R-24-25VILLAGE OF DEERFIELD
RESOLUTION NO. R-24-25
A RESOLUTION APPROVING AN INTERGOVERNMENTAL AGREEMENT WITH
NORTHBROOK SCHOOL DISTRICT 27 CONCERNING THE VILLAGE OF
DEERFIELD LAKE COOK REDEVELOPMENT PROJECT AREA
TAX INCREMENT FINANCING
WHEREAS, Article VII, Section 10 of the Constitution of the State of Illinois, and the
Intergovernmental Cooperation Act, 5 ILCS 220/1 et seq., authorize and encourage
intergovernmental cooperation; and
WHEREAS, pursuant to the Illinois Tax Increment Allocation Redevelopment Act,
65 ILCS 5/11-74.4-1 et seq. ("TIF Act'), the Village has proposed the designation of a new
redevelopment project area, and the adoption of tax increment financing, for that certain area
within the Village located in the on the south side of Lake Cook Road and comprised of the
former Walgreens campus and the Embassy Suites property ("TIF District'); and
WHEREAS, the Village anticipates that the TIF District, if established, will generate
TIF Revenues (as defined below) that will be used to pay eligible costs to support the
development and improvement within the TIF District.
WHEREAS, Northbrook School District 27 ("School District') has requested that
the Village enter into an intergovernmental agreement with the School District to provide
the School District funding in the event that the Village uses TIF funds to assist in the
development of housing in the TIF District that increases the number of students that attend
the School District's schools during the life of the TIF District ("Agreement'); and
WHEREAS, the Village Board has determined that it is in the best interests of the
Village and its residents to enter into the Agreement with the School District;
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE BOARD OF
DEERFIELD, LAKE AND COOK COUNTIES, ILLINOIS, as follows:
SECTION ONE: RECITALS. The foregoing recitals are incorporated into, and
made a part of, this Resolution as findings of the Village Board.
SECTION TWO: APPROVAL OF AGREEMENT. The Village Board hereby
approves the Agreement in substantially the same form as attached to this Resolution as
Exhibit A, and in a final form to be approved by the Village Attorney.
SECTION THREE: AUTHORIZATION TO EXECUTE AGREEMENT. The
Village Board hereby authorizes and directs the Village President and the Village Clerk to
execute and attest, respectively, on behalf of the Village, the final Agreement.
SECTION FOUR: EFFECTIVE DATE. This resolution shall be in full force and
effect upon its passage and approval in the manner provided by law.
AYES: Benton, Berg, jacoby, Metts-Childers
NAYS: None
ABSTAIN: None
ABSENT: Oppenheim, Shapiro
PASSED: March 4, 2024
APPROVED: March 6, 2024
RESOLUTION NO. R-24-25
Daniel C. Shapiro, Mayor
ATTEST: k5'
�t -
Kent S. Stree , Village Clerk
4894-4663-7738, v. 1
EXHIBIT A
AGREEMENT
{00129769.1)
INTERGOVERNMENTAL AGREEMENT
CONCERNING THE VILLAGE OF DEERFIELD LAKE COOK ROAD
REDEVELOPMENT PROJECT AREA TAX INCREMENT FINANCING
THIS IN-TERGOVgRNMENTAL AGREEMENT ("Agreement") is made and entered into
as of the 4,i day of 1-68 ; 2024 ("Effective Date'l, and is between the VILLAGE OF
DEERFIELD, an Illinois home rule municipal corporation ("Witage'l, and NORTHBROOK
SCHOOL DISTRICT 27, an Illinois school district ("District 27'1 (collectively, the Village and
District 27 are the "Parties 'I.
IN CONSIDERATION OF, and in reliance upon, the recitals and the mutual covenants set
forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, and in the exercise of their powers and authority under the
Intergovernmental Cooperation Act, 5 ILCS 220/3 etseq., and the intergovernmental cooperation
provisions of Article VII, Section 10 of the Illinois Constitution of 1970, the Parties mutually agree
as follows:
SECTION 1. RECITALS.
A. The Village is a home rule municipal corporation organized pursuant to the Illinois
Municipal Code, 65 ILCS 5/1-1-1 etseq.
B. Pursuant to the Illinois Tax Increment Allocation Redevelopment Act, 65 ILCS
5/11-74.4-1 et seq. ("TIFAct'l, the Village has proposed the designation of a new redevelopment
project area, and the adoption of tax increment financing, for that certain area within the Village
located generally along and in the vicinity of the south side of Lake Cook Road and comprised of
the former Walgreens campus and the Embassy Suites property ("Lake Cook Road TIF District"
or the "TIF District').
