R2013-122 RECEIVING AND FILING PROPOSED REDEVELOPMENT AGREEMENT

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THIS CITY OF DECATUR/ HARRISON MANAGEMENT, GROUP LLC REDEVELOPMENT AGREEMENT (the "Agreement") is entered into as of the'_ day of , 2013, by and between the City of Decatur, Illinois, a home rule municipal corporation, (hereinafter referred to as the "City") and HARRISON MANAGEMENT GROUP LLC, an!ILLINOIS limited liability company(hereinafter referred to as the'Redeveloper"). RECITALS WHEREAS, the City is a home rule unit of government, pursuant to Section 6 of Article VII of the Constitution of the State of Illinois, and as such has the authority to promote health, safety and welfare, including to prevent the spread of blight and deterioration and inadequate facilities by promoting the development of and private investment in industry, business and housing and enhancing the marketability of Premises and is authorized and empowered to enter into economic incentive agreements pertaining to its government and affairs, including the economic development of the City and the expansion of its tax base thereby reducing unemployment;and WHEREAS, there exists certain property more fully described on Exhibit 11 attached hereto and by reference made a part hereof that is currently vacant and has remained less than significantly occupied and/or underutilized for a period in excess of one(1)year;and WHEREAS, the Redeveloper wishes to substantially redevelop and improve the Development Area more fully described on Exhibit 1 attached hereto and by reference made a part hereof (the "Project"); thereby contributing to the economic development of the City, increasing the tax base thereby reducing unemployment and creating or retaining job opportunities within the City"and serve to further maintain the development of adjacent areas, and the City is willing to enter into an'economic incentive agreement with the Redeveloper to assure that said redevelopment and improvements occur;and WHEREAS, the Redeveloper has requested that incentives related to the Pr sect be provided by the City from the resulting municipal sales tax revenues derived solely from the operations of an Ashley Furniture and other retailers located in the Project in that year less the total amount of Municipal and Home Rule sales taxes received by the City from January 1, 2013 through December 31, 2013 as confirmed by the Illinois Department of Revenue from any retailers t4at are relocated to the Project from within the limits of the municipality; and WHEREAS, the City has the authority to pay and/or reimburse the Redeveloper for Eligible Redevelopment Project Costs;and WHEREAS, without the assistance of the City as set forth in this Agreem$nt, the Redeveloper would not undertake the Project and the Project would not be possible; and WHEREAS, the construction cost of the Project (including land acquisition and soft costs) is estimated to be$2,097,208 as more fully shown on Exhibit 2 attached hereto and made a part hereof,and WHEREAS, the Redeveloper meets high standards of creditworthiness aId financial strength as demonstrated by specific evidence of equity financing for not less than 10% of the total project costs;and WHEREAS, the City has determined that the Redevelopment Project requires the incentives requested as set forth in Exhibit 2 and that the Redevelopment Project will promote tt ie health,safety and DRAFT-City of Decatur/Harrison Management Group LLC Redevelopment Agreement 4