FY 2020 City of Silvis, Illinois

Building Repair & Façade Program

APPLICATION PACKET

AVAILABLE MAY 7, 2019

APPLICATIONS DUE DECEMBER 31, 2019

The City of Silvis is authorized to designate up to $50,000 to be offered to

businesses, developers and current property owners of buildings in Downtown Silvis.

These funds are offered as incentives to promote improvements to commercial

storefronts, roofs and the sides of commercial buildings which face City streets and

sidewalks in the Silvis Downtown TIF District.

Projects must be substantially completed on or before April 30, 2020. This

program has been very successful over the last 5 years and is a great opportunity to

make our downtown buildings more attractive and welcoming for visitors and

customers.

Grant awards for qualified Building Repairs and Façade Renovations are

offered as an 80% matching grant, not to exceed $10,000 on a parcel-by-parcel

basis.

That’s right! The FY 2020 Silvis Building Repair & Façade Program will

reimburse up to 80% of program eligible costs or a total of $10,000, whichever is less.

That’s $0.80 reimbursed for every $1.00 spent times 10,000! For example, if $12,500

of program eligible costs are incurred, a successful applicant may be eligible to receive

a reimbursement of $10,000, or 80% of total program eligible costs. If less is needed,

it’s still an 80% reimbursement. A list of program eligible costs is included in this

Application Packet.

All applications will be swiftly reviewed and approved as they are received by

a City-authorized, independent committee. Don’t delay! Apply TODAY!

Many buildings were once beautiful and wouldn’t it be great to restore that

beauty. A helpful Downtown Design Manual is available at the City Clerk’s office.

For more information about this exciting, limited-time opportunity, contact:

Jim Grafton, Silvis City Administrator at (309) 792-9181.

FY 2020 CITY OF SILVIS, ILLINOIS

BUILDING REPAIR & FAÇADE PROGRAM

AVAILABLE MAY 7, 2019

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SILVIS DOWNTOWN TIF DISTRICT FY 2020 SILVIS COMMERCIAL FAÇADE & BUILDING REPAIR PROGRAM

City of Silvis, Illinois / 121 11th Street, Silvis, IL 61282

The goal of the FY 2020 Silvis Commercial Façade & Building Repair Program (the “Program”) is to visibly enhance the Downtown Corridor within the Silvis Downtown Tax Increment Financing (TIF) District (the “District”). The way a building looks has a direct effect on how people view the community and what’s inside the building. For a landlord, this can mean tenants may be willing to pay more for space, while for businesses, such improvements may result in potential customers and clients experiencing a positive first impression that makes the difference between walking by and coming inside. The FY 2020 Silvis Commercial Façade & Building Repair Program is intended to promote improvements to commercial storefronts, roofs and the sides of commercial buildings which face City streets and sidewalks in the Downtown TIF District. All commercial business properties located within the Silvis Downtown TIF District Redevelopment Project Area (the “Area”) (see Appendix A) are eligible for funding at the rate of one (1) convertible loan/grant per parcel, subject to the availability of funds and City approval. Property owners or business owners within the Area are eligible to apply for loan/grant amounts not to exceed $10,000 or up to 80% of project costs, whichever is less, for the reimbursement of TIF eligible project costs. Qualified loans shall convert to grants incrementally over a five (5) year period provided the property: 1) is not sold within 180 days without the consent of the City; 2) is occupied by a commercial business; and 3) retains at least 80% or more of current equalized assessed valuation. Failure to comply with these terms shall require Applicant/Borrower to pay the City a Non-Performance Penalty in an amount equivalent to the outstanding principal amount of the loan plus accrued Penalty Interest as stipulated herein. Business owners who are tenants of an existing structure for which leasehold improvements are planned must provide written consent from the property owner for all proposed improvements. The City encourages all applicants to purchase materials for the projects locally and, whenever possible, to use local contractors. The Project must be substantially completed on or before April 30, 2020.

