CITY OF LOCKPORT COMMITTEE OF THE WHOLE MEETING AGENDA. WEDNESDAY, MAY 20, 2015 (a). Pledge of Allegiance:

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1 CITY OF LOCKPORT COMMITTEE OF THE WHOLE MEETING AGENDA WEDNESDAY, MAY 20, 2015 (a). Pledge of Allegiance: 7:00 P.M. (b). Roll Call: (c). Introduction: Recognition: Nicole Plagman, Band Director at Kelvin Grove School & Kelvin Grove School Band Members (d). (e). (f). (g). (h). Items recommended for action at next City Council Meeting: Shop Lockport Business Spotlight: Mayor s Report: City Clerk s Report: PERMANENT COMMITTEES: (1). Plan & Zoning Commission 1. C. Pascavage Memo 5/14/15 PZ-1 PZC Case : Preliminary Development Plans and Special Use for a Planned Industrial Development for property generally located at the northwest corner of 163 rd Street and I-355 (directly east of Panduit) (2). Heritage and Architecture (i) STAFF REPORT: 1. City Administrator: 1. B. Benson & T. Thanas CA-1 Development Agreement between Memo 5/12/15 Legacy Events, LLC, and the City of Lockport for the development of a Haunted House Facility/Resolution No (a) Intergovernmental Agreement between the City of Lockport and the Lockport Township Park District regarding the development of Dellwood Park West/ Resolution No

2 2. P. Hirth Memo 5/13/15 CA-2 PZC Case No Special Use Permit for a Unique Use in an R-1 Zoning District and Final Development Plan (Legacy Haunted House on Grounds) located south of Legacy Paintball & Airsoft Park on Canal Street. 2. Administrative Assistant: 3. Finance Director: 1. L. Heglund Memo 5/11/15 FD-1 Investment Policy 4. Police Chief: 5. City Attorney: 1. B. Benson & T. Thanas Memo AT-1 Amendment to Patty Cakes Annexation 5/12/15 Agreement/Resolution No Director of Community & Economic Development: 7. Director of Engineering: 8. Director of Public Works: 9. NEW BUSINESS MISCELLANEOUS (j). OPEN FLOOR FOR PUBLIC COMMENTS: (Comments will be heard on items that do not appear on the Agenda. The Public Comment portion of the Agenda shall be subject to a twenty (20) minute limitation. A time limit of five (5) minutes shall be imposed on each Speaker. The purpose of having Public Comments as an Agenda item is to allow any person to make his/her views known to the City Council upon any subject of general or public interest. The Council recognizes that Public Comments are for the purpose of legitimate inquiries and discussion by the Public, and not for the purpose of advancing arguments or repetitious questions concerning matters which the Council believes to be closed or not of general public concern. The Council shall have the right during this period to decline to hear any person or subject matter upon proper motion and majority vote by the Council. Each person wishing to speak during the Public Comment portion of the Agenda must fill out a Public Comment Speaker Card stating name, and the topic about which he/she wishes to speak as well as a sign-in sheet, and give to the City Clerk at the Meeting itself.

3 The purpose of the Cards is to obtain the spelling of the name of the Speaker, and provide for efficient meeting administration. The order of speaking shall be based upon the order of sign-in with first person signing-in speaking first and so forth. If the twenty (20) minutes has elapsed before all Speakers who have signed up are allowed to speak, the City Council may elect to continue the time period. However, if the City Council elects not to extend the time period those Speakers who signed up but did not speak may if they so choose to be placed on the next Agenda under the Public Comments Section and shall be placed at the top of the Sign-In Sheet in the same order they were in from the previous Sign-In Sheet. All Speakers shall comply with these rules which shall be posted at the Speaker Sign-In desk and rulings of the City Clerk.) (k). ADJOURNMENT OPEN MEETINGS EXEMPTIONS 2(c)(1) 2(c)(2) 2(c)(3) 2(c)(5) 2(c)(6) 2(c)(11) 2(c)(21) Appointments, Employment, Compensation, Discipline, Performance or Dismissal of specific Employees. Collective Bargaining Matters. Selection of a person to fill a Public Office, including a vacancy in a Public Office. Purchase or Lease of real property, including meetings held for the purpose of discussing whether a particular parcel should be acquired. The setting of a price for Sale or Lease of property owned by the public body. Litigation, when an action against, affecting or on behalf of the particular public body has been filed and is pending before a court or administrative tribunal, or when the public body finds that an action is probable or imminent, in which case the basis for the finding shall be recorded and entered into the minutes of the closed meeting. Discussion of minutes of meetings lawfully closed under this Act, whether for purposes of approval by the body of the minutes or semiannual review of the minutes as mandated by Section 2.06.

4 Committee of the Whole Agenda Memorandum Item # PZ-1 To: From: Subject: Mayor & City Council Christiana Pascavage, City Planner PZC Case : Preliminary Development Plans and Special Use for a Planned Industrial Development for property generally located at the northwest corner of 163 rd Street and I-355 (directly east of Panduit) Date: May 14, 2015 BACKGROUND/HISTORY Paul Ahern, on behalf of Tandem Development Group, has submitted preliminary development plans for a 38 acre industrial/business park for property generally located at the northwest corner of 163 rd Street and I-355 (vacant property east of Panduit). The proposed plan shows two buildings (totaling approximately 524,000 square feet of building area). They are seeking approval of the following: 1. Preliminary development plans 2. Special use permit for a planned industrial development. Per the Zoning Ordinance property 10 acres or greater require a special use permit for a planned development. City Council approved a concept plan for an industrial/business park in this location earlier this year. The preliminary plans address concerns raised at that time. The most notable change is the elimination of the cross dock building. Both lots now show single loaded buildings due to City concerns that cross dock buildings have the potential to create significant amounts of truck traffic. Other changes include a reduction in the total building area (658,450 down to 523,900), a reduction in the number of buildings (3 down to 2), an increase in the landscape area, and the orientation of the building on the east lot is north/south (previously east/west). Zoning: The property is zoned M1 Limited Manufacturing. This zoning has been in place since 1990 when the property was annexed. Tandem s proposal is consist with M1 zoning. Landscaping: Detention is placed along 163 rd Street to create a buffer from existing and proposed residential located on the south side of 163 rd Street. There is one code deviation proposed, a reduction in the landscape ratio. A ratio of.344 has been provided and.350 is required. In planned developments it s common to grant zoning relief and staff does not believe a 0.6% deficit in landscaping will have a noticeable effect on the site and that the setbacks and buffering provided is sufficient.

5 Traffic Study: The traffic impact report submitted by the petitioner includes projections for Tandem s property, Sagebrook (proposed residential subdivision on the south side of 163 rd Street), and the proposed industrial/business park located on the southeast corner of 163 rd Street and I-355 (Panattoni). The report indicates that individually the projects will not trigger warrants for a traffic signal at 163 rd Street and Gougar Road, but it s anticipated that there will be warrants at full buildout of all three developments. Public Hearing: The preliminary plans and public hearing on the special use for a planned industrial development were before Plan and Zoning Commission on May 10 th. Eight (8) residents spoke and all expressed concern with the development. They felt the use is not appropriate, often citing safety and truck concerns. Specific comments include pedestrian safety along 163 rd because children walk to school, roads need to be widened and/or improved for trucks, trucks will cause wear and tear on the roads, and trucks not being able to make the righthand turn onto 163 rd Street from Gougar Road unless a turn lane is added. Other items mentioned were noise, potential for crime, and potential for hazardous materials. Plan Commission: Plan Commission had minor suggestions to consider incorporating into the final plan submittal. Suggestions included adding building articulation on facades facing 163 rd Street and I-355, increasing the install height of evergreens from 6 up to 8-10 (for better screening of the truck court), and moving some of the plant material on the north side of the property to the south side. Development Agreement: The annexation agreement has expired so the petitioner is working with staff on a Development Agreement. We anticipate having a draft to present to the Council at the June 3 rd Committee of the Whole meeting and action on June 17 th. Action on the preliminary plans and special use will need to be delayed until action can be taken on the agreement. RECOMMENDATION Staff and Plan and Zoning Commission (by a 7-0 vote) recommended approval of the following: 1. Special use for a planned industrial development. The special use allows for an overall landscape ratio of Preliminary development plans listed below with the following conditions: a. Plans are subject to engineering approval. b. Consider the following items when submitting final plans: add building articulation on facades facing 163 rd Street and I-355, increase the install height of evergreens from 6 up to 8-10 (for better screening of the truck court), and move some of the plant material on the north side of the property to the south side. (added by the commission) Preliminary plans to be approved include: 1. Preliminary plan prepared by Spaceco dated 4/23/15 2. Elevations prepared by Heitman Architects last revised 4/24/15 3. Landscape plan prepared by Heitman Architects last revised 4/24/15

6 ATTACHMENTS (IF APPLICABLE) Plan and Zoning Commission staff report dated May 6, Plans are attached to the report. SPECIFIC CITY COUNCIL ACTION REQUIRED Direction to place on the June 17, 2015 City Council agenda for action (provided action is taken on the Development Agreement at the same meeting).

