CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Pass an ordinance approving a declaration of use restrictions and right of first refusal with LTF Real Estate Company, Inc. (Item 2 of 2)
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DEPARTMENT: Legal Department
SUBMITTED BY: Mike DiSanto, City Attorney
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The other related item on the City Council agenda is:
• 25-0779 - Pass an ordinance approving an amendment to the site development agreement for the resubdivided South Forty Property (Item 1 of 2)
A portion of City-owned property, commonly referred to as the “South Forty,” located at the southeast corner of Illinois Route 59 and 103rd Street, is the subject of a development project which resubdivides the property to create Lot 1, Lot 2, Lot 3, and a stormwater management system to be located on Outlot A.
LTF Real Estate Company, Inc. (LTF) is under contract to purchase Lot 1 (approximately 10.55 acres) plus an undivided portion of Outlot A, for a health, wellness, and athletic facility.
Tower Court of Naperville, LLC is under contract to purchase Lot 3 (approximately 4.014 acres), plus an undivided portion of Outlot A for affordable rental senior housing and for individuals with intellectual or developmental disabilities.
The City will retain ownership of Lot 2 which also includes an undivided portion of Outlot A.
DISCUSSION:
In 2023, when the City entered into a purchase agreement with LTF for what would become Lot 1 of the resubdivision property, the city agreed that it would establish prohibited and allowed uses on Lot 2 in order to safeguard LTF against uses that would be competitive with its Lot 1 uses. The prohibited and allowed uses were specified in the purchase agreement. The City also agreed to grant LTF the right of first refusal to purchase Lot 2 if it is sold in the future.
The declaration of use restrictions and right of first refusal (Declaration) attached to the ordinance approving the Declaration re-states the prohibited and allowed uses agreed upon in the purchase agreement and sets forth in detail LTF’s right of first refusal relative to Lot 2. Exceptions to LTF’s right of first refusal include an offer to lease or purchase Lot 2 for the following uses: (i) market rate residential; (ii) affordable or market rate senior housing; (iii) and/or for affordable or market rate housing for individuals with intellectual or developmental disabilities.
Both the use restrictions on Lot 2 and LTF’s right of first refusal will only be applicable during the term of the Declaration which is so long as Lot 1 is owned or operated by LTF or certain specified LTF entities or subsidiaries, and so long as the primary use of Lot 1 is for a health, fitness or athletic facility.
FISCAL IMPACT:
N/A