Commercial Façade & Building Repair Program Description and Requirements

1. Property Owners or Business Owners must promptly complete the FY 2020 Silvis Commercial Façade & Building Repair Program Application (the “Application”, see Appendix B), including all requested attachments, and submit to the City Clerk’s Office on or before December 31, 2019.

a. Only properties located within the Silvis Downtown TIF District (Appendix A) are eligible to apply for the Program. Applicants may apply for a maximum of only one (1) application per property “PIN” or real estate tax identification number.

b. All applications will be reviewed by the City, however the submission of an application does not guarantee a grant will be awarded. Funding is available in 2019/2020 for only a limited number of Loan/Grant awards. Applications will only be accepted for first-time applicants, including the 2014, 2015, 2016, 2017 and FY 2019 Silvis Commercial Façade

Applicant Name: ________________________

Date Submitted: ____ / ____ / 2019

Received by: ___________________________

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& Building Repair Programs. Applications will be competitively selected for funding based on the program’s purpose, goals, eligibility and criteria of the City.

c. Any property owner or business tenant in a commercial building in the project area is eligible to apply. Either the property owner or the business tenant of a building may submit an application. Property owners and business tenants may also apply jointly. In any case, only one application may be submitted for each property.

d. A business tenant application must obtain the property owner’s written consent for a façade renovation and submit it with the application.

e. Other than commercial apartments and rental units located above ground-level commercial space, government facilities and private dwellings are excluded from consideration.

f. Program Applications will not be accepted if the property is already receiving economic development incentives from the City of Silvis.

g. An overall Project Plan describing the proposed improvements, including pre-Project photos of the building, must be submitted with each Application. The Project Plan is subject to approval by the City Building Inspector prior to the distribution of any Program funds.

i. All Project Plans must include: (a) a description of the planned improvements; (b) estimated cost (contractor bid) of the project; and (c) projected start and completion dates. Conceptual sketches, photos and/or drawings are encouraged and the City reserves the right to request additional information, including but not limited to how the building will be utilized (e.g., type of business) once the repairs or renovations are completed.

2. The maximum amount awarded for each approved Application shall not in any case exceed eighty percent (80%) of total project costs or a single lump sum reimbursement of $10,000.00, whichever is less, for a project undertaken on a single, individual commercial property as identified by the Rock Island County real estate tax identification number.

a. Funds are awarded for commercial building repair and facade renovation projects for

TIF eligible project costs (pursuant to 65 ILCS 5/11-74.4 et. seq. as amended), subject to the availability of funds and the approval of the City of Silvis.

b. Program funds are distributed on a reimbursement basis only when the approved Project is completed in accordance with the plans and specifications submitted with the Application and Project Plan and pursuant to (e)(ii) below.

c. A preliminary dollar amount of the loan/grant is determined by the City at the time of the application and approved by the Applicant. The actual loan/grant amount shall not, in any event, exceed the amount of eligible program funds verified pursuant to (e)(ii) below.

d. Program funds are initially distributed by the City in exchange for a “Promissory Note”

from Applicant to the City of Silvis (Exhibit 1 of Appendix B. Program Application). Loans shall be issued by the City with a five (5) year “Non-Performance Penalty”

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equivalent to the principal balance of the loan plus 3.0% APR. The loan for which the Applicant/Borrower complies with the terms of the Application as set forth herein and the Promissory Note shall be forgiven and converted to a grant at an equivalent rate of 20% of total loan principal plus accrued interest per year (i.e., at the end of the first year on April 30, 2021 and at the end of each subsequent year with final grant conversion occurring on April 30, 2025).

e. The final award amount is based on documentation of actual costs.

i. Program funds will be paid ONLY upon verification of TIF eligible project costs as permitted by the Tax Increment Allocation Redevelopment Act (65 ILCS 5/11-74.4 et. seq.)

ii. Verification of TIF eligible project costs may include receipts, paid invoices, paid bills or statements of suppliers, contractors, or professionals together with Mechanic’s Lien Waivers, if applicable, and cancelled checks or other proof of payment as required by the City. Applicants shall provide any additional cost verification information requested by the City prior to distribution of Program funds.

f. A Project that alters submitted plans without prior approval of the City will be

disqualified for payment. Designs not completed as submitted will also be disqualified.

3. The Façade Program Advisory Committee will review all applications. If an application is denied, a written explanation will be provided to the Applicant. The Applicant may then revise and resubmit the Application one time only for a second review within ten (10) days.

4. ALL APPLICATIONS MUST BE SUBMITTED TO THE CITY CLERK’S OFFICE BY DECEMBER 31, 2019. ALL FAÇADE & BUILDING REPAIR PROJECTS MUST BE COMPLETED ON OR BEFORE APRIL 30, 2020.