7 City of Lockport Planning & Zoning Department 921 S. State Street Lockport, Illinois phone fax Planning and Zoning Memorandum Case # TO: FROM: SUBJECT: Plan and Zoning Commission Christiana Pascavage, City Planner Preliminary Development Plans and Special Use for a Planned Industrial Development for property generally located at the northwest corner of 163 rd Street and I-355 (east of Panduit) DATE: May 6, 2015 I.SUMMARY/REQUESTED ACTION Tandem Development Group is seeking approval of a 38 acre business park for property generally located at the northwest corner of 163 rd Street and I-355 (vacant property east of Panduit). The proposed plan has two buildings (totaling approximately 524,000 square feet of building area). They are seeking approval of the following: 1. Preliminary development plans 2. Special use permit for a planned industrial development. Per the Zoning Ordinance property 10 acres or greater require a special use permit for a planned development. II. GENERAL INFORMATION 1) Petitioner: Tandem Development Group (contract purchaser of the property) 2) Location: Generally located at the northwest corner of 163 rd Street and Gougar Road (directly east of Panduit) 3) PIN Numbers: ) Parcel Size: 38.4 acres 5) Current Land Use: Agricultural 6) Jurisdictions: A. Fire: Lockport Township B. Park District: Lockport Township Park District C. Schools: Homer Township 33C 7) Comprehensive Plan: Per the I-355 Master Plan, this property is identified as market flexible and can accommodate uses such as light industrial, business park, offices, and possibly big box retail. 8) Zoning: Subject property zoning: M1 Limited Manufacturing. The property was annexed in 1990 and was zoned M1 at that time. Page 1 of 3 Oak Ave

8 II. GENERAL INFORMATION (CONTINUED) 9) Surrounding zoning and land use: Direction Zoning Jurisdiction Use North C3 Commercial, PUD City of Lockport Primarily vacant, proposed Lockport Square Development West M1 Limited City of Lockport Panduit Manufacturing South R1 Single Family A1 Agricultural City of Lockport Will County Karen Springs Subdivision/ Proposed Sagebrook Residential East A2 Rural Residence Will County Vacant III. PROJECT OVERVIEW / EVALUATION Concept plan The petitioner received concept plan approval for a business/industrial park on February 4, The plan showed three buildings (one included cross docks) with a total building area of 659,000 square feet. The plan received a favorable recommendation, but there were conditions placed on the approval that would need to be addressed at the time of preliminary plan submittal. Conditions of approval included concern that a cross dock building could generate significant amounts of truck traffic, a traffic study would be needed to determine whether projected traffic would warrant signalization at nearby intersections, coordination would be needed with the city s engineering department regarding the location and number of access points into the development, and off-site road and infrastructure improvements would need to be coordinated with the industrial business park proposed by Panattoni (located at the southeast corner of 163 rd and Gougar Road). Project overview The proposed preliminary plan shows two pre-cast industrial buildings with a total building area of 523,900 square feet. Detention is located at the front of the property which creates a large building setback from the residential (and proposed residential) on the south side of 163 rd Street. There is one residential property on the north side of 163 rd Street, surrounded by this development. The petitioner has provided dense landscaping around it. Trailer storage is located in the truck court between the buildings. This area will be screened by a combination of landscaping and an eleven (11) foot pre-cast wall that extends from the buildings. On the building elevations it s not clear whether breaks in the façade (vertical divisions that project from the building) have been provided on long expanses. The industrial design guidelines require vertical offsets every 250 feet. A condition can be placed on the approval that adherence to this requirement will be verified at the time final elevations are submitted. Changes to the layout of the business park since the concept plan are summarized below: 1. Cross docks have been removed. 2. Number of buildings has been reduced (3 buildings down to 2). 3. The building on the east lot has north/south orientation (previously contained 2 buildings in an east/west orientation). 4. Reduction in total building area (658,450 square feet down to 523,900 square feet). 5. The westernmost truck access was eliminated due to its close proximity to an access drive on Panduit s property. 6. Landscape area has been increased. 7. The east access drive (vehicle access - not truck access) has been aligned with the proposed access into Sagebrook. Page 2 of 3

9 Deviations There is one code deviation proposed, a reduction in the landscape ratio. A ratio of.344 has been provided and.350 is required. Staff does not believe a 0.6% deficit in landscaping will have a noticeable effect on the site and that the setbacks and buffering provided is sufficient. Staff supports the variance. Engineering Engineering is under review. Preliminary engineering will need to be approved prior to City Council taking action on the preliminary plans. Fire District The Fire District has approved the site plan noting information to be submitted at time building permits are submitted and that hydrants must be continued along 163 rd Street to the end of the property line. Traffic Study The petitioner submitted a traffic study prepared by KLOA. Traffic projections included anticipated traffic from Sagebrook and Panattoni. The report finds that traffic generated by Tandem will not have a detrimental impact on the overall operation of the intersection of 163 rd Street and Gougar Road. Traffic generated by this development will not warrant signalization of the intersection, however, the report indicates that consideration should be given, based on future observation, to the installation of a traffic signal at the intersection of 163 rd Street and Gougar Road to accommodate the projected traffic increases with the build out of the three developments (Tandem, Sagebrook, and Panattoni). In anticipation of a signal being needed upon buildout of these developments the annexation agreements for Panattoni and Sagebrook included financial contributions from the developer for the City to use toward future signalization. When City Council reviews Tandem s preliminary plan submittal a proposed Development Agreement will be presented. Similar to the other projects, the current draft of the agreement includes financial contribution toward a signal. Staff evaluation The proposal is consistent with the M1 zoning district and with the I-355 Master Plan. The petitioner has revised the plans to meet conditions placed on the concept approval. Aside from a minor landscape ratio deficit (0.6%) it complies with zoning regulations. It s common in planned developments to grant relief from zoning requirements provided the relief does not have a negative impact on the development or surrounding area. The Planning Departments finds the preliminary submittal generally consistent with the concept plan and that the changes have resulted in an improved plan. IV. STAFF RECOMMENDATION 1. Staff recommends approval of the special use for a planned industrial development. The special use allows for an overall landscape ratio of Staff recommends approval of the Preliminary Plans with the following conditions: 1. Final building elevations shall include breaks in the building façade (vertical divisions that project from the building) with spacing as required by the zoning ordinance. 2. Plans are subject to engineering approval. V. ATTACHMENTS Preliminary development plans which includes the following: 1. Preliminary Plan prepared by Spaceco dates 4/23/15 2. Site Improvement Plans prepared by Spaceco dated 4/23/15 3. Elevations prepared by Heitman Architects last revised 4/24/15 4. Landscape Plan prepared by Heitman Architects last revised 4/24/15 Page 3 of 3

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22 Committee of the Whole Agenda Memorandum Item CA-1 To: From: Mayor & City Council Ben Benson, City Administrator Thomas A. Thanas, Interim City Attorney Date: May 12, 2015 Subject: 1. A Resolution Approving a Development Agreement between Legacy Events, LLC, and the City of Lockport for the Development of a Haunted House Facility 2. A Resolution Approving an Intergovernmental Agreement between the City of Lockport and the Lockport Township Park District Regarding the Development of Dellwood Park West BACKGROUND/HISTORY: The operator of the Legacy Paintball Park in Dellwood Park West has approached the City of Lockport and the Lockport Township Park District with a proposal from Legacy Events, LLC, an affiliate of Lockport Paintball Park, to construct and operate a haunted house facility on property adjacent to the paintball park. The details of the haunted house facility are set forth in a separate Council Memo addressing the details of the location of the facility and the building plans for the facility. Two separate agreements are before the City Council for consideration as part of the development of the project. The Development Agreement between the City and Legacy Events sets forth specific approvals that are required from other governmental agencies that have jurisdiction over the part or all of the land on which the haunted House facility will be built. The Development Agreement also addresses the parameters of an economic incentive grant that Legacy Events has requested and the method by which the grant would be repaid to the City. The haunted house facility will be located in Dellwood Park West, property that is under the jurisdiction of the Lockport Township Park District. The paintball park is on land that is under the control of the Park District. The Park District and Legacy Events are negotiating an expansion of the existing license agreement to include the haunted house facility. The road that provides access to the paintball park is not a publicly dedicated road. It is a private access road that runs adjacent to the I & M Canal. The road will need to be improved to handle the additional traffic that will be generated during the season that the haunted house will be operational. 1

