JANUARY 15, 2007 MINUTES

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MINUTES OF THE COUNCIL MEETING
HELD ON JANUARY 2, 2007

The council meeting was called to order at 7:00 P.M. by Acting Mayor Dave McClelland with all council members present at roll call except John Haney. Staff members present were Jeff Clawson, Sue Marcum, Gordon Beck and Steve Reynolds.

Minutes of the council meeting held on December 18, 2006 were approved on a motion made by Jerry, second was given by Butch. Roll call: Gary Koerner-yes, T. A. Whitsitt-yes, Jerry Henson-yes, Butch Cook-yes, Shirley Chancellor-yes, Dawn Thompson-yes, Dave McClelland-yes. Motion carried 7 yeas, 0 nays.

Shirley made the motion and the second was given by Dawn to allocate tax increment financing (TIF) as described:

Upon completion of the project and the subsequent opening of the facility (Le Roy Garden Restaurant) Jack Pinjoli (owner) will be eligible for the following TIF incentive reimbursement.

A lump sum payment of up to $257,000 in reimbursement for tax increment financing cost eligible expenses will be authorized. The lump sum payment will be based on a 20% reimbursement of cost eligible expenses up to a cap of $257,000.

Total cap on this project is 20% or $ 257,000 of documented cost eligible expenses. Maximum payment will not exceed 20% of the cost eligible expenses.

The entire amount of reimbursement will be considered a 0% interest loan forgiven if the restaurant is open and remains open as a going concern for five years (60 months). The developer will be required to sign a promissory note to guarantee the balance due will be repaid if the restaurant is sold or goes out of business for any reason prior to the end of the fifth year. In addition, the City will file a lien for the entire amount to ensure that the property cannot be sold without the City of Le Roy receiving reimbursement for any balance due.

This agreement is subject to all legal requirements outlined in the City of Le Roy Tax Increment Financing Redevelopment Agreement, Cash Advance Agreement, Promissory Note, Liens and related support documentation. Roll call: Gary Koerner-yes, T. A. Whitsitt-yes, Jerry Henson-yes, Butch Cook-yes, Shirley Chancellor-yes, Dawn Thompson-yes, Dave McClelland-yes. Motion carried 7 yeas, 0 nays.

Minutes of the meeting held 01/02/07 continued.

Motion was made by Shirley, second was given by Gary to allocate tax increment financing (TIF) as described:

Upon completion of the project and the subsequent opening of the facility (Holiday Inn Express) Nic & Neal Patel (owners) will be eligible for the following TIF incentive reimbursement.

1. 95% return of all property taxes paid up to a cap of $80,000 annually and an overall cap of $380,000 over the first five years, beginning in 2007 and ending on the fifth year after the first distribution is paid.

2. 50% return of all property taxes paid up to a cap of $40,000 annually and an overall cap of $200,000 over years six through ten beginning on the first year after the final distribution from incentive #1 listed above.

3. Total cap on this project is $380,000 + $200,000 = $ 580,000

Motion was made by Gary to approve the Intergovernmental Agreement for Police Services with Empire Township with noted corrections, T. A. made the second to the motion. Roll call: Gary Koerner-yes, T. A. Whitsitt-yes, Jerry Henson-yes, Butch Cook-yes, Shirley Chancellor-yes, Dawn Thompson-yes, Dave McClelland-yes. Motion carried 7 yeas, 0 nays.

Motion was made by Dawn, second by Shirley to approve the Intergovernmental Agreement between the Law and Justice Commission, MTU #8 and the City of Le Roy. Roll call: Gary Koerner-yes, T. A. Whitsitt-yes, Jerry Henson-yes, Butch Cook-yes, Shirley Chancellor-yes, Dawn Thompson-yes, Dave McClelland-yes. Motion carried 7 yeas, 0 nays.

Ordinance No. 07-01-01-42, An ordinance accepting the grant of water line easement to the City of Le Roy was passed on a motion made by Butch, second was given by Dawn. Roll call: Gary Koerner-yes, T. A. Whitsitt-yes, Jerry Henson-yes, Butch Cook-yes, Shirley Chancellor-yes, Dawn Thompson-yes, Dave McClelland-yes. Motion carried 7 yeas, 0 nays.

Minutes of the meeting held on 01/02/07 continued.