5. The applicant(s) acknowledges he/she is responsible for compliance with the Illinois Prevailing Wage Act and shall not pay less than the prevailing rate of wages as found by the City or Department of Labor to all laborers, workers and mechanics performing work under this Agreement. The Applicant(s) shall indemnify and hold harmless the City, and all City elected or appointed officials, officers, employees, agents, representatives, engineers, consultants and attorneys (collectively, the “Indemnified Parties”), from any and all claims that may be asserted against the Indemnified Parties or one or more of them, in connection with the applicability, determination, and/or payments made under the Illinois Prevailing Wage Act (820 ILCS 130/0.01 et. seq.), the Illinois Procurement Code, and/or any similar State or Federal law or regulation. This obligation to indemnify and hold harmless obligates Developer to defend any such claim and/or action, pay any liabilities and/or penalties imposed, and pay all defense costs of City, including but not limited to the reasonable attorney fees of City.

6. All work must conform to existing City and State Building, Zoning and Fire Codes. Consult with the City Planning and Building Inspections Department when planning a project. Every reasonable effort shall be made to protect and preserve archeological resources affected by, or adjacent to, any Project.

7. The FY 2020 Silvis Commercial Façade & Building Repair Program is specifically designed to promote aesthetic enhancements and structural improvements to commercial storefronts, roofs

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and the sides of commercial buildings which face City streets and sidewalks in the Silvis Downtown TIF District (see Appendix A).

a. Only exterior façade repairs and renovations are eligible for consideration under the FY

2020 Silvis Commercial Façade & Building Repair Program. The costs of limited interior alterations such as display window changes or replacements may be included only if they are a necessary part of the façade design.

b. Priority considerations will be given to proposals that make highly visible and significant design contributions, and which contribute to the program of preserving the architectural, historic, and commercial character of Silvis as described in the Silvis Downtown Design Manual, a copy of which is available at City Hall.

8. Applicants must, in advance of receiving Program funds, complete the Project and verify

payment of program eligible costs in an amount equal to or greater than the actual amount awarded to the Program Applicant by the City. Program eligible project costs, include:

a. The costs of demolition of deteriorated synthetic stucco or siding on exterior walls

facing a City street or sidewalk, which must be followed by (b) below. Preferred construction standards:

i. Cleaning a building’s exterior must be undertaken with great care. Use the gentlest means possible and avoid sandblast. Testing the results of a chosen method on an inconspicuous place on the building to be cleaned is highly recommended.

ii. The original distinguishing qualities or character of the building, structure, or site and its environment should not be destroyed. The removal or alteration of any historic material or distinctive architectural features should be avoided when possible.

b. Historic reconstructions, brick tuck pointing, brick repair, concrete or mortar repair,

painting, replacement of fencing attached to an existing structure or any other repairs to exterior walls facing a City street or sidewalk. Preferred construction standards:

i. Facades are major elements of the overall streetscapes of downtown Silvis. Try

to retain or re-create as much of the storefront’s original shape and configuration as possible. Good design incorporates the following elements: (1) bottom bulkhead, (2) large open and airy display windows, (3) a recessed entry and (4) transom sign panel and cornices. Avoid inappropriate period designs. Most storefronts in the period of Silvis’ downtown were constructed of wood and glass with wooden entry doors with large glass panes.

ii. The re-pointing of masonry should be done carefully. Mortar and tooling techniques should match the original as closely as possible. Mortar should never be spread over the face of brick. Repointing should be done following exterior cleaning. The retention and repair of existing cornices is strongly encouraged. The re-creation of missing cornices should be done with care, using the building’s existing cornices or historic photograph of the building as a guide.

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iii. The height, width and general proportions of the building should conform

generally to other buildings in the Area. Buildings should remain “pedestrian-scaled” in order to protect views, sunlight and street character.

iv. Use high quality and appropriate paint for each situation. Avoid covering or

painting unpainted brick or stone unless it is necessary to hide existing defects or mismatching materials. Use colors that are compatible with other buildings in the area and that are true to the style and age of the structure. Avoid strong or bold colors. It is generally advisable to limit color combinations to three: one base and two accent colors. When choosing an exterior paint scheme, it is recommended to use one of the following palettes: Benjamin Moore’s Historical Colors, Lowe’s/National Trust for Historic Preservation colors or Sherwin Williams’ Exterior Preservation palette. The Benjamin Moore and Sherwin Williams palettes will be available at City Hall for the review process. Similar color palettes from other paint suppliers may be considered.

