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2024-01-16 - Ordinance 2024-012 - APPROVING A REDEVELOPMENT AGREEMENT BETWEEN THE VILLAGE OF BUFFALO GROVE AND SDG DUNDEE DEVELOPMENT, LLC, FOR THE PROPERTY LOCATED AT 915-945 DUNDEE ROAD, BUFFALO GROVE, IL 60089 ORDINANCE NO.2024-012 AN ORDINANCE APPROVING A REDEVELOPMENT AGREEMENT BETWEEN THE VILLAGE OF BUFFALO GROVE AND SDG DUNDEE DEVELOPMENT.LLC.FOR THE PROPERTY LOCATED AT 915-945 DUNDEE ROAD,BUFFALO GROVE,IL 60089 WHEREAS,the Village of Buffalo Grove is a Home Rule Unit by virtue of the Illinois Constitution of 1970; and WHEREAS,the Village is a home rule unit of government in accordance with Article VII,Section 6,of the Constitution of the State of Illinois, 1970;and WHEREAS,the Village has the authority, pursuant to the laws of the State of Illinois,to promote the health,safety and welfare of the Village and its inhabitants,to prevent the presence of blight,to encourage private development in order to enhance the local tax base,to increase additional tax revenues realized by the Village,foster increased economic activity within the Village,to increase employment opportunities within the Village,and to enter into contractual agreements with third parties for the purpose of achieving the aforesaid purpose,and otherwise be in the best interests of the Village; and WHEREAS,the Village has the power and authority to enter into the Redevelopment Agreement (the"Agreement"), attached as Exhibit A,pursuant to,but not by way of limitation,the home rule powers of the Village under Section 6,Article VII of the 1970 Constitution of the State of Illinois;and WHEREAS,the Village is authorized under the provisions of the Tax Increment Allocation Redevelopment Act,65 ILCS 5/11-74.4-1,et seq.,as amended (the"TIF Act"),to finance redevelopment in accordance with the conditions and requirements set forth in the TIF Act;and WHEREAS,915-945 Dundee Road is approximately 16.69 acres and is located in the 2023 Buffalo Grove Dundee Road TIF District Redevelopment Project Area; and WHEREAS,the Village,on March 20,2023,adopted an Inducement Resolution (the "Inducement Resolution") relating to the proposed development of the Property;and WHEREAS,as part of the eligibility study of the development of the Property,the Village found that the TIF District,which includes the Property,suffers from the following factors:deterioration, excessive vacancy, presence of structures below minimum code standards,and inadequate utilities;and WHEREAS,SDG Dundee Development, LLC(hereinafter referred to as"Petitioner"or "Developer"),and their Developer Affiliate, has entered into a contract to purchase and redevelop the existing Property.The development will include a 50,000 square foot new car dealership and service center,20,000-40,000 square feet of new commercial/retail and an approximately 224-unit luxury apartment project(collectively,the"Project");and WHEREAS, it is necessary for the successful completion of the Project that the Village enter into this Agreement with Developer to provide for the development of the Property,thereby implementing a the Redevelopment Plan;and WHEREAS, Developer has been and continues to be unwilling to undertake the development of the Property but for certain TIF and other incentives from the Village,which the Village is willing to provide under the terms and conditions contained in the Agreement;and WHEREAS,the Village has determined that it is desirable and in the Village's best interests to assist Developer in the manner set forth in this Agreement. NOW THEREFORE BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF BUFFALO GROVE,COOK AND LAKE COUNTIES,ILLINOIS: SECTION 1. The foregoing Whereas clauses are hereby incorporated herein. SECTION 2. The Village President and Village Clerk are hereby authorized to execute the Redevelopment Agreement a copy of which is attached hereto as Exhibit"A" and any necessary exhibits and documents in furtherance thereof,subject to the final review and approval of the Village Attorney. Village staff is also authorized to implement the terms of the Agreement,subject to the final review and approval of the Village Attorney. SECTION 3.This Ordinance shall be in full force and efFect from and after its passage,approval and publication.This Ordinance may be published in pamphlet form.This Ordinance shall not be codified. AYES: 6—Johnson,Cesario,Ottenheimer,Stein, Bocek,Weidenfeld NAYES: 0-None ABSENT: 0-None PASSED: January 16.2024 APPROVED: January 16,2024 i PUBLISHED: January 17,2024 � ATTEST: APP �l ED: �,t `P"r�*n..�S�• ' . Jane . irabian,Village Clerk Eric N.Smith, 'll ge resident �kr�'�""���s;=�r ``~~�l��'�� '� '��j ��1,� � �___-�`--u �i i.�'/= � `-_U�„r `�� "� � �"�-rw r..�I���'�i`t�� � � ��„`_V �,�� ' f��~Ln�� = i� .� 4� ` i}�1�,,.-_.�t_��{ti'�.�.ti�~,�� sf�{������ L EXHIBIT A Redevelopment Agreement ..... .3� .�...- . .... ..... _ :... :,.. ... .-..�r�- ..._. .... .._ . ._.. . .. ...... . .. .. .. .. . . . REDEVELOPMENT AGREEMENT THIS REDEVELOPMENT AGREEMENT (this "Agreement'), is made and entered into as of the 16th day of January, 2024 by and among the VILLAGE OF BUFFALO GROVE, ILLINOIS, an Illinois municipal home rule corporation, located in Cook and Lake County, Illinois (the "Village"), and SDG Dundee Development LLC, an Illinois limited liability company or its assigns ("Developer"). RECITALS WHEREAS,the Village is a home rule unit of government in accordance with Article VII, Section 6, of the Constitution of the State of Illinois, 1970;and WHEREAS,the Village has the authority,pursuant to the laws of the State of Illinois, to promote the health, safety and welfare of the Village and its inhabitants, to prevent the presence of blight, to encourage private development in order to enhance the local tax base, to increase additional tax revenues realized by the Village, foster increased economic activity within the Village,to increase employment opportunities within the Village, and to enter into contractual agreements with third parties for the purpose of achieving the aforesaid purpose, and otherwise be in the best interests of the Village; and WHEREAS, the Village is authorized under the provisions of the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1, et seq., as amended (the "TIFAct'�, to finance redevelopment in accordance with the conditions and requirements set forth in the TIF Act; and WHEREAS, the Village, on March 20, 2023, adopted an Inducement Resolution (the "Inducement Resolution") relating to the proposed development of the approximately 16.69- acre parcels of land located at 915-945 Dundee Road in the Cook County portion of the Village, and legally described and depicted on Exhibit A to this Agreement (the "Property"); and WHEREAS, pursuant to the TIF Act and all other Illinois statutory requirements, the Village represents and warrants that it took all steps required by the TIF Act to create a redevelopment project area that includes the Property including but not limited to authorizing the preparation of and approving an eligibility study and report entitled "The 2023 Buffalo Grove Dundee Road TIF District Redevelopment Project Area" dated May 4, 2023 (the "Redevelopment Plan") which includes the Property, issuing all required legal notices and newspaper publications, holding a Joint Review Board meeting on June 20, 2023 and a public hearing by the Corporate Authorities on July 17, 2023, adopting the required ordinances as set forth below, and thereby creating the 2023 Buffalo Grove Dundee Road TIF District(the"TIF District"), all pursuant to Illinois statutory requirements; and WHEREAS, as part of the eligibility study of the development of the Property, the Village found that the Redevelopment Plan, which includes the Property, suffers from the . _.,c "r�l.cL+�lln�. .. , ?..- . .,_..,�.:.. .. . following factors: deterioration, excessive vacancy, presence of structures below minimum I code standards, and inadequate utilities; and WHEREAS, to stimulate and induce development of the Property and other properties in the TIF District pursuant to the TIF Act, the Village, on August 21, 2023, adopted the following ordinances (collectively, the "TIF Ordinances"), after giving all notices required and after conducting the public hearings required by applicable law including the TIF Act: 1. Ordinance No. 2023-107, approving the Redevelopment Plan; 2. Ordinance No. 2023-108, designating the Redevelopment Project Area; and 3. Ordinance No. 2023-109, adopting Tax Increment Financing for the Redevelopment Project Area; and WHEREAS, Developer has represented to Village that Developer, and its principals, are skilled in the development and operation of commercial and residential developments and are able to develop the Project(as defined in Article Two)with the necessary skill,knowledge, and expertise as well as input from other experts and consultants in the construction and operation of such a Project; and WHEREAS, Developer and/or Developer Affiliate has entered into a Purchase and Sale Agreement to purchase the Property; and WHEREAS, Developer desires to develop the Property (as defined in Article Two) individually or in concert with others to establish both commercial and residential uses; and WHEREAS, in September 2023, Developer filed an application for a map amendment and planned unit development and other related relief to develop the Project on the Property and thereafter the Village approved Ordinance No. 2023-167 granting all necessary zoning approvals; and WHEREAS, it is necessary for the successful completion of the Project that the Village enter into this Agreement with Developer to provide for the development of the Property, thereby implementing the Redevelopment Plan;and WHEREAS, Developer has been and continues to be unable to undertake the development of the Property but for certain financial assistance from the Village, which the Village is willing to provide under the terms and conditions contained herein; and WHEREAS, the Village has determined that it is desirable and in the Village's best interests to provide financial assistance to the Developer in the manner set forth in this Agreement; and WHEREAS, this Agreement has been submitted to the appropriate authority of each respective Party for consideration and review prior to the approval and execution of , ....T_- f., a�.q. � -..... ...�n .,... .. .. . this Agreement by each respective Party, and any and all actions precedent to the execution of this Agreement have been undertaken and performed in the manner required by law;and NOW THEREFORE, in consideration of the foregoing and of the mutual covenants andagreements herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties do hereby agree as follows: ARTICLE ONE INCORPORATION OF RECITALS The findings, representations, warranties,and agreements set forth in the above Recitals are material to this Agreement and are hereby incorporated into and made a part of this Agreement as though fully set out in this Article One, and constitute findings, representations warranties, and agreements of the Village and Developer according to the tenor and import of the statements in such Recitals. ARTICLE TWO DEFINITIONS Far the purposes of this Agreement, capitalized words and terms used in this Agreement shall have the meaning provided in this Article Two, and from place to place in this Agreement, including in the above Recitals. "Actual Total Project Costs" means the actual project costs the Developer has incurred prior to the issuance of the Subordinate Developer Note, excluding the vertical construction costs for the Residential Project and the vertical construction costs for the Retail Project on Lot 2, for those items listed on Exhibit D to this Agreement. "Available TIF Increment" means 85% of the Village TIF Funds generated by the Project on the Property, which may also include the School and Library Holdback pursuant to paragraphs 5.3.A.6 and 5.3.B.8. "Certificate of Substantial Completion"means the certificate, in the form of Exhibit L to this Agreement that is required to be issued by the Village Manager upon completion of the Retail Project for the Retail Car Dealer "Substantial Completion — Retail Car Dealer" as provided in this Agreement. "Corporate Authorities" means the President and Village Board of Trustees of the Village of Buffalo Grove, Illinois. "Day" means a calendar day. "Developers" means Developer and any Developer assignee. "Effective Date" means January 16, 2024, as further provided in this Agreement. �,_ � ,..�:..,. _... _ _ ... ... _ "Eligible Costs" means, with respect to financing provided with proceeds of a tax- exempt Primary Developer Note or tax-exempt Subordinate Developer Note, TIF Eligible Expenses that are costs of a type that would be properly chargeable to a capital account under the Internal Revenue Code (or would be so chargeable with a proper election) under federal income tax principles. "Estimated Total Project Costs" means the estimated project costs as of the date which were provided to and utilized in the SB Friedman Development Advisors, LLC memorandum dated January 12,2024 and attached as Exhibit M which the Developer intends to incur prior to the issuance of the Subordinate Developer Note, excluding the vertical construction costs for the Residential Project and the vertical construction costs for the Retail Project on Lot 2 that are listed on Exhibit D to this Agreement. "Final Engineering Plans" means the final engineering plans for the Project to be approved by the Village Engineer, which include, but are not limited to, final engineering plans forthe Retail Proj ect(conducted in phases),and final engineering plans forthe Residential Project. "Final PUD Plan"means, collectively, the final plans, specifications, and cut sheets that are set forth and identified for the Planned Unit Development approved by the Village as Ordinance 2023-167. "Final Subdivision PIaY' means the final plat of subdivision to be recorded by the Developer in substantial conformance with the Site Plan, as amended by the Developer and approved by the Village. "Funding Certification"means the certification in the form of Exhibit K to this Agreement, to be delivered by Developer upon satisfaction of each of the Funding Conditions. "Gross TIF Increment" means the total Incremental Properly Taxes generated by the Project on the Property. "Funding Conditions" means the specific conditions set forth in Article Six of this Agreement that must be satisfied before the Village is required to issue the Primary Developer Note or Subordinate Developer Note. "Incremental Property Taxes" means the ad valorem taxes, if any, arising from the taxes levied upon the Property,which taxes are attributable to the increases in the then current equalizedassessed value of each taxable lot, block, tract, or parcel in the Property over and above the total initial equalized assessed value of each such lot, block, tract, or parcel of real property, all as determined by the County Clerk of Cook County, Illinois, pursuant to and in accordance with the TIF Act,the TIF Ordinances and this Agreement „ _ _ _._ , "Note Ordinance” means the ordinance to be adopted by the Corporate Authorities authorizing the issuance of the Notes. "Notes"means, together, the Primary Developer Note and the Subordinate Developer Note. "On-Site Improvements"means all of those certain public and private improvements to be constructed on the Property as part of the Project, excluding the Residential Private Building and the Retail Private Buildings. On-Site Improvements include, without limitation, the internal roadways, sidewalks, sanitary sewer lines, water lines, storm sewer lines, utilities (including electricity, phone, fiber optics, and gas), surface parking lots, and landscaping that are part of the Retail Project and part ofthe Residential Project respectively. "Party" or "Parties" means the Village, and Developer, as the context requires. "Person" means any individual, corporation, partnership, limited liability company, joint venture, association, trust, or government or any agency or political subdivision thereof, or any agency or entity created or existing under the compact clause of the United States Constitution. "Planned Unit Development" or "PUD" means the special use, to allow development of the Retail Project and the Residential Project on the Property, pursuant to Section 17.28.050 and Section 17.44.060 of the Buffalo Grove Zoning Ordinance, granted by the Corporate Authorities. "Prohibited Use" means those uses not specifically identified as either a permitted or special use in the B3 Planned Business Center District and R9 Muli-Family Dwelling District, except as may be modified by the PUD, as may be amended from time to time. "Project"means the development and construction of the Retail Project and the Residential Project. The Project shall include the development of Lots 1, 2 and 3, as depicted on the Site Plan attached as Exhibit B, as follows: a. Approximately 50,000 square foot Retail Car Dealer as identified on Lot 1 of the Preliminary Site Plan. Developer intends that the building remains occupied by a Retail Car Dealer during the term of the RDA. b. A minimum 215-unit luxury apartment project as identified on Lot 3 of the Preliminary Site Plan. c. A combined minimum 20,000 square foot best-in-class commercial/retail building(s) as identified on Lot 2 of the Final Plat of Subdivision. The Developer intends that the building(s)will remain substantially occupied during the term of the RDA,unless otherwise approved by the Village. "Primary Developer Note" means the promissory note the Village agrees to issue to the Developer in accordance with the terms of this Agreement which has a lien on the Available TIF Increment which is senior to the lien of the Subordinate Developer Note on the Available TIF Increment as indicated in paragraph 5.3.C.3. "Redevelopment Project Area" means the area designated by the Corporate Authorities in the TIF Ordinances. "Redevelopment Project Costs"means all qualifying costs that are authorized and definedby section 74.4-3 (q)of the TIF Act. "Residential Construction Obligation"means as defined in this Agreement. "Residential Parcel"means that portion of the Property that is approximately five and one-half(5.5) acres in size and is depicted as Lot 3 on the Final Subdivision Plat. "Residential Private Building" means the four-story building that is contemplated to be constructed as part ofthe Residential Project on the Residential Parcel. "Residential Project" means that portion of the Project to be developed by Developer or its assignee, on the Residential Parcel that contemplates the construction of not less than 215 apartments in the Residential Private Building, as depicted on the Site Plan, as well as the construction of those On-Site Improvements that are located on the Residential Parcel. "Retail Car Dealer" means a nationally recognized automotive brand operating on the Property that is approximately fifty thousand (50,000)gross square feet, with the final square footage to be determined at the time of issuance of the building permit and that is consistent with the Site Plan attached as Exhibit B, on Lot 1 of the Final Subdivision Plat. "Retail Completion Guaranry" means the guaranty in the form of Exhibit C to this Agreement to be executed by and on behalf of Retail Developer limited to the completion of the Retail Car Dealer on Lot 1, and as further described in Article Nine of this Agreement. "Retail Pa�cel"means that portion of the Property that is approximately 10.5 acres in size and is depicted as Lot(s) 1&2 on the Final Subdivision Plat. "Retail Private Buildings" means the buildings that are contemplated to be constructed aspart of the Retail Project on the Retail Parcel other than the Retail Car Dealer. "Retail Project"means that portion of the Project to be developed by Developer on the Retail Parcel that contemplates a combined retail and commercial development of approximately seventy thousand (70,000) square feet including of which approximately fifty thousand(50,000) square feet is anchored by a Retail Car Dealer, as depicted on the Site Plan, as well as the construction of those On-Site Improvements associated therewith. "School and Library Holdback" means the Statutorily required school and library district holdback set forth in the TIF Act which is annually; 27%of the incremental property taxes from the Residential Project, plus 13% of the incremental property taxes from the Residential Project and plus the 2% of the incremental property taxes generated from the Residential Project. "Senior Lien Account"means the subaccount of the Special Tax Allocation Fund from which the principal of and interest on the Primary Developer Note shall be paid, said subaccount to be established in the Note Ordinance. "Subordinate Developer Note"means the promissory note,the Village agrees to issue to the Developer in accordance with the terms of this Agreement which has a lien on the Available Tax Increment which is junior to the lien of the Primary Developer Note on the Available Tax Increment. "Subordinance Lien Account" means the subaccount of the Special Tax Allocation Fund from which the principal of an interest on the Subordinate Developer Note shall be paid, said subaccount to be established in the Note Ordinance. "Site Plan" means the SitePlan for the Project prepared by PUD Ordinance and attached to this Agreement as Exhibit B. "Special Tax Allocation Fund" means the 2023 Buffalo Grove Dundee Road TIF District's Special Tax Allocation Fund for the Redevelopment Project Area created by the Corporate Authorities pursuant to the TIF Act and into which the Incremental Property Taxes will be deposited. "State" means the State of Illinois. "Substantial Completion- Residential" means a temporary or final certificate of occupancy having been issued for the Residential Project as determined by the process described in this Agreement. "Substantial Completion — Retail Car Dealer" means a temporary or final certificate of occupancy having been issued for the Retail Car Dealer as determined by the process described in this Agreement. "Substantial Completion —Retail Lot 2"means a temporary or final certificate of occupancy having been issued for the Retail Project on Lot 2 as determined by the process described in this Agreement. "TIFEligible Expenses" means those expenses related to the Project incurred after March 20,2023,the date of the Inducement Resolution, and that qualify as "redevelopment project costs" as defined in Section 74.4-3 (q) of the TIF Act, as restricted pursuant to this Agreement. "TIF Funding Escrow" means the escrow account to be created at Chicago Title InsuranceCompany by the Village and Developer, in substantially the form attached to this Agreement as Exhibit E, into which Available TIF Increment is deposited to make payments towards the principal and accrued interest of the Notes, or by another means to process the payments of the Notes that is mutually agreeable by all Parties. "Uncontrollable Circumstance" means any event which: (a) is beyond the reasonable control of and without the fault of the Party relying thereon; and (b) is one or more of the following events: (i) insurrection, riot, civil disturbance, sabotage, act of the public enemy, explosion, nuclear incident,war,or naval blockade; (ii) hurricane, tornado, landslide, earthquake, lightning, fire, windstorm, flooding, other extraordinary weather conditions,pandemic, epidemic, or other similar Act of God; Uncontrollable Circumstance shall not include: (1) economic hardship or impracticability of performance, (2) commercial or economic frustration of purpose, or (3) a failure of performance by a contractor (except as caused by events (b)(i) or (b)(ii) above which are Uncontrollable Circumstances as to the contractor). "Village Manager" means the duly appointed Village Manager of the Village. "Village Share of the TIF Funds" means 15% of the Village TIF Funds generated and received each year from the Project on the Property. "Village TIF Funds" means the Gross TIF Increment less the School and Library Holdback generated and received each year from the Project on the Property. ARTICLE THREE DOCUMENT CONSTRUCTION This Agreement, except where the context by clear implication shall otherwise require, shall be construed and applied as follows: 3.1 Vocabulary. .�. _ _ _ _�,,. ..� � :_ � _ _ _.. _ _. (a) Definitions mclude both singular and plural. (b) Pronouns include both singular and plural and cover all genders. (c) The word "include," "includes" and "including" shall be deemed to befollowed by the phrase"without limitation." 3.2 Section Headin�s. Headings of sections and subsections herein are solely for convenience of reference and do not constitute a part hereof and shall not affect the meaning, construction or effect hereof. 3.3 E�ibits. All e�ibits attached to this Agreement shall be and are operative provisions of this Agreement and shall be and are incorporated by reference in the context of use where mentioned and referenced in this Agreement. In the event of a conflict between any e�ibit and the terms of this Agreement, the Agreement shall control. 3.4 Certificates and Opinions. Any certificate, letter or opinion required to be given pursuant to this Agreement means a signed document attesting to or acknowledging the circumstances, representations, opinions of law or other matters therein stated or set forth. Reference herein to supplemental agreements, certificates, demands, requests, approvals, consents, notices and the like means that such shall be in writing whether or not a writing is specifically mentioned in the context of use. 3.5 Authoritv of the Village Mana�. The Village Manager, unless applicable law requires action by the Corporate Authorities, shall have the power and authority to make or grant or do those things, certificates, requests, demands, notices, and other actions described in this Agreement and the PUD for and on behalf of the Village and with the effect of binding the Village. Developer is entitled to rely on the full power and authority of the persons executing this Agreement on behalf of the Village as having been properly and legally given by the Village. As provided in this Agreement, the Village Manager shall not be personally liable under this Agreement and shall not be subject to any personal liability or accountability by reason of or in connection with or arising out of his or her performance under this Agreement. 3.6 Develo�er Authorized Representative. In connection with the foregoing and other actions to be taken under this Agreement, and unless applicable documents require action by Developer in a different manner, Developer hereby designates Shorewood Development Group, LLC, an Illinois limited liability company as its authorized representative,who shall individually have the power and autharity to make or grant or do all things, supplemental agreements, certificates, requests, demands, approvals, consents, notices and other actions required or described in this Agreement for and on behalf of Developer and with the effect of binding Developer in that connection (such individual being an "Authorized Developer Representative'). Developer shall have the right to change its Authorized Developer Representative by providing the Village with written notice of such change. As provided in this Agreement, the individual designated as the Authorized Developer Representative shall not be personally liable under this Agreement and shall not be subject to any personal liability or accountability by reason of or in connection with or arising out of his or her performance under this Agreement. 