.As a developer with a deep commitment to the City of
Evanston,we see a unique opportunity to transform this site into a vibrant,mixed-income
communitythat aligns with the goals of the Evanston 2045 comprehensive plan.We are
prepared to bring our financial strength,development expertise,and community-first
approach to ensure this project is not just built,but seamlessly integrated into the fabric of
the Main-Dempster Mile.
About CityPads:A Proven Partner in Evanston
CityPads is a mission-driven real estate development firm focused on creating attainably
priced,transit-oriented housing.Unlike developers who view Evanston as just another
market,we view it as a long-term partnership.We pride ourselves on a proven track record
of execution,having successfully navigated complex entitlement processes to deliver high-
quality housing that meets the diverse needs of Evanston residents.
Our commitment to this city is best demonstrated by our recent work.We successfully
delivered 740 Main Street (120 units),a project that has already begun to invigorate the
Main Street corridor.Furthermore,we are currently executing on 910 Custer Avenue (230
units),which will bring significant residential density and vitality to the south end of the
city.These projects stand as testament to our ability to work collaboratively with city staff,
elected officials,and neighbors to deliver developments on time,on budget,and in line
with community values.
A Commitment'to On-Site Affordability
One ofthe core pillars ofthe CityPads philosophy is that affordable housing should be
integrated into the community,not outsourced.We are proud to be one of the few market-
rate developers in Evanston that consistently chooses to satisfy the lnclusionary Housing
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‘J‘
“-CityPads
Ordinance (IHO)by building affordable units on—site,rather than paying a fee-in—lieu to
avoid them.
We believe that true equity in housing means creating developments where residents of
varying income levels live side-by—side,sharing the same amenities,the same location
advantages,and the same high quality of life.By keeping our IHO commitments on-site,we
ensure that our buildings reflect the diversity of Evanston itself.We do not view affordable
units as an obligation;we viewthem as an essential component of a healthy,vibrant
residential community.This approach ensures that working families and individuals have
direct access to the same transit,schools,and neighborhood resources as market—rate
tenants,preventing economic segregation and fostering genuine community integration.
Proposal for 801-811 Main Street
Consistent with our past projects,our vision for 801 —811Main Street is to create a mixed—
use development that prioritizes accessibility and inclusivity.We propose a development
that will not only activate the streetscape but will also provide critical housing options for
the local workforce.
Specifically,this development will include 12 dedicated on-site affordable units,
ensuring compliance with and exceedingthe spirit of the IHO.We have designed a diverse
mix of affordable options to cater to different household sizes,including:.2 Affordable Townhomes:providing rare,family—sized housing options in the city
core..10 Affordable Apartments:A mix of studios,1-bedroom,and 2—bedroom units.
Conclusion
CityPads has the capital,the team,and the local experience to close on this purchase
quickly and execute a development that Evanston will be proud of.We lookforward to the
opportunity to discuss this proposal in further detail and to continue ourwork in building a
more inclusive,accessible Evanston.
Sincerely,
Andrew Ahitow
CityPads
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LOI 909-929 Ridge Rd.,Wilmette
Letter of Intent for 801-1 1 Main St,
Evanston,IL
February 6th,2026
CityPads III,LLC,or its nominee (the “Purchaser”)proposes to purchase 801—11Main St,
Evanston,IL (the “Property”)from the Seller on the following terms and conditions:
Property:
Purchase Price:
Earnest Money
Deposit:
Due Diligence Period
Approval Period
The building and land located at the Property which consists of an approximately
a total of 26,000 square foot.
$1,500,000 paid to Seller at the closing (the “‘Closing”).The Purchase Price is
based on obtaining zoning entitlements for a minimum of 64 apartments,2000
sq ft of retail,and 11 townhomes.
A fully refundable$25,000 deposit by Purchaser,not later than three business days
after the execution by both parties of a Purchase Contract (the “Contract Date”),
into an escrow account with an escrow agent acceptable to both Purchaser and
Seller.The Earnest Money Deposit shall be applied to the Purchase Price at
Closing.