v. Use natural materials that relate to the building’s original construction and are allowed by code. Imitation or synthetic materials such as aluminum or vinyl siding, imitation brick or stone, or plastic will generally be deemed inappropriate. Any use of these materials will require specific approval. Removing all inappropriate materials and coverings is strongly encouraged.

c. Repair of seals around windows and doors, including cracks have appeared in the

façade, that have deteriorated on walls facing a City street or sidewalk.

d. Repair or replacement of windows, doors and lighting facing a City street or sidewalk. Preferred construction standards:

i. Repair or replace all broken windows, glass, sash and frames. Retain existing windows where possible or replace with similar material. Wooden frame windows are preferred. Metal, vinyl or plastic window frames are unacceptable unless anodized or painted. Boarding up windows is inappropriate. Windows at the ground level, beginning not more than 3 feet from the ground and extending to at least 9 feet from the ground; may not be tinted, mirrored, or covered inside with materials that obstruct the view of the interior space. Some degree of tinting may be necessary in direct sun areas to prevent fading of merchandise in display windows as well as for energy conservation. Windows shall not be barred. No bars on windows. If it is necessary for the protection of shop merchandise (pawn shops with guns, etc.) use LEXAN® or a similar material instead of glass for windows. Interior blinds, shades or curtain should be clean and in good repair.

ii. The ratio of wall surface to openings and the ratio of the width and height of windows and doors should also be consistent with buildings in the Area.

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e. The repair or replacement of awnings on exterior walls facing First Avenue. Preferred construction standards:

i. Awning design should relate to the shape and color of the building and be appropriate for its architectural style. In addition, awnings should be in harmony with the character of the Downtown and in coordination with the shape, color and design of adjacent awnings. All awnings must meet City code requirements for size, materials and projections and shall be well maintained. Metal, fiberglass or plastic awnings are not appropriate. Painting directly to an awning is strongly discouraged.

f. Sign replacement, if affixed to the exterior wall

facing a City street or sidewalk. Preferred construction standards:

i. All design criteria and work must conform to existing Zoning Codes. Consult with the City Planning and Building Inspections Department when designing a sign. Individuality and creativity are encouraged, however signs should relate to each other through quality, not necessarily through uniform materials, lettering or size.

ii. Most buildings are designed with a defined sign space. The location of appropriately sized signs in these spaces is strongly encouraged. Signs on awning flaps and store display windows are generally appropriate as well.

iii. All signs for which Program funds will be applied, need to be pre-approved by the City.

g. Roof repairs are TIF eligible, but Program funds shall be applicable only to roof repair

costs which do not exceed 15% of the total cost of the project or a maximum of $3,000.00, whichever is lowest. Preferred construction standards:

i. On roofs visible from the public right-of-way, wood, slate or asphalt shingles are appropriate. Roll roofing, built-up tar and gravel, plastic, rubber, fiberglass or other roofing materials are only appropriate on flat roofs or other roofs that are not visible from the public area. The nature of the roofline should be compatible with existing buildings.

___________________________________________________________________

Projects which may be outside the scope of this Program may apply for other TIF District assistance by contacting:

Jim Grafton, Silvis City Administrator, Silvis City Hall at (309) 792-9181.

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APPENDICES

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APPENDIX A. SILVIS DOWNTOWN TIF DISTRICT MAP

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APPENDIX B.

PROGRAM APPLICATION City of Silvis, Rock Island County, Illinois

FY 2020 Silvis Commercial Facade & Building Repair Program Application Silvis Downtown TIF District

1. Applicant Name(s)*:______________________________________________________________ a. Applicant Address: ________________________________________________________ b. Applicant’s Daytime Phone: _________________ Evening Phone: _________________ c. Applicant’s Email Address: __________________________________________________

*(First-Time Applicants Only) 2. Business Name: _________________________________________________________________

a. Type of Business (check one) □ Service □ Retail □ Other (describe): _________________

b. Owner’s Name(s): ____________________________________ or □ Same as Applicant

c. Business Address: _________________________________________________________ d. Business Daytime Phone: ____________________

3. Property Owner’s Name(s): ___________________________________ or □ Same as Applicant

a. Daytime Business Phone: ____________________ Evening Phone: ________________ b. Property Owner’s Email Address: ____________________________________________

c. If Property Owner is not Applicant, the owner’s permission is attached: □YES or □NO

4. Parcel/PIN # ______________________________________Approx. Age of Building: _____

a. A copy of the most recent real estate tax bill is attached: □YES

5. Project Plan is attached: □YES

6. Will this Project contribute to the historical restoration of the building? □YES or □NO

7. Estimated Project Completion Date: _____ / _____ / 201__.

8. Total Estimated Project Costs: $__________________

9. Amount of Program Funds Requested: $________________ = _____% of Total Project Costs.

a. NOTE: All Façade & Building Repair Program amounts are limited to 80% of total project costs, not to exceed a maximum of $10,000. Each Applicant must verify TIF eligible project costs and a minimum cash match of 20% of the total project costs prior to receiving Program Funds.