3.7 No Personal Liability of officials of the Villa�e, or Developer.No covenant or agreement contained in. this Agreement shall be deemed to be the covenant or agreement of the Mayor, a Village Board of Trustee member, the Village Manager, orany official, officer, partner, member, director, agent, employee or attorney of either (a) the Village, or (b) Developer, in his or her individual capacity. No official, officer, partner, member, director, agent, employee, or attorney of either (a) the Village, or (b) Developer, shall be liable personally under this Agreement or be subject to any personal liability or accountability by reason of or in connection with or arising out of the execution, delivery and performance of this Agreement, or any failure in that connection. ARTICLE FOUR IMPLEMENTATION OF PROJECT The Parties acknowledge and agree that notwithstanding anything in this Agreement to the contrary, this Agreement is subject to and conditioned upon the execution of this Agreement by and among the Village and the Developer. The Parties recognize that Developer is under contract to sell the Residential Parcel and assign the obligations of the Residential Project to Double Eagle Development LLC, a Missouri limited liability company and/or 332 North Arlington Heights LLC, a Missouri limited liability company (hereafter "Double Eagle"). Upon conveyance, Double Eagle shall assume those obligations of the Residential Project and Developer shall be relieved of the same. The Village further acknowledges and consents to the assignment of the Subordinate Developer Note by Developer to Double Eagle should Developer make such an assignment. The Parties further acknowledge that Developer may convey the Property or any part thereof and/or assign any part of the Project to a Developer Affiliate. Assignment of obligations of the Project to parties other than Double Eagle will be subject to Village approval, not to be unreasonably withheld. No Village Approval is required to encumber, pledge, lien or otherwise mortgage the Property or part thereof or to pledge or assign any or both of the Notes, in accordance with the terms of the Notes and the Note Ordinance and 5.3C 6. The assignees of such assignments must acknowledge that the assigned projects must conform with the terms of this Agreement applicable to the part of the Project assigned to them. ARTICLE FIVE VILLAGE COVENANTS AND AGREEMENTS 5.1 Village's Obli atg ions. The Village shall have the specific obligations set forth in this Article Five in connection with the Project,as well as such other obligations as set forth elsewhere in this Agreement or as otherwise required by law. 5.2 Final En ineering Plans Approval and Building Permit Issuance. A. Upon submittal by Developer of Final engineering Plans for any part of the Project, (which is acknowledged will be conducted in multiple phases with the first to be the Retail Car Dealer), the Village shall cause its Village Engineer to review such plans for each portion of the Retail Project and for the Residential Project as approval is sought for each, and cooperate and coordinate with all applicable public agencies, if needed. Provided that the Final Engineering Plans prepared and submitted to the Village by the Developers conform substantially to the Planned Unit Development Special Use Ordinance and Village Codes as varied or modified by the Special Use ordinance, the Village shall cause its Village Engineer to promptly, but in no event later than 30 days after the date of submission by the Developers,review and, if the Final Engineering Plans comply with Village Codes as the same have been varied or modified bythe Final PUD Plan, approve the Final Engineering Plans. If the Village Engineer believes that the Final Engineering Plans regarding the partion of the Project then under review, do not conform substantially in the manner required in this Section or in accordance with all applicable codes, laws and/or regulations,he shall promptly notify the Developers of any deficiency, and the Developers shall have the opportunity to resubmit the Final Engineering Plans. The Village Engineer shall then have the approval requirement set forth in this Section. B. Upon submittal by Developers of the required application and information necessary for issuance of building permits for construction of the various components of the Project each of which may be pursued as separate submittals by Developer, the Village shall issue building permits in the manner required by applicable Village Code or ordinances so long as said applications conform with the applicable portion of the Planned Unit Development, the final PUD plan and the final engineering plans. 5.3 Villa�e Funding. A. Within ninety (90) days of the Funding Conditions being satisfied for the Primary Developer Note,the Village will use its best efforts to issue the Primary Developer Note payable exclusively from Available TIF Increment with a total face amount of$9.5 million and bearing interest at a rate of eight and one-half percent(8.5%)per annum, in a form and substance as attached hereto as Exhibit F. The Village agrees to pledge Available TIF Increment to pay the principal of and interest on the Primary Developer Note. The parties acknowledge the following: L It is expressly understood that the Village receives 15% of the Village TIF Funds generated each year and that the Available TIF Increment represents 85% of the Village TIF Funds; and 2. Developer acknowledges that the Primary Developer Note shall not be a general obligation of the Village and shall only be supported by the Available TIF Increment, for TIF Eligible Expenses, during the term of the I 2023 Buffalo Grove Dundee Road TIF District, or 20-years from the Primary Developer Note issuance date, whichever comes sooner; and 3. The Village shall have the right, but not the obligation, to redeem the Primary Developer Note, or any portion thereof, at a redemption price of par plus accrued interest to the redemption date in accordance with Section 5.3 C 4. In no event shall the Village be required to pay any amounts in excess of the Primary Developer Note and interest accrued thereon at the time of the redemption of payment to the Primary Developer Note; and 4. Developer agrees to Substantial Completion-Retail Car Dealer, within three (3) years of issuance and commencement of demolition of the existing buildings or site improvements of the Project, but in no event later than December 31, 2027, as may further be defined and detailed in this Agreement, and 5. The issuance of the Primary Developer Note shall not occur until all Funding Conditions have been met and the Developer submits to the Village all the necessary documents, acceptable to the Village in accordance with the TIF Act, demonstrating that Developer has TIF Eligible Expenses incurred and paid equal to or greater than the Primary Developer Note and that the permit has been issued and building construction has begun for the Retail Car Dealer, and 6. The School and Library Holdback shall remain in the Special Tax Allocation Fund pursuant to the TIF Act. Following the required annual payments to the school and library districts, if any, the remaining School and Library Holdback shall be deemed Available TIF Increment used to support the payments on the Notes pursuant to paragraph 5.3.C.3. In the event that the Retail Car Dealer is not in actual operation and not performing on-site sales/service/deliveries on Lot 1, and the Developer is unable to lease the space with a similar user, unless otherwise approved by the Village, within twelve (12) months, the remaining School and Library Holdback shall not be deemed Available TIF Increment and may be used by the Village in accordance with the TIF Act in the Redevelopment Plan area, until such time that the space is occupied with a similar user. 7. Developer acknowledges that the Available TIF Increment shall be the only source of Village funding to support the Primary Developer Note. B. Within ninety (90) days of the Funding Conditions being satisfied for the Subordinate Developer Note, the Village will use its best efforts to issue the Subordinate Developer Note payable exclusively from Available TIF Increment with a total face amount of $1.Smillion and bearing interest at a rate of eight and one-half percent (8.5%) per annum, in a form and substance as attached hereto as Exhibit H. The face amount of the Subordinate Developer Note is subject to adjustment prior to issuance pursuant to paragraph 5.3.B.6. below. The Village agrees to pledge Available TIF Increment to pay the principal of and interest on the Subordinate Developer Note. The parties acknowledge the following: 1. It is expressly understood that the Village receives the first 15% of the Village TIF Funds generated each year and that the Available TIF Increment represents 85%the Village TIF Funds; and 2. Developer acknowledges that the Subordinate Developer Note shall not be a general obligation of the Village and shall only be supported by the Available TIF Increment, less the principal and interest for the Primary Developer Note, for TIF Eligible Expenses, during the term of the 2023 Buffalo Grove Dundee Road TIF District, or 20-years from the Subordinate Developer Note issuance date, whichever comes sooner; and 3. The Village shall have the right, but not the obligation, to redeem the Subordinate Developer Note, or any portion thereof, at a redemption price of par plus accrued interest to the redemption date. In no event shall the Village be required to pay any amounts in excess of the Subordinate Developer Note and interest accrued thereon at the time of the redemption of payment to the Primary Developer Note; and 4. Developer agrees to achieve Substantial Completion-Retail Car Dealer, occupancy by the Retail Car Dealer and issuance of a building permit with the commencement of vertical construction of the Residential Private Building as evidenced by completion of the foundations for the Residential Private Building within four (4) years of commencement of demolition of all buildings and site improvements of the Project,but in no event later than December 31, 2028, as may further be defined and detailed in this Agreement, and 5. The issuance of the Subordinate Developer Note and any funding obligations of the Village shall not occur until Substantial Completion- Retail Car Dealer, occupancy by the Retail Car Dealer and issuance of a building permit with the commencement of vertical construction of the Residential Private Building as evidenced by completion of the foundations for the Residential Private Building, and 6. Prior to the Village issuing the Subordinate Developer Note, the Developer shall provide evidence of its Actual Total Project Costs, which shall consist of TIF Eligible Expenses, incurred and paid. In the event that Actual Total Project Costs which were incurred and paid are less than 92.5% of the estimated total amount of the Estimated Total Project Costs identified in Exhibit D, the face amount on the Subordinate Developer Note shall be reduced proportionately by $0.25 for every dollar below 92%, and 7. The issuance of the Subordinate Developer Note and any funding obligations of the Village for the Subordinate Developer Note shall not occur until all Funding Conditions have been met and Substantial Completion-Retail Car Dealer, and 8. The School and Library Holdback shall remain in the Special Tax Allocation Fund pursuant to the TIF Act. Following the required annual payments to the school and library districts, if any, the remaining School and Library Holdback shall be deemed Available TIF Increment used to support the payments on the Notes pursuant to paragraph 5.3.C.3. In the event that the Retail Car Dealer is not in actual operation and not performing on-site sales/service/deliveries on Lot 1, and the Developer is unable to lease the space with a similar user, unless otherwise approved by the Village, within twelve (12) months, the remaining School and Library Holdback shall not be deemed Available TIF Increment and may be used by the Village in accordance with the TIF Act in the Redevelopment Plan area, until such time that the space is occupied with a similar user. 9. Developer acknowledges that the Available TIF Increment shall be the only source of Village funding to support the Subordinate Developer Note. C. Terms of the Notes. The following provisions relate to the Notes: 1. Each of the Notes shall mature on the date which is the earlier of(i)the date which is twenty years from the date of issuance of Primary Developer Note or the Subordinate Developer Note, respectively, or (ii) December 31 st of the final year of the 2023 Buffalo Grove Dundee Road TIF District. 2. Interest on each of the Notes shall be due on January 1 of each year, commencing with January 1 of the year following the respective year in which each of the Primary Developer Note and the Subordinate Developer Note are issued. 3. The Village shall deposit the Available TIF Increment into Senior Lien Account and the Subordinate Lien Account. Payments of principal and interest on the Primary Developer Note shall be paid solely from Available TIF Increment on hand in the Senior Lien Account, and payments of principal and interest on the Subordinate Developer Note shall be paid solely from Available TIF Increment on hand in the Subordinate Lien Account. The Available TIF Increment shall be apportioned between the respective subaccounts of the Special Tax Allocation Fund on December 1 of each year in the following order: (i) first, to the Senior Lien Account an amount equal to the accrued and unpaid interest on the Primary Developer Note, (ii) second, to the Subordinate Lien Account an amount equal to the accrued and unpaid interest on the Subordinate Developer Note, (iii) third, to the Senior Lien Account an amount equal to the current interest to become due and payable on the Primary Developer Note on January 1 of the year following the date of such apportionment, (iv) fourth, to the Subordinate Lien Account an amount equal to the current interest to become due and payable on the Subordinate Developer Note on January 1 of the year following the date of such apportionment, (v) fifth, to the Senior Lien Account, all remaining Available TIF Increment until the amount on hand in such account is sufficient to pay the remaining principal amount then outstanding on the Primary Developer Note on such date, and (vi) sixth, to the Subordinate Lien Account, all remaining Available TIF Increment until the amount on hand in such account is sufficient to pay the remaining principal amount then outstanding on the Subordinate Lien Note. On January 1 of each year, all amounts on deposit in(i)the Senior Lien Account shall be paid to the holder of the Senior Lien Note first to pay accrued and unpaid interest due on the Senior Lien Note, second to pay current interest due on the Senior Lien Note, and third to reduce the principal amount of the Senior Lien Note then outstanding, and (ii) the Subordinate Lien Account shall be paid to the holder of the Subordinate Lien Note first to pay accrued and unpaid interest due on the Subordinate Lien Note, second to pay current interest due on the Subordinate Lien Note, and third to reduce the principal amount of the Subordinate Lien Note then outstanding, all in accordance with the Note Ordinance. 4. The Notes are subject to redemption prior to maturity on any date at a redemption price of par plus accrued interest to the redemption date. 5. The Village will use its best efforts to issue a Primary Developer Note and Subordinate Developer Note as tax-exempt notes as described in Section 9.2 hereof. If for any reason the Primary Developer Note or the Subordinate Developer Note may not be issued on a basis such that the interest thereon is excludible from gross income of the owner thereof for federal income tax purposes, such notes shall be issued such that the interest thereon is includible in gross income of the owner thereof for federal income tax purposes. 6. The assignment, pledge, transfer and sale of the Notes is limited as described in the forms of the Notes set forth in E�ibit F and Exhibit G hereof. The parties acknowledge that the sole source of repayment of and security for the Notes is the Available Incremental Taxes. The Developer and any party to which such Note is transferred or assigned covenants that neither it, a related party or an affiliate will add any credit support to such Note, personally guarantee the repayment of such Note or add any additional source of repayment to the payment of debt service on such Note. 5.4 Connections. To the extent that the Village owns or controls any storm sewers that are contemplated to be connected to the Property, the Village hereby agrees to permit the connection of all storm sewer lines existing or constructed in the Property or near the perimeter of the Property as set forth on the Final Engineering Plans,provided that Developer complies with all requirements of general applicability promulgated by the Village and/or Metropolitan Water Reclamation District ("MWRD") for such connections. The Village shall grant and shall use its best efforts to support and assist the Developer in obtaining from other entities or jurisdictions, utility easements as may be necessary or appropriate to accommodate the utilities shown on the Final Engineering Plans and the construction ofthe Project. 5.5 Cooperation with Other Governments and Authorities. The Village agrees to cooperate with Developer in Developer's attempts to obtain all necessary approvals for the Project from any governmental or quasi- governmental entity other than the Village, including but not limited to the Illinois Department of Transportation ("IDOT') and Cook County, Illinois. The Village shall process and consider to the extent allowable under applicable law, any reasonable request of Developer for future zoning and planned unit development approvals and for future relief or variances authorized by the Village's Zoning Ordinance or the Village's Subdivision Ordinance necessary for the Project. 5.6 Maintenance of the 2023 Buffalo Grove Dundee Road TIF District. The Village agrees that for so long as either the Primary Developer Note or the Subordinate Developer Note have a remaining balance that the Village will not take action to shorten the maximum term of the TIF District as provided for by the TIF Act. ARTICLE SIX VILLAGE FUNDING CONDITIONS 6.1 General. A. Condition Precedent to Village Funding. The Village's obligation to issue the Developer's Notes as set forth in this Agreement is expressly contingent upon and subject to the satisfaction of each and all the Funding Conditions set forth in this Agreement. Developer shall not deliver to the Village Manager any Certification requests unless and until Developer can certify that all Funding Conditions have been satisfied. Each Mortgagee Party (defined below) shall have the right, but not the obligation, to take such action as is necessary to satisfy all or any of the Funding Conditions, provided however in the event that Mortgagee Party elects not to satisfy the Funding Conditions, then the Notes shall not issue. B. Interpretation. 1. Fundin� Conditions Requiring Written Confirmation. For purposes of this Article Six, "written confirmation" shall be deemed to have been provided to the Village only upon delivery of the same to the office of the Village Manager in the manner set forth for the delivery of notices in this Agreement. 2. Funding Conditions Requirin�Opportunity to Review. For purposes of this Article Six, the "opportunity to review" a document in the possession of Developer shall require Developer making the document available for inspection, at the office of Developer at their address set forth in this Agreement,by the Village Manager or his designee, during the regular business hours of Developer occurring within the 14-day period following the delivery of notice to the Village Manager. 3. Limitation of Notice. Far purposes of this Article Six, the delivery of notices or written confirmations to the Village shall not require the delivery of a copy as otherwise required in this Agreement. 6.2 List of Fundin� Conditions. The Funding Conditions are as follows: 1. Developer shall have secured the necessary funding and/or financing and provided the necessary Retail Completion Guarantee. 2. Developer shall have closed on its acquisition of the Property and provided the Village with a copy of the recorded deed to the Property evidencing the sale of the Property to Developer. 3. Developer shall have provided the Village with a written confirmation from Developer that, there have been no changes in such party's financial condition which would adversely impact its ability to purchase the Property and complete construction of the Retail Car Dealer. 4. Developer shall submit the necessary completion guarantee(s) in a form acceptable to the Village, in the Village's sole discretion and shall comply with the obligations identified in Article 5 and this entire agreement. 5. Developer shall have executed and provided the Village or its consultant,SB Friedma��,with an opportunity to review the executed copy of a lease with the Retail Car Dealer on the Retail Parcel. Said lease with the Retail Car Dealer shall be a minimum 15-year lease with no early termination provisions (other than(i)typical Landlord/Tenant default termination provisions, (ii) terminations as a result of material casualty and/or condemnation, (iii) terminations as a result of failure to obtain governmental approvals and/or(iv)termination rights that lapse upon Developer's purchase of the Property). 6. Developer shall have obtained from the Illinois Environmental Protection Agency ("IEPA"), and provided the Village with copies of, the required permit issued by IEPA necessary to proceed with commencement of construction of the Retail Car Dealer on Lot 1 and the underground detention. 7. Developer shall have provided the Village with a written confirmation from Developer that Developer has entered contract(s) for the construction of the On-Site Improvements related to Lot 1 for the Retail Car Dealer and the underground detention. 8. Developer shall have provided the Village or its consultant SB Friedman, with an opportunity to review a detailed budget and scope of work for the Proj ect based upon reasonable estimates for those costs available, recognizing that funding of the Primary Developer Note will occur prior to completion of the entire Project. The Village acknowledges that Developer has satisfied this condition. 9. Developer shall have delivered to the Village the original, fully executed, letter of credit for all public improvements related to Lot 1. 10. That Developer shall provide the Village with the necessary documents, acceptable to the Village, demonstrating that Developer has TIF Eligible Expenses incurred and paid in relation to the Project equal to or greater than the Primary Developer Note, subject to the limitations and conditions of this Agreement. 11. Developer is not in violation of any requirements of the Planned Unit Development with the understanding that at the time which the Notes are issued, the Developer need not have completed the entire Project and therefore some of the conditions specified in the Planned Unit Development need not be completed at the time of issuance for each of the Notes. 12. The Primary Developer Note is not a general obligation of the Village and is only payable from Available TIF Increment. 13. Upon satisfaction of the Funding Conditions set forth in this Agreement and that the permit has been issued and building construction has begun for the Retail Car Dealer, the Village shall issue to the Developer the Primary Developer Note. In addition to the above referenced Funding Conditions, the following additional Funding Conditions shall apply solely to the Subordinate Developer Note: 14. The developer for the Residential Project shall have provided the Village with a written confirmation that they have entered contract(s) for the construction of the Residential Project, which third party may include an affiliate of said developer and provided said contracts to the Village for review. 15. The developer for the Residential Proj ect shall have secured the necessary funding and/or financing far the Residential Project and shall have provide the Village with reasonable evidence of the same. 16. The developer for the Residential Project shall have provided written confirmation to the Village that its architects, engineers, and general contractar have consented to assignments permitting its lender to use such contracts with such parties to cause the completion of the Residential Project in the event that said developer defaults. 17. The developer for the Residential Project,upon request, shall provide the Village or its consultant SB Friedman,with an opportunity to review a detailed budget and scope of work for the Residential Project 18. Upon satisfaction of the Funding Conditions set forth in this Agreement and Substantial Completion- Retail Car Dealer, the Retail Car Dealer is open for business, issuance of a building permit for the Residential Private Building, and completion of the foundation evidencing the commencement of vertical construction of the Residential Private Building, the Village shall issue to the Developer the Subordinate Developer Note. ARTICLE SEVEN USE OF VILLAGE FUNDS 7.1 Use. The Notes to be issued pursuant to this Agreement shall be used to reimburse Developer for TIF Eligible Expenses that Developer incurred after the date of the Inducement Resolution. 7.2 Release of Funds from TIF Funding Escrow. The TIF Funding Escrow shall receive Available TIF Increment from the Village to administer payments as required by the Notes. 7.3 Submission of Certification Requests. The Village will issue the Notes in accordance with this Agreement and the Note Ordinance for the reimbursement of TIF Eligible Expenses. Those Notes will be paid from Available TIF Increment. In order to comply with the requirements of paragraphs 5.3.A.5, 5.3.B.6 and 6.2.10, demonstrating Developer has incurred TIF Eligible Expenses, Developer shall submit to the Village written requests for certification of such TIF Eligible Expenses in the form attached as Exhibit I to this Agreement ("Certification Reguest"). Developer may not submit more than one Certification Request bi-annually. Each Certification Request shall be accompanied by: (i) evidence that the Developer has actually incurred and paid all TIF Eligible Expenses for which such Developer seeks reimbursement; and(ii) sworn statements and lien waivers from the Developer's general contractor for any material, fixtures, apparatus, machinery, services, or labor provided by any contractor, subcontractor, or other person or entity entitled to file a lien under the Mechanics Lien Act, 770 ILCS 60/1. If the Developer does not fulfill its obligations as set forth in the preceding sentence,the Village will have no obligation to certify or reimburse such Developer for TIF Eligible Expenses that have not been separately identified as required by this Agreement. 