ACTION REQUESTED:
Title
Communication from the City Manager with a Request to APPROVE the SIXTH AMENDMENT to the REDEVELOPMENT AGREEMENT with RIVER TRAIL DRIVE L.P. (Council District 1)
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. This date has been extended by five separate amendments to the Agreement, with the last being approved by the City Council on June 27, 2017 creating a Due Diligence Expiration Date of December 29, 2017. 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.
Through the last few years of this project, the biggest issue was the City receiving approval from NPS that will allow project to proceed. On October 31, 2017, NPS sent a letter to IDNR indicating its approval of the City's request. The approval included two conditions: (1) that the sand volleyball courts be replaced within three years of the approval; and, (2) that a purported shortfall in equal value between the converted property and replacement property be made whole by the ...
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