23 Legacy Events has asked for the City to provide an economic incentive grant that would be earmarked for the improvement of the access road. The City is not being asked to accept the dedication of the road, nor is the City requiring a fully improved, urbanized road to be constructed from Division Street to the haunted house facility. The following improvements that would cost about $125, are being proposed: $2, for reflectors and poles $12, for 4 Street Lights $24, for grading and road prep $85,360 for Chip/Seal application The City will be entitled to recover its economic incentive grant through a $1.00 per paid or discounted ticket admission fee that would be collected from the patrons of the haunted house facility. The two agreements before the City Council address the access road improvements and the City s opportunity to recover its investment. The Intergovernmental Agreement with the Park District authorizes the City to make improvements, and the Park District is agreeing to defer its collection of an admission fee on the haunted house facility until the end of 2019 so the City has an opportunity to recover its investment. The Development agreement obligates Legacy Events to collect and remit the admission fee. RECOMMENDATION: The City staff is recommending the approval of: Resolution No which authorizes the Mayor and City Clerk to execute the Development Agreement between Legacy Events, LLC, and the City of Lockport for the Development of the Haunted House Facility; Resolution No which authorizes the Mayor and City Clerk to execute the Intergovernmental Agreement between the City of Lockport and the Lockport Township Park District Regarding the Development of Dellwood Park West. ATTACHMENTS: Resolution No plus exhibits. Resolution No plus exhibits.. SPECIFIC CITY COUNCIL ACTION REQUIRED: Motion to Approve Resolution No and Resolution No

24 RESOLUTION NO A RESOLUTION APPROVING A DEVELOPMENT AGREEMENT BETWEEN LEGACY EVENTS, LLC, AND THE CITY OF LOCKPORT FOR THE DEVELOPMENT OF A HAUNTED HOUSE FACILITY

25 RESOLUTION NO A RESOLUTION APPROVING A RESOLUTION APPROVING A DEVELOPMENT AGREEMENT BETWEEN LEGACY EVENTS, LLC, AND THE CITY OF LOCKPORT FOR THE DEVELOPMENT OF A HAUNTED HOUSE FACILITY WHEREAS, the Mayor and City Council of the City of Lockport have determined that it is in the best interests of the City of Lockport to approve a Development Agreement between Legacy Events, LLC, and the City of Lockport for the development of the a haunted house facility on property owned by the Lockport Township Park District; and WHEREAS, the development of the haunted house facility on Park District property will provide an additional recreational opportunity for Lockport residents and will promote tourism to attract visitors to Lockport. NOW, THEREFORE, be it resolved by the Mayor and City Council of the City of Lockport, Will County, Illinois, As follows: SECTION ONE: The attached Development Agreement between Legacy Events, LLC, and the City of Lockport for the development of a haunted house facility on property owned by the Lockport Township Park District is hereby approved. SECTION TWO: The Mayor and City Clerk are authorized and directed to sign any necessary documents in furtherance of this Resolution. SECTION THREE: This Resolution shall be in full force and effect from and after its passage and approval as provided by law. 1

26 PASSED this day of, 2015, with ALDERMEN voting aye ALDERMEN abstaining ALDERMEN voting nay ALDERMEN absent The MAYOR voting aye, voting nay, not voting PETRAKOS CAPADONA GILLOGLY SMITH VANDERMEER BARTELSEN DESKIN PERRETTA MAYOR Steven Streit, Mayor ATTEST: Alice Matteucci, City Clerk 2

27 DEVELOPMENT AGREEMENT BETWEEN LEGACY EVENTS, LLC, AND THE CITY OF LOCKPORT FOR THE DEVELOPMENT OF A HAUNTED HOUSE FACILITY WHEREAS, Legacy Events, LLC ( Legacy ) has proposed the development of a haunted house facility on property owned by the Lockport Township Park District ( Park District ); and WHEREAS, the Mayor and City Council of the City of Lockport ( City ) have determined that it is in the best interests of the City of Lockport to approve a Development Agreement between Legacy Events, LLC, and the City of Lockport to establish the terms and conditions for the development of a haunted house facility on property; and WHEREAS, the development of the haunted house and grounds on Park District property, commonly known as Dellwood Park West, will provide an additional recreational opportunity for Lockport residents and will promote tourism to attract visitors to Lockport. NOW, THEREFORE, Legacy and the City agree to the following terms and conditions: Section 1: Final Development Plan. The final development plan attached to this Development Agreement as Exhibits through is approved. Section 2: Special Use Permit. Concurrently with the approval of this Development Agreement, the City shall approve Ordinance approving a Special Use Permit for a Unique Use in the R1 zoning district. Section 3: Conditions of Development. Legacy shall have at the time of approval of this Development Agreement and shall continue for the term of this Agreement to have the following in place: (a) An updated license agreement between the Park District and Legacy Paintball LLC, an affiliate of Legacy, addressing the extended use of the property for the haunted house and grounds as shown on the Final Development Plan.

28 (b) Written authorization from the Illinois Department of Natural Resources (IDNR) for Legacy s use and improvement of any property under the jurisdiction of IDNR, including that portion of the easement to be used as the access road to the facility. (c) Written authorization from the Will County Forest Preserve District for Legacy s use and improvement of any portion of any property under the jurisdiction of the District that will be needed or used to develop or access the haunted house and grounds as shown on the Final Development Plan. (d) Legacy shall provide general road maintenance on the access road depicted on Exhibit. Legacy or its contractor shall provide general snow removal services on the access road. Legacy shall be required to post speed control signs on the access road establishing a 20 m.p.h. speed limit on the access road. Legacy shall provide either permanent or temporary lighting on the access road on an as-needed basis and shall provide reflectors for the access road on an as-needed basis. Legacy shall install guardrails or other traffic control devices to protect motorists on an as-needed basis. (e) Legacy shall comply with all applicable rules and regulations regarding building construction and site access required by the Lockport Township Fire Protection District. (f) All building construction shall comply with applicable state and local building and life safety codes. Legacy shall use best efforts to use local contractors and labor during the construction phase of its new facility. Section 4: City s Economic Incentive Benefit. The City shall contribute $125, to the cost of access road improvements including lighting, speed limit signs, reflectors, and any barriers and shall use its procurement process for the improvement of the access road to the extent provided in Exhibit. Legacy shall be responsible for any costs exceeding $125, By providing the economic incentive benefit, the City is not accepting the access road as a public dedicated roadway or right-of-way, nor is the City agreeing to accept full jurisdiction over the access road for future maintenance, improvements, or replacement. The jurisdiction and maintenance responsibilities in place on the effective date of this Development Agreement shall remain in full force and effect unless the City otherwise agrees in writing. Section 5: Admission Fee. Legacy shall collect a $1.00 admission fee on every paid or discounted ticket issued for admission to any part of the haunted house facility. Legacy shall remit all admission fee collections by the 10 th day of each month for admission fee collections from the previous month. The remittance shall be accompanied by a report showing admission fee collections on a daily basis. The City may prescribe the form on which Legacy shall report