1. Review of Certification Requests. The Village Manager will approve or disapprove each Certification Request, or, if the Village Manager finds an error or deficiency in the Certification Request, the Village Manager will give written notice to the Developer, identifying such error or deficiency in reasonable detail, within 45 days after the date that the Village receives the Certification Request. The process of submission, identification or errors or deficiencies and resubmission shall continue in good faith until the Parties agree on the content of the Certification Request. All undisputed amounts or undisputed portions of disputed amounts shall be paid without delay. 2. Issuance of Certificates of Expenditure. Upon approval of a Certification Request, the Village Manager shall issue a Certification of Expenditure in an amount corresponding to the approved Certification Request ARTICLE EIGHT DEVELOPER CONSTRUCTION OBLIGATIONS The Developer shall have the specific obligations set forth in this Article Eight in connection with the Project, as well as such obligations as set forth elsewhere in this Agreement. In the event Developer conveys any part of the Property, which conveyance shall be subject to Villa�e approval unless otherwise permitted bv this A�reement, the grantee of such conveyance shall abide by those requirements of the Project pertaining to the part of the Property they are conveyed and Developer shall have no further obligation for that part of the Project located upon the conveyed Property and the Village shall look solely to the new third party for compliance. 8.1 Develo�er Obli at�i�ons. A. Commencement of Construction. Developer shall commence site demolition and construction ofthe Retail Project — Retail Car Dealer on Lot 1, within 180 days of execution of this Agreement by the Village and Developer, but no later than August 31, 2024, provided that the Village shall have issued the necessary building permits for such construction as provided in this Agreement. Any delay in the issuance of building permits by the Village shall extend the Commencement of Construction. B. Completion of Construction. 1. Substantial Completion- Retail Car Dealer shall occur no later than December 31, 2027 or as otherwise specified in this Agreement. 2. Substantial Completion-Retail Car Dealer, occupancy by the Retail Car Dealer and issuance of a building permit with the commencement of vertical construction of the Residential Private Building as evidenced by completion of the foundation construction shall occur no later than December 31, 2028 or as otherwise specified in this Agreement. 3. Removal of Partially Constructed Structures and Improvements. If Developer fails to diligently pursue all demolition and construction as required in, or permitted by this Agreement to completion within the time period prescribed in the building permit or permits issued by the Village for such demolition and construction, as the case may be, and if a perfected application to renew the building permit or permits is not filed within 30 days after the expiration of the permit or permits, that Developer shall, within 60 days after notice from the Village: (a) remove any partially constructed or partially completed Buildings, Structures, or Improvements from that part of the Property owned by such Developer; and (b) perform Site Restoration on that portion of the Property in which Developer has failed to complete all such demolition and construction, all in accordance with plans approved by the Village. 4. Removal and Restoration b.��. In the event Developer fails or refuses to remove any partially completed Buildings, Structures, and Improvements, or to perform Site Restoration, as required pursuant to this Agreement,the Village will have, and is hereby granted, the right, at its option,to: (a) demolish and/or remove any of the partially completed Buildings, Structures, and Improvements from any and all portions of the Property owned by Developer; (b)perform Site Restoration; and/or(c) cause the Buildings, Structures, or Improvements to be completed in accordance with the plans submitted. That the Developer will fully reimburse the Village for all costs and expenses, including legal and administrative costs, incurred by the Village for such work. The Village shall have the right to draw from any available securities, guarantees and/or letters of credit, provided the affected portion of the Property, as described in and provided pursuant to this Agreement, an amount of money sufficient to defray the entire cost of the work, including legal fees and administrative expenses. If the forgoing is insufficient or if otherwise unavailable, for that portion of the Property, then the Village will have the right seek reimbursement from the Developer and to place a lien on the Property owned by Developer for all such costs and expenses in the manner provided by law. 5. Remedies Cumulative. The rights and remedies provided in this Section 8.1, are in addition to, and not in limitation of, the Village's rights and remedies otherwise available in this Agreement, at law, and/or in equity. C. As-Built Plans.After completion of construction of any new structure,the Developer that owns such structure shall submit to the Village Director of Community Development final"as-built" plans: (1) related to drainage, grading, storm sewer, sanitary sewer and water mains, and associated Structures; and (2) for other final construction documents (in paper and, for Improvements, electronic format) as required and approved by the Village Directors of Public Works and Community Development. The as-built plans shall indicate, without limitation,the amount, in square feet, of impervious surface area on the Property. D. Dama�e to Public Property. Developer owning the portion of the Property upon which construction is occurring shall maintain the Property and all streets, sidewalks,and other public property in and adjacent to the Property in a good and clean condition at all times during the development of the Property and construction of the Improvements. Further, such Developer shall: (1) promptly clean all mud, dirt, or debris deposited on any street, sidewalk, or other public property in or adjacent to the Property by Developer or any agent of or contractor hired by,or on behalf of, Developers; and(2)repair any damage that may be caused by the activities of Developer or any agent of or contractor hired by, or on behalf of, Developer. E. Containment of Airborne Particles Durin� Construction. Developer shall prepare and submit, for review and approval by the Village Manager, a plan for containing airborne particles during construction. F. Initial Process for Determination of Substantial Completion. Developer shall notify the Village Manager when Developer determines that it has achieved Substantial Completion of any portion of construction. If the Village Manager agrees that Substantial Completion has occurred,then the Village Manager shall,within 30 days after receipt of the notice from Developer, deliver to Developer a Certificate of Substantial Completion certifying that Developer has satisfied its obligations pursuant to this Agreement. The date on which such Certificate of Substantial Completion is delivered shall, for purposes of this Agreement,be the date of Substantial Completion. If the Village Manager does not agree that Substantial Completion has occurred, then the Village Manager, may, within 30 days after receipt of the notice from Developer, deliver to Developer a notice that the parties will engage in the extended process for determination of Substantial Completion, as set forth in this Agreement. G. Extended Process far Determination of Substantial Completion. Within 30 days after the Village Manager notifies Developer that the parties will engage in the extended process for determination of Substantial Completion,the Village and Developer shall each select and hire, each at its own cost, a professional architect or engineer (individually, a "Retail Project Architect/Engineer"). Within 30 days after both Project Architect/Engineers are hired, they shall inspect, and collectively make a determination with respect to the achievement of Substantial Completion. (i) In the event that the two Project Architect/Engineers jointly determine that Substantial Completion has occurred,then Developer shall so notify the Village Manager. (ii) In the event that the two Project Architect/Engineers jointly determine that additional work needs to be done to achieve Substantial Completion,then Developer shall perform such work, and the process described in this Section shall begin again. (iii) In the event that the two Proj ect Architect/Engineers cannot agree within the 30-day time period, then, within 14 days after the expiration of the 30-day time period, the Retail Project Architect/Engineers shall jointly select and hire a third architect or engineer ("Project Third Party Architect/Engineer"). The Third-Party Architect/Engineer shall inspect the work and make a determination within 30 days after beinghired. Developer shall perform any additional work deemed necessary by the Third- Party Architect/Engineer to achieve Substantial Completion. Any additional work performed by Developer shall be inspected by the Project Third-Party Architect/Engineer within seven days of completion by Developer. Once the Project Third-Party Architect/Engineer determines that Substantial Completion has been achieved, it shall notify the Village and Developer. This determination shall be final and binding on Developer and the Village for purposes of this Agreement. Developer and the Village shall share the cost of the third architect or engineer so selected proportionate to the difference between each party's determination and the final determination of the third party. (iv) Within 15 days after the Project Third-Party Architect/Engineer notifies the Village Manager that Substantial Completion has been satisfied pursuant to this Agreement, the Village Manager shall deliver to Developer a Certificate of Substantial Completion certifying that Developer has satisfied its obligations sufficient to warrant return of the Retail Completion Guaranty. The date on which such Certificate of Substantial Completion Retail Car Dealer is delivered, shall, for purposes of the return of the Retail Completion Guaranty, be the date of Substantial Completion-Retail Car Dealer. ARTICLE NINE GUARANTY 9.1 Retail Completion Guaranty. A. Nature and Delivery of the Retail Completion Guaranty. Prior to the issuance of the Primary Developer Note, Developer shall deliver to the Village Manager the original, fully executed, Retail Completion Guaranty. B. Development Improvement Agreement. The Developer shall enter into a Development Improvement Agreement, in accordance with Exhibit J, subject to Village approval. The Developer shall provide the necessary securities and guarantees required by the Development Improvement Agreement for public improvements in accordance with Village Code. C. Beneficiary of Retail Completion Guaranty. The sole guarantee and beneficiary of the Retail Completion Guaranty will be the Village. _ 9.2. Tax-Exempt Nature of Primary Developer Note and Subordinate Developer Note. The Village agrees to use its best efforts to issue a tax-exempt Primary Developer Note and Subordinate Developer Note, subject to the final review and approval from the Village's Bond Counsel and so long as the requirements of the Code and regulations thereunder are met in order for the interest on the Note to be excludable from the income of the holders thereof for federal income tax purposes. The Village and the Developer agree to use its best efforts to ensure that the requirements of the Code and regulations thereunder are met in order for the interest on the tax-exempt Primary Developer Note and Subordinate Developer Note to be excludable from the income of the holders thereof for federal income tax purposes. All costs for the Village's Bond Counsel shall be the responsibility of the Developer. The parties acknowledge that a change in law or facts may preclude the issuance of the Primary Developer Note and Subordinate Developer Note as a tax-exempt obligation. The Parties will work in good faith to provide any representations, certifications and information requested by Bond Counsel 9.3 Cancellation of Guaranties. A. The Retail Completion Guaranty shall be cancelled on the date on which the Village Manager delivers the Certificate of Substantial Completion Retail Project—Retail Car Dealer required pursuant to this Agreement. ARTICLE TEN REAL ESTATE TAX;CHALLENGES 10.1 Real Estate Tax Pavments. Developer intends to pay all applicable real estate taxes levied during their respective periods of ownership against their respective interests in the Project on or prior to the date same become due and do not intend that said taxes will become delinquent. However, to the extent the Developer fails to pay such taxes or fails to pay in a timely manner, the Parties agree that the only remedies for such failure are those allowed under State law and this Agreement shall not provide any additional remedies beyond what is permitted by State law. 10.2 When Bonds are Tax Exempt. When the Village issues the Notes, the Developer shall reasonably cooperate with the Village to assure that no actions jeopardize the tax-exempt nature of Notes. In conjunction therewith, at all times prior to and while any Notes and any tax-exempt obligations financing or refinancing the Eligible Costs are outstanding, the Village, and Developer will not enter into or remain subject to or be the beneficiary of any impermissible agreement under Treas. Reg. Section L 141-4(e)(4), including any agreement that requires Developer not to contest or protest real estate taxes assessed against the Property or portions thereof, or that prohibits Developer from seeking a deferral of such property taxes. 10.3 Ri�ht to Protest Real Estate Taxes. It is understood and agreed by the Village and Developer that, , in no event shall Developer (or any tenant of the Retail Project), or its assignees, have any limitation on their rights to contest, challenge or protest real estate taxes assessed or imposed against their respective portions of the Property. 10.4 Conve.�. In recognition of the nature of the Project,and to support the Village's goal of the development of residential establishments and retail establishments of certain types within the Village and in accordance with the TIF Act, for so long as the TIF District is in existence, Developer shall not knowingly undertake to convey or lease any portion of the Property to the following types of entities without the Village's prior written approval, which may be granted in its sole discretion (i) the Federal government, (ii) organizations described in Section 115 of the Internal Revenue Code, (iii) other units of State or local government, (iv) organizations described in Section 501(c) of the Internal Revenue Code, and (iv) entities seeking to establish a Prohibited Use on the Property. ARTICLE ELEVEN DEVELOPER'S COVENANTS AND AGREEMENTS 11.1 Sale of the Retail Parcels Unless otherwise authorized by this Agreement and subject to the rights and protections of any Mortgagee Party as provided herein,no portion of the Retail Project or the Retail Parcel, which is inconsistent with the Final PUD Plan, may be transferred or conveyed, without prior written approval of the Village, as part of an amendment to the Ordinance 2023-167, and any conveyance in violation of the foregoing shall be of no force and effect or be binding on the Village. Upon substantial completion of the part ofthe Retail Project applicable to any part ofthe Retail Parcel,the Village will provide written acknowledgement indicating that no further approval is needed from the Village for transfer or conveyance of said Retail Parcel. A. Sale of the Retail Parcels Upon any Village approved transfer or conveyance of any Retail Parcel, the transferee or grantee shall be bound by this Agreement with respect to all obligations of Developer hereunder, including but not limited to the Retail Completion Guaranty as may be appropriate to such transferee. By acceptance of such transfer or conveyance of the Retail Parcel, such transferee or grantee shall be deemed to have assumed and agrees to perform all obligations of Developer relating to such Retail Project hereunder, including, without limitation,the Retail Completion Guaranty, if applicable, with the same force and effect as if such transferee or grantee were the original party hereto as Developer and thereafter, the Village will look solely to such transferee relieving Developer of any further obligations hereunder as to the transferred or conveyed portions of the Project. B. Notwithstanding anything to the contrary contained herein, nothing in this Agreement shall(i)restrict or otherwise impair the ability of any Mortgagee Party(defined below) from acquiring ownership of all or a portion of the Property as a result of a Foreclosure (defined below), (ii) restrict or otherwise impair the ability of any such Mortgagee Pariy to transfer ownership of all or any portion of the Property to any transferee following consummation of any such Foreclosure, (iii) following any such conveyance by a Mortgagee Party, such Mortgagee Party shall be relieved of any and all obligations under this Agreement, (iv) no Mortgagee Party shall have any obligations of Developer hereunder unless such Mortgagee Party expressly assumes the Developer's obligations in writing, and (v) except for the rights, benefits and/or protections granted under Article 11 and/or Article 17 hereof, a Mortgagee Party who has not assumed the Developer's obligations under this Agreement shall not be entitled to the rights and benefits afforded to the Developer hereunder. 11.2 Compliance with Applicable Laws. Developer warrants with respect to its own actions that it shall at all times acquire, install, construct, operate and maintain the Project in conformance with all applicable federal, state, and local laws, rules, ordinances, and regulations affecting the Project. The Village shall not enact any law, ordinance, rule, or regulation (or amendment thereto) which would have the effect of increasing Developer's obligations hereunder, including an increase in the cost of the Project, unless said law, ordinance,rule,or regulation is one ofgeneral applicability to similar properties in the Village nor will the Village enact any law,ordinance,rule,or regulation(or amendment thereto)which would have the effect of limiting the Available Tax Increment pledged to payment of the Primary Developer Note or the Subordinate Developer Note. 113 Pro reg ss Reports and Meetings. Developer shall provide update reports on the progress of each portion of the Project and shall meet with and make presentations to the Corporate Authorities and Village staffas reasonably requested by the Village Manager or his designee in order to keep the Village apprised of the progress of the Project. The Developer reports relating to the Retail Project shall be made monthly until Substantial Completion — Retail Car Dealer, and the reports relating to the Residential Project and Retail Project — Retail Lot 2, quarterly thereafter. The obligations set forth in this Section shall terminate with respect to Retail Project upon the issuance of the final certificate of occupancy for construction on Lot 2. 11.4 Developer Existence. Developer and its assignees will do or cause to be done all thingsnecessary to preserve and keep in full force and effect its existence and standing as a Illinois Limited Liability Company authorized to do business in Illinois, so long as Developer maintains an interest in the Retail Parcel or has any other remaining obligations pursuant to the terms of this Agreement. ll.5 Open Book Project. The Project shall be an "open book" project meaning that Developer, or its assignees, and its general contractors will assure continuing access to the Village's agents for the purpose of reviewing and auditing their respective books and records relating to any item for which TIF reimbursement is sought. 11.5 Reputable Contractors. Developer shall exercise prudence and good faith in attempting to contract with persons or entities who are reputable and experienced in their respective areas for the provision of services or material for the design and construction of the Project at costs not in excess of market rates. The obligations shall terminate with respect to Developer for the Retail Project upon the issuance of the certificate of occupancy for the last Retail Private Building on the Retail Parcel. The obligations shall terminate with respect to Developer as to the Residential Project upon the issuance of a final certificate of occupancy for all of the residential units within the Residential Private Building. 11.6 Desi�nation of General Contractors. The Village agrees that Developer may designate in its respective discretion the general contractor (or general contractors) for the Project or any portion thereof. The general contractor (or general contractors), designated by Developer shall be experienced and reputable. The obligations set forth in this Section shall terminate with respect to Developer as to the Retail Project upon the issuance of the certificate of occupancy for the last Retail Private Building on the Retail Parcel. The obligations set forth in this Section shall terminate with respect to Developer as to the Residential Project upon the issuance of a final certificate of occupancy for all of the residential units within the Residential Private Building. 11.7 Development Si na�e for the Pr�ertv. Developer shall have the right to install "Coming Soon" signage on the Property. Said signage shall be designed, located, and installed in a manner reasonably acceptable to the Village and in conformance with the Village sign code. 11.8 Redevelopment Project Area. The Project will be located entirely within the Property. Notwithstanding the foregoing, all road and public utiliry improvements required for the Project that are located within the adjacent public rights-of-way are deemed to be within the Redevelopment Project Area. ARTICLE TWELVE REPRESENTATIONS AND WARRANTIES OF DEVELOPER 12.1 To induce the Village to execute this Agreement and perform the obligations of the Village herein, Developer represents, warrants, and agrees as the basis for the undertakings on its part herein contained that as of the date that Developer executesthis Agreement and until the date of Substantial Completion, the following are true and correct: A. Or�anization and Authorization. Developer is a duly organized and existing limited liability company in good standing under the laws of the State of Illinois and is authorized to and has the power to enter into, and by proper action has been duly authorized to do business in the State of Illinois and to execute, deliver and perform this Agreement. Developer is solvent, able to pay its debts as they mature and, with Developer Affiliate, is financially able to perform all the terms of this Agreement required of Developer which it does not intend to assign to a third-pariy through sale of part of the Property. There are no actions at law or similar proceedings which are pending orthreatened against Developer which would materially and adversely affect the ability of Developer to proceed with the construction and development of this project. The execution, delivery, and performance by Developer of this Agreement does not constitute or will not,upon the giving of notice or lapse of time, or both, constitute a breach or default under any other agreement to which Developer is a party or may be bound hereunder. B. Non-Conflict or Breach. Neither the execution or delivery of this Agreement by Developer, the consummation of the transactions contemplated hereby by Developer, nor the fulfillment of, or compliance with, the terms and conditions of this Agreement by Developer conflict with or results in a breach of any of the terms, conditions or provisions of any offerings or disclosure statement made or to be made on behalf of Developer or any organizational documents,any restriction,agreement or instrument to which Developer or any of its partners or joint venturers is now a party or by which Developer or any of its partners or joint venturers is bound, or constitutes a default under any of the foregoing, or results in the creation or imposition of any prohibited lien, charge or encumbrance whatsoever upon any of the assets or rights of Developer, any related party or any of its joint venturers under the terms of any instrument or agreement to which Developer, any related party or any of its partners or joint venturers is now a party or by which Developer any related party or any ofits joint venturers is bound. C. Financial Resources. Developer, and any of its affiliates or third parties to which portions of the Property are conveyed, have, or will have at the time of assignment, sufficient financial and economic resources to implement and complete the portion of the Project contemplated by this Agreement to be completed upon the portion of the Property they own or are conveyed. D. Survival of Representations and Warranties. Developer or its applicable assign(s) (if any) agrees that all of itsrepresentations and warranties set forth in this Article are true as of the execution date of this Agreement and shall remain true until the date of Substantial Completion of the Project. ARTICLE THIRTEEN REPRESENTATIONS AND WARRANTIES OF THE VILLAGE The Village represents, warrants, and agrees as the basis for the undertakings on its part herein contained that: 13.1 Organization and Authorit_v. The Village is a municipal corporation duly organized and validly existing under the law of the State of Illinois, is a home rule unit of government, and has all requisite corporate power and authority to enter into this Agreement. 13.2 Authorization. The execution, delivery and the performance of this Agreement andthe consummation by the Village of the transactions provided for herein and the compliance withthe provisions of this Agreement: (i) have been duly authorized by all necessary corporate action on the part of the Village including, but not limited to the proper formation of the TIF;(ii)require no other consents, approvals or authorizations on the part of the Village in connection with the Village's execution and delivery of this Agreement; and (iii) shall not, by lapse of time, giving of notice, or otherwise, result in any breach of any term, condition or provision of any indenture, agreement or other instrument to which the Village is subject. 13.3 Liti ag tion. To the best of the Village's knowledge, there are no proceedings pending against or affecting the Village, the TIF District, the Property, the Retail Project, or the Residential Project in any court or before any governmental authority which involves the possibility of materially or adversely affecting the ability of the Village to perform its obligations under this Agreement. 