10. I have read the FY 2020 Silvis Commercial Facade & Building Repair Program description and

fully understand and agree to the requirements of the Program Application, including the Promissory Note hereto attached as Exhibit 1. I further understand the Application must be reviewed and approved by the City prior to commencement of any Project and that failure to comply with the approved Application may result in forfeiture of Program funds.

Applicant Signature: __________________________________________Date: _____ / _____ / 2019 Applicant Signature: __________________________________________Date: _____ / _____ / 2019

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(Page 2 of Appendix B. Program Application)

For City Office Use APPLICATION NO.* _____ Date Application Received: _____ / _____ / 2019. Signature: _______________________________ *(First-Time Applicants Only)

Facade Program Advisory Committee Recommendation: □ Yes or □ No on _____ / _____ / 201___.

Signature: _______________________________ If Application is not recommended, a written explanation is attached and will be provided to the Applicant. The Applicant may revise and resubmit the Application one time for a second review within ten (10) days, or by _____ / _____ / 201____.

Verification of $_______________ of TIF Eligible Project Cost confirmed on _____ / _____ / 201___.

Signature: _______________________________ Completion of Project inspected and verified on ___ / ____ / 201___.

Signature: _______________________________ _____________________________________________________________________________________

PROJECT ACCEPTANCE Pursuant to Ordinance No. 2019-19, the City of Silvis, Rock Island County, Illinois, accepts the attached FY 2020 Silvis Commercial Facade & Building Repair Program Application and agrees to loan to the Applicant, in exchange for Applicant/Borrower’s Promissory Note (see Exhibit 1), __________________________________ Dollars and No Cents ($___________________) from the Downtown Silvis TIF District Special Tax Allocation Fund (the “Loan”) for TIF Eligible Project Costs incurred as a result of the Developer’s Project (see Exhibit 1). The terms and conditions for the Loan shall be as follows:

1. The full Loan principal amount of $__________________ shall be paid to Applicant/Borrower upon verification of program eligible costs and following the execution of a Promissory Note providing annual payments over five (5) year term ending April 30, 2025 at 3.0% APR;

2. One-fifth (1/5) of the Loan principal amount plus accrued interest shall be forgiven annually by the City commencing April 30, 2021 and on April 30th of each year thereafter for the term of the Loan, provided the Developer has been at all times in full compliance with every term of this Application as herein described. Provided the Developer complies with all the terms of the Promissory Note set forth herein as Exhibit 1, the Loan shall be fully forgiven by the expiration of the Promissory Note.

3. A Non-Performance Penalty shall be paid by Applicant/Borrower to the City upon failure of Applicant/Borrower to comply with every term of the FY 2020 Silvis Commercial Facade & Building Repair Program Application as provided herein (Exhibit 1).

4. The Non-Performance Penalty Interest Rate for the Loan shall be 3.0% APR. Promissory Note Executed and attached hereto on: ___ / ____ / 201___ for the Amount of: $___________. APPROVED: ___________________________

Mayor, City of Silvis - Date ____/ ____ / 201____

ATTEST: _______________________________

City Clerk, City of Silvis - Date: ____/ ____ / 201__ Check issued to applicant on ___ / ____ / 201____ Check#____________

Signature: _______________________________

□ File Copy of Application and Promissory Note sent to: Jacob & Klein, Ltd. and The Economic Development

Group, Ltd., 1701 Clearwater Avenue, Bloomington, IL 61704.

