HomeMy WebLinkAboutRESOLUTIONS-1982-019-R-82.J
4/8/82
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19-R-82
A RESOLUTION
Authorizing the City Manager to Purchase the
Leasehold of DRT; Inc. for 521 South Boulevard
for Economic and Parking Development
i! WHEREAS, the City Council of the City of Evanston considers it
in the best interest of the City and desirable to stimulate and assist
economic development, increase the real estate tax base,stimulate employment
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opportunities for Evanston residents, and provide public parking in Southeast
Evanston, and;
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�i WHEREAS, the relocation of DRT Enterprises, Inc., (DRT) lessee of
'i certain property located at 521 South Boulevard and legally described in
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Exhibit A attached hereto and incorporated by reference into this Agreement
!� (''The Premises") from Albert Goodman under a lease dated July 1, 1981 would
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III facilitate a proposed retail store development with some limited public
!; parking at that location, which retail development would increase the real
�! estate tax evaluation and provide employment opportunities to Evanston
I; residents.
i NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF EVANSTON
SECTION 1: The City Manager is.hereby authorized and directed
to sign, and the City Clerk is hereby authorized
and directed to attest on behalf of the City of Evanston a leasehold purchase
and assignment agreement between the City of Evanston as purchaser and
successor lessee and DRT, as Seller, and Assignor/lessee for premises
commonly known as 521 South Boulevard, Evanston, and legally described as:
Lots 15 and 16 (except the Easterly 40 feet of said lots) in
block 5. in Keeney and Rinn's Addition to Evanston, a subdivision
in the South East quarter of Section 19, Township 41•North,
Range 14 East of the Third Principal Meridian, the property
hereby described being all that part of said lots 15 and 1.6
lying Westerly of a line drawn parallel to and 40 feet Westerly
from the Easterly line of said lots.
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for a compensation'of $93,000 (NINETY-THREE THOUSAND DOLLARS) payable
in installments.
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I' SECTION 2: The City Manager is further authorized to renegotiate'
the leasehold interest of 521 South Boulevard with
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II the purchaser, Dominick's Finer Foods, Inc. to allow for the leasing of
iI public parking on the developed site.
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SECTION 3: This resolution shall be in -full force and effect
from and after its passage and approval in the
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manner provided by law.
M a�-tF
.' ATTEST:
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City Clerk/
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Adopted- �� 13 1982
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EXHIBIT A
Y
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Lots 15 and 16,.(except the Easterly 40 feet of
said lots) in block 5
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in Keeney and Rinn's Addition to Evanston, a
subdivision in the South
East quarter of Section 19, Township 41 North
Range 14 East of the
Third Principal Meridian, the property hereby
described being all that
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part of said lots 15 and 16 lying Westerly of
a line drawn parallel to
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and 40 feet Westerly from the Easterly .line of
said lots.
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EXHIBIT B
i Agreement to Assign and
Purchase Leasehold
WHEREAS, the City of Evanston considers it in the best interests
of the City and desirable to stimulate and assist economic development,
increase the real estate base, stimulate employment opportunities for
Evanston residents, and provide public parking in Southeast Evanston; and
WHEREAS, the relocation of DRT, Inc, ("DRT") Lessee of certain
property located at 521 South Boulevard and legally described in Exhibit A
attached hereto and incorporated by reference into this Agreement
("THE PREMISES") from Albert Goodman under a.lease dated July'], 1981,
would facilitate a proposed retail development and public parking at that
location which retail development would increase the real estate tax
valuation and the employment opportunities for Evanston residents,
NOW, THEREFORE, in consideration of the mutual promises contained
herein and other good and valuable consideration receipt, of which is hereby
acknowledged, the City of Evanston (."CITY"), DRT Enterprises, Inc. ("DRT")
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i covenant and agree as follows:
1. -DRT shall execute a sale, assignment and conveyance.of its
title and interest in that lease for the premises dated
July 1, 1981 between DRT Enterprises, Inc. and Albert
Goodman of Wilmette, Illinois to the City of Evanston
to be effective at 12:01 A,M, May 10, 1982. This assign-
ment shall"be without reservation of any rights, shall
be for the full remaining term of said lease and shall
include all options to extend and all purchase options.
