R2015-129 RECEIVING AND FILING PROPOSED REDEVELOPMENT AGREEMENT Pace Hospitality LLC

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THIS CITY OF DECATUR/ PACE HOSPITALITY LLC REDEVELOPMENT AGREEMENT (the "Agreement") is entered into as of the day of , 2015, by and between the City of Decatur, Illinois, a home rule municipal corporation, (hereinafter referred to as the "City") and PACE HOSPITALITY 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 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 1 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 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 hotel/motel tax revenues derived solely from the operations of an Holiday Inn & Suites located in the Project; and WHEREAS, the City has the authority to pay and/or reimburse the Redeveloper for Eligible Redevelopment Project Costs; and WHEREAS, the construction cost of the Project (including land acquisition and soft costs) is estimated to be $9,503,330 as more fully shown on Exhibit 2 attached hereto and made a part hereof; 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 the health, safety and welfare of the City and its citizens, strengthen the commercial sector of the City by attracting private investment to prevent blight and deterioration, enhance the tax base of the City and provide employment and generally to enhance the economy of the City and is made and entered into in the best interest of the City. NOW THEREFORE, in consideration of the promises and mutual covenants and obligations of the parties contained herein, and other good and valuable consideration, the receipt and sufficiency whereof are hereby acknowledged, the parties hereto, intending to be legally bound, hereby covenant and agree as follows: City of Decatur/PACE HOSPITAL[TY LLC 4