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EXHIBIT 1 Promissory Installment Note

RECITATIONS: Date: _____ / _____ / 201___ Applicant(s) / Borrower(s): ______________________________________________________________________________ Borrowers’ Address(es): ________________________________

________________________________

________________________________

________________________________

________________________________

________________________________

Lender: City of Silvis, Rock Island County, Illinois Place for Payment: 121 11th St., Silvis, IL 61282 Principal Amount: $_______________ Interest Rate: 3.0% APR Maturity: April 30, 2025

1. PROMISE TO PAY

Upon the City of Silvis, Rock Island County, Illinois accepting Borrower’s FY 2020 Silvis Commercial Facade & Building Repair Program Application and this Promissory Note, the Borrowers promise to pay the City five (5) annual installments commencing April 30, 2021, and on April 30th of each year thereafter per the following payment schedule:

PMT NO. PMT DATE BEGIN BAL PRINCIPAL INTEREST END BAL

1 04/30/2021

2 04/30/2022

3 04/30/2023

4 04/30/2024

5 04/30/2025

2. LOAN TO GRANT CONVERSION TERMS.

One-fifth (1/5) of the loan principal plus accrued interest shall be converted to a Grant and forgiven annually by the City of Silvis commencing April 30, 2021, and on April 30th of each year thereafter for the term of the loan, provided that Borrower(s) has been, at all times, in full compliance with every term of the FY 2020 Silvis Commercial Facade & Building Repair Program Application and provided the Borrower complies with all terms set herein, the loan shall be fully forgiven by the maturity of the loan (April 30, 2025).

3. NON-PERFORMANCE PENALTY. Upon the City of Silvis, Rock Island County, Illinois accepting Borrower’s FY 2020 Silvis Commercial Facade & Building Repair Program Application and this Promissory Note, the Borrowers promise to fully comply with the terms of said Application or will pay City, or order, any lawful money of the United States of America, a Penalty equivalent to the outstanding

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principal amount, payable in full with all accrued interest to the City, on or before ninety (90) days of Notice of Non-Performance.

4. ANNUAL NON-PERFORMANCE PENALTY INTEREST RATE.

The Penalty Interest Rate on matured, unpaid amounts shall be at the rate of three percent (3.0%) per annum.

5. NON-PERFORMANCE PENALTY PAYMENT.

This loan shall be converted to a Grant as described in Paragraph 2 above, subject to the Borrower’s payment of the Non-Performance Penalty to the City calculated in the manner set forth above in Paragraph 3, if any one or more of the following occurs:

a. The Project for which Applicant/Borrower received FY 2020 Silvis Commercial Facade & Building Repair Program funds has not been substantially completed on or before April 30, 2020.

b. Applicant sells or transfers title to the property to another entity within 180 days following completion of the Façade and/or Building Repairs for which this Loan has been executed without the written consent of the City;

a. Consent by the City shall not be unreasonably withheld provided that the

nature and use of the building for commercial purposes complies with current City zoning ordinances and is not otherwise substantially changed.

c. Commercial operations of comparable scope and value to those operating on the

property in 2019 cease for a period of 180 days, or commercial operations fail to commence for a period of 90 days following completion of the Façade and/or Building Repairs for which this Loan has been executed; or

d. The equalized, assessed valuation of the property is reduced to less than 80% of the total equalized assessed valuation reflected on the tax year 2018 payable 2019 real estate tax bill.

6. PLACE FOR NON-PERFORMANCE PENALTY PAYMENT.

Borrowers will pay Lender at Lender’s address shown above or at such other place as Lender may designate in writing.

7. DEFAULT AND ACCELERATION CLAUSE. If Borrowers default in the payment of any Non-Performance Penalty payment to City or in the performance of any obligation, including, but not limited to those noted below, and the default continues after Lender gives Borrowers notice of the default and the default is not cured within 30 days of receipt of Notice of Default, then the Lender may declare the unpaid Non-Performance Penalty balance on this promissory installment note immediately due. Borrowers and each surety, endorser, and guarantor waive all demands for payment, presentation for payment, notices of intentions to accelerate maturity, notices of acceleration of maturity, protests and notices of protest, to the extent permitted by law. Each of the following shall constitute an event of default under this note:

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_______________________________

_______________________________

_______________________________

_______________________________

a. Payment default: Borrowers fail to make any Non-Performance Penalty payment when due under this Promissory Note.

b. Other defaults: Borrowers fail to comply with or to perform any other term, obligation, covenant or condition contained in this Promissory Note, the Program Application, or in any of their related obligations contained in any other agreement between the City and Borrowers.

c. Default in favor of liabilities to third parties: Borrowers or any guarantors default under any loan, extension of credit, security agreement, purchase for sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of the Borrowers’ property or borrowers’ ability to repay this note or perform Borrowers’ obligation under this note or any other related documents.

d. False statements: Any warranty, representation or statement made or furnished to Lender by Borrowers or on Borrowers’ behalf under this note or the related documents as false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter.

e. Insolvency: The dissolution or termination of Borrowers’ existence as a business, the insolvency of Borrowers, the appointment of a receiver for any part of Borrowers’ property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any preceding under any bankruptcy or insolvency laws by or against Borrowers.

f. Adverse change: A material adverse change occurs in Borrowers’ financial condition, or Lender believes the prospect of payment or performance of this note is impaired.

