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HomeMy WebLinkAbout95-132 Resolution No. 95-132 RESOLUTION AUTHORIZING EXECUTION OF A SUPPLEMENTAL AGREEMENT TO THIRD AMENDMENT TO DEVELOPMENT AGREEMENT AND GROUND LEASE AGREEMENT WITH ELGIN RIVERBOAT RESORT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Kevin Kelly, Mayor, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute a Supplemental Agreement to Third Amendment to Development Agreement and Ground Lease Agreement on behalf of the City of Elgin with Elgin Riverboat Resort for lighting improvements on the bike path area north of the riverboat pavilion, a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: June 14, 1995 Adopted: June 14, 1995 Vote: Yeas 7 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk Hyatt Development Corporation 200 West Madison Chicago, IL 60606 USA Telephone: 312.750.1234 FAX: 312.750.8084 August 2, 1995 Mr. Raymond Moller City of Elgin 150 Dexter Court Elgin, IL 60120-5555 Dear Ray: Enclosed is signed copy of the Supplement Agreement to Third Amendment to Development Agreement and Ground Lease Agreement. Sincerely, Jackie Tasker Asst. to Dan Azark :jt RIVERBT.SA3 6/7/95 SUPPLEMENTAL AGREEMENT TO THIRD AMENDMENT TO DEVELOPMENT AGREEMENT AND GROUND LEASE AGREEMENT This Agreement is made and entered into as of June 14, 1995, by and between the CITY OF ELGIN, an Illinois municipal corporation, (hereinafter referred to as the "City") , and ELGIN RIVERBOAT RESORT, an Illinois partnership (hereinafter referred to as the "Developer" ) . WHEREAS, the City and Developer have previously entered into a certain Development Agreement dated as of June 24, 1992, contemplating the establishment of a riverboat gaming facility along the Fox River on the property owned by the City and legally described therein; and WHEREAS, Development Agreement was subsequently amended by (i) a certain Amendment to the Development Agreement dated as of June 23, 1993, (ii) a certain Second Amendment to the Development Agreement and Ground Lease Agreement dated as of January 20, 1994; and (iii) a certain Third Amendment to the Development Agreement and Ground Lease Agreement dated as of June 9, 1994 (the "Third Amendment" ) ; and WHEREAS, pursuant to the Third Amendment the Developer has made certain improvements referred to therein as the South Grove Street Project providing for the removal of the existing pedestrian mall and the reopening of a portion of South Grove Street to vehicular traffic and the construction and installation of certain related landscaping features and other public improvements; and WHEREAS, the Developer is now proceeding with certain restoration and other improvements to the bike path between the riverboat gaming pavilion and Prairie Street; and WHEREAS, the parties desire that as part of the restoration and improvements to said bike path area that the Developer install the same pole mounted path lighting as was installed by the Developer adjacent to the riverboat gaming pavilion; and WHEREAS, the parties desire to provide for the construction and payment of the additional lighting improvements on the bike path area between the riverboat gaming pavilion and Prairie Street by supplementing the Third Amendment to include such additional lighting in the listing of specifications to the South Grove Street Project. NOW, THEREFORE, in consideration of the foregoing recitals, the mutual promises and undertakings contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows : 1 . That the foregoing recitals are incorporated into this Agreement in their entirety. 2 . That words and phrases not defined herein shall have the meaning subscribed to them in the Third Amendment. -2- 3 . That the document identified as "Annex 1" attached to the Third Amendment is hereby supplemented by adding the following additional item under the section "PEDESTRIAN LIGHTING" on page 2 thereof: "Contemporary pole mounted 18 Each 1,000 18,000 path lights the same type as are in front of the riverboat gaming pavilion to be placed along bike path between the riverboat gaming pavilion and Prairie Street" 4 . That Developer shall cause the installation of the 18 additional lights as part of the restoration and improvements to the bike path between the riverboat gaming pavilion and Prairie Street. The City shall reimburse Developer for the cost thereof pursuant to the terms of the Third Amendment. 