29 admission fees collections. The admission fee shall continue until the City has received $125, All events held on the haunted house property, whether related to the haunted house operation or not, shall be subject to the admission fee, including all special events conducted on the property. If Legacy discontinues its operation of a haunted house, then Legacy shall be required to collect and remit the $1.00 admission fee on all patrons who use or participate in any activity, including non-paintball activities, at Legacy s paintball operation located north of its haunted house operation. The collection and remittance process for the paintball operation shall be the same as it is for the haunted house operation. Section 6: Public Safety and Security. The Public Safety and Security Plan attached to this Development Agreement as Exhibit is approved. The City is not guaranteeing a specific level of police service for the operation of the haunted house and other activities. Legacy acknowledges that the access road is not a publicly dedicated street and that the Lockport Police Department does not have primary jurisdiction for traffic control, nor has the City guaranteed any particular level of traffic capacity. Section 7: Defense and Indemnification. Legacy shall hold the City harmless and defend and indemnify the City from any and all claims arising out of any acts or omissions of Legacy and it officials, employees, agents, contractors, and consultants. This requirement includes the cost of defending the City and its officials and employees from any claim or lawsuit, including but not limited to civil rights violations, state law tort actions, discrimination claims, or any other claim or cause or action arising out of the acts or omissions of any person or group acting under the direction of Legacy and its representatives. The defense and indemnification obligation of Legacy shall include the payment of attorney s fees for the City and for any City official or employee or the attorney s fees of any claimant who prevails on his or her claim against the City or its officials and employees, provided such claimant is entitled to attorney s fees as a matter of law or contract. The City reserves the right to approve the attorney or law firm to be selected to represent the City and its officials and employees if the claim requires a defense. The obligation to defend and indemnify shall not include any claims against City officials or employees for acts or omissions by City officials or employees. The City shall hold the Legacy harmless and defend and indemnify Legacy from any and all claims arising out of any acts or omissions of the City and its officials and employees. This requirement includes the cost of defending Legacy and its officers and employees from any claim or lawsuit, including but not limited to civil rights violations, state law tort actions, discrimination claims, or any other claim or cause or action arising out of the acts or omissions of any person or group acting under the direction of the City and its representatives. The defense and indemnification obligation of the City shall include the payment of attorney s fees for Legacy and its officers and employees or the attorney s fees of any claimant who prevails on his or her claim against Legacy or its officers and employees, provided such claimant is entitled to attorney s fees as a matter of law or contract. Legacy reserves the right to approve the attorney or law firm to be selected to represent Legacy and its officers and employees if the claim requires a defense. The obligation to defend and indemnify shall not include any claims against Legacy officers or employees for acts or omissions by Legacy s officers or employees.

30 Section 8: Insurance. Legacy shall provide the City with proof of liability insurance coverage for the City and its officials and employees showing adequate coverage in an amount approved by the City, with coverage limits being equal to or greater than those coverage limits required of Legacy by the Park District. The insurance coverage may be in the form of a traditional insurance policy issued by an insurance company authorized to do business in the State of Illinois and having an A.M. Best rating of A- or better. The City and its officials and employees shall be named as an additional insured under whichever insurance coverage program is provided to cover the risks set forth in this Agreement. Section 9: Force Majeure. The parties will diligently perform their obligations under this Agreement subject to Force Majeure. The term Force Majeure as used herein shall mean any delays incurred by a party due to strikes, lockouts, acts of God, enemy action, civil unrest, governmental restrictions, or delays in obtaining permits (but solely to the extent that such delays are not caused by and are beyond the control of the party claiming such Force Majeure), lawsuits against any party that delays or stops construction or preemption, fire or other casualty, shortage of materials, or unusually adverse weather conditions for this area for so long as the party is using its reasonable good faith efforts to end any such delay if the party asserting the Force Majeure is reasonably capable of doing so. The party claiming the Force Majeure event must notify the other party as soon as the party claiming Force Majeure becomes aware of the event. Further, the party claiming Force Majeure must notify the other party as soon as the Force Majeure event has ceased or otherwise discontinued. Failure to notify of the Force Majeure event results in the party claiming the Force Majeure defense to still be bound by the terms of the contract. Failure to inform after the Force Majeure event has ceased results in the party claiming the Force Majeure defense to make payments pursuant to contract terms from the date the event ceased. Section 10: Cooperation of the Parties. The City and Legacy agree to cooperate reasonably with each other when requested to do so concerning the development of the Project. Section 11: Time Performance. For this Agreement, time is of the essence. Section 12: No Joint Venture, Agency, Third Party Beneficiary or Partnership Created. Neither anything in this Agreement nor any acts of the Parties to this Agreement shall be construed by the Parties or any third person to create the relationship of a partnership, agency, or joint venture between or among the Parties or any third party beneficiary. Section 13: Default. If any of the Parties shall default under this Agreement or fail to perform or keep any material term or condition required to be performed or kept by such Party (an Event of Default), such Party shall, upon written notice from the other Party, proceed to cure or remedy such default or breach within thirty (30) days after receipt of such notice, provided, however, that in the event such default is incapable of being cured within said thirty (30) day period and the defaulting Party commences to cure the default within said thirty (30) day period and proceeds with due diligence to cure the same, such Party shall not he deemed to

31 be in default under this Agreement. Any delay by any Party in instituting or prosecuting any actions or proceedings or asserting its rights under this Agreement shall not operate as a waiver of such rights in any way (it being the intent of this provision that such Party should not be constrained so as to avoid the risk of being deprived of or limited in the exercise of the remedies provided by law, equity or this Agreement because of the default involved). A waiver made by any Party with respect to any specific default by any other Party under this Agreement must be expressly and specifically made in writing and shall not be construed as a waiver of rights with respect to any other default by the defaulting party under this Agreement or with respect to the particular default except to the extent expressly and specifically waived in writing. Section 14: Allowed Changes to the Project. City may consent to reasonable changes to the Final Plans and/or the Project. Section 15: Notices. All notices, demands, requests, and other communications under this Agreement shall he in writing and shall be either personally delivered or mailed, by U.S. Postal Service registered or certified mail, return receipt requested, postage pre-paid, or reputable overnight courier service to the Parties at the following addresses: LEGACY: CITY: Paul Ciesiun Legacy Events LLC 2807 Canal Street Lockport, IL Ben Benson, City Administrator City of Lockport 222 East 9 th Street Lockport, Illinois The Parties may designate another address or to such other party as the Parties may designate in writing delivered or mailed as described above. Notices shall be deemed given upon receipt, in the case of notice by personal delivery or overnight courier, and five (5) business days after being deposited with the U.S. Postal Service, in the case of notice by registered or certified mail. Section 16: Entire Agreement/Amendments. This Agreement sets forth all the promises, inducements, agreements, conditions and understandings of the Parties relative to the subject matter hereof, superseding all prior negotiations, agreements and understandings, and there are no promises, agreements, conditions or understandings, either oral or written, express or implied, between the Parties, except as set forth herein. The City is not obligated to make any further payments to Legacy or to provide any other economic incentive for the development of the Property other than those incentives described in this Agreement. No amendment, revision, change or addition to this Agreement shall be binding upon the Parties unless authorized in accordance with law and reduced to a writing which is executed by both Parties. Section 17: Successors and Assigns. Except as provided in this Agreement, the agreements, undertakings, rights, benefits and privileges set forth in this Agreement shall be

32 binding upon and inure to the benefit of the Parties and their respective successors, assigns and legal representatives, including, without limitation, successor governing bodies of Legacy and the City and successor owners of the Property. However, Legacy cannot transfer its in interest in this Agreement without the prior written consent of the City, which consent will not unreasonably be withheld. Section 18: Governing Law and Venue. The validity, meaning, and effect of this Agreement shall be determined in accordance with the laws of the State of Illinois. The venue for any action under or resulting from this Agreement shall be in the Circuit Court of Will County, Illinois. Section 19: Captions and Paragraph Headings. The captions and paragraph headings used in this Agreement are for convenience only and are not a part of this Agreement and shall not be used in construing it. Section 20: Conflicts. In the event of a conflict between the provisions of this Agreement and the provisions of any other agreement or applicable ordinance or law, the provisions of this Agreement shall prevail to the extent permitted by law. Section 21: Definition of Terms/Construction of Agreement. Any terms which are not defined in this Agreement shall have the same meaning as they do in the Act, unless herein indicated to the contrary. This Agreement has been negotiated by the parties and their respective attorneys. The language in this Agreement shall not be construed for or against either party based upon any rule of construction favoring the non-drafting party. Words in the masculine, feminine or neuter shall apply to either gender or neuter, as appropriate. Section 22: Recordings/Covenant. This Agreement shall be recorded against the Subject Property with the Will County Recorder of Deeds and shall constitute a covenant running with the land. Section 23: Execution of this Agreement. This Agreement shall be signed last by the City and its Mayor shall affix the date on which he signs and approves this Agreement on the first page hereof, which date shall be the first date on which he is legally authorized to execute this Agreement on the City s behalf and which date shall be the effective date of this Agreement. Section 24: No Personal Liability. Legacy recognizes that the persons signing this Agreement on behalf of the City and its officials and employees shall have no personal liability to Legacy and that each is acting solely in their official or professional capacities. Section 25: Severability. If any provision of this Agreement is held invalid or unenforceable by a court of competent jurisdiction, such provision shall be deemed to be excised from this Agreement, the invalidity of such provision shall not affect any of the other provisions of this Agreement and those other provisions shall continue in full force and effect to the extent possible. Neither of the Parties shall challenge the validity or enforceability of this Agreement nor any provision of this Agreement, nor assert the invalidity or unenforceability of this Agreement or any provision of it.

