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United City of Yorkville v. Village of Sugar Grove

September 24, 2007

THE UNITED CITY OF YORKVILLE AND STANDARD BANK AND TRUST, AS TRUSTEE UNDER A CERTAIN AGREEMENT DATED 4/1/04 AND KNOWN AS TRUST NO. 18190, PLAINTIFFS-APPELLANTS,
v.
THE VILLAGE OF SUGAR GROVE, DEFENDANT-APPELLEE.



Appeal from the Circuit Court of Kane County. No. 05-MR-447 Honorable Michael J. Colwell, Judge, Presiding.

The opinion of the court was delivered by: Justice Byrne

Published opinion

Defendant, the Village of Sugar Grove (Sugar Grove), negotiated two independent jurisdictional boundary line agreements, one with plaintiff the United City of Yorkville (Yorkville) and one with the Village of Montgomery (Montgomery). Yorkville and Montgomery do not have a boundary line agreement, and Montgomery is not a party to this action. Sugar Grove, which is in Kane County, is north of Yorkville, which is in Kendall County. Montgomery, which is in Du Page County, is east of Sugar Grove and Yorkville.

In general, the agreements barred the respective parties from attempting to annex land beyond the boundary lines negotiated and set in the agreements. The two boundary lines partially overlap so that Yorkville and Montgomery are barred from attempting to annex the same area of land north of the Kane and Kendall county line. However, at one point, the boundary line set in the agreement with Montgomery (Montgomery Agreement) turns north and then northeast, thereby permitting Montgomery to annex land that is off limits to Yorkville under its agreement (Yorkville Agreement). The parties discovered the difference in the agreements when plaintiff Standard Bank & Trust (Standard) and another property owner attempted to develop a parcel that straddles Yorkville and Montgomery.

Yorkville and Standard filed a four-count complaint against Sugar Grove for a declaratory judgment and for rescission or reformation of the Yorkville Agreement. Yorkville believes that it has at least an equal right to annex the land currently available to Montgomery. The complaint seeks (1) a declaratory judgment that the creation of the Montgomery Agreement invalidated the Yorkville Agreement, under section 11--12--9 of the Illinois Municipal Code (Municipal Code) (65 ILCS 5/11--12--9 (West 2006)); (2) a rescission of the Yorkville Agreement, for failure of consideration; (3) a rescission of the Yorkville Agreement, based on mutual and unilateral mistake; and (4) a reformation of the Yorkville Agreement, to allow each party to exercise jurisdiction over territory that was formerly under the jurisdiction of the other party.

Sugar Grove moved for dismissal of the complaint and for summary judgment under section 2--619.1 of the Code of Civil Procedure (Code) (735 ILCS 5/2--619.1 (West 2006)). Section 2--619.1 of the Code provides that motions prescribed by section 2--615, section 2--619, and section 2--1005 may be filed together as a single motion but that a combined motion shall be divided into parts that are limited to and specify the single section of the Code under which relief is sought. 735 ILCS 5/2--619.1 (West 2006). On February 24, 2006, the trial court granted Sugar Grove's motion to dismiss Standard as a party, under section 2--615. The court also granted Sugar Grove's motion to dismiss Yorkville's claims for rescission and reformation.

On June 1, 2006, the trial court addressed the parties' cross-motions for summary judgment on the enforceability of the Yorkville Agreement, under section 11--12--9 of the Municipal Code. The court granted Sugar Grove summary judgment on Yorkville's claim for a declaratory judgment. Yorkville and Standard filed a timely notice of appeal on June 29, 2006.