13.4 Establishment of New Tax Code: The Village will request that Cook County cause the Property, which his located within the 2023 Buffalo Grove Dundee Road TIF District, to be segregated into a new tax code and for that separate tax code to be maintained until after the Notes are issued and fully redeemed. The Parties acknowledge that the Village has made such a request pursuant to Cook County pursuant to the Village's letter dated November 9, 2023. 13.5 Survival of Representations and Warranties. The Village agrees that all of its representations and warranties set forth in this Section and elsewhere in this Agreement are true as of the execution date of this Agreement and shall remain true at least until the issuance of the Developer's Notes. ARTICLE FOURTEEN LIABILITY AND RISK INSURANCE 14.1. Builder's Risk. Prior to commencement of construction of any portion of the Project, Developer, at its cost and expense, shall procure and maintain, or cause to be procured and maintained, builder's risk insurance with a deductible not to exceed $100,000 against risks of physical loss, including collapse, covering the total value of work performed and equipment, supplies, and materials furnished for each Retail Private Buildings and for the Residential Private Building. The insurance policies required pursuant to this Section shall be maintained in full force and effect for each Retail Private Buildings and for the Residential Private Building until the date on which a certificate of occupancy is issued for such building. 14.2. Commercial Liabilitv and Other Policies. Developer, or, if Developer has selected a contractor, then Developer's contractor, shall maintain for the duration of its contract, the following insurance purchased from a company or companies lawfully authorized to do business in the State Illinoisand having a rating of at least A-minus and a class size of at least VIII as rated by A M. Best Ratings, such insurance as will protect the contractor from claims set forth below which may arise out of or result from the contractor's operations under the contract and for which the contractor may be legally liable, whether such operations be by the contractor or by a subcontractor or by anyone directly or indirectly employed by any of them, or by anyone for whose acts any of them may be liable: (a) Workers' Compensation Insurance covering all liability of the contractor arising under the Warkers' Compensation Act and Occupational Diseases Act; limits of liability not less than statutory requirements, but not to exceed $500,000 per injury or policy. (b) Employers' Liability covering all liability of contractor as employer, with limits not less than: $1,000,000 per injury - per occurrence; $500,000 per disease - per employee; and$1,000,000 per disease- policy limit. (c) Comprehensive General Liability in a broad form on an occurrence basis,to include but not be limited to, coverage for the following where exposure exists; Premises/Operations, Contractual Liability, Products/Completed Operations for 2 years following final payment, Independent Contractor's coverage to respond to claims for damages because of bodily injury, sickness or disease, or death of any person other than the contractor's employees as well as claims for damages insuredby usual personal injury liability coverage which are sustained: (i) by a person as a result of an offense directly or indirectly related to employment of such person by the contractor; or (ii) by another person and claims for damages, other than to the work itself, because of injury to or destruction of tangible property, including loss of use there from; Broad Form Properly Damage Endorsement. General Aggregate Limit $5,000,000 for Retail Project $ 5,000,000 for Residential Project $ 1,000,000 Each Occurrence Limit (d) Automobile Liability Insurance shall be maintained to respond to claims for damages because of bodily injury, death of a person or property damage arising out of ownership,maintenance,or use of a motor vehicle. This policy shall be written to cover any auto whether owned, leased, hired, or borrowed. Each Occurrence Limit $ 1,000,000 (e) Umbrella Insurance. Developer shall maintain an umbrella policy in the minimum amount of$5,000,000.00 for the Retail Project. Developer shall maintain an umbrella policy in the minimum amount of$5,000,000.00 for the Residential Project. 14.3 Developer agrees that with respect to theabove required insurance that each will require its contractor to: (a) Have the commercial general liability policy endorsed for the general aggregate toapply on a"per Project"basis; (b) Provide separate endorsements: to name the Village of Buffalo Grove as additional insured; (c) Provide thirty(30)days' notice, in writing, of cancellation ar material change. 14.4 The contractor's insurance shall be primary in the event of a claim. 14.5 The Village shall be provided with Certificates of Insurance and endorsements evidencing the above required insurance priar to issuance of any permits to start earth work or construction of work, and thereafter with certificates evidencing renewals or replacements of said policies of insurance at least thirty (30) days prior to the expiration or cancellation of any such policies. Said Notices and Certificates of Insurance shall be provided to: Village of Buffalo Grove Building Commissioner, 50 Raupp Blvd., Buffalo Grove 60089. Certificates of Insurance shall be provided only during the time periods set forth in this Section. 14.6 In addition, a Certificate of Insurance that states the Village has been endorsed as an "additional insured" by the Contractor's insurance carrier shall be provided to the Village. Specifically, this Certificate must include the following language: "The Village of Buffalo Grove and its elected and appointed officials, employees, agents, consultants, attorneys and representatives, are, and have been endorsed, as an additional insured under the above reference policy number on a primary and non-contributory basis for general liability and automobile liability coverage for the duration of the contract term." 14.7 Failure to Complv. In the event Developer fails toobtain or maintain any insurance coverages required under this Agreement, the Village may, after providing Developer with notice and an opportunity to cure as provided in this Agreement, purchase such insurance coverages and charge the expense thereof to the applicable Developer. Developer shallreimbursethe Village within thirty (30) days after receipt of an invoice for the coverage, or Developer shall stop allwork on its portion of the Project until said Developer has complied with the requirements of this Article. ARTICLE FIFTEEN DEFAULT AND REMEDIES 15.1 Defaults/Remedies. A. GeneraL In addition to any and all other remedies set forth in this Agreement, a breach of this Agreement, or if any of the Parties shall fail to perform or keep any term or condition required to be performed or kept by such party, such party shall, upon notice from the other party, proceed to cure or remedy such default or breach within forty-five (45) days after receipt of such notice from the Village (in the event of any such failure by Developer), or from Developer(in the event of any suchfailure by the Village); provided,however, that if such default is incapable of being cured within said forty-five (45) day period and the defaulting party commences to cure the default within said forty-five (45) day period and proceeds with due diligence to cure the same,the forty-five(45)dayperiod shall automatically be extended as reasonably necessary to complete such cure with due diligence but in no event longer than one hundred twenty (120) days unless otherwise approved by the Village, and such partyshall not be deemed to be in default under this Agreement ("Default"). In the event of an occurrence of a Default, the aggrieved parly or parties may institute such proceedings against thedefaulting party as may be necessary or desirable in its opinion to cure and remedy such default or breach, including seeking damages and/or specific performance and/or termination of this Agreement. B. Additional Events ofDefault for Developer. The following events shall alsobe deemed a Default against Developer under this Agreement up to and including the date of issuance of the Final Certificate of Occupancy for the last building to be constructed in the Retail Project, provided that the Village provides the notice and opportunity to cure in the manner set forth in this Agreement: (i) The entry of a decree or order for relief by a court having jurisdiction in the premises with respect to Developer, respectively, in an involuntary case under the federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal or state bankruptcy, insolvency or other similarlaw, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator(or similar official), of Developer for any substantial part of its properiy, or ordering the winding-up or liquidation of its affairs and the continuance of any such decree or order unstayed and in effect fora period of sixty (60)consecutive days. (ii) The commencement by Developer of a voluntary case under the federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal or state bankruptcy, insolvency or other similar law, or the consent by Developer to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or similar official), ofDeveloper. 152 Le ag 1 Fees. In the event legal action or other proceeding is brought for enforcement of this Agreement or with respect to an alleged breach, default or misrepresentation, each Party shall pay its own attorneys' fees and related costs. 153 No Waiver b.�Delay. Any delay by either party in instituting or prosecuting any actions or proceedings or otherwise asserting its rights under this Agreement shall not operate to act as a waiver of such rights or to deprive it of or limit such rights in any way (it being the intent of this provision that neither party should be deprived of or limited in the exercise of the remedies provided in this Agreement because of concepts of waiver, laches or otherwise);nor shall any waiver in fact made with respect to any specific Default be considered or treated as a waiver ofthe rights by the waiving party of any future Default hereunder, except to the extent specifically waived in writing. No waiver made with respect to the performance, nor the manner or time thereof, of any obligation or any condition under the Agreement shall be considered a waiver of any rights except if expressly waived in writing. 15.4 Rights and Remedies Cumulative. The rights and remedies of the Parties to this Agreement, whether provided by law or equity or by this Agreement,shall be cumulative,and the exercise of any one or more of such remedies shall not preclude or limit the exercise by such Party, at that time or different times, of any other such remedies for the same Default or otherwise. ARTICLE SIXTEEN EQUAL EMPLOYMENT OPPORTUNITY AND PREVAILING WAGE 16.1 No Discrimination. Developer will not discriminate against any employee or applicant for employment on the basis of race, color, religion, sex or national origin. To the fullest extent permitted by law,Developer will take affirmative action to ensure that applicants are employed and treated during employment,without regard to their race, color, religion, sex or national origin. Such action shall include,but not be limited to,the following: employment, upgrading, demotion,transfer, recruitment, recruitment advertising, layoff, termination, rate of pay or other forms of compensation and selection for training, including apprenticeship. Developer agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause. 16.2 Advertisements. Developer will, in all solicitations or advertisements for employees placed by or on behalf of Developer, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. 16.3 Contractors. Any contracts made Developer with its general contractor in connection with the Project, shall contain language similar to that recited in this Sections above. 16.4 Prevailing Wa�e Act. Developer agrees to comply with the applicable provisions, if any, ofthe Illinois State law providing for the payment ofthe prevailing rate of wagewith respect to work on any portion of the Project that is required under the Prevailing Wage Act to be paid the prevailing rate of wage. ARTICLE SEVENTEEN MISCELLANEOUS PROVISIONS 17.1 Notices. All notices, certificates, approvals, consents or other communications desired or required to be given hereunder shall be given in writing at the addresses set forth below by the following means: (a) personal service; (b) overnight courier; or (c) registered or certified first-class mail, postage prepaid, return receipt requested. If to Village: Village of Buffalo Grove 50 Raupp Blvd. Buffalo Grove, IL 60089 ATTN: Village Manager Email: dbrag�(a�v, bg.org With a copy to: Schain Banks 70 W. Madison Street, Suite 5400 Chicago, IL 60602 ATTN: Patrick T. Brankin Email: pbrankin(a�schainbanks.com If to Developer: Shorewood Development Group 860 N. Milwaukee Ave., Suite 100 Buffalo Grove, IL 60089 ATTN: Louis Schriber, III, President EmaiL• Louis(�a,ShorewoodDevelopmentGroup.com With a copy to: Shorewood Development Group 860 N. Milwaukee Ave., Suite 100 Buffalo Grove, IL 60089 ATTN: T. Ryan Fitzgerald Email: R�(a�ShorewoodDevelopmentGroup.com The Parties, by notice hereunder, may designate any further or different addresses to which subsequent notices, certificates, approvals, consents, or other communications shall be sent. Any notice, demand or request sent pursuant to clause(a) hereof shall be deemed receivedupon such personal service. Any notice, demand or requestsent pursuant to cause (b) shall be deemed received on the business day immediately following deposit with the overnight courier, and any notices, demands or requests sent pursuant to clause (c) shall be deemed received forty-eight (48) hours following deposit in the mail. In all instances, any notice sent pursuant to clause (a), (b) or (c) will also require that a copy of such notice shall be sent by e-mail to the Email referenced in this Section 17.1. 17.2 Time of the Essence. Time is of the essence of this Agreement. 173 Counterparts. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same Agreement. 17.4 Recordation of Agreement. The Parties agree to record this Agreement in the office of the Cook County Recorder of Deeds, and that this agreement shall run with the land and shall be binding on all successors, assigns and future owners, but subject to the rights and protections of any Mortgagee Party as provided herein. Upon request, the Village will record a release of any Developer obligations applicable to any particular lot in the Final Subdivision Plat upon the issuance of a certificate of occupancy for the building constructed upon said lot upon substantial completion of said building and portion of the Project applicable to said lot. 17.5 Severabilitv. If any provision of this Agreement, or any section, sentence, clause,phrase or word,or the application thereof,in any circumstance, is held to be invalid, the remainder of this Agreement shall be construed as if such invalid part were never included herein, and this Agreement shall be and remain valid and enforceable to the fullest extent permitted by law. 17.6 Choice of Law. This Agreement shall be governed by and construed in accordancewith the laws of the State of Illinois. 17.7 Entire Contract: Inte�ration. This Agreement (together with the exhibits attached hereto) is the entire contract between the Village and Developer relating to the subject matter hereof, supersedes all prior and contemporaneous negotiations, understandings, and agreements, written or oral, including but not limited to the Memorandum of Understanding, and is a full integration of the agreement of the Parties. 17.8. Amendments. This Agreement may not be modified or amended except by a written instrument executed by the parties hereto. 179 Third Parties. Nothing in this Agreement, whether expressed or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any other persons other than the Village and Developer. This Agreement is not intended to, and does not, create any third-party beneficiary rights whatsoever. 17.10 Waiver. Any party to this Agreement may elect to waive any right or remedy it may enjoy hereunder, provided that no such waiver shall be deemed to exist unless such waiver is in writing. No such waiver shall obligate the waiver of any other right or remedy hereunder, or shall be deemed to constitute a waiver of other rights and remedies provided pursuant to this Agreement. 17.11 Cooperation and Further Assurances. The Village and Developer each covenants and agrees that each will do, execute, acknowledge and deliver or cause to be done, executed and delivered, such agreements, instruments and documents supplemental hereto and such further acts, instruments, pledges and transfers as may be reasonably required for the better clarifying, assuring,mortgaging, conveying,transferring,pledging, assigning and confirming unto the Village or Developer or other appropriate persons, all and singular, the rights, properly and revenues covenanted, agreed, conveyed, assigned, transferred and pledged under or in respect of this Agreement. 17.12 Nature, Survival, and Transfer of Obligations. A. Developer. Developer may assign the rights and obligations of this Agreement pertaining to the Retail Project or parts thereof(before or after completion of construction), to a Developer Affiliate without further Village approval, who will then assume all obligations of Developer as to the assigned project, subject to this Agreement which shall include assignee agreeing to comply with the PUD Ordinance and this Agreement relieving Developer of any further obligations relating to such assigned portions, but not altering Developer's reimbursement rights under the Primary Developer Note or the Subordinate Developer Note. Any other assignment of the rights conferred by this Agreement to Developer shall require Village approval, which shall not be unreasonably withheld. So long as an assignment has been completed between Developer and Developer Affiliate, the obligations of Developer will be deemed to have been performed by Developer if done so by a Developer Affiliate. B. Developer Affiliate. "Developer Affiliate" shall mean, with respect to any Person, (a) any other Person which directly or indirectly through one or more intermediaries controls, is controlled by,or is under common control with,(i) such Person or(ii)any general partner, manager or managing member of such Person; (b) any other Person 50% or more of the equity interest of which is held beneficially or of record by (i) such person or (ii) any general partner, manager or managing member of such Person, or (c) any general partner, limited partner or member of (i) such Person or (ii) any general partner or managing member of such Person. As used in the previous sentence, "control" means the possession, directly or indirectly, of the power to cause thedirection of the management of a Person,whether through voting securities,by contract, family relationship or otherwise. For clarity, the Village agrees that SDG Dundee Development LLC, an Illinois limited liability company and SDG Dundee LLC, an Illinois limited liability company are deemed to be a "Developer Affiliate" to each other. C. Binding Effect. All obligations assumed by Developer under this Agreement shall be binding upon that Developer, and upon any and all of that Developer's heirs, successors, and assigns as approved by the Village, as set forth herein. D. Excluded Assi�nments. This Agreement does not prohibit, nar require the Village's consent to, the collateral assignment of this Agreement to any Mortgagee Party (defined below). If any Mortgagee Party shall succeed to Developer's interest in the Property pursuant to the exercise of remedies under a mortgage or joint venture agreement, whether by foreclosure or deed in lieu of foreclosure, and in conjunction therewith accepts an assignment of Developer's interest in this Agreement,the Village hereby agrees to attorn to and recognize such party as the successor in interest to Developer for all purposes under this Agreement so long as such parly accepts all of the obligations and liabilities of Developer hereunder and under the this Agreement and final PUD plan; provided, however, that: a. If such party accepts an assignment of Developer's interest under this Agreement, then such party has no liability under this Agreement for any Event of Default of Developer which accrued prior to the time such party succeeded to the interest of Developer under this Agreement (a "Pre-Existing Default"), in which case Developer shall remain solely responsible; but b. No party who has succeeded to the interest of Developer under this Agreement shall have any right to any permit or approval from the Village to the extent that a Pre-Existing Default has resulted in noncompliance under the PUD or this Agreement unless and until such noncompliance with the PUD ar this Agreement has been corrected. If any mortgagee does not expressly accept an assignment developers' interest hereunder, thensuch party shall be entitled to no rights and benefits under this Agreement. E. The Villa�e. Notwithstanding anything herein to the contrary, the Village may not delegate its obligation hereunder or except as provided herein without the express written approval of Developer. 17.13 Mortga eg e Rights. Notwithstanding the foregoing or anything to the contrary contained herein or in any of the Redevelopment Documents (defined below), the parties hereto agree as follows: A. Developer shall have the right to collaterally assign its rights and interests under this Agreement and any and all instruments,agreements and documents relating to this Agreement and/or the Property or Improvements (this Agreement, the Notes and the foregoing instruments, agreements and documents, each as amended or restated from time to time, are collectively referred to as the "Redevelopment Documents") to any Person who hold a first mortgage lien against all or any portion of the Property (such Person, together with (i) its successors and/or assigns, (ii) any receiver appointed at the request of such Person and (iii) any transferee who acquires ownership of any portion of the Property from such Person or from such receiver, is referred to as a"Mortgagee Parry"). "Foreclosure" shall mean and include a foreclosure of any mortgage by any Mortgagee Party (or its assignees or designees) by judicial action or any acquisition of the Property pursuant to a deed in lieu of foreclosure. B. Developer's granting of a mortgage and related liens to Mortgagee Party and any transfer of title of the Property to Mortgagee Party pursuant to a Foreclosure shall not constitute a violation of any provision of the Redevelopment Documents. In connection with or following a Foreclosure, (i) the Village shall not be required to further consent to or approve any proposed assignment and assumption by Mortgagee Party of rights or obligations under the Redevelopment Documents, (ii) the Village shall not unreasonably withhold or delay its approval of any reasonable extensions of time periods up to one hundred twenty (120) days for performance set forth in the Redevelopment Documents. C. In the event of a default by Developer under any of the Redevelopment Documents,the Village (i) shall give a written notice of such default to the Mortgagee Party of record; (ii) such Mortgagee Party shall have the right (but not the obligation) to cure such default within ninety (90)days after the expiration of Developer's applicable cure period; and(iii) if such default is not susceptible of cure within said ninety (90) day period, then Mortgagee Party shall have the right (but not the obligation) to commence to cure such default within one hundred twenty (120) days of Mortgagee Party's receipt of the notice of the applicable default and such period shall be extended thereafter for so long as Mortgagee Pariy diligently prosecutes the cure thereof (including such period of time as is necessary for Mortgagee Party to obtain appointment of a receiver for the Property and/or obtain ownership thereof by Foreclosure), but not longer than additional ninety (90) days beyond the previously referenced one hundred twenty (120) days, unless otherwise agreed to by the Village and Mortgagee. D. The initial Mortgagee Party shall be Associated Bank,National Association. All notices to such initial Mortgagee Party shall be given to the following address (or any other address of which such Mortgagee Party has notified the Village in writing) by certified mail or a nationally recognized commercial courier (such as Federal Express), in each case, with proof of delivery requested: Associated Bank,National Association 525 W. Monroe Street, 24'h Floor Chicago, Illinois 60661 Attention: Daniel P. Barrins E. Prior to a Mortgagee Party delivering writing notice to the Village that such Mortgagee Party is assuming the rights and obligations of Developer under the Redevelopment Documents, no Mortgagee Party shall be liable for any costs, expenses, liabilities or obligations arising under the Redevelopment Documents. F. If Associated Bank,National Association(or a successor Mortgagee Party)is the owner of any portion of Property at the time the Funding Conditions are satisfied, then (i) each Note shall be issued to and made payable to Associated Bank, National Association (or any appliable successor Mortgagee Party), (ii)all funds on deposit in the TIF Funding Escrow which are payable on account of any Note shall be held therein for the benefit of Associated Bank, National Association (or any appliable successor Mortgagee Party), (iii) Associated Bank, National Association (or any appliable successor Mortgagee Party) shall have the right to sell and/or otherwise transfer its rights under any such Note, in accordance with the terms of the Notes and the Note Ordinance. G. The proceeds of any builder's risk insurance maintained by Developer shall be applied and administered pursuant to and in accardance with the provisions of the loan documents between Mortgagee Party and Developer(and/or its affiliates). 17.14 No Joint Venture, A�ency or Partnership Created. Nothing in this Agreement, or any actions of the Parties to this Agreement, shall be construed by the Parties or any third person to create the relationship of a partnership, agency, or joint venture between or among such parties. 17.15 Repealer. To the extent that any ordinance, resolution, rule, order, or provision of the Village's code of ordinances, or any part thereof, is in conflict with the provisions of this Agreement, the provisions of this Agreement shall be controlling, to the extent lawful. Notwithstanding the foregoing, in the event of a conflict between this Agreement and the PUD, the more restrictive shall apply. 