33 Legacy Events, LLC: By: Title: Date:, 2015 City of Lockport: By: Steven Streit, Mayor Attest: Alice Matteucci, City Clerk Date:, 2015

34 RESOLUTION NO A RESOLUTION APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF LOCKPORT AND THE LOCKPORT TOWNSHIP PARK DISTRICT REGARDING THE DEVELOPMENT OF DELLWOOD PARK WEST DAY 0F, 2015

35 RESOLUTION NO A RESOLUTION APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF LOCKPORT AND THE LOCKPORT TOWNSHIP PARK DISTRICT REGARDING THE DEVELOPMENT OF DELLWOOD PARK WEST ON THIS DAY 0F, 2015 WHEREAS, Legacy Events, LLC ( Legacy ) has proposed the development of a haunted house facility in Dellwood Park West, property owned by the Lockport Township Park District ( Park District ); and WHEREAS, the Mayor and City Council of the City of Lockport ( City ) have determined that it is in the best interests of the City of Lockport to approve the project as the project will provide an additional recreational opportunity for Lockport residents and will promote tourism to attract visitors to Lockport.; and WHEREAS, the Park District is supporting the project and has amended its license agreement with a Legacy affiliate for adjacent Park District-owned property where a paintball facility is operated by the Legacy affiliate to authorize the operation of the haunted house by Legacy; and WHEREAS, the City and the Park District are entering into this Intergovernmental Agreement to address matters of mutual concern regarding the operation of the haunted house by Legacy; and WHEREAS, the City is authorized to enter into this Intergovernmental Agreement pursuant to the Illinois Municipal Code, 65 ILCS 5/1-1-1 et seq.; and WHEREAS, the Park District is authorized to enter into this Intergovernmental Agreement pursuant to the Park District Code, 50 ILCS 605/0.001 et seq.; and

36 WHEREAS, both parties are authorized to enter into this Intergovernmental Agreement pursuant to the Illinois Constitution, Article VII, Section 10, and the Intergovernmental Cooperation Act, 5 ILCS 220/1 et seq. NOW, THEREFORE, be it resolved by the Mayor and City Council of the City of Lockport, Will County, Illinois, As follows: SECTION ONE: The attached Intergovernmental Agreement between Lockport Township Park District and the City of Lockport for the development of a haunted house facility on property owned by the Lockport Township Park District is hereby approved. SECTION TWO: The Mayor and City Clerk are authorized and directed to sign any necessary documents in furtherance of this Resolution. SECTION THREE: This Resolution shall be in full force and effect from and after its passage and approval as provided by law. 1 PASSED this day of, 2015, with ALDERMEN voting aye ALDERMEN abstaining ALDERMEN voting nay ALDERMEN absent The MAYOR voting aye, voting nay, not voting PETRAKOS CAPADONA GILLOGLY SMITH

37 VANDERMEER BARTELSEN DESKIN PERRETTA MAYOR Steven Streit, Mayor ATTEST: Alice Matteucci, City Clerk 2

38 INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF LOCKPORT AND THE LOCKPORT TOWNSHIP PARK DISTRICT REGARDING THE DEVELOPMENT OF DELLWOOD PARK WEST THIS INTERGOVERNMENTAL AGREEMENT is entered into this day of, 2015, by the CITY OF LOCKPORT, a municipal corporation organized and existing under the laws of the State of Illinois ( City ), and the LOCKPORT TOWNSHIP PARK DISTRICT, a unit of local government organized and existing under the laws of the State of Illinois ( Park District ). WHEREAS, Legacy Events, LLC ( Legacy ) has proposed the development of a haunted house facility in Dellwood Park West, property owned by the Lockport Township Park District ( Park District ); and WHEREAS, the Mayor and City Council of the City of Lockport ( City ) have determined that it is in the best interests of the City of Lockport to approve the project as the project will provide an additional recreational opportunity for Lockport residents and will promote tourism to attract visitors to Lockport.; and WHEREAS, the Park District is supporting the project and has amended its license agreement with a Legacy affiliate for adjacent Park District-owned property where a paintball facility is operated by the Legacy affiliate to authorize the operation of the haunted house by Legacy; and WHEREAS, the City and the Park District are entering into this Intergovernmental Agreement to address matters of mutual concern regarding the operation of the haunted house by Legacy; and WHEREAS, the City is authorized to enter into this Intergovernmental Agreement pursuant to the Illinois Municipal Code, 65 ILCS 5/1-1-1 et seq.; and WHEREAS, the Park District is authorized to enter into this Intergovernmental Agreement pursuant to the Park District Code, 50 ILCS 605/0.001 et seq.; and WHEREAS, both parties are authorized to enter into this Intergovernmental Agreement pursuant to the Illinois Constitution, Article VII, Section 10, and the Intergovernmental Cooperation Act, 5 ILCS 220/1 et seq. 1

39 NOW, THEREFORE, the parties agree to the following terms and conditions: SECTION 1: REVENUE SHARING Park District acknowledges that it receives revenue through a 50-cent ($0.50) admission fee from the license agreement with Legacy s affiliate from the paintball operation. To the extent that the license agreement provides that the Park District would be entitled to an admission fee from the haunted house operation, the Park District shall defer collection of the admission fee from the date of commencement of operation of the haunted house until December 31, The Park District acknowledges that the City shall be authorized to collect an admission fee from Legacy based on attendance at the haunted house in an amount agreed upon by the City and Legacy from the commencement of operation of the haunted house. The Park District acknowledges that the admission fee payable to the City is intended to reimburse the City for infrastructure costs incurred by the City or economic development incentives provided by the City to legacy. The City shall be authorized to impose an admission fee after December 31, 2019, subject to agreement with Legacy and its successors in interest or by applicable ordinance, but nothing in this Intergovernmental Agreement shall be construed as limiting the Park District s authority to impose or collect an admission fee or tax after December 31, If the haunted house ceases operation before the City is fully reimbursed for its infrastructure cost or economic incentive grant, then the Park District shall reimburse the City for 50% of the remaining balance on the amount owed to the City by Legacy or its successors. The Park District shall be authorized to make equal annual installment payments of any amount owed by the Park District to the City over a five-year period following the closure of the haunted house. SECTION 2: TOW PATH ROAD IMPROVEMENTS The Park District authorizes the City to make improvements to that portion of the tow path road under the Park District s jurisdiction either through ownership of the property or by contractual rights granted by any other governmental agency that has an interest in the tow path road. The City shall provide the Park District with the plans showing the improvements to be made, and the final plans shall be subject to approval by the Executive Director of the Park District or her designee. The parties acknowledge that the tow path road is not a publicly dedicated road, and nothing in this Intergovernmental Agreement shall be construed as a dedication of right of way for public use of the tow path road. The parties further agree that the maintenance of the tow path road shall be subject to other agreements entered into by the City and the Park District with Legacy. Nothing in this Intergovernmental Agreement shall be construed as creating an obligation or legal duty for continuing maintenance responsibility of the tow path road by either the City or the Park District. 2

40 SECTION 3: GENERAL PROVISIONS A. The failure by the City or the Park District to seek redress for violation of or to insist upon the strict performance of any term or condition or covenant of this Intergovernmental Agreement shall not constitute a waiver of any such breach or subsequent breach of such term or condition. No provision of this Intergovernmental Agreement shall be deemed waived by either party unless such provision is waived in writing. B. It is agreed that the laws of the State of Illinois shall apply to this Intergovernmental Agreement and that, in the event of litigation, venue shall lie in Will County, Illinois. C. All written reports, notices, and other communications related to this Intergovernmental Agreement shall be in writing and shall be personally delivered, mailed via certified mail, overnight mail delivery, or electronic mail delivery to the following persons at the following addresses: To the CITY: To the PARK DISTRICT: City of Lockport 222 East 9 th Street Lockport, Illinois Attn: City Administrator Lockport Township Park District 1911 Lawrence Ave. Lockport, Illinois Attn: Executive Director The parties have executed this Intergovernmental Agreement on the dates indicated. CITY OF LOCKPORT LOCKPORT TOWNSHIP PARK DISTRICT By: Mayor By: President Attest: City Clerk Attest: Executive Director Date:, 2015 Date:,

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57 FD-1 City of Lockport Finance Department Tel: Ext Fax: MEMO To: From: Re: Mayor & City Council Lisa Heglund Investment Policy Date: May 11, 2015 Background: Attached is the City s Investment Policy. The Investment Policy needs to be reviewed annually, and if any changes are needed they are to be approved by the City Council. The area in bold indicates the section that has been revised. The policy needed to be revised to include Letters of Credit as allowable collateralization for investments. Letters of Credit are allowable under state statute to be used as collateralization but our Investment Policy did not indicate this so it was necessary to revise the policy. Recommendation: Accept the revisions made to the Investment Policy Action: Approve revised Investment Policy