FACTS

Section 11--12--9 of the Municipal Code permits corporate authorities such as Sugar Grove, Yorkville, and Montgomery to enter into agreements to mark the boundaries of the jurisdiction of each of the corporate authorities. 65 ILCS 5/11--12--9 (West 2006). On April 27, 2000, Sugar Grove and Yorkville entered into the Yorkville Agreement. The parties agreed that the boundary line between the two municipalities would be the county line separating Kane County to the north and Kendall County to the south. Among other things, each party agreed not to annex territory or exercise similar jurisdictional acts in the other's jurisdiction. The relevant sections of the Yorkville Agreement provide as follows:

"1. That the VILLAGE OF SUGAR GROVE shall have jurisdiction north of a certain boundary line and the UNITED CITY OF YORKVILLE shall have jurisdiction south of a certain boundary line ***. The Boundary Line shall be the boundary between Kane and Kendall Counties.

2. The parties shall not attempt to exercise authority by annexing, zoning, or performing any other similar acts in territory lying within the jurisdiction of the other municipality.

***

4. All future annexation Ordinances adopted by the corporate authorities of both Cities shall be adopted in such form as to conform with the provisions of this Agreement. Each City hereby agrees that it shall not act to annex or exercise any zoning authority or subdivision control authority beyond the Jurisdictional Boundary Line established in this Agreement.

8. Nothing contained herein shall require either municipality to make improvements to Baseline Road[, which runs along the Boundary Line].

In the event that either municipality has an owner or developer along Baseline Road seeking Baseline Roadway improvements, said improvements shall be constructed by this owner or developer. A Recapture Ordinance for 50% of the cost of said roadway improvements with interest shall be enacted by the other municipality. If and when development occurs adjacent to the improved Baseline Road, then appropriate payment shall be made to the initial investor. ***

12. This Agreement shall be in full force and affect [sic] from and after its adoption and execution by the Village of Sugar Grove and by the United City of Yorkville and shall continue in full force and affect [sic] for a period of twenty (20) years. The term of this Agreement may be extended, renewed or revised at the end of the initial term or extended terms hereof by further agreement of the municipalities.

13. Major repairs or maintenance to Baseline Road to which both municipalities are contiguous at the time of repair shall be on a 50/50% cost sharing basis. Both municipalities shall agree as to the nature and extent of the major repairs or maintenance. Additionally, local costs for signalizations on said roads shall be allocated based upon the number of intersection quadrants located in each municipality."

On March 26, 2001, Sugar Grove and Montgomery entered into the Montgomery Agreement. Sugar Grove and Montgomery established a boundary line that runs along the Kane and Kendall county line, Route 47, and Jericho Road. The relevant sections of the Montgomery Agreement provide as follows:

"1. That the boundary line between the two municipalities for the unincorporated area lying between them, for annexation and municipal government planning, subdivision control, official map, ordinances, and other municipal purposes shall be *** described as follows:

Beginning at the intersection of the centerline of Prairie Street and the centerline of the Commonwealth Edison Right-of-Way ***, thence southerly along the centerline of the said right-of-way to the centerline of Jericho Road; thence westerly along the centerline of said Jericho Road to the centerline of Illinois Route 47 to the Kane and Kendall County line; thence westerly along the Kane and Kendall County line to the termination point at the centerline of Ashe Road ***.

2. Except as otherwise provided herein, Montgomery shall have jurisdiction with respect to property lying easterly and southerly of the above-described boundary line, and Sugar Grove shall have jurisdiction of the property lying westerly and northerly of the above-described boundary line. On or after the date of this Agreement, neither party shall annex territory which lies within the jurisdiction of the other municipality as established by such boundary line, nor shall it exercise or attempt to exercise or enforce any zoning, subdivision control, official map, or other municipal authority or ordinance.

7. This Agreement is not one intended to benefit a third party, and no third party beneficiary shall be deemed created hereby. This Agreement is binding only upon Sugar Grove and Montgomery, and their respective successors and assigns. Nothing herein shall be construed as a limitation on the right of either party with respect to its boundaries with any other municipality or unit of local government.

11. This Agreement shall be in full force and effect for a period of fifteen (15) years from the date hereof and for such further and additional time as the parties hereto may ...


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