17.16 Term. Except as provided in this Section or as specified in other Sections of this Agreement, the Parties understand and acknowledge that payment obligations of the Village to the Developer shall not be longer than the maturity date of the Notes,as established pursuant to Section 5.3(c)(1) hereof, or the date on which the Notes have been paid in full, whichever comes sooner, unless the Project is abandoned or otherwise terminated. The Village agrees not to terminate the TIF early without payment in full of its obligations to Developer pursuant to this Agreement. Notwithstanding any provision in this Agreement to the contrary, in the event Developer and/or Developer Affiliate does not close on the acquisition of the Property prior to March 1, 2024 then this Agreement shall be null and void and of no force and effect without any further action of the Parties necessary. The date for completing the acquisition of the Property may be extended for an additional3-month or June 1, 2024 in writing by the Village Manager. Proof of acquisition of the Property shall be provided by the Developer. 17.17 Estoppel Certificates. Each of the parties hereto agrees to provide the other, upon not less than fifteen (15) days prior request, an estoppel certificate certifying that this Agreement is in full force and effect(unless such is not the case, in which such parties shall specify the basisfor such claim), that the requesting party is not in default of any term, provision ar condition of this Agreement beyond any applicable notice and cure provision (or specifying each such claimed default), and certifying such other matters reasonably requested by the requesting party. 17.17 Drafter Bias. The Parties acknowledge and agree that the terms of this Agreement are the result of on-going and extensive negotiations between the Parties, all of which are represented by independent counsel and that this Agreement is a compilation of said negotiations. As a result, in the event that a court is asked to interpret any portion of this agreement, none of its parties shall be deemed the drafter hereof and none shall be given the benefit of such presumption that may be set out by law. ]7.1 S Redevelopment Agreement. In the event that litigation is commenced against the Village challenging the terms, conditions, or approvals contemplated by or set forth in, this Agreement, including but not limited to zoning or other entitlements, the Village and Developers agree to mutually defend such litigation, including the hiring of attorneys and consultants as deemed necessary and prudent and the splitting of the cost of such attorneys and consultants. ARTICLE EIGHTEEN REIMBURSEMENT OF PROFESSIONAL FEES Up to a maximum $70,000 Developer shall reimburse Village for all professional fees incurred far the negotiation and preparation of this Agreement including but not limited to attorney's and consultant's fees, exclusive of Bond Counsel Costs for issuing the Developer Notes. ARTICLE NINETEEN EFFECTIVENESS Developer shall execute this Agreement not later than 30 days after the Corporate Authorities' authorization of execution of this Agreement or else this Agreement will be deemed void. SIGNATURES ON NEXT PAGE IN WITNESS WHEREOF the Parties hereto have caused this Agreement to be executedon or as of the day and year first above written. VILLAGE OF BUFFALO GROVE By: Name: �1'►C �1. S�,,,,; }-�' Title: V ► ��Gl�e }��''eSider�.�" � SDG Dundee Development, LLC By: �L Name: ��u�s �l ��_�_,,, � � � Title: �"�r�� '� ��� �c Exhibits Ea�hibit A - Legal Description of Property Exhibit B — Site Plan Exhibit C—Retail Completion Guaranty Exhibit D—Estimated Total Project Costs and Projected Eligible Expenses Exhibit E—TIF Funding Escrow Exhibit F—Primary Developer Note Exhibit G—Intentionally omitted Exhibit H— Subordinate Developer Note E�ibit I—Certification Request—Redevelopment Project Costs E�ibit J - Development Improvement Agreement Exhibit K—Funding Certification Exhibit L—Certificate of Substantial Completion EXHIBIT A Map � Dundee Rd � - , N L m �-��.� = e v _� � � � 9:5 .........' C � V 935 �S � a al5 z .. '� � � ^ 1_.J i_�.. Z . � . . i 9s5 � + P ---- a �er Dr __ _ x P __-�� � �C_ „ 3 A6 �i 9s1 454� a;5... .4t" � ' '1 ... �._ Oid Arlington Ct c M p y� < <, e a _ ... ,� .., ' �m , Address 915-945 Dundee Road, Buffalo Grove, IL Le�al Description PARCEL 1: LOT 1 IN THE RESUBDIVISION RECORDED JANUARY 3l, ]980 AS DOCUMENT 25344703, BEING A RESUBDIVISION OF LOT 1 IN GRAND SPAULDING DODGE SUBDIVISION RECORDED DECEMBER 17, 1976 AS DOCUMENT 23752075, BEING A SUBDIVISION OF PART OF THE WEST l/2 OF SECTION 8, TOWNSHIP 42 NORTH, RANGE 1 l EAST OF THE THIRD PRINCIPAL MERIDIAN, IN COOK COUNTY, ILLINOIS. PARCEL 2: LOT 1 IN CHRYSLER REALTY SUBDNISION, A RESUBDNISION OF PART OF AN iJNNUMBERED LOT IN GRAND SPAULDING DODGE SUBDNISION, RECORDED MAY 25, 1988 AS DOCUMENT NUMBER 88224282, IN THE WEST 1/2 OF SECTION 8, TOWNSHIP 42 NORTH, RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN, IN THE VILLAGE OF BUFFALO GROVE, IN COOK COUNTY, ILLINOIS. PARCEL 3: LOT 2 IN THE RESUBDIVISION RECORDED JANUARY 31, 1980 AS DOCUMENT 25344703, BEING A RESUBDNISION OF LOT 1 IN GRAND SPAULDING DODGE SUBDIVISION, RECORDED DECEMBER 17, 1976 AS DOCUMENT 23752075, BEING A SUBDNISION OF PART OF THE WEST l/2 OF SECTION 8, TOWNSHIP 42 NORTH, RANGE 1 l, EAST OF THE THIRD PRINCIPAL MERIDIAN, IN COOK COLINTY, ILLINOIS. PARCEL 4: THAT PART OF THE WEST 1/2 OF SECTION 8, TOWNSHIP 42 NORTH, RANGE 1 l, EAST OF THE THIRD PRINCIPAL MERIDIAN, DESCRIBED AS FOLLOWS: BEGINNING AT A ONE INCH OUTSIDE DIAMETER IRON PIPE MARKING THE NORTHEAST CORNER OF LOT 1 IN CHRYSLER REALTY SUBDNISION, A SUBDNISION RECORDED MAY 25, 1988 AS DOCUMENT NUMBER 88224282; THENCE SOUTHWESTERLY, WESTERLY AND NORTHWESTERLY ALONG THE NORTH LINE OF SAID LOT 1 AS MONUMENTED, BEING A CURVE CONCAVE NORTHERLY, HAVING A RADIUS OF 430.00 FEET, A CHORD BEARING OF NORTH 84 DEGREES 55 MINUTES 06 SECONDS WEST, A CHORD LENGTH OF 429.89 FEET, AN ARC LENGTH OF 450.17 FEET TO THE NORTHWEST CORNER OF SAID LOT l, SAID NORTHWEST CORNER BEING ON THE EASTERLY LINE OF OLD ARLINGTON HEIGHTS ROAD AS DEDICATED BY DOCUMENT 21043975; THENCE NORTH 02 DEGREES 44 MINUTES 55 SECONDS EAST ALONG SAID EASTERLY LINE, 507.47 FEET TO THE SOUTH LINE OF EAST DUNDEE ROAD AS DEDICATED BY DOCUMENT 21043975; THENCE SOUTH 89 DEGREES 36 MINUTES 43 SECONDS EAST ALONG SAID SOUTH LINE, 402.65 FEET TO THE NORTHWEST CORNER OF LOT 1 IN THE RESUBDIVISION OF LOT 1 IN GRAND- SPAULDING DODGE, ACCORDING TO SA[D PLAT OF RESUBDIVISION RECORDED JANUARY 31, 1980 AS DOCUMENT 25344703; THENCE SOUTH 00 DEGREES 07 MINUTES 47 SECONDS EAST, ALONG THE WEST LINE OF SAID LOT l, A DISTANCE OF 542.24 FEET TO THE POINT OF BEGINNING; IN COOK COUNTY, ILLINOIS. PINS: 03-08-101-020, 03-OS-101-021, 03-08-101-025, & 03-08-101-028 2 __ __ EXHIBIT B Plan Set ' � shorewood PROPOSED BISON CROSSING BUFFALO GROVE DEVELOPMENT Shorewood Development Group is developing the proposed Lot 1 (+/-5.611 acres)with a+/-50,354 square foot Tesla occupied Sales,Service and Delivery Center(SSD). Every Tesla is delivered and serviced through one of these SSD Centers. This state-of-the-art facility will provide full sales,service and charging capabilities at this location. The expanded parking lot will make this a regional destination. Lot 2 (+/-4.891 acres) is planned to be re-subdivided into two parcels upon final determination of end users. Lot 3 (+/-5.688 acres) is for residential use. � � � shorewood PROPOSED BISON CROSSING BUFFALO GROVE DEVELOPMENT Shorewood Development Group is developing the proposed Lot 1 (+/-5.611 acres)with a+/-50,354 square foot Tesla occupied Sales,Service and Delivery Center(SSD). Note the following for the SSD facility: • Store Hours o Monday(10:00 am—8:00 pm) o Tuesday(10:00 am—8:00 pm) o Wednesday(10:00 am—8:00 pm) o Thursday(10:00 am—8:00 pm) o Friday(10:00 am—8:00 pm) o Saturday(10:00 am-8:00 pm) o Sunday(CLOSED) • Service Hours o Monday (10:00 am—5:00 pm) o Tuesday(10:00 am—5:00 pm) o Wednesday(10:00 am—5:00 pm) o Thursday(10:OOam—S:OOpmj o Friday(10:00 am—5:00 pmJ o Saturday (10:00 om-5:00 pm) o Sunday(CLOSED) • Number of Staff(20-22) • Charging Stations (4 superchargers and 19 wall chargers) • Typical number of cars stored on lot (15 loaners, 6 demo, 20 service, 40 delivery) • Delivery Route. The car hauler delivery location is on the east side of the property at the enlarged designated loading area (198'x 18'). See truck turn exhibit for reference. Lot 2 (+/-4.891 acres) is planned to be re-subdivided into two parcels upon final determination of end users. 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'JNi'u1o1w��Y aW�H i OeaN CLOL 61V61+<GO� DOUBLE EAGLE DEVELOPMENT 332 North Arlington Heights Road Proiect Narrative Double Eagle Development("Double Eagle") has commenced a partnership with Shorewood Development ("Shorewood")to develop approximately 5.63 acres of land located at 332 North Arlington Heights Road.Shorewood is under contract to purchase approximately 16 acres of land at the southeast corner of North Old Arlington Heights Road and East Dundee Road. Shorewood plans to develop 10.5 acres for retail use and sell the remaining 5.63 acres to Double Eagle to develop a multifamily residential community. Presently the 16 acres consist of car dealerships that have been vacant for over 10 years.The ' development vision is to revitalize this blighted area with new retail along Dundee Road and luxury rental housing on the southwest interior portion of the site. The partnership's goal is to provide high quality redevelopment of the 16 acres that will benefit the Village of Buffalo Grove and its residents by creating job opportunities,strengthening the Dundee commercial corridor, enhancing the tax base, and diversifying the housing stock with underrepresented luxury rental offerings. Double Eagle and Shorewood are committed to delivering thoughtfully designed � buildings that will reactivate the area and serve the community. I, Double Eagle's proposed vision for the residential development is to create an elegant and well- I appointed community that will attract and retain residents to Buffalo Grove and compliment the surrounding neighborhood. Our goal is to provide much needed new luxury rental offerings that will , cater to the needs of today's suburban lifestyle. The project will consist of approximately 224 residences situated within a four-story luxury buildings.The building design will reflect the architectural character of the modern homes recently built in the area. Throughout the community there will be lush landscaping. Residents in the community will enjoy a I variety of convenient amenities including a fitness center, coworking area, reservable lounge, outdoor pool,grill stations,fire pits, and a dog park. The building will offer 25 private single car garages with direct access to the interior corridor. Ground floor units will have outdoor patios. Upper floor units will have elevator access, balconies or Juliet balconies. The benefits of the design lie in its balance of proper height, practical density,varied parking options, and a serene resort-style central courtyard. Residents will be attracted to the community because of its relatability to sophisticated suburban single-family living combined with white glove professional management and convenient amenities. I The proposed project will deliver a type of residential offering that has been ultra successful in like-kind I' communities such as Deer Park,Vernon Hills, and Wheeling. Double Eagle is honored to have the opportunity to deliver a beautiful and enduring development to the Buffalo Grove community. 13075 Manchester Road Suite 250 St. Louis MO 63131 I , � , d __ —__—— � I$ O e r � x----x ■ '\ � i �8 � . � I a �t� Q , ' - - __= I�`� � o ���� I - � � ' � ! �� � ��� i � � ��� �� o �� z - - � � - > , -a---'- I o ; ,ru�o�.��.,--------- - �� � �, --- ,. c� � `� �� � W - z . � � a � � o II � J I J Q , , � - ,� � � � � ' • - .� , .. �i�_ . �i, . � •i_ _ Z i ww _ i I ?� �.O. . �i� � •• �y 4 i� LL> � � O i Q ..� �I � W . � o � o 'o� � f� $y :�� i � �I, o� . �� I�: - 0• � aeaaeaaeal� �, Q � �� � �� ' � �_ _I'_ •.- � I F� . 1 z �� .� _� �• . Z g � �� � " Oe i a i �o .I�� ' i s��ia.� � U o LL W �--t- ..�i . > R ; : w � _— _ � // � i � .. 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Q rv� m� LL � �W A � �= aj U � J 1 C m � Q J 4 3 3 a N UJ r—� - '----- --� a a �; ~ o �' in� ~ a�i LL� � ;LL y N w - F 2 LL T � �Q _ l0 + - W = •�W - '_ "" � � I _ a � O c� � ' / - L "a` o' °' � °� E � 2 d `\ � � > - O Z W � — C LL�= LL�= Q � 00(7 �aC7 � Z ��_ �U S N � + +U M O � m F y w x c� x Exhibit C GUARANTY OF COMPLETION THIS GUARANTY OF COMPLETION (the "Guaranty") is made as of , 2024, by SDG DUNDEE DEVELOPMENT LLC ("Guarantor") to VILLAGE OF BUFFALO GROVE,ILLINOIS, an Illinois municipal home rule corporation("Village"). WITNESSETH: WHEREAS,Guarantor and Village have executed that certain Redevelopment Agreement dated of even date herewith (the "Agreement") for the redevelopment of real property located at 915-945 Dundee Road,in the Village and the construction of the Project(as defined in the Agreement)on said real property; WHEREAS, Village is not willing to enter into the Agreement unless Guarantor guarantees performance to Village of the Guaranteed Obligation(as herein defined); and NOW, THEREFORE, as an inducement to Village to execute the Agreement, and for other good and valuable consideration,the receipt and legal sufficiency of which are hereby acknowledged,Guarantor hereby agree as follows: ARTICLE 1 �' DEFINED TERMS '' Section 1.01 Defined Terms. Capitalized terms used in this Guaranty and not specifically � defined in this Guaranty have the meaning provided in the Agreement. ARTICLE 2 NATURE AND SCOPE OF GUARANTY Section 2.01 Guarantv of Obli a� tion. Guarantor hereby irrevocably covenants and agrees that Guarantor is liable far the Guaranteed Obligation as primary obligor. Section 2.02 Definition of Guaranteed Obli a_�. As used herein, the term "Guaranteed Obligation"means the prompt and complete performance of the obligations of Developer to construct and complete the Retail Project in accordance with Section 8 of the Agreement as it pertains to Lot 1, free and clear of all defects and liens and in compliance with all laws, rules, permits, requirements and regulations of any governmental authority and in accordance with and subject to the requirements, conditions and limitations of the Agreement. Section 2.03 Remedies of Villa�e. (a) Upon the occurrence of an Event of Default by Developer under the Agreement in connection with the performance of the Guaranteed Obligation, Guarantor shall, on or prior to ten (l0) days' after such written demand by Village, commence performance of the Guaranteed Obligation and diligently pursue performance thereof to completion. If Guarantor fails to commence and pursue diligently the performance of the Guaranteed Obligation within the applicable period set forth in Section 15.1.A of the Agreement after written demand by Village, then, either before or after pursuing any other remedy of Village against Guarantor and regardless of whether Village shall ever pursue any such other remedy,Village shall have the right to complete the Retail Project, or call upon any other reputable parties to complete the Retail Project in � _ ._. _ ___ -T,,,� accordance with the Plans (as may be modified in accordance with the terms of the Agreement) and shall have the right to expend such sums as Village in its discretion deems proper in order to complete the Retail Project. During any construction undertaken by Village or by any other party on behalf of Village pursuant to this Section 2.03(a), Guarantor shall pay on demand all costs and expenses actually incurred by Village to complete the Retail Project in accordance with this Section 2.03(a). Village may at any time require Guarantor to perform or supervise the performance of such work in lieu of Village or any party engaged by Village. (b) Guarantor agrees to indemnify,defend and hold Village harmless from and against any and all loss,damage,cost,expense,injury or liability Village may suffer or incur in connection with any claims by any third party brought as a result of the performance of the Guaranteed Obligation by Guarantor. (c) For purposes of this Section 2.03, the Retail Project shall be deemed to be completed upon issuance by Village Manager of a Certificate of Substantial Completion in respect of Substantial Completion — Retail Car Dealer. The Village shall cause the Village Manager to issue such certificate as and to the extent provided for in the Agreement. ARTICLE 3 GENERAL TERMS AND CONDITIONS Section 3.01 Nature of Guarantv. This Guaranty may not be revoked by Guarantor and shall continue to be effective with respect to any Guaranteed Obligation existing after any attempted revocation by Guarantor. Section 3.02 Enfarcement Costs. Guarantor hereby agrees to pay, on written demand by Village, all reasonable costs incurred by Village in collecting any amount payable under this Guaranty or enforcing or protecting its rights under the Guaranty, in each case whether legal proceedings are commenced. Such fees and expenses shall be in addition to the Guaranteed Obligation and shall include, without limitation, costs and expenses of counsel, court fees, costs incurred in connection with pre-trial, trial and appellate level proceedings (including discovery and expert wimesses), costs incurred in post- judgment collection efforts or in any bankruptcy proceeding to the extent such costs relate to the Guaranteed Obligations or the enforcement of this Guaranty. Amounts incurred by Village shall be immediately due and payable upon demand and shall bear interest at a rate of twelve percent(12%)per annum from the date of disbursement until paid in full upon. Guarantor's obligations under this Section 3.02 shall survive the performance of the Guaranteed Obligation. Section 3.03 Cumulative Remedies. Guarantor acknowledges that, following an Event of Default, Village is entitled to exercise all rights and remedies at law or in equity as have been provided to Village under the Agreement and this Guaranty. All rights and remedies of Village are cumulative and may be exercised independently, concurrently or successively in Village's sole discretion and as often as occasion therefor shall arise. Village's delay or failure to exercise any remedy upon the occurrence of an Event of Default shall not be deemed a waiver of such right or remedy. No partial exercise by Village of any right or remedy will preclude further exercise thereof. Notice ar demand given to Guarantor in any instance will not entitle Guarantor to notice or demand in similar or other circumstances nor constitute Village's waiver of its right to take any future action in any circumstance without notice or demand. Village shall not be deemed as a consequence of its delay or failure to act, or any forbearance granted, to have waived or be estopped from exercising any of its rights or remedies. 2 ARTICLE 4 MISCELLANEOUS Section 4.01 Continuing Guarantv. This Guaranty shall in all respects be a continuing guaranty, remaining in full force and effect until all of Guarantor's obligations hereunder have been satisfied in full. Section 4.02 Successors and Assigns. All obligations under this Guaranty shall be binding upon Guarantor and Guarantor's legal representatives, successors and assigns. Section 4.03 Time of Essence. Time is of the essence of this Guaranty. Section 4.04 Definitions, Captions;Gender. Any capitalized term not defined herein but , defined in the Agreement shall have the same meaning herein as such term has in the Agreement. I With respect to any reference in this Guaranty to any defined term: (a) if such defined term refers to a Person, or a trust, corporation, partnership or other entity, then such term shall also mean all heirs, personal representatives, successors and assigns of such Person or entity; and (b) if such defined term refers to a document, instrument or agreement, then such term shall also include any replacement, extension or other modification thereof. Captions contained in this Guaranty in no way define, limit ar extend the scope or intent of their respective provisions. Use of the masculine, feminine or neuter gender and of singular and plural shall not be given the effect of any exclusion or limitation herein. Section 4.05 Including Means without Limitation. The use in this Guaranty of the term "including", and related terms such as "include", shall in all cases mean "without limitation". Section 4.06 Notices. Except for any notice required under applicable law to be given in another manner, any notice that Village or Guarantor may desire or be required to give under this Guaranty to any other party hereto shall be in writing and shall be deemed to have been properly given, served and received (i) if delivered by messenger, when delivered, (ii) if deposited in the United States certified or registered mail, postage prepaid, return receipt requested, on the third business day after depositing in the mail,or(iii)if delivered by reputable overnight express carrier, freight prepaid, the next business day after delivery to such carrier, addressed to such party as follows: If to Guarantor: With a copy to: If to Village: Village of Buffalo Grove 50 Raupp Blvd. Buffalo Grove, IL 60089 ATTN: Village Manager With a copy to: Schain Banks 70 W. Madison Street, Suite 5400 Chicago, IL 60602 3 ATTN: Patrick T. Brankin Any party may change the address to which notices may be sent by notice to the other party or parties as provided herein. Section 4.07 Entire Agreement. This Guaranty and the Agreement constitute the entire agreement of Guarantor and Village and supersede any prior agreement with respect to the subject matter thereof. Section 4.08 No Modification without Writin�. This Guaranty may not be terminated or modified in any way nor can any right of Village or any obligation of Guarantor be waived or modified, except as provided in Section 4.14 below or by a writing signed by Village and such Guarantor. Section 4.09 Severabilitv. Each provision of this Guaranty shall be interpreted so as to be effective and valid under applicable law, but if any provision of this Guaranty shall in any respect be ineffective or invalid under such law, such ineffectiveness or invalidity shall not affect the remainder of such provision or the remaining provisions of this Guaranty. Section 4.10 Cumulative. The obligations of Guarantor hereunder are in addition to any other obligations Guarantor may now or hereafter have to Village. All rights and remedies of Village and all obligations of Guarantor under this Guaranty are cumulative. In addition, Village shall have all rights and remedies available to Village in law or equity for the enforcement of this Guaranty. Section 4.11 Effect of Village's Delav or Action. No delay by Village in the exercise of any right or remedy shall operate as a waiver thereof, and no single or partial exercise by Village of any right or remedy shall preclude any other exercise thereof or the exercise of any other right or remedy. No action of Village permitted hereunder shall in any way impair or otherwise affect any right of Village or obligation of Guarantor under this Guaranty. Section 4.12 Governing Law. This Guaranty has been delivered at Buffalo Grove, Illinois, and shall be construed under and governed by the internal laws of the State of Illinois. Guarantor acknowledges that Village may be irreparably harmed if required to institute or defend any action in any jurisdiction other than the United States District Court for the Northern District of Illinois or Lake County, Illinois. Therefore, Guarantor irrevocably (a) agrees that any suit, action ar other legal proceeding relating to this Guaranty may be brought only in the Circuit Court of Lake County or in the United States District Court for Northern District of Illinois, at Village's option; (b) consents to the jurisdiction of each such court in any such suit, action or proceeding; (c)waives any objection which Guarantors may have to the laying of venue in any such suit, action or proceeding in either such court; and (d) agrees to join Village in any petition for removal to either such court. Section 4.13 WAIVER OF JURY TRIAL. GUARANTOR WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, OR RELATED TO, THE SUBJECT MATTER OF THIS GUARANTY. THIS WAIVER IS KNOWINGLY, INTENTIONALLY, AND VOLUNTARILY MADE BY GUARANTOR AND GUARANTOR 4 ACKNOWLEDGES THAT NEITHER VILLAGE NOR ANY PERSON OR ENTITY ACTING ON BEHALF OF VILLAGE HAS MADE ANY REPRESENTATIONS OF FACT TO INDUCE THIS WAIVER OF TRIAL BY JURY OR HAS TAKEN ANY ACTIONS WHICH IN ANY WAY MODIFY OR NULLIFY ITS EFFECT. GUARANTOR FURTHER ACKNOWLEDGES THAT GUARANTOR HAS BEEN REPRESENTED (OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED) IN THE SIGNING OF THIS GUARANTY AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, SELECTED OF GUARANTOR'S OWN FREE WILL, AND THAT GUARANTOR HAS HAD THE OPPORTUNITY TO DISCUSS THIS WANER WITH COUNSEL. GUARANTOR FURTHER ACKNOWLEDGES ' THAT GUARANTOR HAS READ AND UNDERSTANDS THE MEANING AND RAMIFICATIONS OF THIS WAIVER PROVISION. Section 4.14 Termination. This Guaranty and the Guaranteed Obligation shall automatically terminate and be void and of no force or effect upon the earliest to occur of(a) the date Village Manager delivers the Certificate of Substantial Completion-Retail Car Dealer,and(ii) the termination of the Agreement. 