ACTION REQUESTED:
Title
Communication from the City Manager with a Request to Approve the THIRD AMENDMENT to the REDEVELOPMENT AGREEMENT with RIVER TRAIL DRIVE L.P. (1st District)
Body
BACKGROUND: On April 14, 2015 the City Council approved a Redevelopment Agreement with River Trail Drive L.P. to create the River Trail apartment project. The Agreement was fully executed by both parties on April 29, 2015. Section1.3(c) of the Agreement created a six month "Due Diligence" window in which both the City and developer had to produce certain documents and complete certain activities prior to conveyance of the property and commencement of the project. Those documents and activities are outlined more fully in Sections 1.3 and 1.5 of the Agreement. Among the more critical deliverables are having the property subdivided and rezoned; an approved bond resolution; securing of private financing; and obtaining approval from the Illinois Department of Natural Resources (IDNR) and National Park Service (NPS) for the conversion of the property.
The "Due Diligence Expiration Date" was originally set to expire on October 29, 2015.
On October 27, 2015, the City Council approved the First Amendment to the Redevelopment Agreement which extended the "Due Diligence Expiration Date" until April 29, 2016. On April 26, 2016, the Council approved the Second Amendment, which extended the due diligence window until July 29, 2016. After that date, either party has the right to terminate the Agreement during an additional 10-day period. If neither parties terminates, the project could proceed.
The largest remaining issue continues to be receiving approval from IDNR and NPS that will allow project to proceed. The City has submitted its request to IDNR to approve the conversion. This was a complex process that included a series of public meetings and hearings, significant public comment, and submission of appraisals for both the property to be converted and the replacement properti...
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