Purchaser shall have Ninety (90)days from the Contract Date M delivery to
Purchaser of all Due Diligence material listed as Exhibit A attached hereto (such
materials,the “Seller’s Deliveries”)to investigate the Property (the “Due
Diligence Period”).Work may include engineering,mechanical,structural,
zoning,and environmentalreviews,as well as other customary due diligence for
transactions of this type;provided,however,that any invasive testing shall
require Seller’s prior written consent.The Purchaser will require access to the
Property during the Due Diligence Period,and through the Closing.
The Purchaser shall hold all environmental reports and any other written
materials furnished to it by Sellers,con?dential.
If during the Due Diligence Period,Purchaser,for any reason whatsoever,
including Purchaser’s disapproval of any of the investigations described herein,
may provide written notice of termination may terminate the Contract,
whereupon the earnest money shall be returned.
The Purchaser shall have Two Hundred and Seventy (270)days after the Due
Diligence Period (“Approval Period”)to pursue zoning and such other
entitlementsfrom all governmental bodies having jurisdiction over the Property
as Purchaser,at its sole discretion,deems necessary for Purchaser's intended
development thereof,collectively,the (“Approvals”).Seller shall cooperate
with Purchaser in its negotiations and applications for the Approvals.If Seller
determines during the Approval Period that the entitlements granted,or not
granted,by the City Council are insuf?cient for its intended use of the site,Seller
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Condition of Property:
Closing:
Extension Option:
Exclusivity:
Con?dentiality:
LOI 909-929 Ridge Rd,Wilmette
may provide written notice of termination of the Contract and Earnest Money
shall be returned to Seller.
Purchaser shall purchase the Property “AS IS.”
Closing shall occur within 30 days after the end of the Approval Period.Seller
shall give exclusive possession of the Property to Purchaser at Closing.The
property shall be vacant of any materials or tenants.Seller shall pay (1)one-half
of all closing fees charged by the escrow agent and/or the title company;(2)
Seller's legal fees and expenses;and (3)all transfer taxes and documentary stamp
taxes.Purchaser shall pay (1)the fee for the recording of the deed;(2)one-half of
all closing fees charged by the escrow agent and/or the title company and;(3)
Purchaser’s legal fees and expenses.
Purchaser may elect to extend the Approval Period for Two (2)additional Sixty
(60)day periods,each an Extension Option,at its sole discretion,under the
following terms:1)Purchaser shall give Ten (10)days written notice prior to the
end of the Approval Period,or prior Extension Option for each option Purchaser
desires to extend.2)Purchaser shall pay an additional twenty-?ve Thousand
($25,000)as non-refundable (except in the event of a Seller’s default)Earnest
Money with each of the extension.All Earnest Money shall be applied against
the Purchase Price at closing.
Seller will work exclusively with Purchaser to consummate the transaction
described herein,and will negotiate in good faith with Purchaser.It will cease
all marketing and discussions with any and all other potential purchasers and
investors for any competing proposal for the transaction contemplated herein
until the sooner to occur of (i)the date that is thirty (30)days from the Seller’s
acceptance of this Letter of Intent,or (ii)the date on which both parties hereto
agree in writing to terminate this letter agreement (“Exclusivity Period”).
The terms and conditions of this Letter of Intent and the transaction,including
the identities of all parties referred to in this letter,will be held by the parties
hereto in strict con?dence.Neither Purchaser nor Seller,and their respective
agents and representatives,shall make any news releases or other public
disclosure with respect to the Transaction without the prior written consent of
the other party,which consent shall not be unreasonably Withheldor delayed.It
is understood Purchaser will be consulting with service providers,city of?cials,
and other consultants during the course of this transaction,and will advise them
to also maintain confidentiality throughout.