5 SIGNED AND DELIVERED as of the date first written above. GUARANTOR: SDG DUNDEE DEVELOPMENT, LLC By: Name: Title: 6 Exhibit D Estimated Total Project Costs and Projected TIF Eligible Expenses ESTIMATED TOTAL PROJECTED TIF ELIGIBLE PROJECT COSTS PROJECT COSTS* EXPENSES Land Ac uisition Costs $11,127,253 $6,000,000 ca ed Site Pre aration Costs Auto Dealershi $4,250,258 $4,250,258 Retail Parcels $1,800,255 $1,800,255 Multi amil Parcel $3,697,104 $3,697,104 Vertical Costs Auto Dealershi Buildin $7,911,086 N/A Hard Cost Contin enc $853,531 853,531 So t Costs $2,501,087 $2,501,087 Financin Costs N/A N/A Develo er Fees $416,048 0 Total $32,556,622 $19,102,235 *Estimated Total Project Costs the Developer has estimated to incur prior to the issuance of the Subordinate Developer Note,excluding the vertical construction costs for the Residential Project and the vertical construction costs for the Retail Project on Lot 2 Exhibit E Form of TIF Funding Escrow Owners TIF Escrow Trust and Disbursing Agreement (No Title Insurance) Escrow Trust No.: � � ' Chicago Title and Trust Company, Escrow Trustee ARTICLE 1: General Information A. Owner: Attorney for Owner: Name: Address: Telephone No.: Fax No.: B. Village: VILLAGE OF BUFFALO GROVE Address: 50 Raupp Boulevard Buffalo Grove, IL C. Escrow Trustee: Name: Chicago Title and Trust Company, a corporation of Illinois (hereinafter known as CT&T Co.) Address: 10 S. LaSalle St., Suite 3100 Chicago, IL 60603 Contact Person: Telephone Number: 312- D. Project Name: Bison Crossing Project Location: 915-945 Dundee Road, Buffalo Grove, IL E. Deposited Funds: Amount of Deposits, if any, to be made by the Village: $TBD F. Billing Instructions: Title and Construction Escrow Charges are to be billed to: Owner, if not satisfied out of Deposited Funds or investment earnings. Article 2: Recitals A. Owner is acquiring and about to commence or has commenced construction of or rehabilitation of improvements on certain premises (the Project), described on Exhibit A , attached hereto and made a part hereof; and Owner and Village are parties to that certain Redevelopment Agreement of approximately even date herewith (the Agreement); and Pursuant to Section 7.2 of the Agreement, the parties have jointly requested CT&T Co. to act as Escrow Trustee and to provide a disbursing service for the payment of certain Project acquisition and construction costs and other related development costs. The Escrow established pursuant to this Escrow Agreement is the "TIF Funding Escrow" described in the Agreement. B. The Owner, Village and Escrow Trustee agree as follows: (l) The Village , will deposit or cause to be deposited Village TIF Funds with Escrow Trustee by wire transfer(as defined in the Agreement). (2) Escrow Trustee will disburse the funds to pay for TIF Eligible Expenses as hereinafter set forth and as defined in the Agreement. However, it is the intention of the parties named herein and signatory hereto that no person not a party signatory to this escrow shall have the right to look to the Escrow Trustee for any disbursement hereunder under a third party beneficiary theory or otherwise, and that the Escrow Trustee owes no duty to any such third party to make any disbursement. Article 3: Procedures A. Not more often than twice each calendar year, Owner shall submit to the Village and Escrow Trustee written requests for certification of TIF Eligible Expenses in accordance with the Agreement. The Village shall inform Escrow Trustee from time to time if such certifications are granted and in what amount(s). B. The Village shall review and approve all disbursement requests in accordance with this Escrow Agreement that are for TIF Eligible Expenses. C. All disbursements pursuant to this Escrow Trust shall be for TIF Eligible Expenses in connection with the Project and shall be made in accordance with this Escrow Agreement, but Escrow Trustee shall rely exclusively on the approval by the Village of certification requests as conclusive evidence that the disbursements are for TIF Eligible Expenses in accordance with the Agreement. . D. Owner has established a separate construction loan escrow with Escrow Trustee (the Construction Loan Escrow) for making additional Project payments over and above the TIF Eligible Expenses. Escrow Trustee shall inform Construction Loan Escrow of all disbursements made pursuant to this Escrow Agreement. E. If Deposited Funds remain and the Village determines that there will be no further Redevelopment Project Costs, then such remaining Deposited Funds shall be returned to the Village. Article 4: Requirements Prior to each disbursement of Deposited Funds by Escrow Trustee hereunder for payment of a person or entity entitled to file a lien under the Mechanics Lien Act, 770 ILCS 60/1, it is a requirement of this Escrow Agreement that the Owner shall furnish or cause to be furnished to the Escrow Trustee or to the escrow trustee of the Construction Loan Escrow the following: A. A Sworn Owner's Statement disclosing the various contracts entered into by the Owner relating to the construction of the Project and setting forth the names of the contractors, their addresses, the kind of service, work or materials to be furnished, the � amounts of such contracts, the amounts paid to date, if any, the amounts of current I payments, if any, and the balance due, if any. , B. A Sworn Statement to Owner by the General Contractor setting forth the name and addresses of such persons furnishing labor, service or materials (i.e., subtrades and material suppliers), the kind of labor, service or materials to be furnished, the amounts of the contracts, amounts paid to date, if any, amounts of current payments, if any, and balance to become due, if any. C. A written approval by Owner of the requested disbursement. D. With respect to payment of construction costs: Statements, waivers, affidavits, supporting waivers, and releases of lien from such persons and in such form as may be required by CT&T Co. for the purpose of substantiating payment of the prior construction draw. Note: CT&T Co. will use the same care and diligence in the collection and examination of Sworn Statements, waivers, affidavits, supporting waivers and releases of liens, for the above purpose, as it would use were CT&T Co. required by this Escrow Agreement to furnish mechanics' lien title insurance coverage to a construction lender, and no greater. Note: If the funds are to be disbursed to the General Contractor rather than the subcontractors, the collection and examination of the required statements, waivers, etc. by the Escrow Trustee shall be not construed by the Owner as an assurance by CT&T Co. that the subcontractors have, in fact, been paid by the General Contractor. E. Sufficient funds to cover the current disbursement request. Article 5: General Conditions A. Owner and Village understand and agree that Escrow Trustee's duties are to disburse the Deposited Funds pursuant to the provisions of this Escrow Agreement, and Escrow Trustee's liability arising from the performance of those duties regarding the release of mechanics' lien rights, shall extend only to those persons to whom Escrow Trustee is making payments, and only for those amounts being paid. Escrow Trustee has no liability for any lien rights associated with work previously completed, or completed by persons not receiving direct payments from Escrow Trustee. B. Owner understands that Escrow Trustee makes no representation that a title insurance policy insuring over mechanics' lien claim will necessarily issue without additional title insurance underwriting requirements being met. C. Escrow Trustee assumes no responsibility concerning the sufficiency of funds deposited herein to complete the contemplated construction satisfactorily. D. If the Escrow Trustee discovers a misstatement in an affidavit furnished by the General Contractor, it may stop disbursements until the misstatement has been corrected. Escrow Trustee may, at its option, verify information submitted by the General Contractor or may require the Owner to furnish verification by subcontractors or material suppliers. E. The functions and duties assumed by Escrow Trustee include only those described in this Escrow Agreement and Escrow Trustee is not obligated to act except in accordance with the terms and conditions of this Escrow Agreement. Escrow Trustee does not insure that the Project will be completed, nor does it insure that the Project, when completed, will be in accordance with plans and specifications, nor that sufficient funds will be available for completion, nor does it make the certifications of the Inspector/Architect its own, nor does it assume any liability for the procurement of such certification as one of the conditions precedent to each disbursement. F. Escrow Trustee has no liability for loss caused by any error in the certification furnished it hereunder as to work in place. G. Escrow Trustee shall not be responsible for any loss of documents which such documents are not in its custody. Documents deposited in the United States Mail shall not be construed as being in custody of Escrow Trustee. H. Deposited Funds made pursuant to these instructions may be invested on behalf of Owner; provided, however, that any direction to Escrow Trustee for such investment shall be expressed in writing and be accompanied by the taxpayer's identification number and such investment forms as may be required. Escrow Trustee will, upon request, furnish information concerning procedures and fee schedules for investment. Investment earnings shall be applied to Escrow Trustee's fees and any surplus shall be paid to Owner. I. Except as to deposits of funds for which Escrow Trustee has received express written direction concerning investment or other handling, the parties hereto agree that the Escrow Trustee shall be under no duty to invest or reinvest any deposits at any time held by it hereunder; and, further, that Escrow Trustee may commingle such deposits with other deposits or with its own funds in the manner provided for the administration of funds under Section 2-8 of the Illinois Corporate Fiduciary Act (205 ILCS 620/2-8), and may use any part or all such funds for its own benefit without obligation to any party for interest or earnings derived thereby, if any. Provided, however, nothing herein shall diminish Escrow Trustee's obligation to apply the full amount of the Deposited Funds in accordance with the terms of this Escrow Agreement. J. In the event the Escrow Trustee is requested to invest deposits hereunder, CT&T Co. is not to be held responsible for any loss of principal or interest which may be incurred as a result of making the investments or redeeming said investment for the purposes of this escrow trust. K. Escrow Charges are payable thirty (30) days after billing and shall be payable, first, out of the Deposited Funds, and thereafter out of investment earnings, but Owner shall be responsible for any balance. In the event escrow charges are not paid as agreed, CT&T Co. may terminate this Escrow Agreement upon thirty (30) day written notice to Owner and Village. L. This Escrow Agreement shall not inure to the benefit of any parties other than the parties hereto, under a third party beneficiary theory or otherwise; and any liability to such parties is expressly disclaimed. M. This Escrow Agreement shall terminate once all Deposited Funds and investment earnings have been disbursed and all Escrow Trustee fees have been paid. In Witness Whereof, the undersigned have executed this Escrow Agreement this day of , 2024 OWNER: SHOREWOOD DEVELOPMENT GROUP LLC, an Illinois limited liability company By: Name: Title: VILLAGE: VILLAGE OF BUFFALO GROVE, By: I Name: Title: ESCROW TRUSTEE: CHICAGO TITLE and TRUST COMPANY, By: (Authorized Signatory) Exhibit F Primary Developer Note REGISTERED REGISTERED No. 1 $ UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTIES OF LAKE AND COOK I VILLAGE OF BUFFALO GROVE SENIOR LIEN TAX INCREMENT REVENUE NOTE, SERIES 20 (BUFFALO GROVE DUNDEE ROAD PROJECT� Interest Final Maturity Dated Rate: 8.500% Date: , 20_ Date: , 20 Registered Owner: Principal Amount: KNOW ALL PERSONS BY THESE PRESENTS that the Village of Buffalo Grove, Lake and Cook Counties, Illinois, a municipality, home rule unit and political subdivision of the State of Illinois (the "Village"), hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner identified above, or registered assigns as hereinafter provided, on or before the Maturity Date identified above, but solely from the sources hereinafter identified, the Outstanding Principal Amount of this Note in accordance with that certain Ordinance adopted by the President and Board of Trustees of the Village (the "Corporate Authorities") on the 16th day of January, 2024, as supplemented by a related Note Order (the "Note Ordinance"), and that Redevelopment Agreement, dated , 20_ (the "Redevelopment Agreement"), by and between the Village and SDG Dundee Development LLC (the "Developer"), and interest on such Outstanding Principal Amount at the Interest Rate set forth above (computed on the basis of a 360-day year of twelve 30-day months). Principal and interest on this Note is payable from the Available TIF Increment(as defined in the Note Ordinance)on deposit in the Senior Lien Note and Interest Account of the Special Tax Allocation Fund of the Village created pursuant to the Note Ordinance. Interest on the Note is due annually on of each year (each a "Payment Date"). Principal of the Note is due on , 20_,provided, however, that principal on the Note shall be paid on each Payment Date in an amount equal to the amount by which the Available TIF Increment on hand in the Senior Lien Note and Interest Account exceeds the interest accrued and unpaid on this Note on such date. On each Payment Date, amounts on hand in the Senior Lien Note and Interest Account shall be applied first to pay accrued and unpaid interest on the Note, then to pay interest due on this Note on such Payment Date and third to the payment of principal then outstanding on this Note. Interest when due shall be paid from the later of the Dated Date or from the most recent Payment Date to which interest has been paid or duly provided for, until the principal amount of the Note is paid or duly provided for, from the Senior Lien Note and Interest Account. Payments shall first be applied to accrued and unpaid interest and then to principal. The principal of this Note shall be payable by check of draft in lawful money of the United States of America upon presentation at the principal office maintained for the purpose by , as note registrar and paying agent (the "Note Registrar"). Interest on this Note shall be paid to the Registered Owner hereof as shown on the registration books of the Village maintained by the Note Registrar(the "Register")at the close of business on the 15th day of the month next preceding the Payment Date. Interest hereon shall be paid by check or draft of the Note Registrar, payable upon presentation thereof in lawful money of the United States of America, mailed to the address of such Registered Owner as it appears on the Register or at such other address furnished to the Note Registrar in writing or as directed by such Registered Owner, all as provided in the Note Ordinance.The Registered Owner ofthis Note shall note on the payment II attached hereto as Exhibit A (the `Payment Record'�the amount and the date of any payment of the � principal of this Note promptly upon receipt of such payment. In the event of any inconsistency , between such Payment Record and the records of the Village, the records of the Village shall control, absent manifest error. -2- This Note is issued pursuant to Division 74.4 of Article l l of the Illinois Municipal Code (the "TIF Act"), and all laws amendatory thereof and supplemental thereto, and specifically as supplemented by the Local Government Debt Reform Act, as amended, and the other Omnibus Bond Acts, as amended and as supplemented, and, where necessary, superseded, by the home rule powers of the Village under Section 6 of Article VII of the 1970 Constitution of Illinois, and the principal of and interest, and premium, if any, hereon are payable solely and only from the Available TIF Increment on deposit in the Senior Lien Note and Interest Account,all in accordance with the provisions of the Note Ordinance and the Redevelopment Agreement. This Note is being issued for the purposes of paying or reimbursing the Developer for certain TIF Eligible Expenses as described in the Redevelopment Agreement and as authorized by the TIF Act it has incurred in acquiring or constructing the Project (as defined in the Redevelopment Agreement). The cost of such acquisition or construction shall be deemed to be a disbursement ofthe proceeds ofthis Note. This Note,together with the interest thereon, is a limited obligation of the Village, payable solely from the Available TIF Increment on deposit in the Senior Lien Note and Interest Account as defined and described in the Note Ordinance and the Redevelopment Agreement. For the prompt payment of this Note, both principal and interest, as aforesaid, such Available TIF IriCrement ls hereby 1rreVOCably pledged. THIS NOTE DOES NOT CONSTITUTE AN INDEBTEDNESS OF THE VILLAGE WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION OR LIMITATION. NO HOLDER OF THIS NOTE SHALL HAVE THE RIGHT TO COMPEL THE EXERCISE OF ANY TAXING POWER OF THE VILLAGE FOR PAYMENT OF PRINCIPAL HEREOF OR INTEREST HEREON. FAILURE TO PAY WHEN DUE ANY INSTALLMENT OF INTEREST OR ANY AMOUNT OF OUTSTANDING PRINCIPAL AMOUNT DUE TO INSUFFICIENCY OF THE AVAILABLE TIF INCREMENT ON DEPOSIT IN THE SENIOR LIEN NOTE AND INTEREST ACCOUNT, WHETHER AT STATED MATURITY, FINAL MATURITY -3- OR OTHERWISE,SHALL IN NO EVENT BE DEEMED TO BE AN EVENT OF DEFAULT ON THIS NOTE UNLESS CAUSED BY A DEFAULT BY THE VILLAGE UNDER THE REDEVELOPMENT AGREEMENT. The Note Ordinance and the Redevelopment Agreement authorize the issuance of a Subordinate Lien Note (as defined in the Note Ordinance) payable from the Available TIF Increment on a subordinate basis to the payments on the Note as further described in the Note Ordinance. The Subordinate Lien Note is payable solely from Available TIF Increment on hand in the Subordinate Lien Note and Interest Account(as defined in the Note Ordinance). The holder of the Subordinate Lien Note will not have any claim for payment from any moneys on hand in the Senior Lien Note and Interest Account. This Note is subject to redemption prior to maturity, at the option of the Village, in whole or in part, from any available funds,on any date at the redemption price of par plus accrued interest to the date fixed for redemption,and as further provided in the Note Ordinance.Notice of any such redemption shall be sent by registered or certified mail not less than twenty (20) days nor more than sixty (60) days prior to the date fixed for redemption to the registered owner of this Note at the address shown on the registration books of the Village maintained by the Registrar or at such other address as is furnished in writing by such Registered Owner to the Registrar. This Note may not be offered, sold, pledged, assigned or otherwise transferred except to an affiliate of a Developer, to a Qualified Purchaser (as defined in the Note Ordinance) or to a Mortgagee Party (as defined in the Redevelopment Agreement). Any offer, sale, pledge, assignment or transfer to a party other than a Developer, an affiliate of a Developer, a Qualified Purchaser or a Mortgagee Party is void, provided, however, that the Developer may assign or pledge this Note to any lender providing financing to the Developer for the Project. By accepting a transfer or assignment of this Note, any party to which this Note is transferred or assigned covenants that neither it, a related party or an affiliate will add any credit support to this Note, -4- personally guarantee the repayment of this Note or add any additional source of repayment to the payment of debt service on this Note. This Note may only be transferred in whole. Upon surrender hereof at the principal office maintained for the purpose by the Note Registrar, accompanied by a written instrument or instruments of transfer in form satisfactory to the Note Registrar and duly executed by the Registered Owner or an attorney for such owner duly authorized in writing,the Note Registrar shall register this Note in the name of the new Registered Owner on the registration grid provided herein, and shall also enter the name and address of the new registered owner in the Register. The person in whose name this Note is registered on the Register shall be deemed and regarded as the absolute owner hereof for all purposes, and payment of the principal of or interest hereon shall be made only to or upon the order of the Registered Owner hereof or the owner's legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon this Note to the extent of the sum or sums so paid. It is hereby certified and recited that all conditions, acts and things required by law to exist or to be done precedent to and in the issuance of this Note did exist, have happened, been done ��I and performed in regular and due form and time as required by law,that Village hereby covenants �� and agrees that it has made provision for the segregation of the Available TIF Increment and that it will properly account far said taxes and will comply with all the covenants of and maintain the funds and accounts as provided by the Note Ordinance and the Redevelopment Agreement. This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Registrar. -5- IN WITNESS WHEREOF the Vl]lage Of BUff1�0 Gl'OVe, Lake and Cook Counties, Illinois,has caused this Note to be signed by the manual or duly authorized facsimile signatures of its President and Village Clerk and its corporate seal or a facsimile thereof to be hereunto affixed, all as of the date of delivery hereof. President, Village of Buffalo Grove, Lake and Cook Counties, Illinois Attest: Village Clerk, Village of Buffalo Grove �I Lake and Cook Counties, Illinois I (SEaL) -6- Date of Authentication: , 20 CEUTiFiCATE Note Registrar and Paying Agent: oF Village Treasurer AuTxENT�cATlotv Village of Buffalo Grove, Illinois This Note is the Note described in the within-mentioned Note Ordinance and is the Senior Lien Tax Increment Revenue Note, Series 20_ (Buffalo Grove Dundee Road Project), of the Village of Buffalo Grove, Lake and Cook Counties, Illinois. VILLAGE TREASURER,as Note Registrar By Village Treasurer, Village of Buffalo Grove, Lake and Cook Counties, Illinois -7- ASSIGNMENT Fox VALUE RECE�vED, the undersigned sells, assigns and transfers unto (Name and Address of Assignee) the within Note and does hereby irrevocably constitute and appoint as attorney to transfer the said Note on the books kept for registration thereof with full power of substitution in the premises. Dated: Signature guaranteed: NoT�cE: The signature to this transfer and assignment must correspond with the name of the 'I Registered Owner as it appears upon the face of the within Note in every particular, without alteration or enlargement or any change whatever. -8- ExHiBiT A PAYMENT RECORD PAYMENT DATE AMOUNT -9- Exhibit H Subordinate Developer Note REGISTERED REGISTERED No. 1 $ UNITED STATES OF AMERICA STATE OF ILLINOIS COUNTIES OF LAKE AND COOK VILLAGE OF BUFFALO GROVE SUBORDINATE LIEN TAX INCREMENT REVENUE NOTE, SERIES 20 (BUFFALO GROVE DUNDEE ROAD PROJECT) Interest Final Maturity Dated Rate: 8.500% Date: , 20_ Date: , 20 Registered Owner: � Principal Amount: KNOW ALL PERSONS BY THESE PRESENTS that the Village of Buffalo Grove, Lake and Cook Counties, Illinois, a municipality, home rule unit and political subdivision of the State of Illinois(the "Village"), hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner identified above, or registered assigns as hereinafter provided, on or before the Maturity Date identified above, but solely from the sources hereinafter identified, the Outstanding Principal Amount of this Note in accordance with that certain Ordinance adopted by the President and Board of Trustees of the Village (the "Corporate Authorities") on the 16th day of January, 2024, as supplemented by a related Note Order (the "Note Ordinance"), and that Redevelopment Agreement, dated , 20_ (the "Redevelopment Agreement"), by and between the Village and SDG Dundee Development LLC (the `Developer"), and interest on such Outstanding Principal Amount at the Interest Rate set forth above (computed on the basis of a 360-day year of twelve 30-day months). Principal and interest on this Note is payable from the Available TIF Increment(as defined in the Note Ordinance)on deposit in the Subordinate Lien Note and Interest Account of the Special Tax Allocation Fund of the Village created pursuant to the Note Ordinance. Interest on the Note is due annually on of each year(each a "Payment Date"). Principal of the Note is due on ,20_,provided, however,that principal on the Note shall be paid on each Payment ' Date in an amount equal to the amount by which the Available TIF Increment on hand in the Subordinate Lien Note and Interest Account exceeds the interest accrued and unpaid on this Note on such date. On each Payment Date, amounts on hand in the Subordinate Lien Note and Interest Account shall be applied first to pay accrued and unpaid interest on the Note, then to pay interest due on this Note on such Payment Date and third to the payment of principal then outstanding on this Note. Interest when due shall be paid from the later of the Dated Date or from the most recent Payment Date to which interest has been paid or duly provided for, until the principal amount of the Note is paid or duly provided for, from the Subordinate Lien Note and Interest Account. Payments shall first be applied to accrued and unpaid interest and then to principal. The principal of this Note shall be payable by check of draft in lawful money of the United States of America upon presentation at the principal office maintained for the purpose by , as note registrar and paying agent (the "Note Registrar"). Interest on this Note shall be paid to the Registered Owner hereof as shown on the registration books of the Village maintained by the Note Registrar(the "Register") at the close of business on the 15th day of the month next preceding the Payment Date. Interest hereon shall be paid by check or draft of the Note Registrar, payable upon presentation thereof in lawful money of the United States of America, mailed to the address of such Registered Owner as it appears on the Register or at such other address furnished to the Note Registrar in writing or as directed by such Registered Owner, all as provided in the Note Ordinance. The Registered Owner ofthis Note shall note on the payment attached hereto as Exhibit A (the "Paymerrl Record'�the amount and the date of any payment of the principal of this Note promptly upon receipt of such payment. In the event of any inconsistency -2- between such Payment Record and the records of the Village, the records of the Village shall control, absent manifest error. This Note is issued pursuant to Division 74.4 of Article 11 of the Illinois Municipal Code (the "TIF Act"), and all laws amendatory thereof and supplemental thereto, and specifically as supplemented by the Local Government Debt Reform Act, as amended, and the other Omnibus Bond Acts, as amended and as supplemented, and,where necessary, superseded, by the home rule powers of the Village under Section 6 of Article VII of the 1970 Constitution of Illinois, and the principal of and interest, and premium, if any, hereon are payable solely and only from the Available TIF Increment on deposit in the Subordinate Lien Note and Interest Account, all in accordance with the provisions of the Note Ordinance and the Redevelopment Agreement. This Note is being issued for the purposes of paying or reimbursing the Developer for certain TIF Eligible Expenses, as described in the Redevelopment Agreement and as authorized by the TIF Act, it has incurred in acquiring or constructing the Project (as defined in the Redevelopment Agreement). The cost of such acquisition or construction shall be deemed to be a disbursement of the proceeds of this Note. This Note,together with the interest thereon, is a limited obligation of the Village,payable solely from the Available TIF Increment on deposit in the Subordinate Lien Note and Interest Account as defined and described in the Note Ordinance and the Redevelopment Agreement. For the prompt payment of this Note, both principal and interest, as aforesaid, such Available TIF IriCremerit IS hereby trreVOCably pledged. THIS NOTE DOES NOT CONSTITUTE AN INDEBTEDNESS OF THE VILLAGE WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION OR LIMITATION. NO HOLDER OF THIS NOTE SHALL HAVE THE RIGHT TO COMPEL THE EXERCISE OF ANY TAXING POWER OF THE VILLAGE FOR PAYMENT OF PRINCIPAL HEREOF OR INTEREST HEREON. FAILURE TO PAY WHEN DUE ANY INSTALLMENT OF INTEREST OR ANY AMOUNT OF OUTSTANDING -3- PRINCIPAL AMOUNT DUE TO INSUFFICIENCY OF THE AVAILABLE TIF INCREMENT ON DEPOSIT IN THE SUBORDINATE LIEN NOTE AND INTEREST ACCOUNT, WHETHER AT STATED MATURITY, FINAL MATURITY OR OTHERWISE, SHALL IN NO EVENT BE DEEMED TO BE AN EVENT OF DEFAULT ON THIS NOTE UNLESS CAUSED BY A DEFAULT BY THE VILLAGE UNDER THE REDEVELOPMENT AGREEMENT. The Note Ordinance and the Redevelopment Agreement authorize the issuance of a Subordinate Lien Note (as defined in the Note Ordinance) payable from the Available TIF Increment on a subordinate basis to the payments on the Note as further described in the Note