8. NOTICES.

All notices, demands, requests, consents, approvals or other instruments required or permitted by this Promissory Note shall be in writing and shall be executed by the party or an officer, agent or attorney of the Party, and shall be deemed to have been effective as of the date of actual delivery, if delivered personally, or as of the third (3rd) day from and including the date of posting, if mailed by registered or certified mail, return receipt requested, with postage prepaid addressed as follows: TO CITY: City Clerk City of Silvis 121 11th Street Silvis, Illinois 61282 With copy to: Jacob & Klein, Ltd. The Economic Development Group, Ltd. 1701 Clearwater Avenue Bloomington, Illinois 61704

TO DEVELOPER:

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9. FORM OF PAYMENT. Any check, draft, money order, or other instrument given in payment of all or any portion hereof may be accepted by the City and handled in collection in the customary manner, but the same shall not constitute payment hereunder or diminish any rights of the City hereof except to the extent that actual cash proceeds of such instruments are unconditionally received by the City and applied to the Non-Performance Penalty balance in the manner elsewhere herein provided.

10. ATTORNEY’S FEES; EXPENSES. If this Note is given to an attorney, including any attorney within

the employ of the City of Silvis, for collection or enforcement, or if suit is brought for collection or enforcement, or if it is collected or enforced through probate, bankruptcy, or other judicial proceeding, then Borrowers shall pay the Lender all costs of collection and enforcement, including reasonable attorney’s fees and expenses in addition to other amounts due.

11. CONFESSION OF JUDGEMENT. Borrowers hereby irrevocably authorize and empower any

attorney at law to appear in any court of record and to confess judgment against Borrowers for the unpaid amount of this Promissory Note as evidenced by an affidavit signed by an authorized officer or elected official of the City setting forth the amount then due, attorney’s fee plus cost of suit, to release all errors, and waive all rights of appeal. If a copy of this Note, verified by an affidavit, shall have been filed in the preceding, it will not be necessary to file the original as a warrant of attorney. Borrowers waive the right to any stay of execution and the benefit of all exemption laws now or hereafter in effect. No single exercise of the forgoing warrant in power to confess judgment will be deemed to exhaust the power, whether or not any such exercise shall be held by any court to be invalid, violable, or void; but the power will continue undiminished and may be exercised from time to time as the City may elect until all amounts owed on this Note have been paid in full. Borrowers hereby waive and release any and all claims or causes of action which Borrowers might have against any attorney acting under the terms of authority which Borrowers have granted herein arising out of or connected with the confession of judgment hereunder.

12. SEVERABILITY. If any provision of this Note or the application thereof shall, for any reason and to any extent, be invalid or unenforceable, neither the remainder of this Note nor the application of the provision to other persons, entities or circumstances shall be affected thereby, but instead shall be enforced to the maximum extent permitted by law.

13. BINDING EFFECT. The covenants, obligations and conditions herein contained shall be binding on and inure to the benefit of the heirs, legal representatives, and assigns of the parties hereto.

14. DESCRIPTIVE HEADINGS. The descriptive headings used herein are for convenience of reference only and they are not intended to have any effect whatsoever in determining the rights or obligations under this Note.

15. CONSTRUCTION. The pronouns used herein shall include, where appropriate, either gender or both, singular or plural.

16. GOVERNING LAW. This Note shall be governed, construed and interpreted by, through and under the Laws of the State of Illinois.

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PRIOR TO SIGNING THIS NOTE, BORROWER HAS READ AND UNDERSTANDS ALL THE PROVISIONS OF THIS PROMISSORY NOTE. BORROWER AGREES TO THE TERMS OF THIS PROMISSORY NOTE. BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. EXECUTED this ______ day of __________________, 201____.

BORROWER(S):

Signature: ___________________________________

Print Name: ___________________________________

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121 11th Street, Silvis, Illinois 61282 | Phone: 309.792.9181 | Fax: 309.792.9726

jgrafton@silvisil.org | www.silvisil.org