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Contract Summary Sheet Contract Summary Sheet Contract (PO) Number: 4138 Specification Number: 18775 Name of Contractor: 330 SOUTH MICHIGAN AVE L.L.C. City Department: PLANNING & DEVELOPMENT Title of Contract: Redevelopment Agreement 332 S. Michigan Ave. Dollar Amount of Contract (or maximum compensation if a Term Agreement) (DUR): PO Start Date: 811 1/00 $2,030,000.00 PO End Date: 6120107 Brief Description of Work: Redevelopment Agreement 332 S Michigan Ave. Procurement Services Contact Person: BARBARA SUTTON Vendor Number: 1068092 Submission Date: MAY l 3 2004 8000993 . - IjlOTIFI ORD 01 11951 AN ORDINANCE OF THE CITY OF CHICAGO, ILLINOIS DESIGNATING 330 SOUTH MICHIGAN, L.L.C. AS DEVELOPER AND AUTHORIZING A REDEVELOPMENT AGREEMENT WHEREAS, pursuant to an ordinance adopted by the City Council ("City Council") of the City of Chicago (the "City") on February 7,1997 and published at pages 38260-38400 and 38401 -38402 of the Journal of the Proceedings of the City Council (the "Journal") of such date, a certain redevelopment plan and project (the "Plan") for the Central Loop Redevelopment Project Area (the "Area") was approved pursuant to the Illinois Tax Increment Allocation Redevelopment Act. as amended (65 ILCS 511 1-74.4- 1 a yp.) (the "Act"); and WHEREAS. pursuant to an ordinance adopted by the City Council on February 7, 1997 and published at pages 38400.38403-38412 and 38413-38414 of the Journal of such date. the Area was designated as a rede\clopment project area pursuant td t& Act; and WHEREAS. pursuant to an ordinance (the "TIF Ordinance") adopted by the City Council on February 7, 1997 and published at pages 38412,38415-38423 and 38424-38425 of the Journal of such date, tax increment allocation financing was adopted pursuant to the Act as a means of financing certain Area redevelopment project costs (as defined in the Act) incurred pursuant to the Plan: and WHEREAS. 330 South Michigan. L.L.C.. an Illinois limited liability company, (the "Company"), has acquired a twenty-story budding (the "Building") located within the Area at 332 South Michigan Avenue and shall complete renovation and rehabilitation of the Building. lncludlng renovation and rehabilitation of the lower fourteen floors (the "Office Portion") of the Building (the "Total Project"), with improvements in the Office Portion of the Building specifically related to upgrade of lifejsafety systems (the "Project") to be made in accordance with certain lifelsafety requirements of the City's Fire Department and Department of Buildings; and WHEREAS. the Company has proposed to undertake the redevelopment of the Building in accordance with the Plan and pursuant to the tenns and conditions of a proposed redevelopment agreement to be executed by the Company and the City, including but not limited to the renovation and rehabilitation of the Building and retention and creation ofjobs, to be financed in pan by a portion of the proceeds of the Tax Increment Allocation Bonds (Central Loop Redevelopment Project) Series 1997 (specifically the taxable series thereof). or incremental taxes depos~tedin the 1997 Central Loop Redevelopment Project Area Special Tax Allocation Fund (as defined in the TIF Ordinance) pursuant to Section 511 1-74.4-8(b) of the Act; and WHEREAS,pursuant to Resolution 98-CDC-156 adopted by the Community Development Commiss~onof the Clty of Chicago (the "Comm~ssion")on November 10, 1998. the Commission authorized the City's Department of Planning and Development ("DPD") to publish notlce pursuant to Section 511 1-74 4(c) of the Act of its intention to negotiate a redevelopment agreement with the Company for the Total Project and the Project and to request alternative proposals for redevelopment of the Building or a portlon thereof; and WHEREAS. DPD published the notice, requested alternative proposals for the redevelopment of the Bullding and provided reasonable opportunity for other persons to submit alternative bids or proposals: and WHEREAS. slnce no other responsive proposals were received by DPD for the redevelopment of the Building within 14 days after such publication. pursuant to Resolution 98- CDC- 156, the Commission has recommended that the Company be designated as the developer for the Total Project and the Project and that DPD be authorized to negotiate. execute and deliver on behalf of the City a redevelopment agreement with the Company for the Total Project and the Project; now therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHICAGO: SECTION 1. The above rec~talsare incorporated hsrgin. and made a part hereof. The Company is hereby designated as the developer for the Total Project and the Project pursuant to Sect~on511 1-74.44of the Act. SECTlON The Commiss~onerof DPD (the "Commissioner") or a designee of the Commissioner are each