2. The City agrees to assume all of the obligations, liabilities
and duties of DRT under said lease upon the effective date
of the assignment.
3. In consideration of said sale and assignment to it, the
City shall pay to DRT cash payments in the amounts and
on the dates.as set forth in the payment schedule attached
to and incorporated by reference unto.this agreement as
Exhibit B'-1, except that all payments due July 1, 1982 and
all subsequent payments shall only be made upon evidence
that DRT remains an established Evanston business as
evidenced by the purchase ,of an annual business license
and is conducting business.daily at 126-130 Chicago Avenue,
Evanston, Illinois,
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it4. The City agrees to erect a sign at 521 South Boulevard
if during the Dominick store construction phase stating the
new business address of DRT Enterprises, Inc. The size
and lettering .of the sign shall be determined by the City
with approval by DRT and shall be in accordance with all
j� applicable ordinances of the City of Evanston.
5. Notwithstanding any other paragraph herein, this agreement
shall take effect upon the occurrence of the following
precedent conditions:
A. Albert Goodman shall no later than May 1, 1982 have
executed and completed performance of a contract to
j sell and convey all of his right, title, ownership
interest in the premises to Dominick's Finer Foods, Inc.
B. DRT Enterprises shall have executed a lease for
premises located at 126-130 Chicago Avenue, Evanston,
Illinois, or another suitable location no later than
April. , 1982. Said lease may be conditioned upon
the sale and conveyance of Albert Goodman's right,
title, ownership interest in the premises to
Dominick's Finer Foods, Inc.
C. Dominick's Finer Foods, Inc. as successor owner and
Lessor of premises after Goodman shall have provided
to the City its written agreement:
1. To compensate, indemnify and hold harmless the
City against all real estate tax obligations
• contained in the July 1, 1981 lease between
Albert Goodman and DRT from the date of the
leasehold assignment by DRT.
2. To accept in lieu of all lessee insurance coverage
and maintenance obligations contained in the
July 1, 1981 lease the City's self -insured status
and excess coverage in force and effect on the
date of the signing of the agreement.
3. To 'reduce to $1.00 per month the rental payments
due, and owing the lessor under the July 1, 1981.
lease.
6: Simultaneously with execution of this agreement:
A. The City shall deposit in escrow the sum of $33,000
to be held until DRT has fully vacated the premises
on or before 12:01 A.M. May 10, 1982 upon which
precedent condition the City shall direct release
to DRT of said funds, after deduction of those costs
set forth below.
B. The interest if any earned on the escrow shall be
the property of DRT, except that the escrow funds
and interest shall first be utilized to pay:
1. The escrowee's administrative fees and/or charges,
• 2. The costs of insurance as provided in paragraph 7.
!� C. DRT shall provide to the City a full assignment of its
I leasehold to be effective 12:01 A.M, May 10, 1982,
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7. Notwithstanding the failure of DRT to vacate the premises,
on May 10, 1982 the assignment shall be valid and effective
as provided except that the City shall have the right to
I; obtain insurance for .itself in the amount of $2,000,000
j (TWO MILLION DOLLARS) general liability -and $500,000
(FIVE HUNDRED THOUSAND. DOLLARS) property damage to
indemnify and protect the City for the period of
i holdover of DRT.
CITY OF EVANSTON
BY:
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Title
ATTEST:
DRT ENTERPRISES, INC.
BY:
Title
ATTEST:
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EXHIBIT B-1
In consideration of said sale and assignment to it of the
leasehold interest of DRT in the property located at 521 South Boulevard,
the City shall make the following cash payments equaling $93,000 to
DRT Enterprises, Inc:
Upon execution of the Agreement to Assign and Purchase Leasehold:
$33,600
l! Upon vacation of 521 South Boulevard, provided said vacation
!f occurs no later than 12:01 A.M. May 10, 1982:
$33,000
!! July
1, 1982
$
4,800
I1July
1, 1983
$
6,000
I► July
1, 1984
$
8,400
j July
1, 1985
$
7,200