C. The Village anticipates that the Lake Cook Road TIF District, if established, will
generate TIF Revenues (as defined below) that will be used to pay eligible costs to support the
development and improvement within the TIF District.
D. District 27 is an Illinois school district organized pursuant to the Illinois School
Code, 105 ILCS 5/1-1 et seq.
E. The jurisdictional boundaries of District 27 include all of the territory located within
the proposed Lake Cook Road TIF District.
F. In accordance with the TIF Act, incremental property tax revenues generated from
the Lake Cook Road TIF District will be designated for the tax increment financing fund for the
Lake Cook Road TIF District (collectively, "TIF Revenues'l, and will not be distributed among
the Village, the District 27, or the other taxing bodies with jurisdiction over all or part of the TIF
District (collectively, the "Taxing Bodies'l as other property tax revenues will be.
G. Pursuant to Section 5(b) of the TIF Act, the Parties are members of the "Joint
Review Board" for the Lake Cook Road TI F District.
H. The Parties have met and conferred to discuss the proposed Lake Cook Road TIF
District, and have identified areas of mutual agreement concerning the use of TIF Revenues
within, and the redevelopment of, the Lake Cook Road TIF District.
(00129262.5)
I. The Parties support the Village's efforts to promote responsible economic
development within the Village.
J. The Parties now desire to enter into this Agreement to memorialize their mutual
agreement and understanding concerning, and to set forth their rights and responsibilities
regarding, the use of TIF Revenues, as well as a process for allowing the proposed Lake Cook
Road TIF District to be approved by the Village without objection by any of the Parties and without
a negative recommendation by the Joint Review Board.
SECTION 2. APPLICATION AND USE OF TIF REVENUES AND OTHER REVENUES.
The Parties agree that TIF Revenues generated from the Lake Cook Road TIF District,
and other revenues received by the Village for use within the Lake Cook Road TIF District, may
be applied, used, and distributed in the manner contemplated in the plan for the redevelopment
of the Lake Cook Road TIF District, prepared by Ryan, LLC, a copy of which is attached to this
Agreement as Exhibit A, as amended from time to time {"Redevelopment Plan and Project'j.
SECTION 3. TERMINATION OF LAKE COOK ROAD TIF DISTRICT.
The Village agrees that it will consider the early termination of the Lake Cook Road TIF
District, prior to the 23-year term set forth in the TIF Act, upon the occurrence of each of the
following:
A. Each of the Parties to this Agreement has affirmatively satisfied its obligation set
forth in Section 5 of this Agreement;
B. The Village has made payments of the following costs and expenses:
1. Any debt service obligations and reserves;
2. Administrative costs associated with the Lake Cook Road TIF District,
including, but not limited to staff and professional service costs for architectural, engineering,
legal, financial, planning, or other services, directly attributable to the Lake Cook Road TIF District;
and
3. Any commitments related to a development agreement, redevelopment
agreement, project agreement, acquisition of property, remediation project, or public works or
improvements project, directly attributable to the Lake Cook Road TIF District; and
C. The Village has expended TIF Revenues of not less than the total estimated TIF
budget set forth in the Redevelopment Plan and Project plus five percent after adjustment for
inflation from the date the plan was adopted based on the Consumer price index for the Chicago -
Naperville -Elgin area as published annually by the U.S. Department of Labor, Bureau of Labor
Statistics.
SECTION 4. MEETINGS.
In addition to the annual Joint Review Board meeting required pursuant to the TIF Act, the
Parties agree to meet at least one additional time per calendar year in order to review the progress
of redevelopment within the Lake Cook Road TIF District and the performance by each of the
Parties of their respective duties and obligations set forth in this Agreement.
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SECTION 6. SCHOOL DISTRICT PAYMENTS.
