2024-63 Ordinance Authorizing a TIF Redevelopment Agreement between the City of Decatur and Merchant Street South, LLC

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EXECUTION COPY THIS CITY OF DECATUR/CENTRAL TIF REDEVELOPMENT PROJECT AREA REDEVELOPMENT AGREEMENT (the "Agreement") is entered into as of the 7=" - day of k ' _ 2024 ("Effective Date"), by and between THE CITY OF DECATUR, an Illinoi0home rule municipal corporation, (hereinafter referred to as the "City") and MERCHANT STREET SOUTH, LLC, an Illinois limited liability company (hereinafter referred to as the "Redeveloper"). RECITALS WHEREAS, the City is considering adopting a program for the redevelopment of a redevelopment area known as the Central TIF Redevelopment Project Area(the "Redevelopment Area"),pursuant to the Illinois Tax Increment Allocation Redevelopment Act 65 ILCS 5/11-74.4- 1, (hereinafter referred to as the "Act"); WHEREAS, the City is considering, pursuant to the provisions of the Act, adopting a plan known as the Central TIF Redevelopment Project Area Redevelopment Plan and Project, prepared by PGAV Planners, dated January 19, 2024 (hereinafter referred to as the "Redevelopment Plan") pertaining to the redevelopment of the Redevelopment Area, a copy of which is available for inspection in the office of the City Clerk of the City; WHEREAS, Redeveloper is the legal title owner of the properties commonly known as 148-160 E. Main Street and 112 N. Merchant Street, which properties are individually and legally described in Exhibit 1 (individually the "148 E. Main Property" and "112 N. Merchant Property" and collectively, "Properties"), and which Properties are located within the Redevelopment Area; WHEREAS, Redeveloper desires to substantially modernize and renovate the 148 E. Main Property to attract and retain quality commercial tenants in the downtown Decatur area. The renovations will include exterior facade,window,major components, and interior rough-ins. Currently the over 30,000 square foot building is underutilized with only 45% occupancy with the majority of the building sitting vacant for a long time. The Redeveloper expects that the project redevelopment will help spur business growth in Decatur's downtown ("148 E. Main Project"); WHEREAS, Redeveloper desires to convert the second story of the 112 N. Merchant Property with two market-rent apartments for the downtown Decatur market. The addition of the apartment units will help fulfill the demand for newly developed market rent units in the Decatur and Macon County area ("112 N. Merchant Project", collectively the 148 E. Main Project and 112 N. Merchant Project are"Projects"); WHEREAS, the City anticipates that, in order to achieve the objectives of the Redevelopment Plan, subject to the adoption of Tax Increment Financing for the Redevelopment Area pursuant to the Act, it should provide assistance to the Redeveloper, including the reimbursement of TIF eligible costs related to the Projects; -2-