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LOI 909-929 Ridge Rd,Wilmette
Real Estate Brokers:None
Contract Negotiation:THIS PURCHASE PROPOSAL AND ITS EXECUTION BY BOTH
PURCHASER AND SELLER (I)SHALL NOT BE BINDING ON THE
PARTIES;AND (2)DOES NOT CONSTITUTE A CONTRACT,NOR DOES
IT CONTAIN ALL THE NECESSARY OR ESSENTIAL TERMS OF A
CONTRACT.NO PARTY SHALL BE LEGALLY BOUND TO THE OTHER
IN ANY WAY UNTIL A CONTRACT HAS BEEN EXECUTED AND
DELIVERED BY BOTH PARTIES.
Purchaser and Seller shall work in good faith to execute a binding contract
consistent with the terms of this purchase proposal not later than 2 1days after the
execution by both parties of this Proposal.
If Seller agrees with these terms,please execute and date this purchase proposal in the space provided below
and return it to Purchaser on or before November 21,2025.
AGREED AND ACCEPTED:
PURCHASER:SELLER:
CityPads III,LLC
an Illinois limited liability company
Name:
Title:
Date:
Address:
Name:Andrew Ahitow Phone:
Title:Managing Partner email:
Date:11—4—2025
Phone:773-454-4299
E-mail:andy@citypadsre.com
Page 7 of 8
LOI 909-929 Ridge Rd.,Wilmette
EXHIBIT A
Due Diligence Materials
Purchaser’s review of existing surveys,title reports re?ecting all conditions,covenants and restrictions of
record,and easements.Purchaser shall have the right to conduct a Phase I environmentalstudy of the Property.
Seller shall provide reasonable access to the Property to Purchaser and its agents during the Due Diligence
Period for Purchaser’s inspection.Should Purchaser elect to not terminate the Contract,Seller shall continue
to providePurchaser with reasonable access to the Property (including access to individual units)through and
until the Closing.
In furtherance of the above,and such other requests that may arise during the Due Diligence Period typical of
a transaction of this nature,Seller agrees to provide the following as they relate to the Property:
1.
99:5?”
11.
12.
13.
14.
15.
16.
17.
18.
19.
management reports,and all utility bills including electric,gas,water,phone and internet for the current
year and two prior years
copies of the real estate tax bills for the current year and two prior years,including without limitation bills
for special assessments,and the latest assessment notice;
the existing owner's title insurance policy;
the existing survey of the Property and any easements affecting the Property;
all existing environmentalreports (whether contractedby Seller or any third party),
all service contracts relating to the Property,including without limitation the property management
agreement,elevator contract,cleaning contract,scavenger contract,construction agreements,and any
union agreements;
all reports and service invoices pertaining to work related to:structural,exterior,life safety,elevator,and
mechanical systems,
con?rmation there are no leases,licenses or occupancy agreements (including those proposed or in lease
negotiations)affecting the Property,including those for periods not yet begun;
a current rent roll,and any projectedleases including terms,dates,unit(s)and other relevant details
.all construction and capital improvementdocuments for the work performed at the property since 2014
including any permits and inspectionapprovals,and any contemplatedor contracted work to be completed
over the next twenty—fourmonths
All inspection reports from the City of Evanston from the Seller’s ownership period,any violation notices
received from any governmental authority from the same period;Purchaser will pursue other requests
from City of?cials during the course of its investigation and is authorized to do so
All ?les relating to any open building court cases;
All paperworkrelated to the last renewal of any business license in effect for the Premises;
All ?les relating to any active eviction cases or con?rmation none exist;
All documents related to any litigation pending during the prior 36 months concerning the Real Property
including,but not being limited to,any litigation concerning any tenant at the Real Property.
The size of all utility connections and total service provided to the Property,speci?cally Electric,Gas and
Water (including the total number of separate meters)
The original renovation and constructiondrawings and permitsfor the Property,if available
The m tenant ?les,including all correspondence,for each occupiedor committed space
Any and all material,paperwork,agreements (written or oral),or other information related to the use,
leasehold,easements,access,etc of any space shared with,or utilized within,or allowed to be used by any
neighboring property
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