The letter from Cary Waxler, President of Board of Crystal Lake Library Trustees to Mayor Haig Haleblian and the City Council:
Re: Letter of Intent for New Library Facility at 200 E. Congress (HealthBridge)
Dear Mayor Haleblian and City Council Members:
On behalf of the Crystal Lake Public Library (the “CLPL”). I write in connection with the property commonly known as 200 East Congress Parkway [P.I.N. 19-04-301-018] (the “Property”). The CLPL understands that the City is currently the contract purchaser of the Property.
If the City does purchase the Property, CLPL desires to cooperate with the City to explore the opportunities to have CLPL relocate its existing facilities from 126 Paddock Street in Crystal Lake (the “Existing Facility”) to a portion of the Property (the “Leased Parcel”) for development of a new library facility (the “New Facility”).
Although many details will need to be worked through between the City and CLPL, the development of a New Facility on the Leased Parcel would be based on an intergovernmental agreement between CLPL and the City (the “IGA”) that will reflect the following principles:
- The New Facility would be located on the Leased Parcel. Such New Facility may be incorporated into the existing building on the Leased Parcel, and CLPL agrees to work collaboratively with the City regarding the ultimate floor plan, design, critical elements, and phasing of any the building renovations or improvements needed on the Leased Parcel to accommodate the New Facility. CLPL understands that the New Facility will share space within the existing building on the Property, and such building may also serve certain City uses (e.g., the Fire Rescue Department).
- The CLPL will recommend, and the City will issue, bonds to pay for the development of the New Facility (the “New Facility Bonds”). Even if the New Facility Bonds are bundled with other City bond financing, the City will maintain separate financial records relating exclusively to the New Facility Bonds, and the City will also maintain separate financial
records relating to the costs of developing (including financing costs) the New Facility (the “New Facility Costs”). - CLPL would relocate its operations to the New Facility once it is ready for occupancy. CLPL would enter into a long-term lease (50 years with extension rights, to be negotiated)(the “Lease”) with the City for CLPL’s use of the New Facility on the Leased Parcel. CLPL’s base rent for the New Facility would be nominal, but the Lease would be triple-net in character so that CLPL would be paying all maintenance, repair, operational, utility, and other costs associated with the New Facility during the term of the Lease.
- Following CLPL’s relocation to the New Facility, all other CLPL properties (including Existing Facility) would be sold, and all proceeds from such sales would be utilized to reimburse the City for the New Facility Costs (including depositing such proceeds in any debt service fund relating to New Facility Bonds).
- To help defray the New Facility Costs, CLPL will deliver to the City a to-be-established portion of the moneys in the CLPL’s Special Reserve Fund.
- Beginning in tax year 2027, CLPL will begin imposing annually a new Library Construction Fund ad valorem tax that the City will incorporate into the City’s annual tax levy (the “New Facility Property Tax”). The amount of the New Facility Property Tax will be determined by CLPL and the City based on the actual or anticipated debt service relating to the New
Facility Bonds. All proceeds from the New Facility Property Tax will be deposited in the debt service fund for the New Facility Bonds, or otherwise paid over to the City to reimburse the City for, or otherwise to defray, the New Facility Costs. CLPL will authorize the New Facility Property Tax for so long as necessary to retire the New Facility Bonds or otherwise to reimburse the City for all New Facility Costs. - In addition to the New Facility Property Tax, CLPL will authorize an annual tax levy to generate sufficient taxes to pay all necessary and proper costs and expenses for CLPL’s operations and capital expenses (including such expenses arising from the Lease) (the “General Library Tax”). CLPL will make its best efforts each year to minimize the increase of the General Library Tax during the life of the Lease in accordance with this paragraph and in general conformity with the Property Tax Extension Limitation Law. The City agrees to include such General Library Tax in the City’s annual tax levy ordinance. If the City is amenable to exploring the opportunities for a New Facility on the Leased Parcel as described in this letter, please sign this letter in the space provided below and return it to me. In signing this letter, the City and CLPL understand that the terms of this letter shall not be binding on either CLPL or the City. Stated simply, this letter expresses the willingness of CLPL to explore with the City the opportunities for CLPL to relocate its facilities to the Property. An agreement between CLPL and the City relative to relocation of CLPL’s facilities and concomitant plans and finances will be binding only upon the execution by the parties of a formal IGA and any other documentation required therein. [Emphases added.]
Sincerely,
CLPL
By: ________________________
Cary Waxler, President
Board of Library Trustees
