ACTION REQUESTED:
Title
Communication from the City Manager with a Request to Approve the FIRST 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. Section 1.3(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" is October 29, 2015. After that date, either party has the right to terminate the Agreement during an additional 10-day period (until November 7, 2015). If neither parties terminates, the project could proceed. While a major milestone of subdividing and rezoning the property has been accomplished, the City has not yet submitted its request to IDNR to approve the conversion. The application will not be made prior to October 29, 2015 and consequently no approval will be granted prior to the end of the due diligence window. While the developer has arranged financing, nothing can be finalized until the developer is certain that IDNR and NPS approve of the conversion. Similarly, the City will not prepare a bond resolution in the absence of such approval.
Given the hard work and progress on this project, neither the developer nor City staff wish to terminate the Redevelopment Agree...
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