A. Each year, the Village will pay to District 27 an amount, if any, calculated by
multiplying the number of students living within the Lake Cook Road TIF District in a housing unit
that was developed, rehabilitated, or constructed during the term of the Lake Cook Road TIF
District using tax -increment -financing assistance and attending a school operated by District 27,
less the number of students living in the Lake Cook Road TIF District area and attending a school
operated by District 27 at the time the Lake Cook Road TIF District is created by the Village, by
the operating expense per pupil (provided in District 27's annual financial report to the Illinois
State Board of Education) less any increase in general State Aid as defined in the Illinois School
Code attributable to these added new students. This amount will be calculated based on all
students that are actually living in the Lake Cook Road TIF District and actually attending a school
within District 27, notwithstanding any requirements or limitations found in Section 11-74.4-
3(q)(7.5) of the TIF Act. District 27 must submit a report by March 31, 2024, which sets forth the
number of students currently living in the Lake Cook Road TIF District area and attending a school
operated by District 27. At the end of each school year, District 27 will inform the Village of the
number of students attending a school in District 27 and living in the Lake Cook Road TIF District,
if any, by providing the Village with such students' names and addresses (or alternative
information if necessary to avoid violating privacy laws). The obligations of this Section 5.A shall
not apply to students that move into a housing unit that is developed, rehabilitated or constructed
during the term of the Lake Cook Road TIF District -using tax -increment -financing assistance if
that student previously lived in the boundaries of District 27. If District 27 had no students
attending a school in District 27 and living in the Lake Cook Road TIF District, then it will receive
no payments under this Section 5 for that school year. The Village shall pay the amount due to
District 27 within 60 days after receiving such information from District 27 if adequate funds are
available in the Lake Cook Road TIF District.
B. To the extent that the payments identified in Section 5.A comply with all
requirements and limitations in Section 11-74.4-3(q)(7.5) of the TIF Act, the Village will make the
payments from any available TIF Revenues (as defined in the Agreement) from the Lake Cook
Road TIF District.
C. To the extent that the payments identified in Section 5.A do not comply with all
requirements and limitations in Section 11-74.4-3(q)(7.5) of the TIF Act, the Village will declare
as surplus funds within the Lake Cook Road TIF District, pursuant to the TIF Act, and redistribute
to all taxing bodies in accordance with the TIF Act, sufficient additional TIF Revenues as surplus
so that the distribution of such surplus to all taxing bodies will result in District 27 receiving no less
than the balance of the payments required under Section 5.A. Notwithstanding anything to the
contrary contained in this Section 5.C, the Village shall have no obligation to declare surplus funds
in any given year until the Village has paid the following costs and expenses directly attributable
to the Lake Cook Road TIF District:
Any debt service obligations and reserves;
2. Administrative costs associated with the Lake Cook Road TIF District,
including, but not limited to staff and professional service costs for architectural, engineering,
legal, financial, planning, or other services; and
3. Any commitments related to a development agreement, redevelopment
agreement, project agreement, acquisition of property, remediation project, or public works or
improvements project, directly attributable to the Lake Cook Road TIF District.
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D. The payment methods described in Sections S.A, 5.6, and 5.0 shall constitute the
sole source for the satisfaction of the Village's payment obligation. If such payment methods are
insufficient to allow the School Districts to receive the payments required under Section 5.A,
nothing herein shall be deemed or interpreted as requiring or obligating the Village to utilize any
other funding source to satisfy such payment balance. In such instance, the payments to the
School Districts will not occur until there are funds in the Lake Cook Road TIF District to make
such payments. The payments of TIF Revenues described in Sections 5.A shall be prioritized
payments, paid before any and all other payments out of the Lake Cook Road TIF District. If there
are insufficient funds in the Lake Cook Road TIF District to make full payments to District 27 in
any particular year, partial payments shall be made to the extent possible and the unpaid balances
owed to District 27 will be carried over for one or more years for payment as additional TIF funds
become available, and will remain prioritized payments, paid before any and all other payments
out of the Lake Cook Road TIF District.
SECTION 6. SUPPORT OF LAKE COOK ROAD TIF DISTRICT.
District 27 agrees to formally support the adoption of the Lake Cook Road TIF District,
which support must include, without limitation, a vote by a District 27 representative on the Joint
Review Board to approve a resolution recommending the adoption of the proposed Lake Cook
Road TIF District. District 27, and its respective successors, assigns, and representatives of any
kind, and all other persons, firms, and corporations that may claim a righton their behalf, by its
execution and approval of this Agreement, hereby waives, unconditionally releases, and forever
forgives any and all right to set aside, modify, or consent in any manner to the creation of the TIF
District, including, but not limited to the Redevelopment Plan and Project, the designation and
boundaries of the TIF District, and any redevelopment agreements or professional services
agreements as now or hereafter constituted or entered into by the Village related to the TIF
District. The releases and waivers herein are, and are intended to be, as broad and
encompassing as permissible. Notwithstanding the foregoing, District 27 shall fully retain its
rights to contest in a manner permitted by law any amendments to the TIF District and/or
administration of the TIF District to the extent contrary to the TIF Act, any other applicable law, or
this Agreement. Nothing contained herein shall be construed to give District 27 any right to
participate in the administration of the TIF District.