5. That except as modified hereby, this Agreement shall not be deemed to amend or modify the terms and provisions of the Third Amendment. IN WITNESS WHEREOF, the parties have caused this agreement to be executed on the date first written above. CITY OF ELGIN, a municipal ELGIN RIVERBOAT RESORT, an corporation ,,/ Illinois partnership By p�v..__ fi By RBG, L.P. , One of Its Mayor General Partners By /CC ' orporation, Its Attest: G: r.4, 'artner 4 City Clerk �'.L. Sc ulze, Vice President -3- Agenda Item No. A ( o - y June 5, 1995 TO: Mayor and Members of the City Council FROM: Richard B. Helwig, City Manager SUBJECT: Bike Path Lighting - Downtown Entertainment District PURPOSE The purpose of this memorandum is to request the Mayor and members of the City Council consider authorizing the installa- tion of decorative lighting along the bike path north of the riverboat pavilion. BACKGROUND The Elgin Riverboat Resort (ERR) and Hyatt Development Corpo- ration are in the process of restoring the area north of the Pavilion, including the bike path. This area was disturbed when the boat yard was constructed. As part of the restora- tion, the ERR suggested the bike path lighting be enhanced with decorative fixtures matching those near the pavilion. ERR requested the Kane County Forest Preserve Commission to finance the proposed lighting upgrade from the to-be-estab- lished Fox River Trust Fund. The Commission, however, has declined to participate in the project. Recognizing the proposed ornamental lighting fixtures would enhance the appearance of the bike path and the riverfront as well as complement the existing riverboat development, Hyatt and the City staff explored how the project could be accom- plished this year. As a result of these discussions, a plan is suggested whereby Hyatt would install the decorative fix- tures as part of the current restoration work. The cost of the lighting fixtures is $18,000 and Hyatt is willing to upfront the cost using some of the remaining proceeds from the $2.4 million dollar authorization for the South Grove Avenue mall reopening project. The cost of the South Grove reopening project stands at $2,222,490 (see attached letter) . r Mayor and Members of City Council June 5, 1995 e* Page 2 COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED The Hyatt Development Corporation and the Elgin Riverboat Resort. FINANCIAL IMPACT If authorized, the $18,000 cost for the lighting fixtures would be funded from the $177,510 remaining from the $2 .4 million dollar mall reopening project. Up to $2 .4 million expended by ERR for the reopening of the mall will be deducted from future riverboat lease payments once the developers recapture $75 million dollars of their investment, probably in early 1997 . LEGAL IMPACT The authorization to make the payments for the light fixtures requires City Council approval of the attached resolution. RECOMMENDATION It is recommended that the City Council authorize the instal- lation of 18 ornamental light fixtures along the bike path. Respectfully submitted, Ro ert 0. Maim Chief Operating Officer/ Assistant City Manager Richard B. Helwig City Manager ROM/sg r NW WO e- 246 ; 16:45 ; -, 170e8816610 4 2/ 2 's�"`aeti.� aiweas INN Mt .h -8Qffill V t • • ?'..: .1Stb 1 Y . . r �. Mr.Ray Mollw • 1114r elk of MOki 150�O • - Elgin, RE: Grove Avenue Ranovation Dew tar. 't'hie le b Wow you lhat we too Meted to sok misted b the GIVNO Avenue Renovation and la volts Incurred b oomph**fits mini wore$2,22,4O0.13. lea nolo lhat o dolt not include any gran Tor mooed wtrancemente regarding the btu are;. Should you have any questions please contact meet MM HG* Om*, c1114;Lat Putter! Conehuollon Accountant iP era: Dan. Amok Robert on John Ryden./ r f trtjr� � Memorandum Nay 23, 1995 TO: Mayor and Members of the City Council FROM: Richard B. Helwig, City Manager SUBJECT: Bike Path Lighting for Park Area North of Riverboat Pavilion You have previously received copies of the attached correspon- dence from Hyatt Development Corporation to the Forest Pre- serve District of Kane County regarding bike path lighting and a seawall fishing railing for the park area being con- structed north of the Riverboat Pavilion. In addition to sending these two letters, Dan Azark and John Ryden have recently met with Forest Preserve District officials who have again turned down the offer for Hyatt Development to "upfront" the $43,000 necessary to make these improvements while the area is under construction. The purpose of this memorandum is to propose an alternative means to install the lighting only at a cost of $18,000. It seems