hereby authorized. w~ththe approval of the City's Corporation Counsel as to form and legality, to negotiate. execute and del~vera redevelopment agreement between the Company and the City substant~allyin the form attached hereto as and made a part hereof (the "Redevelopment Agreement"). and such other suppoqing documents as may be necessary to carry out and comply with the provisions of the Redevelopment Agreement. with such changes, deletions and insertions as shall be approved b> the persons executing the Redevelopment Agreement. =TION 4. If any problston ofthis ordinance shall be held to be invalid or unenforceable for any reason. the invalid~t)or unsnforceability of such provision shall not affect any of the other provisions of this ordinance. n.All ordinances. resolutions. motions or orden in conflict with this ordinance are hereby repealed to the extent of such conflict. n.This ordinance shall be in full force and effect immediately upon its passage. 2drPDZM\REDEAGR 330 4/1/99 a \4redev-C 5/10/00 a \7REDEV-c 8-22 WPD h \8redev-c 8-23vpd CENTRAL LOOP REDEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CHICAGO AND 330 SOUTH MICHIGAN AVENUE, L.L.C., 332 SOUTH MICHIGAN AVENUE OFFICE, L.L.C. 330 SOUTH MICHIGAN AVENUE RESIDENTIAL L.L.C., and 332 MANAGEMENT COMPANY, L.L.C., This agreement was prepared by and after recording return to. Iris E. Webb, Esq Clty of Chicago Law Department 121 North LaSalle Street. Room 600 Chxcago, IL 60602 TABLE OF CONTENTS PAGE SECTION 1 . RECITALS .....................3 SECTION2 . DEFINITIONS ....................4 SECTION3 . THEPROJECT ....................8 3.01 TheProiect ....................8 3.02 Plans and Swecifications ..............8 3.03 Project Budaet ...................9 3.04 ChanaeOrders ...................9 3.05 DPDAwwroval ................. 10 3.06 Other Awwrovals ................. 10 3.07 proaress Reworts and Survev Uwdates ....... 10 3.08 Insvectina Aaent or Architect ......... 11 3.09 Barricades .................. 11 3.10 Sians and Public Relations .......... 11 3.11 Utilitv Connections ............... 11 3.12 PermitFees ................... 11 SECTION4 . FINANCING .................... 11 4.01 Proiect Cost and Sources of Funds . \ 11 4.02 Develower Funds . ................ 12 4.03 CitvFunds .................... 12 4.04 Reauisition Form ................. 13 4.05 Treatment of Prior Ex~endituresand Subseauent Disbursements ................... 13 4.06 CostOverruns .................. 13 SECTION 5 . CONDITIONS PRECEDENT ...... 5.01 Proiect Budaet .......... 5.02 plans and Swecifications ..... 5.03 Other Governmental Awwrovals ... 5.04 Financing ............ 5.05 Acauisition and Title ...... 5.06 Evidence of Clean Title ..... 5.07 Survevs ............. 5.08 Insurance ............ 5.09 Owinion of the Develo~er'sCounsel 5.10 Evidence of Prior Exwenditures . 5.11 Financial Statements ....... 5.12 Documentation .......... 5.13 Environmental .......... 5.14 Oraanizational Documents ..... 5.15 Litiaation ............ 5.17 Preconditions of Disbursement . SECTION 6 . AGREEMENTS WITH CONTRACTORS ........... 19 6.01 Bid Reauirement ................. 19 6.02 Construction Contract .............. 20 6.03 Performance and Pavment Bonds ........... 20 6.04 Emwlovment Ovvortunitv .............. 20 6.05 OtherProvisions ................. 20 SECTION 7 . COMPLETION OF CONSTRUCTION OR REHABILITATION . 20 7.01 Certificate of Comwletion ............ 20 7.02 Effect of Issuance of Certificate: Continuinq Oblisations .................... 21 7.03 Failure to Com~lete ............... 22 7.04 Notice of Exviration of Term of Aareement ..22 SECTION 8 . COVENANTS/REPRESENTATIONS/WARRANTIES OF THE DEVELOPER ........................ 22 8.01 General ..................... 22 8.02 CovenanttoRedevelov .............. 25 8.03 RedevelovmentPlan ................ 25 8.04 Useof CitvFunds ................ 25 8.05 OtherBonds ................... 25 8.06 Job Creation and Retention; Covenant to Remain in the Citv ........................ 26 8.07 Emvlovment O~vortunitv:Proaress Revorts . 26 8.08 Emvlovment Profile ................ 26 8.09 PrevailinsWase ................. 26 8.10 Arms-Lenath Transactions ............. 27 8.11 conflict of Interest .............. 27 8.12 Disclosure of Interest .............. 27 8.13 Financial Statements ............... 27 8.14 Insurance .................... 27 8.15 Non-Governmental Charses ............. 27 8.16 Develoverls Liabilities ............. 28 8.17 ~om~liancewithLaws............... 28 8.18 Recordina and Filinq .............. 29 8.19 particivation in Citv Beautification Efforts . 29 8.20 Public Benefits Prosram ............. 29 8.21 Survival of Covenants .............. 29 SECTION 9 . COVENANTS/REPRESENTATIONS/WARRANTIES OF CITY . 29 9.01 General Covenants ................ 29 9.02 Survival of Covenants
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