SECTION 7. TERM; REMEDIES.
A. Term and Termination. The term of this Agreement will commence upon
the date that the last of all Parties signs this Agreement pursuant to authority duly provided to the
signatory. This Agreement will automatically terminate upon the occurrence of any of the following
events: (a) the Lake Cook Road Joint Review Board fails to adopt the resolution contemplated in
Section 6 of this Agreement, (b) the Village Board of Trustees fails to adopt the ordinance creating
the Lake Cook Road TIF District within the time period for adoption as set forth in the TIF Act, (c)
the date of termination, for any reason, of the Lake Cook Road TIF District, and (d) the mutual
written agreement to terminate executed by all Parties. In addition to the foregoing, this
Agreement may be terminated for cause by any Party. For purposes of this Agreement, "cause"
is defined as a Party's material failure to perform its duties underthis Agreement. The terminating
Party must provide 60 days prior written notice setting forth the nature of the breach or material
failure to perform under this Agreement to the other parties in the event of a termination for cause.
The non -terminating Party or Parties will have a 60-day period, running from the date of delivery
of such written notice, in which to cure the material failure identified in the notice.
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B. Remedies. A non -defaulting Party may exercise remedies under this
Agreement in the event of a default by another Party (the "Defaulting Party') under this
Agreement and failure of the Defaulting Party to cure the default within 30 days of written notice
from the non -defaulting Party. In addition to the right to terminate under Section 7.A above, a
non -defaulting Party will be entitled to exercise all remedies available at law or in equity with
respect to any default under this Agreement, including without limitation, specific performance of
the terms of this Agreement. In the event of enforcement of this Agreement pursuant to litigation,
the prevailing Party will be entitled to recover reasonable attorneys' fees and costs incurred in
enforcement of the terms of this Agreement. Notwithstanding the foregoing, a non -defaulting
Party will be entitled to recover only its actual, direct damages, plus costs and expenses of
enforcement. All rights to consequential, punitive, or exemplary damages are expressly waived
by each Party. Each Party hereby expressly waives any right to trial by jury.
SECTION 8. GENERAL PROVISIONS.
A. Notices. All notices required or permitted to be given under this Agreement must
be given by the parties by: (i) personal delivery; (ii) deposit in the United States Registered Mail,
return receipt requested, enclosed in a sealed envelope with first class postage thereon; or (iii)
deposit with a nationally recognized overnight delivery service, addressed as stated in this Section
8.A. The address of any party may be changed by written notice to the other parties. Any mailed
notice will be deemed to have been given and received within three days after the same has been
mailed and any notice given by overnight courier will be deemed to have been given and received
within 24 hours after deposit. Notices and communications to the parties must be addressed to,
and delivered at, the following addresses:
If to the Village: Village of Deerfield
850 Waukegan Road
Deerfield, IL 60015
Attention: Village Manager
If to District 27, Northbrook School District 27
1250 Sanders Road
Northbrook, IL 60026
Attention: Superintendent
B. Time of the Essence. Time is of the essence in the performance of all of the
terms and conditions of this Agreement.
C. Governinct Law. This Agreement is to be governed by, construed, and enforced
in accordance with the internal laws, but not the conflicts of laws rules, of the State of Illinois.
D. Amendments and Modifications. No amendment or modification to this
Agreement will be effective until it is reduced to writing and approved and executed by each of
the Parties in accordance with all applicable statutory procedures; provided, however, that this
Section 8.D will not be deemed or interpreted as prohibiting future collaboration between some
or all of the Parties without an amendment to this Agreement regarding matters of shared interest
to which this Agreement does not apply.
E. No Third Party Beneficiaries. No claim as a third party beneficiary under this
Agreement by any person, firm, or corporation may be made, or be valid, against any of the
Parties.
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F. Counterpart Signatures. This Agreement may be executed in any number of
counterparts, each of which will be deemed to be an original, but all of which together will
constitute one and the same instrument.
[SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective
Date.
VILLAGE OF DEERFIELD, an Illinois home
rule municipal corporation
ATTEST:
&-I I L
Daniel VanDusen, Deputy Village Clerk
ATTEST.
