R2010-167 RECEIVING AND FILING PROPOSED REDEVELOPMENT AGREEMENT

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y^ � n � ♦ THIS CITY OF DECATUR/ SLUMBERLAND REDEVELOPMENT AGREEMENT (the "Agreement") is entered into as of the day of , 2010, by and between the City of Decatur, Illinois, a home rule municipal corporation, (hereinafter referred to as the "City") and LARSON FAMILY REAL ESTATE LLLP, a Minnesota limited liability limited partnership(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 properiy more fully described on E�ibit 1 attached hereto and by reference made a part hereof that is currently developed but has remained less than significantly unoccupied 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 and 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 Project be provided by the City from the resulting municipal sales tax revenues derived solely from the currently vacant Circuit City Store located in the Project within the Redevelopment Area("Incremental Taxes"), which incentives are set forth in Exhibit 2 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 Agreement, 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 Three Million Nine Hundred Ninety-Two Thousand Two Hundred and Eight($3,992,208) Dollars as more fully shown on Exhibit 2 attached hereto and made a part hereof; and WHEREAS, the Redeveloper meets high standards of creditworthiness and 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 E��ibit 2 and that the Redevelopment Project will promote the health, safety and welfare of the City and its citizens , strengthen the commercial sector of the City by attracting private City of Decatur/Slumberland Redevelopment Agreement 4