Title/Name/Summary
9401 143RD Street (SW corner of 143rd St & John Humphrey Drive) - Escrow Agreement
History
JD Real Estate has approached the Village about a potential mixed use development at
9401 143rd Street. The developer has indicated that there are potentially exorbitant costs associated with the redevelopment of this property. They have also indicated that some of these costs may be TIF eligible. As such, they have requested that the Village support the creation of a TIF district to make the proposed development possible.
In order to determine if the TIF is feasible, the Village must engage legal and financial consultants in order to conduct the required eligibility studies and draft the redevelopment agreement.
The developer has agreed to establish an escrow account with the Village in order to ensure the Village can promptly address and pay for the due diligence. The Village and developer has drafted the attached escrow agreement and have arrived at the initial deposit amount of $50,000 to accomplish the due diligence. The funds can only be used for addressing “soft costs” incurred by the Village in furtherance of the due diligence.
Within 14 days of the execution of the agreement, the developer shall deposit a check for the escrow fund in the amount of $50,000. At any point once the escrow balance falls below $10,000 the developer and the Village will meet to discuss the appropriate next deposit.
The execution of this escrow agreement does not obligate the Village to establish a TIF district, take any zoning action or issue any building permits for the subject property.
The item is now before the Village Board for consideration.
Recommended Action/Motion
I move to authorize the Village manager to execute the escrow agreement titled, Escrow Agreement - 9401 143rd Street (SW Corner of 143rd St & John Humphrey Drive), subject to Village Attorney review.