to make sense to have the bike path lighting in- stalled at the same time the path is under construction and to have the bike path lighting fixtures in the park area match the fixtures already in place along the bike path at the Riverboat Pavilion. The cost is $1,000 per fixture (18) for a total cost of $18,000. Dan Azark and I have discussed including this work item total- ling $18,000 in the leftover amount "upfronted" by Hyatt Development in reopening the South Grove mall. He states that we will be well within the $2.4 million maximum reim- bursement by the City of Elgin for the reopening of the South Grove mall. r Bike Path Lighting May 23, 1995 rb- Page 2 Construction of the bike path will soon be completed. The lighting installation needs to proceed. Unless you have objections, we will prepare the appropriate letter to Mr. Azark indicating our desire to have the bike path lighting in- stalled as outlined in this memorandum. Your formal approval would then be sought at the June 14, 1995 City Council meet- ing. Respectfully submitted, Richard B. Helwig City Manager amp c: Loni Mecum . Dan Azark John Ryden Robert Malm Ery Jentsch Ray Moller r r • OCT BY: 8-21-85 ; 12:28 ; 17088815610 4 2/ 5 r HYATT DEVELOPMENT CORPORATION Daniel Ma Mat h.W.nt March 20, 1995 Mr. Jack E. Cook FOIiF.ST PRESERVE DISTRICT OF KANE COUNTY Kane County Government Center 719 Batavia Avenue Building G Geneva, IL 0134 Dear jack: Thanks to you and Jon Duerr for taldng the time to meet with us last week. In ow meeting we proposed that the Forest Preserve District consider using a portion of the payment to the Fox River Trust Fund that the Grand Victoria Casino will be making later this year to upgrade the riverfront between Lake Street and Prairie Avenue, , immediately to the north of our riverfront pilion. As you have noted, we have an existing obligation to restore the bike path from National Street to Prairie Avenue. At the onset of our construction we&pad with the District to reconstruct to the preexisting quality level. We are in process of returning the boat construction site west of Grove Street into an attractive grassy field. We believe that • significant opportunity exists to greatly enhance the river's use for a modest investment. We are reconunending that you consider upgrading the lighting along the bike path to be consistent with the attractive tight fixtures in front of our pavilion. We are also recommending that you consider physical improvements along the sea wall to enhance its use as an attractive Oohing location. 1.1CMING. The bike pathhlighting that existed prior to ow construction was'industrial strength* fixturing mo to Comaony�th Edison poles. We would like to recommend that we continue the use of the attractive light fixtures that are cv=rra ttly pfang the path at the pavilion. The cost of this upgrade would be sppto:dmataty$1,000 er 6xhne. There are eighteen fixtures. The increased cost of these fixtures over and r . above a more utilitarian device would need to be agreed eed between hats. Alicia*.Phase 200 West Median Chicago.Illinois W606 USA 0121750.1!34 711111404 Tden iS71520 • BENT BY: 9-21-85 ; 12:28 ; -+ 17088915810;# 9/ 5 Mr.jack E.Cook Martin 20, 1995 time 2 FISHING. As part of our DNR penult we agreed to install fish habitats in the sea wall and to put several fish "structures` at the bottom of the river along the seawall. The water in this area is now appro�danately 12 feet deep. We would like to offer to propose that the area behind the sea wall be upgraded to include a sidewalk and a railing that would enhance it$safety and its use as a fishing destination. I am attaching pictures of the fishing railing that is used in Chicago at Burnham Harbor that we think might be • • . .riate in this area. We have estimated the cost of the railing to be about$50 per -. foot. If the railing were installed along the entire 500 foot length of the seawall, the cost would be about$25,000. The sidewalk could be either concrete or asphalt and would cost a few thousand more. CONSTRLICIION We will be beginning the reconstruction of this area with the next few weeks. We will be completing construction plans to review with John Duerr prior lo beginning the work. We woul however,l ke to construct these improvements as a part of that effort, and would offer to advance the cost of this work subject to a set-off against the trust fund payment due later this year. We would,of course,make available to you supporting cost or construction receipts that you might require. Our purpose is to move quickly to restore this area as the good weather sets in. We hope that you agree that the development of our facility is a great benefit to County as well as to the City of Elgin. We all have a stake in enhancing this area as a destination. We would like to request that you consider this proposal at your earliest convenience and let us know how you would lilac to proceed. Sincerely, Dan Mark DA.