Ordinance. The Subordinate Lien Note is payable solely from Available TIF Increment on hand in the Subordinate Lien Note and Interest Account(as defined in the Note Ordinance). The holder of the Senior Lien Note will not have any claim for payment from any moneys on hand in the Subordinate Lien Note and Interest Account. This Note is subject to redemption prior to maturity, at the option of the Village, in whole or in part, from any available funds,on any date at the redemption price of par plus accrued interest to the date fixed for redemption,and as further provided in the Note Ordinance.Notice of any such redemption shall be sent by registered or certified mail not less than twenty (20) days nor more than sixty (60) days prior to the date fixed for redemption to the registered owner of this Note at the address shown on the registration books of the Village maintained by the Registrar or at such other address as is furnished in writing by such Registered Owner to the Registrar. This Note may not be offered, sold, pledged, assigned or otherwise transferred except to an affiliate of a Developer, to Double Eagle Development LLC or its affiliated entity 332 North Arlington Heights LLC, to any other developer of the Residential Project (as defined in the Redevelopment Agreement), subject to review and approval ofthe Village as set forth in the Note Ordinance (a "Residential Developer"), to a Qualified Purchaser (as defined in the Note Ordinance) or to a Mortgagee Party (as defined in the Redevelopment Agreement). Any offer, -4- sale, pledge, assignment or transfer to a party other than a Developer, an affiliate of a Developer, a Residential Developer, a Qualified Purchaser or a Mortgagee Party is void, provided, however, that the Developer may assign or pledge this Note to any lender providing financing to the Developer for the Project. By accepting a transfer or assignment of this Note, any party to which this Note is transferred or assigned covenants that neither it, a related party or an affiliate will add any credit support to this Note, personally guarantee the repayment of this Note or add any additional source of repayment to the payment of debt service on this Note. This Note may only be transferred in whole. Upon surrender hereof at the principal office maintained for the purpose by the Note Registrar, accompanied by a written instrument or instruments of transfer in form satisfactory to the Note Registrar and duly executed by the Registered Owner or an attorney for such owner duly authorized in writing,the Note Registrar shall register this Note in the name of the new Registered Owner on the registration grid provided herein, and shall also enter the name and address of the new registered owner in the Register. The person in whose name this Note is registered on the Register shall be deemed and regarded as the absolute owner hereof for all purposes, and payment of the principal of or interest hereon shall be made only to or upon the order of the Registered Owner hereof or the owner's legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon this Note to the extent of the sum or sums so paid. It is hereby certified and recited that all conditions, acts and things required by law to exist or to be done precedent to and in the issuance of this Note did exist, have happened, been done and performed in regular and due form and time as required by law,that Village hereby covenants and agrees that it has made provision for the segregation of the Available TIF Increment and that -5- it will properly account for said taxes and will comply with all the covenants of and maintain the funds and accounts as provided by the Note Ordinance and the Redevelopment Agreement. This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Registrar. -6- IN WITNESS WHEREOF the Village of Buffalo Grove, Lake and Cook Counties, Illinois,has caused this Note to be signed by the manual or duly authorized facsimile signatures of its President and Village Clerk and its corporate seal or a facsimile thereof to be hereunto affixed, all as of the date of delivery hereof. President, Village of Buffalo Grove, Lake and Cook Counties, Illinois Attest: Village Clerk, Village of Buffalo Grove Lake and Cook Counties, Illinois (SEAL� -7- Date of Authentication: , 20 CExTiFiCaTE Note Registrar and Paying Agent: OF AUTHENTICATION This Note is the Note described in the within-mentioned Note Ordinance and is the Subardinate Lien Tax Increment Revenue Note, Series 20_ (Buffalo Grove Dundee Road Project), of the Village of Buffalo Grove, Lake and Cook Counties, Illinois. ,as Note Registrar By Village Treasurer, Village of Buffalo Grove, Lake and Cook Counties, Illinois -8- ASSIGNMENT FoR VaLUE RECEivED, the undersigned sells, assigns and transfers unto (Name and Address of Assignee) the within Note and does hereby irrevocably constitute and appoint as attorney to transfer the said Note on the books kept for registration thereof with full power of substitution in the premises. Dated: Signature guaranteed: NoTicE: The signature to this transfer and assignment must correspond with the name of the Registered Owner as it appears upon the face of the within Note in every particular, without alteration or enlargement or any change whatever. -9- ExxisiT A PAYMENT RECORD PAYMENT DATE AMOUNT -1 0- EXHIBIT I CERTIFICATE REQUEST OF REDEVELOPMENT PROJECTS COSTS FOR THE [PUBLIC/PRIVATE] IMPROVEMENTS OF SDG DUNDEE DEVELOPMENT LLC Village Manager Village of Buffalo Grove 50 Raupp Blvd Buffalo Grove, IL 60089 Re: Economic Incentive and Tax Increment Allocation Financing Development Agreement by,between,and among the Village of Buffalo Grove,IL and SDG Dundee Development LLC,dated (the"Agreement") Terms not otherwise defined herein shall have the meanings ascribed to such terms in the Agreement. In connection with said Agreement,the undersigned hereby states and certifies that: 1. Schedule 1 is incorporated herein by reference. Each listed item for which reimbursement is sought on Schedule 1 hereto is a Redevelopment Project Cost and was incurred in connection with the Development. Identified on the attached Schedule 1 are the name of all contractors, subcontractors and/or suppliers who were paid directly by Developer and for which the amount identified herein shall reimburse Developer; also included as part of Schedule 1 are all applicable sworn statements,paid invoices and lien waivers in relation to said contractors, subcontractors and/or suppliers as well as, bills, contracts and invoices relative to the items for which reimbursement is sought,and proof of payment of any said invoices. The information and documentation constituting Schedule 1 is accurate, verified and complete. 2. The Redevelopment Project Costs on Schedule 1: (i) were necessary for completion of the Development and(ii)have been paid by the Developer and are eligible for reimbursement and were incurred under the TIF Act,the Redevelopment Plan and the Agreement. 3. The Redevelopment Project Costs listed on Schedule 1 have not previously been paid ar reimbursed from money derived from Incremental Property Taxes or any money derived from any project fund established pursuant to the Agreement, and no part thereof has been included in any other Certificate of Redevelopment Project Costs previously filed with the Village. Developer agrees that if prior to the time of acceptance by Village any matter certified to herein by it will not be true and correct in all materia] respects at such time as if then made, it will immediately so notify the Village. Except to the extent, if any, that prior to the time of the Village's approval of Redevelopment Project Costs for the Development,the Village shall receive written notice to the contrary from Developer,each matter certified to herein shall be deemed once again to be certified as true and correct at the date of approval of Redevelopment Project Costs as if then made. Developer hereby requests that the Village approve this Certification Request in order to obtain disbursement from the TIF Funding Escrow. [SIGNATURE PAGE TO FOLLOW] EXHIBIT I IN WITNESS WHEREOF, the undersigned has hereunto set his/her hand this _ day of ,20 SDG Dundee Development LLC By: Its: Authorized Signatory Signed and sworn before me by this_day of , 20_ Notary Public APPROVED: VILLAGE OF BUFFALO GROVE,ILLINOIS, an Illinois municipal corporation By: Name: Title: Exhibit J Development Improvement Agreement Bison Crossin�(Tesla) Development Name DEVELOPMENT IMPROVEMENTAGREEMENT THIS AGREEMENT("Agreement"), made and entered into as of this 16th day of Januarv. 2024 by and between the VILLAGE OF BUFFALO GROVE, an Illinois Municipal Corporation, and having its office at Village Hall,50 Raupp Boulevard, Buffalo Grove, Illinois(hereinafter called "Village"),and SDG Dundee LLC and/or its assigns,(hereinafter called"Developer'). WITNESSETH: WHEREAS,Developer desires to improve the real property described in Exhibit"A"attached hereto and made a part hereof (the "Property"), and in compliance with the Village's Development Ordinance, Developer has submitted to the Village certain (i) plans prepared by Jacob & Hefner Associates, who are registered professional engineers,dated 11/21/23, and (ii)additional plans and specifications prepared by Dennis J larrard(Landscape Architect)dated 11/21/23 and described in more detail in Exhibit"C"attached hereto and made a part hereof(the"Site Improvement Plans"and together with the Site Plan,the"Plans"); and, WHEREAS,the Village is willing to approve said Plans,provided that this Agreement is executed to insure the completion of certain site improvements, as a condition precedent to the issuance of building permits for any buildings to be constructed on the Property. NOW,THEREFORE, it is mutually agreed as follows: 1. Developer shali furnish, or cause to be furnished, at their own cost and expense, all the necessary material, labor, and equipment to complete the improvements listed on Exhibit "B" attached hereto, and all other site improvements not specifically set forth, which are required by applicable ordinances or agreements (collectively, the "Improvements"), all in a good and workmanlike manner and in accordance with all pertinent ordinances and regulations of the Village and in accordance with the Plans (including any subsequent revisions requested by the Developer and approved in writing by the Village pursuant to the Village's Development Ordinance). All utility lines and services to be installed in the street shall be installed prior to paving. 1 2. Attached hereto as Exhibit "D" is a complete cost estimate for the construction of the improvement described in Exhibit"B"hereto. No later than three(3)business days following the execution of this Agreement and prior to the issuance of Village Permits,the Developer shall deposit a Letter of Credit acceptable to and in a form and substance approved by the Village in the original amount of Three Million Six Hundred Fortv Five Thousand Two Hundred Fiftv and 00 100 Dollars ($3,645,250.00), as further described in Paragraph 9 herein (the"Letter of Credit"). 3.All work shall be subject to inspection by and the approval of the Village Engineer. It is agreed that the contractors who are engaged to construct the Improvements are to be approved by the Village Engineer and that such approval will not be unreasonably withheld. 4. The Developer has paid or will pay the Village a Review and Inspection Fee, as required by Ordinance.It is understood that said fee is based on the amount of the contracts or cost estimate for those items in Exhibit"B". 5. Prior to the time the Developer or any of its contractors begin any of the work provided for herein,the Developer, and/or its contractors shall furnish the Village with evidence of insurance covering their employees in such amounts and coverage as is acceptable to the Village. In addition, by its execution of this Agreement, the Developer agrees to protect, indemnify,save and hold harmless,and defend the Vi�lage and its employees,officials,and agents,against any and all claims,costs,causes,actions, and expenses, including but not limited to reasonable attorney's fees incurred by reason of a lawsuit or claim for damages or compensation arising in favor of any person, corporation or other entity, including the employees or officers or independent contractors or sub- contractors of the Developer or the Village,on account of personal injuries or death,or damages to property occurring,growing out of, incident to,or resulting directly or indirectly,from the performance of the work of the Developer, independent contractors or sub-contractors or their officers,agents,or employees.The Developer shall have no liability or damages for the costs incident thereto to the extent caused by the sole negligence or intentional misconduct of the Village,its independent contractors or sub-contractors or their officers,agents,or employees. 6. Subject to Force Majeure (as defined herein), Developer shall cause the Improvements to be 2 completed within thirty-six (36) months following the date of this Agreement (except any Improvements for which specified time limits are noted on the Plans,which shall be completed within the specified time limits shown on the Plans). "Force Majeure"as used herein shall mean a delay in Developer's performance hereunder caused by a strike or labor problem,energy shortage,governmental pre-emption or prescription, national emergency,or any other cause of any kind beyond the reasonable control of Developer. If work is not completed within the time prescribed herein,the Village shall have the right to call upon the Letter of Credit, in accordance with its terms,for the purpose of completing the Improvements. Upon completion of the Improvements herein provided for,as evidenced by the certificate or certificates of the Village President and Board of Trustees,the Village shall be deemed to have accepted said Improvements, and thereupon, the Letter of Credit shall automatically be reduced to serve as security for the obligations of the Developer as set forth in Paragraph 7 hereof.The Developer shall cause its consulting engineers to correct drawings to show work as actually constructed and said engineers shall turn over high quality Mylar reproducible copies thereof to the Village to become the Village's property prior to acceptance of the Improvements by the President and Board of Trustees. 7. The Developer, for a period of one year beyond formal acceptance by the Village of any Improvement,described in Exhibit"B"hereof,shall be responsible for maintenance,repairs and corrections to such Improvements which may be required due to failures or on account of faulty construction or due to the Developer's negligence and/or its contractors' negligence. The obligation of the Developer hereunder shall be secured by the Letter of Credit as further described in Paragraph 9 hereof. 8. It is agreed that no occupancy permit shall be granted by any official for the construction of any structure until all required utility facilities set forth in the Plans (to include, but not by way of limitation, sanitary sewer, water and storm sewer systems) have been installed and made ready to service the Property; and that all parking lots or access drives (to include curbs) set forth in the Plans that provide access to the Property have been completely constructed, except for the designed surface course. It is understood and agreed that building permits may be granted for buildings on specific lots to which utility facilities have been installed and made ready for service and to which parking lots or access drives have been constructed as described above, notwithstanding the fact that all improvements within the 3 Development may not be completed. 9.A.The obligations of the Developer hereunder as to the deposit of security for the completion of the Improvements and the one-year maintenance of said Improvements after acceptance by the Vitlage (Paragraph 7)shall be satisfied upon delivery to the Village of a Letter of Credit in favor of the Village in a form acceptable to the Village, in the amount set forth in Paragraph 2 above.The Letter of Credit shall be made subject to this Agreement.The Developer hereby waives its option pursuant to 30 ILCS 550/3 and 65 ILCS 5/11-39-3 to utilize any type of security other than a Letter of Credit. B. In addition to the terms, conditions, and covenants of the Letter of Credit,the Village hereby agrees to draw funds or to cail said performance guarantee under such security solely for the purpose of payment for labor and materials supplied or to be supplied, by engineers, contractors, or subcontractors, to, or for the benefit of the Developer or the Village, as the case may be, under the provisions of this Agreement and the said Improvements for which payment is being made shall have been completed,or will be completed,in substantial accordance with the Plans. C. The Village further hereby agrees that to the extent that the Developer causes the commitments of this Agreement to be completed, the outstanding liabi�ity of the issuer of the Letter of Credit shall during the course of construction of the Improvements,approximate the cost of completing all Improvements and paying unpaid contract balances for the completion of the Improvements referred to in this Agreement. Until ali required tests have been submitted and approved by the Village for each of the construction elements including,but not limited to,earthwork,street pavements, parking area pavements, sanitary sewers and water mains(as applicable),a minimum of that portion of the surety for each element shall be subject to complete retention. All Improvements are subject to a minimum fifteen (15%) percent retention until final acceptance by the Village. D. In order to guarantee and warranty the obligations of Paragraph 7 herein, an amount equal to fifteen (15%) percent of the total amount of the Letter of Credit, or an amount equal to fifteen (15%)percent of the cost estimate of the individual Improvement(s)shall be retained in the Letter of Credit for a period of one-year beyond formal acceptance by the Village of the Improvement(s). 4 E. As a portion of the security amount specified in Paragraph 2, the Developer shall maintain a cash deposit with the Village C�erk in the amount of Thirty Six Thousand Eight Hundred Twentv Dollars($36,820.001. If roads are not maintained with a smooth and firm surface reasonably adequate for access of emergency vehicles such as fire trucks and ambulances, or if any condition develops which is deemed a danger to public health or safety by the Village of Buffalo Grove due to the actions of the Developer or his failure to act;and after written notice of this condition,the Developer fails to immediately remedy the condition;then the Village may take action to remedy the situation and charge any expenses which results from the action to remedy the situation to the cash deposit. Upon notification that the cash deposit has been drawn upon, the Developer shall immediately deposit sufficient funds to maintain the deposit in the amount of Thirtv Six Thousand Eight Hundred Twentv Dollars($36,820.00). If the Developer has not made the additional deposit required to maintain the total cash deposit within five (5) business days from the date he received notice that such additional deposit was required,it is agreed that the Village may issue a Stop Work Order or also may revoke all permits which the Developer had been granted. This cash deposit shall continue to be maintained until the maintenance guarantee period has lapsed. The deposit may be drawn upon by the Village if the conditions of this Agreement are not met by the Developer within thirty (30) days after receipt of a written notice of noncompliance with the conditions of this Agreement, except in cases of danger to public health and safety as determined by the Village, in which case, the deposit may be drawn upon immediately foliowing notice to the Developer and his failure to immediately remedy the situation. After termination of the one-year maintenance period and upon receipt by the Village Clerk of a written request for release ofthe deposit,the Village will either notify the Developer that the Improvements are not in a proper condition for final release of the deposit, or shall release the deposit within fifteen(15)days. F. In addition to the terms, covenants, and conditions of the Letter of Credit, the Developer hereby agrees that no reduction shall occur in the outstanding liability of the issuer there under, except on the written approval of the Village; however,in all events,the Village shall permit such Letter of Credit to expire, either by its terms, or by return of such Letter of Credit to the Developer, upon the expiration of one-(1)year from the acceptance of the Improvements referred to herein by the Village. To 5 the extent that the provisions of Paragraph 9 herein,and of the Letter of Credit, permit the Village to draw funds under such Letter of Credit,the Village hereby agrees to reduce the outstanding liability of the issuer of the Letter of Credit to the extent that funds are disbursed. 10.Any Letter of Credit shall provide that the issuer thereof shall not cancel or otherwise terminate said security without a written notice being given to the Village between thirty-(30)days and forty-five(45) days in advance of termination or cancellation. 11.No occupancy permit shall be issued until all exterior lighting specified on Exhibit"C"is instailed and operational. 12. The Developer acknowledges that he is responsible for the proper control of weeds, grass, refuse, and junk on all property which he owns within the Village in accordance with Chapter 8.32 of the Buffalo Grove Municipal Code. It is further agreed that the Developer shall continue to be responsible for the proper maintenance of any parcels of property for which the Developer transfers ownership to the Village until such time as the development's Improvements are accepted by the Village in writing in accordance with the provisions of this Agreement. Ifthe Developer fails to perform his maintenance responsibilities established in eitherthis paragraph or Chapter 8.32, the Village may provide a written notice to the Developer of the improper maintenance condition.If proper maintenance is not completed within ten(10)days after the Developer is provided this notice,the Viilage may perform the maintenance and deduct the costs of the maintenance from the cash deposit described in Paragraph 9E. 13.The Developer agrees that no Improvements constructed in conjunction with this project are sized or located in such a way as to warrant any recapture payment to the Developer pursuant to any applicable previous agreements. 14.This Agreement shall automatically terminate and be of no further force and effect with respect to Developer or the Property upon the expiration of the one-year maintenance period, and upon such termination the parties hereto shall have no further obligations to the other, except for the Village's obligation to return the Letter of Credit and cash deposit to Developer or otherwise notify the issuer of the Letter of Credit of the expiration of the Letter of Credit. The period commencing on the date set forth in 6 the preamble to this Agreement and expiring on the expiration of the one-year maintenance period is referred to herein as the"Term". 15.This Agreement and the obligations contained herein are in addition to, and not in limitation of, all other agreements between the Parties hereto including,without limitation,the Preliminary Plan or Annexation Approval Ordinance No.dated ,and the obligations contained therein. 16.Neither party shall cause this Agreement(or any memorandum hereof)to be recorded against the Property. 17. Neither party shall assign this Agreement or any of its terms without the prior, express and written consent of the other party. Furthermore, no assignment of the Developer's obligations shall be effective unless and until the Village approves the language of any proposed assignment and substitute security in the amounts required by this Agreement. 18. Notwithstanding the foregoing or anything to the contrary contained in this Agreement or in any other agreement, document or instrument executed or delivered in connection with this Agreement, each Mortgagee Party (as defined in the Redevelopment Agreement) shall have the same rights, benefits and protections under and with respect to this Agreement as such Mortgagee Party has under the Redevelopment Agreement and such rights, benefits and protections are hereby deemed incorporated herein in their entirety. "Redevelopment Agreement"shall mean the Redevelopment Agreement dated on or about the date hereof between the Village and SDG Dundee Development LLC, as amended, restated or otherwise modified from time to time. 7 IN WITNESS WHEREOF,the Village has caused this Agreement to be executed, as has the Developer, all as of the date first above written. VILLAGE OF BUFFALO GROVE,an Illinois Municipal Corporation By Villase President DEVELOPER: SDG Dundee LLC 860 N Milwaukee Ave.,Suite 100 Buffalo Grove,IL 60089 By: Name: Title: 8 Bison Crossin�(Tesla) (Development Name) DEVELOPMENT IMPROVEMENT AGREEMENT EXHIBIT A LEGAL DESCRIPTION THAT PART OF LOT 1 AND LOT 2 IN THE RESUBDIVISION RECORDED JANUARY 31, 1980 AS DOCUMENT 25344703, BEING A RESUBDIVISION OF LOT 1 IN GRAND SPAULDING DODGE SUBDIVISION RECORDED DECEMBER 17, 1976 AS DOCUMENT 23752075, SAID RESUBDIVISION BEING IN THE EAST HALF OF THE NORTHWEST QUARTER OF SECTION 8, TOWNSHIP 42 NORTH, RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID LOT 2; THENCE SOUTH 0 DEGREES 05 MINUTES 32 SECONDS EAST ALONG THE EAST LINE OF SAID LOT 2,A DISTANCE OF 545.62 FEET TO A CORNER OF SAID LOT 2 COMMON TO THE NORTH CORNER OF LOT 3 IN SAID RESUBDIVISION;THENCE SOUTH 20 DEGREES 09 MINUTES 12 SECONDS WEST ALONG THE WESTERLY LINE OF SAID LOT 3, A DISTANCE OF 183.33 FEET TO THE CORNER OF SAID LOT 2 COMMON TO THE SOUTH CORNER OF SAID LOT 3 IN SAID RESUBDIVISION; THENCE SOUTH 40 DEGREES 30 MINUTES 32 SECONDS WEST ALONG THE SOUTHEASTERLY LINE OF SAID LOT 2, A DISTANCE OF 13.36 FEET; THENCE SOUTH 89 DEGREES 54 MINUTES 28 SECONDS WEST, 164.77 FEET; THENCE NORTH 0 DEGREES 05 MINUTES 32 SECONDS WEST, 276.47 FEET; THENCE SOUTH 89 DEGREES 54 MINUTES 28 SECONDS WEST, 171.59 FEET; THENCE NORTH 0 DEGREES 05 MINUTES 32 SECONDS WEST, 454.72 FEET TO THE NORTH LINE OF LOT 1 IN SAID RESUBDIVISION; THENCE SOUTH 89 DEGREES 36 MINUTES 43 SECONDS EAST ALONG SAID NORTH LINE AND ALONG THE NORTH LINE OF LOT 2 IN SAID RESUBDIVISION,408.51 FEET TO THE POINT OF BEGINNING, IN COOK COUNTY, ILLINOIS. AL50 KNOWN AS LOT 1 IN BISON CROSSING, RECORDING STATUS UNKNOWN. KNOWN AS: , BUFFALO GROVE, ILLINOIS PERMANENT INDEX NUMBER: 00-00-000-0000 AREA= SQ. FT. OR ACRES 9 Bison Crossing(Tesla) DEVELOPMENT IMPROVEMENT AGREEMENT EXHIBIT B All improvements set forth and depicted in the Plans, both public and private, including (to the extent applicable) earthwork, grading, roads or streets, parking lots, areas and/or parking facilities, sidewalks, sanitary and storm sewers,water main,drainage and storm water detention facilities,site grading, private street lighting, landscaping,survey monuments and benchmarks. 