2026-20 Ordinance Authorizing Amendment to TIF Redevelopment Agreement by and between the City of Decatur and Merchant Street South, LLC

Home Browse Search

AMENDMENT TO TIF REDEVELOPMENT AGREEMENT BETWEEN THE CITY OF DECATUR AND MERCHANT STREET SOUTH,LLC WHEREAS,the City of Decatur, Illinois, a municipal corporation("City") and Merchant Street South, LLC, an Illinois limited liability company ("Redeveloper") entered into a"TIF Redevelopment Agreement By and Between The City of Decatur and Merchant Street South,LLC" ("Agreement")dated May 29,2024 for the redevelopment of a program area known as the Central TIF Redevelopment Project Area located 148- 160 E.Main Street and 112 N. Merchant Street. WHEREAS, the parties desire to modify certain provisions of the Agreement to reflect a change in the contemplated use of the 148 E. Main Project and to extend the time for Substantial Completion; and NOW, THEREFORE, the City and Redeveloper agree as follows: 1. The foregoing recitals are incorporated herein as fully stated as part of this Agreement. 2. Amendment to Project Description/Permitted Use. The recitals in the Agreement are hereby amended as follows: "WHEREAS, Redeveloper desires to substantially modernize and renovate the 148 E. Main Property to attract and retain quality commercial residential 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 will convert all or a portion of the building to either a) 10 one-bedroom, or b) 6 one-bedroom and 4 two-bedroom market-rate residential units. The Redeveloper expects that the project redevelopment will help spur business economic growth in Decatur' s downtown (" 148 E. Main Project");" The parties further agree that such residential use: a. shall be deemed consistent with and in furtherance of the Redevelopment Plan and the purposes of the Agreement; b. shall not constitute a"fundamental change" in the nature, size, or aesthetics of the Project for purposes of Section 2.3 of the Agreement; and c. shall satisfy all requirements of the Agreement relating to the development,use, and operation of the Project. 3. Confirmation of Eligibility for Public Investment. The parties acknowledge and agree that all otherwise eligible costs incurred in connection with the redevelopment of the Project for residential use shall continue to qualify as"TIF Eligible Costs" under the Agreement, subject to the terms and conditions set forth therein, and that the Redeveloper's right to receive Public Investment pursuant to Article IV of the Agreement shall not be adversely affected by the change in use described herein.