*t athchment 1:c Petra Simeon John ► Jon Dow Rick lwig r 1111' � ' ' .......4• ..._.... �I n i 11 _ --_-- . .- ---- _ _ . _.. __ __. . . _...._- %".114L W... • 1."5"2"t .• lb • ._ .__._. . . - ...- .. -- .t.-_--16--- ._ . • . - if --.81HIL• -.•• .� • .. .._�.• . • ._i . . _ _-._, . ,1"-)v1I■w I aosic1rti .-�rri . .. . ._.._ _ l • 2 /, CO19216890LI «- t UM : S6-13-6 :AR JaS • • . • . SENT BY: 9-21-85 ; 12:29 ; -+ 17088915610;4 5/ 5 r _ . ,, - •• ...,,„6 • • • ........„ _ ... .,. .,,. .. •• • • . __„. • Ad., , . Ir,� i 4,4_ 1- ;04711 7, t 1 - . — , - - -, % , — IC• . ..: to . 4(‘‘A‘dt tittAdt •�` _ ur :, ,' � $O4N14h.' Withe0 • � t r , . f lis .. 4. ; u • . ; by*`' - • •—•— 8. sii\ t t, • • . ".2 I . A _ .4.. ••.4.,..:,:..w... w•... •.; . ,I. , . ._ . ... ...,- . _ ... •41( t) gdi Cia.c.., . • ror7e"1;- • `- . simia rile f _ • all AAA tfcdt SU04446.4 4..4, r ., dY; 5- 2-95 ; 14:39 ; 17089315610;# 1/ 3 11rA7T DEVELOPMENT CORPORATION 7ELECO,PY NUMBER: 012050304 FACSIMILE COVER MEET DATE: 5- .2 "1 s PAGES With cover sheet) 3 TO: adku7:g_ COMPANY: PAX NUMBER: 114' C13/ SG I 0 elk PROM: DAN AZARK (312) 75D-8404 COMMENTS: le*bib r RegieV_E__LALL PAGES OF MS FAK JAME TAS101 AT(314 708413. VANK YOAIC • SENT BY: 5- 2-95 ; 14:39 ; 17089315610;# 2/ 3 Daniel Azark W.President Hytt Development Corporation 100 Wiest Madison Chimp.X Kim USA 7lieplam 312.7%.1234 Duet Number 312.750.84 01 VAX 312.750. 84 May Z 1995 Mr.Jack E. Cook FOREST PRESERVE DISTRICT OF TUNE COUNTY Kane County Government Center 719 Batavia Avenue Building G Geneva, IL 60134 Dear Jack Since we have been unsuccessful in being able to reach yon hone,we wanted to follow up on our conversations regarding suggested improvements to the Forest Preserve's land north of the riverboat. As you know, we have agreed with the City of .gin to restore the ship yard into a park The bike path separates the park from the river and forms its western boundary. Since this area will be a prominent feature in downtown Elgin and is important to our development,we felt it would be desirable to continue to use the quality light fixtures that we use at the riverboat to provide visual continuity to riverfront users. In our March 20 letter to you,we offered to install the upgraded fixtures at our cost and to advance the payment for the installation. The entire cost of the upgrade is Jess than 320,000 and we proposed to deduct the cost (without any markup) from the $500,000 payment to the Fox River Trust Fund to be made later this year. In a related issue, we proposed to install a "fishing railing"at the seawall that is adjacent to the park As part of our DNR permits,we have installed fish habitats at the bottom of the river and in the seawall itself. (The depth of the water in this area is approximately 12-16 feet deep along the wall) We proposed that we install both a sidewalk and the railing to enhance both the use and the safety of this location as a fishing destination, In a manner similar to the lighting upgrade, we proposed to advance payment of the cost and to recover our expense through an offset against the Trust payment. SEM BY: 5- 2-95 ; 14:40 ; 17089315610;# 3/ 3 M • r Mr. Jack E. Cook May 2,1995 rage 2 We were disappointed when John Duerr advised us that you had decided not to upgrade this very visible and important area. In our minds the use of the Trust Funds for an area in the vicinity of the source of the funds seems not only appropriate but also wise as it is in our collective best interest to make this area as safe and appealing as possible. John told us that the Forest Preserve will monitor the use of the seawall area and will add railings and sidewalks if required. We would like to go on record that responsibility for this decision rests entirely with the Commission. As you probably know,we have begun the restoration of the park and bike path and will be working in this area for the next few weeks. We invite you to reconsider your decision if you are able to do so promptly. �., Sincerely, V Dan Azark DA4t cc Warren Kammerer Pat Sjjurmethh Jon Duerr Rick Helwig Peter Simon E