58 B. INVESTMENT POLICY Introduction It is the policy of the City of Lockport to invest public funds in a manner that will provide the highest investment return, with the maximum security, while meeting the daily cash flow demands of the City. The City Finance Director or the City Treasurer is to invest funds to the fullest extent possible. The City Finance Director or the City Treasurer shall attempt to obtain the highest yield, provided that all investments meet the criteria established for safety and liquidity. The investment policies and practices of the City Finance Director or City Treasurer for the City of Lockport are based upon Federal, State, and Local law, and prudent money management. The primary goals of these policies are: a. To assure compliance with all Federal, State and Local laws governing the investment of monies under the control of the City Finance Director or City Treasurer. b. To protect the principal monies entrusted to these Offices. c. To generate the maximum amount of the investment income, within the parameters of this Investment Policy, and the guidelines for suitable investments. All participants in the City s investment process shall act responsibly as custodians of the public trust. The overall program shall be designed and managed with a degree of professionalism that is worthy of the public trust. Scope This investment procedure applies to all funds of the City of Lockport. These funds are accounted for in the City of Lockport s annual financial report and include all current funds and any other funds that may be created from time to time, except for the City of Lockport s Illinois Municipal Retirement Fund (IMRF) and the Lockport Police Pension Fund. These will be determined by the appropriate Boards of Administration and not covered by this Policy. All investment of the City of Lockport must be made in compliance with Federal and State law. Objectives The purpose of this Investment Policy is to establish cash management and investment guidelines of public funds under the jurisdiction of the City of Lockport.

59 The primary objectives, in order of priority, of the City of Lockport investment activities are as follows: a. Safety Safety of principal is the foremost objective of the investment program. The security of monies, whether on hand or invested, shall be the primary concern of the Finance Director or City Treasurer in selecting depositories or investments. Investments of the City will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. Requiring investments to be diversified by type, maturity and institution will also help manage risk of principal. b. Liquidity The City of Lockport s investment portfolio shall be structured in such a manner as to provide sufficient liquidity to pay obligations as they come due. c. Return on Investments The Finance Director or City Treasurer shall seek to attain a market average or better rate of return throughout budgetary and economic cycles, taking into account risk, constraints, cash flow, and legal restriction on investment. d. All funds will be invested for a period of one day or longer, depending on the requirement for the disbursement of funds. Delegation of Authority Management and administrative responsibility for the investment program is hereby delegated to the Finance Director or Treasurer, under the direction of the appropriate governing body, whom shall establish written procedures for the operation of the investment program. Procedures should include investment transactions, check reconcilement, deposits, bond payments, report preparation and wire transfers. Prudence The standard of prudence to be used by investment officials shall be the prudent person standard and shall be applied in the context of managing an overall portfolio. Investments shall be made with judgment and care, under circumstances then prevailing, that persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital, as well as the probable income to be derived. Investment officers, acting in accordance with written procedures and this investment policy and exercising due diligence, shall be relieved of personal responsibility for an individual security s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

60 Ethics and Conflicts of Interest Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Further, no officer involved in the investment process shall have any interest in, or receive any compensation from, any investments in which the Municipality is authorized to invest, or the sellers, sponsors or managers of those investments. Internal Control The Finance Director or Treasurer, under the direction of the appropriate governing body, is responsible for establishing and maintaining an internal control structure designed to insure that the assets of the entity are protected from loss of public funds due to fraud, error, misrepresentation by third parties, unanticipated market changes, or imprudent actions by employees or officers of the City. The internal control structure shall be designed to provide reasonable assurance that these standards are met. Reporting a. The City shall establish an annual process of independent review by an external auditor. This review will provide internal control, by assuring that policies and procedures are being complied with. Such review also may result in recommendations to change operating procedures to improve internal control. The Finance Department shall record all investment transactions. A report will be generated monthly, listing all active investments, location of investments, maturity of investments, interest rate and other pertinent information deemed necessary. Authorized Financial Dealers and Institutions The City of Lockport s Finance Director or Treasurer will have the responsibility to select which financial institutions will be depositories for the City of Lockport s funds. The City will take into consideration security, size, location, condition, service, fees and the community relation s involvement of the financial institution when choosing a financial institution. Any financial institution selected by the City shall provide normal banking services, including, but not limited to: checking accounts, wire transfers and safekeeping services.

61 Authorized and Suitable Investments All investments of public funds shall be made in accordance with the Illinois Public Funds Investment Act and other applicable laws as amended from time to time. Collateralization It is the policy of the Municipality to require that time deposits, in excess of FDIC insurable limits, be fully collateralized to protect public deposits in a single financial institution if it were to default. The collateral must be placed in safekeeping at or before the time the City buys the investments, so that it is evident that the purchase of the investment is predicated on the securing of collateral. In order to accommodate market changes and provide a level of security for all monies, the collateralization level shall be at least 105% of the market value of principal, plus accrued interest, or as required by the terms of bond issues, municipal bond insurance policies, and/or other financing agreements which may pertain to the City s monies. Collateral will always be held by an independent third-party custodian and will be issued in allowable securities that are within state statute. Collateralization will include but not be limited to: FDIC, U.S. Government securities, and letters of credit. Safekeeping and Custody Formatted: Font: Bold Formatted: Font: Bold Formatted: Font: Bold To protect against potential fraud, embezzlement, or losses caused by collapse of individual securities dealers, all investment securities purchased by the City, shall be held by the City or in safekeeping by the City s custodian bank or a third party bank trust department. The primary agent shall issue a safekeeping receipt to the City listing the specific instrument, rate, maturity, and other pertinent information. The originating bank will hold original certificates of deposits. A safekeeping receipt will be acceptable documentation. Diversification The City of Lockport shall diversify its investments to the best of its ability based on the type of funds invested and the cash flow needs of those funds. Diversification can be by type of investment, number of institutions invested in, and length of maturity. Maturities

62 To the extent possible, the City shall attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than 1 year from the date of purchase. Reserve funds may be invested in securities exceeding 1 year, if the maturity of such investments are made to coincide as nearly as possible with the expected use of the funds. Performance Standards The Finance Director or Treasurer will seek to earn a rate of return appropriate for the type of investments being managed in accordance with the parameters specified within this policy. In general, the Finance Director or Treasurer will strive to earn an average rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. Investment Policy Adoption The Investment Policy shall be adopted by the City Council. The Finance Director or Treasurer shall review the policy on an annual basis and any modifications made thereto must be approved by the City Council.

63 Committee of the Whole Agenda Memorandum Item AT-1 To: From: Mayor & City Council Ben Benson, City Administrator Thomas A. Thanas, Interim City Attorney Date: May 12, 2015 Subject: Amendment to Patty Cakes Annexation Agreement BACKGROUND/HISTORY: On November 14, 2005, the City Council approved an annexation agreement between the City of Lockport and Pat Gerny and Lisa Sanders, the owners of a bakery known as Patty Cakes and restaurant known as the Outpost Bar & Grill. The property is located at Archer Ave. There was no water and sewer lines available at that time to service both establishments. The nearest available water and sewer lines were on 151 Street. However, the sewer line at 151 st. and McGregor was not of sufficient capacity to service any more property owners than Patty cakes and the trailer park which was located at the northeast corner of Archer Avenue and 151 st. The master sewer plan of the City at that time called for a main sewer line to run down Archer Avenue to a new treatment plant at the Chevron Refinery. At that time of the annexation of Patty Cakes, the trailer park had been recently annexed by the City of Lockport. As part of the negotiations to acquire a duplex on the trailer park site which was needed in order to complete construction of 151 st with a traffic signal at Archer Avenue, the owner of the trailer park wanted to annex to the City in order to get commercial zoning and also have City sewer and water services extended to his property. The trailer park was connected to an antiquated septic system. The owner of the trailer park had to either install a new septic system or connect to the City of Lockport s sanitary sewer system. To extend sewer service to the Patty Cakes property, the owners of Patty Cakes stated they could install a private lift station and run a force main southerly through another parcel of property. This southerly parcel of property was annexed at the same time that Patty Cakes was being annexed and had granted an easement to Patty Cakes to run a sewer line through their property and connect to the sewer line at 151 st. and McGregor. However, the City proposed another option which was to create a regional lift station because the property to the north across Archer Avenue from Patty Cakes could be connected to the sewer and developed. The property to southeast of Patty Cakes could be connected and developed, and the trailer park property at the corner could be developed and connected as well. Additionally, the American Legion which is 1