Listed invoices in the total amount of $42,467.35 were approved for payment on a motion made by Jerry, seconded by Butch. Roll call: Gary Koerner-yes, T. A. Whitsitt-yes, Jerry Henson-yes, Butch Cook-yes, Shirley Chancellor-yes, Dawn Thompson-yes, Dave McClelland-yes. Motion carried 7 yeas, 0 nays.

Motion was made by Jerry, second to the motion was made by Butch to enter executive session at 7:36 P.M. to discuss 5 ILCS 120/2 (c) (11), Litigation. Attorney Bruce Beal was included in the executive session. Roll call: Gary Koerner-yes, T. A. Whitsitt-yes, Jerry Henson-yes, Butch Cook-yes, Shirley Chancellor-yes, Dawn Thompson-yes, Dave McClelland-yes. Motion carried 7 yeas, 0 nays.

Motion was made by Dawn, second was given by Butch to adjourn the executive session and return to regular session at 8:05 P.M. Roll call: Gary Koerner-yes, T. A. Whitsitt-yes, Jerry Henson-yes, Butch Cook-yes, Shirley Chancellor-yes, Dawn Thompson-yes, Dave McClelland-yes. Motion carried 7 yeas, 0 nays.

Shirley moved to allocate tax increment financing (TIF) as described:

Upon completion of the project and the subsequent opening of the facility (Love’s Truck Stop and Arby’s Restaurant), Love’s Country Store will be eligible for the following TIF incentive reimbursement:

4. 95% return of all property taxes paid up to a cap of $85,000 annually and $935,000 over the life of the agreement, beginning in 2007 and ending on October 31, 2019.

5. 95% return of all 1% local sales tax paid up to a cap of $35,000 annually and $245,000 over the life of the agreement beginning in 2007 and ending on October 31, 2013.

6. 95% return of all 1% local sales tax paid up to a cap of $35,000 annually and $100,000 over the life of the agreement beginning in November 1, 2013 and ending on October 31, 2019 through a sales tax incentive agreement.

7. Total cap on this project is $935,000 + $245,000 +$100,000 = $ $1,280,000

This agreement is subject to all legal requirements outlined in the City of Le Roy Tax Increment Financing Redevelopment Agreement, Cash Advance Agreement, Promissory Note and related support documentation.

Minutes of the meeting held 01/02/07 continued.

This proposal is contingent on the City of Le Roy tax increment financing sales tax extension from its current expiration date of October 31, 2007 to October 31, 2013.

If the City of Le Roy tax increment financing sales tax is not extended then option 2 above will be deleted and option 3 (will become option 2) and will be changed to an overall cap of $345,000. The total cap on the project will not change.

Legal Description of the Development Property:

“A tract of land being part of the west half of the southwest quarter of Section 21 and part of the west half of the northwest quarter of Section 28, Township 22 North, Range 4 East of the third principal meridian, situated in the County of McLean, State of Illinois”

Second to the motion was given by T. A. Roll call: Gary Koerner-yes, T. A. Whitsitt-yes, Jerry Henson-yes, Butch Cook-yes, Shirley Chancellor-yes, Dawn Thompson-yes, Dave McClelland-yes. Motion carried 7 yeas, 0 nays.

Council received a memo from Jeff Clawson updated them on the progress of the renovated building at the corner of Main and Cherry Streets, (the former laundry mat) owned by Mike and Gail Hanafin. The work on the building is complete meeting the first criteria making them eligible for $5,000 TIF payment. Mike has provided a lease agreement with CC Services for a period of 36 months and he is requesting the council consider paying him the additional $5,000. If approved, this would complete the contract for a total cost of $10,000. The invoice will be prepared for the council’s approval at the January 15, 2007 Council Meeting.

Council agreed to grant Danny Spratt permission to connect his sump pump discharge into the sanitary sewer on a temporary basis at his expense only until a permanent solution to the discharge problem is found.

Motion to adjourn the regular council session at 9:26 P.M. was made by Dawn, second was given by Butch. Roll call: Gary Koerner-yes, T. A. Whitsitt-yes, Jerry Henson-yes, Butch Cook-yes, Shirley Chancellor-yes, Dawn Thompson-yes, Dave McClelland-yes. Motion carried 7 yeas, 0 nays.

Sue Marcum,
City Clerk