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Addison Farms developers, village staff continue negotiations after redline of development agreement; council approves further discussions
Summary
Council and developer representatives reviewed a redline development-agreement draft for Addison Farms and directed village counsel to continue negotiations addressing TIF, reimbursable soft costs and assignment language.
Village staff and developers discussed a redline draft of the Addison Farms development agreement and related documents; council authorized staff to continue negotiations and asked for additional language and budgeting details to be included in the next draft.
Bill (village solicitor), the mayor and council reviewed a redline circulated the morning of the meeting. The redline removed an NCA provision, eliminated proposed eminent domain language (addressing a council concern), and preserved certain TIP-funded off-site improvement language the mayor and council favored. The redline showed on-site improvements of approximately $19,400,000 (exhibit B figures) and off-site TIP-eligible improvements of just over $2,000,000; council members and developers noted those figures are estimates in the redline.
Developers’ counsel and representatives asked that customary soft costs — engineering, inspection and plan-review fees — be included among reimbursable TIF-eligible costs. Developers also discussed TIF/bond mechanics and said a typical TIF-based bond would include minimum service payments (a common component of service-payment bonds) that they expect to see reflected in future legislation. Representatives explained the property is currently under contract by a party named in the draft (GFSJAF Acquisitions) and that, in practice, assignment to a single-purpose entity is customary before closing; counsel asked the agreement permit assignment to that entity.
Council indicated staff should continue negotiations with the developer and return with a blue-line draft that incorporates the agreed edits and addresses the developers' requests to include soft costs and typical TIF bond language. Developers said they expect to produce a rewritten draft for village counsel within several days and anticipated returning to the council next month with updated documents. No vote to approve the agreement took place at this meeting; council authorized continued negotiation and directed staff to report progress at the next Committee-of-the-Whole meeting.
