The Evanston City Council is considering a lease-to-own agreement and TIF funding for a property located at 623-627 1/2 Howard Street. Under the proposed ordinance, the City would lease the property to Peckish One, LLC for 5 years, during which rent paid would reduce the $675,000 purchase price, with the option to purchase at the end of year 4. The resolution would provide up to $200,000 in TIF funds to reimburse Peckish One for basic improvement costs, which would be recovered by the City when the building is sold.

1. Consideration of
Lease-to-Own Agreement and
TIF Funding for Peckish One, LLC
Evanston City Council
623-627 ½ Howard Street
March 18, 2013

2. 623-627 ½ Howard Street

3. Items for Consideration
• Ordinance 9-O-13: “Authorizing the City Manager
to Negotiate and Execute a Commercial Lease
with an Option to Purchase for City-Owned Real
Property located at 623-627 ½ Howard Street”
• Resolution 1-R-13: “Authorizing the City Manager
to Negotiate a TIF Construction Grant Agreement
with Peckish One, LLC for Improvements to City
Property Located at 623-627 ½ Howard Street”

4. Ordinance 9-0-13
• City purchased property for $475,000 in Oct. 2011
• Five-Year lease-to-own agreement
– Ability to purchase at end of 4th year
– Purchase price is $675,000
– Rent paid during term reduces purchase price
• Peckish will assume responsibility for maintenance,
repairs, utilities, snow removal and taxes

5. Resolution 1-R-13
• Property requires HVAC, electrical upgrades, new
windows and doors, etc.
• Reimbursement for up to $200,000 for basic
improvements to property
– Peckish manages “vanilla box” build-out and not
City staff
– $200,000 investment recovered when building is
sold