64 located across Archer Avenue requested water and sewer and could be connected to the sanitary sewer. All this territory could be connected as part of this regional system. But, the regional lift station would have to be connected in an easterly direction across several parcels of property not annexed by the City of Lockport to the Lockport Heights Lift Station. However, these parcels would have the availability of a sewer service for their properties to be developed. The City Staff recommended that the Annexation Agreement of Patty Cakes state that the City would have 18 months to acquire the easements necessary to connect the regional lift station to the Lockport Heights Lift Station and that if that didn t occur, then Patty Cakes could install its private lift station. The owners of Patty Cakes agreed with this provision. Eighteen months passed but the City was having difficulty procuring the easements. At that time, the City still requested that the owners of Patty Cakes not install their private lift station. Patty Cakes agreed to wait. They were forced to pump out their sewage from a tank on a weekly basis. The Will County Health Department agreed to this temporarily measure on the basis that the City would be installing a regional lift station and sewer line in the future. A little while later, the Great Recession occurred with that tap-on fees of the City being greatly reduced. For example, in 2005, the City received approximately $4.3 million dollars in tap-on fees compared to approximately $500,000 in The estimated costs of the regional lift station were around $1.4 million dollars. Additionally, no one was developing property in Lockport at that time. The City Administrator s first immediate responsibility was to service the trailer court pursuant to the provisions of its Annexation Agreement. The City put in a lift station to service the trailer court which drained into the sewer line on McGregor and 151st for approximately $325,000. The American Legion was told that the City could no longer afford to run water and sewer across Archer Avenue to their property. The regional lift station was put on hold. The Will County Health Department on the basis that the City represented that there was going to provide a main sewer line to be constructed allowed the temporary procedure of Patty Cakes pumping out its tank on a weekly basis to continue. It has now come to the point, that the City staff cannot represent to the Will County Health Department when a regional lift station will be installed. Therefore, the City staff is recommending that because Patty Cakes was willing to put a private lift station and force main within 18 months of their annexation and had to pump out their tank on a weekly basis for the last 9 years that the City install the private lift station and force main. However, it is agreed that by both parties that the lift station once installed shall be a private lift station and shall be owned and maintained by the owners of the property. Furthermore, the owners of the property have agreed to grant a public utilities easement on their property so that the City can cross their property to construct a main sewer and water line for future growth across Archer Avenue. 2

65 RECOMMENDATION: The City staff is recommending the approval of Resolution No which authorizes the Mayor and City Clerk to execute an amendment to the 2005 Annexation Agreement with Patty Cakes to state that the City will install a private lift station which will be owned and maintained by the owners of the Patty Cakes property and that the owners will grant a permanent public utilities easement on their property to the City of Lockport. ATTACHMENTS (IF APPLICABLE):. 040 Resolution No. 15- plus exhibits. SPECIFIC CITY COUNCIL ACTION REQUIRED: Motion to Approve Resolution No which authorizes the Mayor and City Clerk to execute an amendment to the Annexation Agreement with Patty Cakes to state that the City will install a private lift station which will be owned and maintained by the owners of the Patty Cakes property and that the owners will grant a permanent public utilities easement on their property to the City of Lockport. 3

66 RESOLUTION NO A RESOLUTION AUTHORIZING THE EXECUTION BY THE MAYOR AND CITY CLERK OF THE FIRST AMENDMENT TO AN ANNEXATION AGREEMENT KNOWN AS PATTY CAKES DATED NOVEMBER 14 TH RECORDED DECEMBER 7 TH AS DOCUMENT NO. R ADOPTED BY THE MAYOR AND CITY COUNCIL OF LOCKPORT THE DAY OF

67 040 RESOLUTION NO. 15- A RESOLUTION AUTHORIZING THE EXECUTION BY THE MAYOR AND CITY CLERK OF THE FIRST AMENDMENT TO AN ANNEXATION AGREEMENT KNOWN AS PATTY CAKES DATED NOVEMBER 14 TH RECORDED DECEMBER 7 TH AS DOCUMENT NO. R ADOPTED BY THE MAYOR AND CITY COUNCIL OF LOCKPORT THE DAY OF WHEREAS, It is in the best interest of the City of Lockport, Will County, Illinois, that the First Amendment to the Annexation Agreement known as the Patty Cakes Annexation Agreement be executed; and, WHEREAS, the statutory procedures provided in Division 15.1 of Article 11 of the Illinois Municipal Code, as amended, for the execution of the Annexation Agreement have been fully complied with; NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND THE CITY COUNCIL OF THE CITY OF LOCKPORT, WILL COUNTY, ILLINOIS, AS FOLLOWS: SECTION ONE: That the Mayor be and he is hereby authorized and directed and the City Clerk is directed to attest a document known as The First Amendment to the Patty Cakes Annexation Agreement. 2

68 SECTION TWO: That this Resolution shall be in full force and effect from and after its Passage and approval as provided by law. PASSED THIS DAY OF, The Mayor voting aye voting nay not voting CAPADONA PETRAKOS SMITH GILLOGLY DESKIN VANDERMEER PERRETTA BARTELSEN MAYOR Steven Streit, Mayor ATTEST: Alice Matteucci, City Clerk 3

69 FIRST AMENDMENT TO THE ANNEXATION AGREEMENT KNOWN AS PATTY CAKES DATED NOVEMBER 14 TH RECORDED DECEMBER 7 TH AS DOCUMENT NO. R ADOPTED BY THE MAYOR AND CITY COUNCIL OF LCOKPORT THE DAY OF This First Amendment to the Patty Cakes Annexation Agreement is made and entered into this day of 2015 by and among the City of Lockport, an Illinois Municipal Corporation ( City ), Patricia L. Gerny and Lisa M. Sanders ( Owners ). WHEREAS, the City of Lockport entered into an Annexation Agreement dated November 14 th with the Owners of approximately acres of the property (the Subject Property ), and WHEREAS, The Subject Property is legally described in Exhibit A attached hereto and made part hereof, and WHEREAS, The Subject Property was zoned by the City of Lockport as C-2 Community Commercial subject to restriction as states in Article Twp Section 3 of the Agreement, and WHEREAS, Article Five Section 2 of the Annexation Agreement stated that the Sanitary Sewer Service was not presently located adjacent to the Property, and WHEREAS, At this period of time the City was attempting to have a regional lift station that would not only serve the Owners property but the region as well, and WHEREAS, Article Five Section 2 provided that the Owners not build a private lift station for 18 months but give this amount of time in order for the City to obtain easements necessary for the regional lift station, and WHEREAS, at the time the negotiations were proceeding, the Great Recession occurring which caused the City to abandon the project, and, WHEREAS, the Owners of the property were ready, willing, and able to put in a private lift station for their own use on the date that the Annexation Agreement was executed, 1

70 . NOW THEREFORE, the City and the Owners, agree that certain Annexation Agreement known as Patty Cakes dated November 14 th. Recorded as R that Article Five Sections 2,3, and 4 and Article Six be amended to read as follows: 2. Extension of Sanitary Sewer Service ARTICLE FIVE; The City at its costs subject to obtaining an easement from the property owners to the south shall install a 2 inch force main and a lift station designed to serve only the Subject Property. The force main will connect to the City sewer main near the intersection of 151 st. and McGregor. After the City installs this force main and lift station, the City shall transfer the lift station to the Owners and the gravity sewer line and its appurtenances to the Owners and both shall be owned, repaired and maintained by the Owners including electrical costs. The force main from the private lift station to 151 st. shall be owned, maintained, repaired and replaced by the City. The Owners shall allow the City to come unto its premises and maintain, repair and replace that part of the force main located on the Owners property. However, if the force main fails to function due to any negligence on the part of the Owners such as the Owners failure to adequately maintain their grease traps, then the costs to repair, and / or replace the force main shall be the responsibility of the Owners. If the Owners fails to repair and/or replace the force main then the City after due notice has at its sole discretion the option to repair and/or replace the force main and to bill the Owners its costs. The Owners shall pay no connection charges for the connection of the sewer line to the City s main sewer line. The Owners shall be charged the normal sewer rates once the system is in operation. The City at its own costs shall also connect a meter to the Owners existing well in order to be charged the normal sewer rates of the City. The Owners shall not pay for the meter installed on their well nor shall they pay any connection charges to the City for the connection of the existing building to the City Sewer System. If the City constructs a regional lift station located south of the Fractional Run Creek, the City at its costs will connect the 2-inch force main from the lift station to the regional station. The Owners shall continue to be responsible for Ownership, repair, and maintenance including electrical costs of the lift station on the Owners Property. The Owners shall allow the City on their property in order for the installation of the sewer line and lift station to take place or for the connection of the Owners gravity line to the regional lift station. Owners shall not be subject to recapture in regard to the installation of said sanitary sewer main line. 2

