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Council approves non‑disturbance agreement to secure $1.6M tax‑credit financing for Evanston Child Development Center
Summary
The council authorized a non‑disturbance and estoppel agreement enabling tax‑credit closing for the Evanston Child Development Center’s expansion project; ECDC representative Kendra told the council the closing will bring about $1,600,000 needed to finish construction, and a council member recused from the vote.
The Evanston City Council on April 11 approved Resolution 23‑28, a non‑disturbance and estoppel agreement between the city and the Evanston Child Development Center (ECDC) that the city said will protect ECDC’s mortgage and tax‑credit financing and preserve the city’s lease interests.
Kendra, speaking for ECDC, thanked the council and said the agreement is the final step needed to close tax‑credit financing for the organization’s new building expansion. "This is our final step of, closing out on this tax credit... It will bring to us about $1,600,000 which is going to allow us to finish the project with the additional expansion ability," Kendra said.
City counsel explained that under the non‑disturbance and estoppel agreement the city, as landlord, would not interfere with the borrower’s financing and that, if a default occurred and another party stepped into ECDC’s position, the new lessee would still be subject to the lease and the property would continue to serve a public purpose.
Mayor noted that "Mister Sellers will recuse himself from this" matter; the council proceeded with the motion to authorize the agreement, which was moved and seconded and approved by voice vote.
Why it matters: the agreement clears a legal and financing step that ECDC says is necessary to complete an expansion that the organization and the city expect will benefit local families and services. Kendra told the council construction footings are in place and that prior buildings on the site have been removed.
Next steps: the city will not intervene in ECDC’s financing; ECDC and its lenders will complete the tax‑credit closing and the council will receive any necessary follow‑up reports on the project.
