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TO: Mayor Richard C. Irvin
FROM: David Dibo, Director Mayor's Office of Economic Development
DATE: March 11, 2021
SUBJECT:
A Resolution Authorizing the Execution of a Revised Second Amendment to the Y'All LLC (F/K/A Windy City Distribution, Inc.) Redevelopment Agreement.
PURPOSE:
To modify the recently approved amendment to enable Y'All to sell their building located at 1103 Butterfield Rd. (within the Liberty Business Park, pin 15-02-202-005) approximately 7 months earlier than is permitted in the RDA. The modifications are described below.
BACKGROUND:
Subsequent to the approval of the second amendment on January 26, 2021 with resolution R21-013; the City was advised that the purchaser had changed.
The original buyer was identified as Prologis, a world leader in industrial real estate for over 30 years. A different company, Yashrut Realty (Butterfield Logistics Center IL) Limited Partnership, a Delaware limited partnership, replaced Prologis as the buyer. Yashrut is a wholley owned subsidiary of Dalfen Industrial, one of the largest buyers of industrial real estate who both manages and own their own properties and have been in the real estate business for over 50 years.
The second modification now being requested relates to the RDA and was not included in the January approval. In this amendment, a request has been made that the RDA is formally terminated as of the sale of the property.
DISCUSSION:
The city reviewed and discussed in detail the ramifications of terminating the RDA. There are two different agreements in play here. The first is the previously approved early release of the City's mortgage (set to expire in August of this year anyway). The second is the RDA itself that does not expire until August 0f 2022. City staff reviewed internally and discussed in detail the ramifications of terminating the RDA with representatives of the prospective buyer.
The only relevant material provision relates to a prohibition in the RDA to appea...
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