Submitted By
Tammie Grossman, Director of Development Customer Services
Reviewed By
A.M. Zayyad, Deputy Village Manager
Agenda Item Title
Title
An Ordinance Amending the Fiscal Year 2023 Annual Budget
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Overview
Overview
As time is of the essence with this particular expenditure, submitted herein is a single stand-alone budget amendment requesting new funding (from Parking Fund reserves) to pay the property taxes on contractually leased property at 920 and 925 Lake Street (Calvary Memorial Church).
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Recommendation
Recommendation
Adopt the Ordinance.
Background
The Village terminated its license agreement with Calvary Memorial Church, located at 931 Lake Street, effective December 31, 2022. The Village was entered into a license agreement for a term of January 1, 2021 through December 31, 2023 but opted to exercise its right to terminate the agreement early.
The license agreement required the Village to pay the property taxes on behalf of the Church for both parcels on which the parking lot exists. Due to the lack of parking demand in this lot due to alternative parking sites including the Village's Lake & Forest parking structure as well as the recurring tax payment obligations, staff recommended terminating this agreement early. In FY 21, the parking lot realized a net loss of $51,797.68.
Pursuant to the lease agreement, the Village is responsible for the property taxes on the leased property at 920 and 925 Lake Street owned by Calvary Memorial Church. The lease term ended in 2022 and staff inadvertently omitted an appropriation in the FY23 budget to pay for the 2022 property taxes, as Cook County invoices the taxes one year in arrears (2022 taxes are billed in 2023). This appropriation for approximately $100K will cover the taxes the village owes for 2022 payable in 2023, the final year of the lease.
Included as an attachment for reference purposes only are the lease agreement and signed lease termination notice.
Fiscal Impact
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