By:
Its: ;.-
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4870-5735-2101, v. 1
By: 1!"94 '�' 54f
Kent S. Street',riflago Manager
NORTHBROOK SCHOOL DISTRICT 27, an
Illinois school district
EXHIBIT A
REDEVELOPMENT PLAN AND PROJECT
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i
Elrod
Friedman LLP
Memorandum
Date: February 29, 2024
To: Mayor Shapiro
Village Trustees
From: Village Attorney
325 North LaSalle Street
Suite 450
Chicago, Illinois 60654
312-528-5200
www.elrodfriedman.com
Re: Intergovernmental Agreement with Northbrook School District 27 Regarding School
Payments
Northbrook School District 27 ("School District'l has requested that the Village enter
into an intergovernmental agreement with the School District to provide it funding in the event that
the Village creates the Lake Cook Road TIF District and uses TIF funds to assist in the
development of housing in the Lake Cook Road TIF District,("Agreement'j. Our office and
Village staff have negotiated the Agreement with the School District that is before the Village
Board for consideration. The School District already approved the Agreement at last School
Board meeting.
If the Village creates the Lake Cook Road TIF District, incremental property taxes collected
from properties within the Lake Cook Road TIF District will be diverted from the various taxing
bodies into the Village's TIF fund to be used for the payment of eligible expenses under the Tax
Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1 et seq. ("T/FAct'j. The goals of
the Lake Cook Road TIF District are to spur redevelopment and increase the total equalized
assessed value ("EAV') of properties within the TIF District.
While successful redevelopment in the Lake Cook Road TIF District will generate
additional property tax revenue for all of the various taxing bodies that assess property taxes
within the Lake Cook Road TIF District in the long run, the creation of the Lake Cook Road TIF
District may increase the short term costs for taxing bodies during the life of the Lake Cook Road
TIF District. This may be especially true for the School District if redevelopment of properties
within the TIF District causes an increase in the number of students attending the School District's
schools, but the School District does not obtain the benefits from the increase in the EAV until
after the Lake Cook Road TIF District terminates.
To partially address this issue, the TIF Act requires the Village to make payments from its
TIF fund to the School District for some of the costs to educate students that move into
developments that receive TIF assistance from the Village pursuant to a formula set forth in
Section 11-74.4-3(q)(7.5) of the TIF Act ("School Assistance Payments').
In many cases, the School Assistance Payments may be insufficient to cover a school
district's full costs to educate students generated by redevelopment in a TIF district. Therefore, it
is not uncommon for municipalities to enter into intergovernmental agreements with school
districts to provide further financial support. In fact, the Village recently approved an
intergovernmental agreement with School Districts 109 and 113 related to the Village's Downtown
TIF District ("Deerfield School District IGA"J.
The School District has requested that the Village enter into the Agreement to provide the
School Districts additional funding during the life of the Lake Cook Road TIF District should
redevelopment cause an increase in the number of students attending the schools and the School
Assistance Payments under the TIF Act are insufficient to cover the School District's costs. The
proposed Agreement before the Village Board is substantively the same as the Deerfield School
District IGA the Village Board recently approved.
The Agreement provides that each year, the Village will pay to the School District an
amount calculated by multiplying any net increase in the number of students that move into the
Lake Cook Road TIF District into a housing unit that receives TIF assistance by the operating
expense per pupil, less any increase in general State Aid attributable to these added new students
("Additional Payments'l.
Importantly, the Village is prohibited from directly paying the Additional Payments out of
the Village's TIF fund because there are limitations on how TIF funds may be used, and payments
to school districts other than the School Assistance Payments are not an eligible TIF expense.
Therefore, in the event that the Agreement would require the Village to make a payment, the
Village would need to first declare a sufficient amount of money in the TIF fund to be surplus as
a condition of returning money to the School District.
In addition, we have crafted to Agreement so that the Additional Payments are subordinate
to other Village TIF obligations. This was done to insure that the Village's obligations to make the
Payments does not jeopardize the Village's ability to issue TIF bonds. Therefore, in any given
year, the Village will not be required to declare surplus funds and make the Additional Payments
unless and until the Village has first paid the following costs and expenses:
Any debt service obligations and reserves;
2. Administrative costs associated with the Lake Cook TIF District, including, but not
limited to staff and professional service costs for architectural, engineering, legal,
financial, planning, or other services; and
3. Any commitments related to a development agreement, redevelopment
agreement, project agreement, acquisition of property, remediation project, or
public works or improvements project, directly attributable to the Lake Cook Road
TIF District.
We will be in attendance at the Village Board meeting and can answer any questions the
Village Board may have regarding the Agreement.
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