10 Bison Crossin�(Tesla) DEVELOPMENT IMPROVEMENTAGREEMENT EXHIBIT C Final Engineering Plans prepared by: Jacob&Hefner Associates Entitled: Site Improvement Plans for Bison Crossin�,915 W. Dundee Road Consisting of:24 sheet(s),last revised 11 21 23 Final Landscaping Plans prepared by: Dennis J Jarrard, Landscape Architect Entitled: 915 West Dundee Road Consisting of:4 sheet(s),last revised 11 21 23 (see following pages) 11 EXHIBIT K FUNDING CERTIFICATION SDG DUNDEE DEVELOPMENT LLC Village Manager Village of Buffalo Grove 50 Raupp Blvd Buffalo Grove, IL 60089 Re: Economic Incentive and Tax Increment Allocation Financing Development Agreement by, between,and among the Village of Buffalo Grove,IL and SDG Dundee Development LLC, dated (the "Agreement") Terms not otherwise defined herein shall have the meanings ascribed to such terms in the Agreement. In connection with said Agreement, the undersigned hereby states and certifies that: PROJECT NAME: Bison Crossing, Buffalo Grove, Illinois (the "Project") BORROWER NAME: SDG Dundee Development LLC, an Illinois limited liability company (the "Borrower") Funding Certification #: In connection with said Agreement, the undersigned hereby states and certifies that the following Funding Conditions have been fulfilled [as applicable]: paragraphs of Section 6.2 of the Agreement have been fulfilled. [SIGNATURE PAGE TO FOLLOW] 81696556v2 EXHIBIT K IN WITNESS WHEREOF, the undersigned has hereunto set his/her hand this_day of , 20_ SDG Dundee Development, LLC, an Illinois limited liability campany By: Its: Authorized Signatory 81696556v2 Exhibit L Certificate of Substantial Completion The undersigned, the Village Manager of the Village of Buffalo Grove, Lake and Cook Counties, Illinois (the "Village"), hereby certifies that [Substantial Completion-Retail Car Dealer], as that term is used and defined in the Redevelopment Agreement dated , 202_, among the Village and SDG Dundee Development LLC, has occurred. , 202 [name] Village Manager 84469831v.1 EXHIBIT M SB Friedman Memorandum �► SB��IEDMAN MEMO To: Christopher Stilling,Village of Buffalo Grove From: Geoff Dickinson, SB Friedman Development Advisors, LLC 312-384-2404,�Cdicklnsor:@sbfiriedman_com Caitlin Johnson, SB Friedman Development Advisors, LLC 312-384-2403, ciohnson@sbfriedman.com Date: January 12, 2024 RE: Review of Dundee Road Redevelopment Project—Request for Village Financial Assistance SB Friedman Development Advisors, LLC ("SB Friedman") was engaged by the Village of Buffalo Grove (the "Village") to assist the Village in evaluating the proposed redevelopment of four former car dealerships on approximately 16 acres at the southeast corner of Dundee Road and North Old Arlington Heights Road in the Cook County portion of the Village (the "Site"). Shorewood Development Group, LLC (the "Land and Retail Developer") is requesting Village tax increment financing (TIF) assistance to support the proposed redevelopment project (the "Project"). The Site is in the Dundee Road Tax Increment Financing District,which was established in 2023. The $45 million Project, to be constructed by the Land and Retail Developer, incorporates site improvements throughout the Site, and a new-construction luxury auto dealership on approximately six acres of the Site. The overall development program of the Site includes a luxury auto dealership, a minimum of 20,000 square feet of additional retail space, and a rental apartment building with a minimum of 215 units to be developed by Double Eagle Development(the"Residential Developer").The vertical development of the rental apartment building is anticipated to cost an additional $60 million, resulting in a combined investment that should exceed $100 million. The Land and Retail Developer has indicated that Project financial feasibility is challenged by extraordinary land acquisition costs and site preparation costs.Therefore,the Land and Retail Developer requested the following financial assistance from the Village (collectively,the "Requested Village Assistance"): • A promissory note with a face value of $11 million (present value in 2025 dollars at 8.5% cost of funds). Village financial assistance would be funded on a pay-as-you-go basis(PAYGO)with incremental property taxes generated from the parcels making up the Site,with further details to be negotiated in a redevelopment agreement. This memorandum includes the following: . Project Overview • Pro Forma Analysis . Incremental Property Tax Revenue Projections • Conclusions and Recommendations Village of Buffalo Grove/Review of Dundee Road Redevelopment Project Request for Assistance Our analysis indicates that the requested financial assistance appears to be required for the Project to move forward. Our findings are provided in more detail in the Conclusions and Recommendations section of the memo.=,•'' L��� F .� The Project is located on a 16-acre site at the southeast corner of Dundee Road and North Old Arlington Heights Road and currently consists of four parcels. The three parcels that front Dundee Road include vacant buildings that were formerly auto dealerships. One parcel, which fronts Old Arlington Heights Road, is vacant. The site plan dated June 2023 is provided in Appendix A. The Project includes three components: • Site Preparation for, and Vertical Construction of a Luxury Auto Dealership Building (the "Auto Dealership").The Land and Retail Developer plans to construct a new 50,000 square foot building that will be occupied by a luxury auto dealer tenant ("Auto Dealer Tenant") on the northeastern-most parcel, which is approximately 5.9 acres. The Land and Retail Developer also plans to complete the necessary horizontal site improvements . • Site Preparation for the Multifamily Component. The Land and Retail Developer also plans to complete horizontal site work for a proposed multifamily building on the southern parcel that fronts North Old Arlington Heights Road, wnich is 5.5 acres (the"Multifamily Parcel"). • Site Preparation for General Retail Component.The Land and Retail Developer plans to complete horizontal site work on two retail parcels (the "Retail Parcels") to make them development-ready. These two parcels are described as follows: . "Retail Parcel 1" is 2.26 acres and fronts Dundee Road. • "Retail Parcel 2" is 2.57 acres and sits at the southeast corner of Dundee Road and North Old Arlington Heights Road. The Land and Retail Developer anticipates beginning construction on both the Auto Dealership and the site preparation for the Retail Parcels and the Multifamily Parcel in 2024. The Land and Retail Developer anticipates selling three improved parcels: the Multifamily Parcel, Retail Parcel 1 and Retail Parcel 2 (collectively the "Disposition Parcels") in 2025, and completing construction of the Auto Dealership in 2025 with the Auto Dealer Tenant scheduled to move in in that year. SB Friedman reviewed the Land and Retail Developer's pro forma and supplemental materials and engaged the Land and Retail Developer in multiple conversations to obtain additional information to better understand underlying Project assumptions.The Land and Retail Developer provided the following documents for review: . A 10-year pro forma dated June 21, 2023 including: budget, cash flow, and other key assumptions • A site plan dated May 25, 2023 . Engineer's estimate of probable costs for site work, dated May 25, 2023 with additional information provided on October 28, 2023 and November 1, 2023 • Executed letter of interest between the Land and Retail Developer and the Residential Developer including a site plan for Multifamily Parcel, dated June 28, 2023 SB Friedman Deveiopment Advisors � Village of Buffalo Grove/Review of Dundee Road Redevelopment Project Request for Assistance • Fully executed purchase and sale agreement for the acquisition of the Site from the current property owner, dated February 10, 2023 and amendment to the agreement dated August 31, 2023 • Fully executed purchase and sale agreement and amendment between the Land and Retail Developer and the Multifamily Developer for the purchase and sale of the Multifamily Parcel, dated October 5, 2023 and October 16, 2023 • Land sales data of commercial properties leased to the Auto Dealer Tenant, dated June 23, 2023 • Other supporting documentation • The draft lease for the Luxury Auto Dealer Tenant, executed December 2023 DEVELOPMENT BUDGET The Project is estimated to cost approximately$45 million.SB Friedman reviewed the full development budget("Project BudgeY') by cost category, presented in Figure 1. Fi ure 1. Pro'ect Bud et • . . Land Acquisition Costs $11,127,253 $16 25% Hard Costs $23,867,039 $34 53% Site Preparation Costs -Auto Dealership $4,336,998 = $6 10% "" Retail Parcels $3,614,970 $5 8% Multifamily Parcel $5,896,499 $8 13% Vertical Costs Auto Dealership Building $7,911,086 $11 18°/o Hard Cost Contingency $2,107,486 $3 5% Soft Costs $3,081,911 $4 7% Financing Costs $6,056,212 $9 14% Developer Fees $512,667 $1 1% Total Development Costs(TDC) $44,645,082 $63 100% Source:Shorewood Development Group, SB Friedman Key findings from SB Friedman's review of the Project Budget include the following: . Land Acquisition.The Land and Retail Developer is anticipated to acquire the Site for$11,100,000, roughly$16 per land square foot. The Land and Retail Developer and the current property owner entered into a purchase and sale agreement in 2023 for the property purchase/sale. . Hard Costs • Site Preparation Costs. The Land and Retail Developer's Project Budget includes $13.8 million for site preparation costs for the Auto Dealership and the Disposition Parcels, or approximately $20 per land square foot. Site preparation costs include demolition of existing buildings and pavement, relocation of SB Friedman Development Advisors 3 Village of Buffalo Grove/Review of Dundee Road Redevelopment Project Request for Assistance existing underground utilities,earthwork,erosion control,and new pavement and sidewalks.Sitework costs in the Project Budget are approximately 31% of TDC. Sitework costs are based on third-party estimates dated May 25, October 28, and November 1, 2023. . Vertical Costs.The Project Budget includes approximately$7.9 million in costs for the construction of the Auto Dealership building,which equates to$158 per building square foot.This cost includes both the costs of the building shell and tenant improvements. This equates to 18% of total development costs. SB Friedman reviewed estimated costs for a prototypical new-construction auto dealership building using Marshall and Swift. Based on that analysis, the Developer's vertical costs appear comparable to benchmarks. • Hard Cost Contingency. The Project Budget includes a hard cost contingency of $2.1 million, or approximately 5% of total hard costs. This appears to be within the benchmark range for hard cost contingencies. • Soft Costs.The Project Budget includes approximately$3.1 million in soft costs,approximately 7%of TDC.This includes Architecture and Engineering ("A&E") fees, Village and other permits and fees, administrative costs, , such as legal, property taxes, and other holding cos�.s, and brokerage commissions. Additionally, the Project Budget includes a soft cost contingency of 9%of total soft costs. Soft cost estimates appear to be reasonable based on estimates for comparable projects. • Developer Fee. The Project Budget includes a Developer Fee paid to the Retail Developer of approximately $500,000 or 1% of TDC. 56 Friedman finds the Developer Fee assumption to be reasonable and within the range benchmarked against comparable projects. LAND DISPOSITION Additional detail on the sale of Disposition Parcels is described below: • Land Disposition of Multifamily Parcel. The Land and Retail Developer has entered into a Letter of Intent (LOI) to Purchase with the Residential Developer, to purchase/sell the Multifamily Parcel dated June 28, 2023. The parcel has an accepted offer of$4,500,000, which equates to approximately $19 per land square foot, or $22,500 per apartment unit,which appears in range per apartment unit in this market.The sale is expected to close in 2024/2025. . Land Disposition of Retail Parcel(s). The Land and Retail Developer plans to sell either one or both Retail Parcels. Based on conversations with the Land and Retail Developer, The Project pro forma assumes the Land and Retail Developer sells both Retail Parcels in 2025. The Land and Retail Developer estimates that Retail Parcel 1 will sell for$20 per land square foot, and Retail Parcel 2 for$22 per land square foot. Retail Parcel 2 is estimated to sell for a higher price because has stronger visibility and accessibility. These sales prices are in line with the benchmark range of comparable development-ready retail pads in the region. SB Friedman Development Advisors 4 Village ot Buffalo Grove/Review of Dundee Road Redevelopment Project Request for Assistance PROJECT FINANCING The Land and Retail Developer plans to finance construction of the Project with a combination of a construction loan and cash equity. The Land and Retail Developer plans to take out a construction loan for approximately $25.6 million to cover the construction phase of the Project with an 8.75%annual interest rate. In 2025, the Land and Retail Developer plans to refinance the Project into a permanent loan for approximately $19.9 million, upon completion of construction, and after land sale of the Disposition Parcels. The proceeds from the land sales are anticipated to reduce Project permanent debt and equity. The Land and Retail Developer is anticipating the permanent loan on the Project will incorporate a 55%/45% debt-to-equity split, will carry a 7.5°/o annual interest rate, and a 25-year amortization period.SB Friedman recognizes that at this stage financing terms are preliminary but appear reasonable. OPERATING ASSUMPTIONS SB Friedman assessed cash flow assumptions in the pro forma for the operation of the Auto Dealership portion of the Project. Key assumptions from the Project pro forma are outlined below: • Auto Dealer Tenant Lease Terms. The Auto Dealer Tenant is anticipated to pay an annual rent of $32 per building square foot, or $1,620,000 annually starting in 2025. The lease term is expected to be 15 years, with rent escalating 3% annually. The lease will be triple net, and therefore the Land and Retail Developer did not include operating expenses associated with the building in the pro forma. Vacancy is assumed to be zero, given that the Auto Dealer Tenant is leasing 100% of the building. We have accepted the Land and Retail Developer's assertion about the terms of their pending lease with the Auto Dealer Tenant. • Terminal Cap Rate and Cost of Sale. The Land and Retail Developer did not initially estimate a terminal cap rate or include a cost of sale at the end of the analysis period for the Auto Dealership portion of the Project. After conversations with the Land and Retail Developer, SB Friedman modelled a reversion calculation for Year 10 using a 6.5% terminal cap rate based on benchmark cap rates for similar transactions. SB Friedman also included a 3%cost of sale, based on the projected terminal value of the Auto Dealership portion of the Project. For the purposes of sizing the capacity of the Village to provide financial assistance,SB Friedman prepared independent projections of incremental property taxes using a comparables-based approach. Further information on SB Friedman's assumptions and detailed TIF revenue projections can be found in Appendix B. Prf. . ! �� � 9 ,� n-�,�,-.,� SB Friedman prepared projections of Project financial returns. Returns are evaluated with and without requested public assistance and are compared to market-appropriate, risk-adjusted rates of return to evaluate the Project's need for the Requested Village Assistance. SB Friedman analyzed the Project's need for the Requested Village Assistance under the following scenarios: SB Friedman Development Advisors 5 Village of Buffalo Grove/Review of Dundee Road Redevelopment Project Request for Assistance 1. No Village Assistance.This scenario assumes the Project receives no financial assistance from the Village. 2. With Requested Village Assistance. This scenario assumes the Project receives the Requested Village Assistance totaling $11 million (present value in 2025 dollars, assuming the requested 8.5%annual interest rate on a note). SB Friedman used an Unleveraged Internal Rate of Return ("Unleveraged IRR") metric to evaluate the return of the Project as a whole.Unleveraged IRR is the rate of return or discount rate for a project,accounting for initial expenditures to construct a project (total development costs) and ongoing cash inflows (annual net operating income (NOI) before debt service), as well as a hypothetical sale of a project at the end of the analysis period. Benchmark return ranges are based on industry sources, information obtained from active developers and equity providers, and SB Friedman's past experience. As presented in Figure 2, SB Friedman estimates that the Project would generate an Unleveraged IRR 4.1% with No Village Assistance and 8.4%with the Requested Village Assistance. SB Friedman reviewed market data which indicates an Unleveraged IRR of 8.4%falls within industry benchmarks from PwC and RERC. Fi ure 2. Pro'ected Financial Returns � . - -. . ..- . , _� .w - . �.� __. -::�:. �,�..r�.: " .��.��+��_ .s+� .. ,t,"` Unleveraged IRR 4.1% 8.4% Present Value of Village Assistance(2025 dollars)[1] $0 $11,000,000 Source: Shorewood Development Group, SB Friedman [1]Assumes 8.5%discount rate, per Shorewood Development Group and Village of Buffalo Grove The Project's need for Village financial assistance appears to be driven by relatively high acquisition and horizontal site preparation costs. Additionally, the Land and Retail Developer anticipates sell the Disposition Parcels for less than the costs incurred to acquire and improve those parcels. In fact, the Land and Retail Developer's land acquisition and estimated hard costs associated with the Disposition Parcels are expected to be more than twice the estimated land sale proceeds.Thus, it appears that Project requires the Requested Village Assistance. Conclusions and Recommendations The Project, as presented and described above, appears to require $11 million (2025 dollars) of Requested Village Assistance to achieve market-acceptable rates of return,and to therefore be financially feasible.As presented in Figure 2,the Project achieves returns in line with industry benchmarks. The Project's need for assistance appears to be driven by acquisition costs above typical land values and relatively high site preparation costs. SB Friedman finds that the Requested Village Assistance appears necessary for the Project to achieve risk-adjusted, market-appropriate rates of return. The amount, structure and terms of the Requested Village Assistance will be negotiated in the RDA. SB Friedman recommends that if the actual cost of the Project is materially less than the estimated Project Budget outlined above there should be some reduction in the amount of Village financial assistance. SB Friedman recommends that RDA requires the Land and Retail Developer provides the Village with documentation showing actual expenditures incurred and paid and that those actual costs be compared to the Project Budget to allow SB Friedman Development Advisors 6 Village of Buffalo Grove/Review of Dundee Road Redevelopment Project Request for Assistance for a final reconciliation between projected costs and actual costs.Once that reconciliation is complete, an adjustment to the note face amount can be made. Additionally, the Land and Retail Developer should provide to the Village any and all back up information and documentation of TIF-eligible costs incurred and paid. SB Friedman Development Advisors 7 Village of Buffalo Grove/Review of Dundee Road Redevelopment Project Request for Assistance �K��1'�t1C�IX ,Q PROJECT SITE PLAN, JUNE 2023 I 55 � � ' I " .� ._ "—' . ___ . — T —__ —_--�— , --- � _.��i,ii�t� i���iiit�- i,�, - �+ '-r. , • • •- �r' � I�f . -�- . I'g S ji ' ' I. n-�. , , < ,.. •Ili'i� i^ - : li ,. ,.,.'. ; "�a ,� I x� � -, � ,; � � .�� �., F� � z _ '' ' � �, :� _!° ' �.�� � E ����. � �— �a, � �� ��� „ '�. . ... ,, w r �� ' '-'°.---�z � I� �� ' :i- ... �� I �I� .`�,, .,. ,. ,� �� � �� _ —��I • m ,, � , - _ ,_. . . ._ 7 IIIL11111 � I4 j ._ _1J(L �II_L_�. IIIIII 1 ii :c ;,• � ti , _ I _�� ' l � --- - I =� �----- , � . �� � -,« ,. —.. . • .. _ — -- � -i ^ � ; - i—r — , � �� I i��� n� a: � ' 1 ;i, ��,� ' . ' _ .,1, -n � n , �. � � s ��t j�; � � - R . ' ��, ._ ; ; ; ' � • " • '� ��� � -,� .� R , � i i /-, i� � • � E� , I�t . E ' '�i 1�i ��111ll �� i :� � n�a � , , � _ i '� ,, � ���� _._�. �.__,._ _._.,.:: :...a. .�. .. l ' � � il __ ..� �._ -- - - -- - ; --- - - �.. __ - , � �-� SB Friedman Development Advisors g Village of Buffalo Grove/Review of Dundee Road Redevelopment Project Request for Assistance A��er?clix B TIF REVENUE PROJECTIONS 1 2024 $0 �0 �0 $0 $0 2 2025 $321,033 ($98,711) $222,321 (�33,348) $188,973 3 2026 $1,102,957 ($z59,184) $843,773 (�126,566) $717,207 4 2027 $1,878,641 ($568,014) $1,310,627 ($196,594) $1,114,033 5 2028 $1,878,641 (�568,014) $1,310,627 ($196,594) $1,114,033 6 2029 $2,031,126 (�605,824) $1,425,302 ($213,795) $1,211,507 7 2030 $2,031,126 (�605,824) $1,425,302 ($213,795) $1,211,507 8 2031 $2,031,126 (�605,824) $1,425,302 ($213,795) $1,211,507 9 2032 $2,192,944 (�645,948) $1,546,997 ($232,049) $1,314,947 10 2033 $2,192,944 !�645,948) $1,546,997 (�232,049) $1,314,947 11 2034 $2,192,944 5645,948) $1,546,997 ($232,049) $1,314,947 12 2035 $2,364,667 (�688,527) $1,676,140 ($251,4Z1) $1,424,719 13 2036 $2,364,667 ($688,527) $1,676,140 ($251,421) $1,424,719 14 2037 $2,364,667 ($688,5z7) $1,676,140 (�251,421) $1,424,719 15 2038 $2,546,901 (�733,713) $1,813,187 ($271,978) $1,541,209 16 2039 $2,546,901 ($733,713) $1,813,187 ($271,978) $1,541,209 17 2040 $2,546,901 ($733,i13) $1,813,187 ($271,978) $1,541,209 18 2041 $2,740,288 ($781,665) $1,958,624 ($293,794) $1,664,830 19 2042 $2,740,288 ($781,665) $1,958,624 ($293,794) $1,664,830 20 2043 $2,740,288 ($781,665) $1,958,624 ($293,794) $1,664,830 21 2044 $2,945,513 ($832,551) $2,112,961 ($316,944) $1,796,017 22 2045 $2,945,513 ($832,551) $2,112,961 ($316,944) $1,796,017 23 2046 $2,945,513 ($832,5�1) $2,112,961 ($316,944) $1,796,017 * 2047 $3,163,299 ($886,553) $2,276,746 ($341,512) $1,935,234 Undiscounted Value $52,810,000 ($15,250,000) $37,560,000 (�5,630,000) $31,930,000 Present Value,2025 $21,600,000 (56,300,000) $15,300,000 (52,300,000) $13,000,000 (8.5% Discount Rate) [1] [1] Discount rate provided by Shorewood Development Group and Village of Buffalo Grove [2]These illustrative projections consist of general information and do not constitute advice or recommendations regarding the structure,timing,or terms of municipal securities pursuant to Section 156 of the Securities Exchange Act of 1934.Atthough SB Friedman is registered with the Municipal Securities Rulemaking Board as a Municipal Advisor,we are not acting as a municipal advisor to any entity with respect to the subject matter hereof. We do not owe any fiduciary duty pursuant to Section 15B of the Securities Exchange Act of 1934 to the municipal entity or obligated person with resped to the information and material contained in our illustrative projections.Our illustrative projections do not constitute advice or recommendations regarding the structure,timing,or terms of such securities.Prior to taking any action related to the structuring or issuance of municipal securities or financial products,whether or not related to information provided in SB Friedman's analysis,any municipality,obligated party, or potential investor in municipal securities should consult with its own financial and/or municipal,legal,tax,accounting,and other advisors to the extent it deems appropriate. SB Friedman Development Advisors 9 Village of Buffalo Grove/Review of Dundee Road Redevelopment Project Request for Assistance TIF REVENUE ASSUMPTIONS ,,�. � .�r, . Pro ert Value Growth Rate(Annual) 2.0% SB Friedman Pro ert Value Growth Rate(Triennial) 6.1% SB Friedman Cook Count 2021 Tax Rate(Code 38077) 10.532% Cook Count Assessor Next Assessment Year 2025 Cook Count Assessor �, �. -'-y �.>�`.�^�"'"ya3��"`�'k�� 4 3 .'3a '` =t!'1,�+'b*i�'4 �:i�.�r �r.. _ _ t �a:. �d �-. ;�. Retail - Luxur Auto 50,000 Shorewood Develo ment Grou Retail-General Retail 20,000 Shorewood Development Group Multifamil 215 Shorewood Development Group j r 'F4 ��M�-�: t � s. — �— _.��' Retail- Luxu Auto Dealershi $135 Cook Count Assessor Retail -General Retail $110 Cook Count Assessor Multifamil $60,000 Cook County Assessor 4Ati , '� ..2k+�,k `�6r �. �,qyG'�tS P�.. n1_` k ' Base Year 2023 SB Friedman Final Assessment Year 2046 SB Friedman Total Cook Count Base EAV(2022) $5,816,720 Cook Count Assessor Total Cook Count Current EAV(2022) $5,816,720 Cook Count Assessor Residential Base EAV(2022) $1,119,832 Cook Count Assessor Grade School District Reimbursement 27% SB Friedman; er Illinois TIF Act Hi h School District Reimbursement 13% SB Friedman; er Illinois TIF Act Librar District Reimbursement 2% SB Friedman; er Illinois TIF Act Villa e of Buffalo Grove Hold Back 15% Vilia e of Buffalo Grove Shorewood Development Group,Village of Discount Rate Assumption 8.5% Buffalo Grove SB Friedman Development Advisors 10 Village of Buffalo Grove/Review of Dundee Road Redevelopment Project Request for Assistance At�r�endix C LIMITATIONS OF OUR ENGAGEMENT Our report is based on estimates, assumptions and other information developed from research of the market, knowledge of the industry, and meetings/teleconferences with the Village of Buffalo Grove, Illinois,the Developer, and legal counsel during which we obtained certain information.The sources of information and bases of the estimates and assumptions are stated in the report. Some assumptions inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by our analysis will necessarily vary from those described in our report, and the variations may be material. The terms of this engagement are such that we have no obligation to revise analyses or the report to reflect events or conditions that occur subsequent to the date of the report. These events or conditions include, without limitation, economic growth trends,governmental actions,changes in state statute,additional competitive developments, interest rates, and other market factors. However,we will be available to discuss the necessity for revision in view of changes in the economic or market factors affecting the proposed project. Our report is intended solely for your information, for purposes of reviewing a request for financial assistance, and is not a recommendation to issue bonds or other securities. The report should not be relied upon by any other person, firm or corporation, or for any other purposes. Neither the report nor its contents, nor any reference to our Firm, may be included or quoted in any offering circular or registration statement, appraisal, sales brochure, prospectus, loan, or other agreement or document intended for use in obtaining funds from individual investors without our prior written consent. We acknowledge that upon submission to the Village of Buffalo Grove, the report may become a public document. Nothing in these limitations is intended to block the disclosure of the documents for public information purposes. SB Friedman Development Advisors 11