71 3. Grant of Public Utility Easement. ARTICLE FIVE; Owners will grant an easement pursuant to an Easement Agreement as described in Exhibit B attached hereto and made a part hereof upon the Subject Property which will enable the City to extend sanitary sewer and/or water service lines to the properties on the west side of Archer Avenue and for the repair, maintenance and/or replacement of said lines. The City will be responsible for restoring the subject property to the same condition as it was before the construction of lines took place or in the event of repairs, maintenance, and/or replacement of the lines takes place. The Owners shall also grant a water and or sewer line easement of at least 25 feet across the frontage of the Subject Property which faces Archer Avenue when requested to do so by the City. The Grants of these easements by the Owners of the property upon recordation of this First Amendment shall constitute a covenant running with the land and is binding upon and inures to the benefit of the parties, all grantees, successors, and assigns. ARTICLE FIVE; 4. Use of Individual Well. Until such time as the City extends City water mains to the Subject Property, Owners may use its current private well to supply water to the Subject Property. At such time as the City extends its water mains to the Subject Property, Owners shall connect to the City water mains but shall not required to pay any water connection fee to connect unto the existing structures on the property. Owners will not discontinue the use of the private well as such time. But rather, the private well will be disconnected from all water lines which serve the present buildings on the Subject Property. The water lines connected to the water well may thereafter only be used to provide irrigation service for the landscaping on the Subject Property. The water lines which serve the present buildings will be connect to the City Water Main so that the businesses located within the buildings will be served by City Water. The City will install at its own expense the necessary Buffalo Boxes. ARTICLE SIX 3

72 STROM WATER DETENTION AND PARKING LOT In accordance with Exhibit C, no storm water detention shall be required even though Owners will be required to pave the existing parking lot. The parking lot shall be constructed in accordance with the terms of the City Development Code and will include curbing as required by the City. The construction of the paved parking lot and curbs must be completed within 18 months of the date of the execution of this Amendment to the Agreement. All other terms and conditions of the Annexation Agreement not amended by this First Amendment shall remain in full force and effect. IN WITNESS WHEREOF, the parties to this Agreement have caused it to be executed as of the day and year above written. CITY: CITY OF LOCKPORT, an Illinois Municipal Corporation, County Of Will, State of Illinois BY: Steven Streit, Mayor Attest: Alice Matteucci, City Clerk STATE OF ILLINOIS ) ) SS COUNTY OF WI LL ) I,, a Notary Public in and for the County and State aforesaid, do hereby certify that Steven Streit and Alice Matteucci, personally known to me to be the Mayor and City Clerk of the CITY OF LOCKPORT, a municipal corporation, and personally known to me to be the same persons whose names are subscribed to the foregoing instrument, appeared before me this day in person and severally acknowledged that they signed and delivered the said instrument as the Mayor and City Clerk of said City, and caused the Corporate Seal of said City to be affixed thereto, pursuant to authority given by the Board of Trustees of said City, as their free and voluntary act and as the free and voluntary act and deed of said City, for the uses and purposes therein set forth. GIVEN under my hand and notarial seal this day of,

73 Notary Public My Commission Expires: OWNERS: By: Patricia L. Gerny By: Lisa M. Sanders STATE OF ILLINOIS ) ) SS COUNTY OF W I L L ) I,, a Notary Public in and for the County and State aforesaid, do hereby certify that personally known to me to be the personally known to me to be the same persons whose names are subscribed to the foregoing instrument, appeared before me this day in person and severally acknowledged that they signed and delivered the said instrument as their free and voluntary act and as the free and voluntary act and deed of said company, for the uses and purposes therein set forth. GIVEN under my hand and notarial seal this day of, Notary Public My Commission Expires: This Instrument prepared by: Ronald L. Caneva Attorney-at-Law And Mail to: City Clerk City of Lockport Central Square Building 222 East Ninth St. Lockport, IL

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75 Patty Cakes Easement GRANT OF EASEMENT This indenture witnessed that the Grantors, Patricia L. Gerny and Lisa M. Sanders are the Owners of the following described property namely: Common Address: Archer Avenue, Lockport, Il Grantors Property Legal Description SEE EXHIBIT A ATTACHED HERETO For and in consideration of One ($1.00) and 00/100 Dollar in hand paid by the City of Lockport and other valuable consideration, acting by and through its City Council, or on its behalf, the receipt whereof is hereby acknowledged to, the Grantors do by these presents, hereby grant a perpetual easement to the City of Lockport (CITY), for the purpose for the installation and maintenance of water, storm and sanitary utilities and appurtenances thereto, public utilities, on a portion of land of the Owners Easement Area. The legal Description of the Easement Area together with a map of Easement Area is attached hereto to and marked as Exhibit B. Therefore, in consideration of the mutual covenants and promises hereinafter set forth, the Parties agree as follows: 1

76 1. Grantors hereby grant to the City or through its Agents the right to construct and maintain Public utilities within the Easement Area. 2. City agrees that all costs associated with the construction and maintenance of the public utilities shall be paid entirely by the City. 3. All parties agree that upon the construction of the public utilities that they shall be owned by the City. 4. City agrees that it shall not pass any recapture agreement, special service area, special Assessment, or take any other action which would require the Owner to pay any costs Associated with the improvements to be made pursuant to this Agreement. 5. City agrees that it will reserve capacity to provide sewer and /or water service once the construction of the public utilities takes place to the Owner s Property. The utilities shall be of sufficient size to service the entire Grantors Property not only for Grantors present use as a commercial building but for other buildings that maybe constructed on the site as well. The City further agrees that the Grantors shall not pay tap-on fees for the connection to either the main sewer and/ or main water lines of the City while the Grantors are using the existing structure on the property. 6. City agrees to indemnify Grantors from any loss, damage or expense which either may sustain or for which either may become liable growing out of any injury to or death of any persons or damage to or loss of real or personal property arising out of or caused in the performance of the work done by or under the authority of the City under this grant. 7. Grantors hereby reserve the right to use of the Easement Area in any manner that will not prevent or interfere with the exercise by the City of the rights granted hereunder; provided however, that the Owner shall not obstruct, or permit to be obstructed, the easement area at any time without the express written consent of the City. It is understood that part of this Easement Area may be used for parking and be covered by a surface of asphalt or concrete. Notwithstanding the preceding sentence the City shall be putting a private lift station and appurtenances thereto on said easement area which shall be solely utilized for the benefit of the Grantors structure on the land which shall be abandoned once the City installs the main sewer line on the easement area. 8. The City agrees that it shall, at its sole cost and expense, restore to its former condition the Easement Area which was disturbed by the construction, maintenance, repair or operation of its utilities. 9. All notices and other communication given pursuant to this Agreement shall be in writing And shall be deemed properly served if delivered in person to the party to whom it is 2

77 addressed or on the third day after deposit in the United States registered or certified mail, return receipt requested, postage prepaid, or by a reputable overnight delivery service the day of its receipt, as follows: a) If to City: City of Lockport, Attn: City Administrator Central Square Building 222 E. 9 th Street Lockport, IL b) If to Grantors : Outpost Bar & Grill 4929 Archer Avenue Lockport, IL The parties may change addresses by notice given in accordance with the provisions here. 10. The parties agree that this Agreement shall be recorded and shall be construed as Covenant running with the land and shall be enforceable, by the successors, assigns, and transferees of the parties. In witness whereof, the Grantor has hereunto set his/ hand) and Seal(s) this day of, Grantor: Patricia L. Gerny Grantor: Lisa M. Sanders Mayor: Steven Streit State of Illinois County of Will I,, a Notary Public in and for said County of Will in the State of Illinois aforesaid do hereby certify that Patricia L. Gerny and Lisa M. Sanders personally known to me to be the same persons whose names are subscribed to the foregoing instrument appeared before me this day in person and severally acknowledged that they signed and delivered this instrument as their free and voluntary act, Given under my hand and Notarial Seal this day of

78 Notary Public I,, a Notary Public in and for said County in the State of aforesaid do hereby certify that Mayor Steven Streit personally known to me to be the same person whose name are subscribed to the foregoing instrument appeared before me this day in person and severally acknowledged that he signed and delivered this instrument as his free and voluntary act, Given under my hand and Notarial Seal this day of 2015 Notary Public This instrument prepared by Ron Caneva, Attorney and mail to: City Clerk City of Lockport Central Square Building 222 East Ninth St. Lockport, Il

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