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Home My WebLink About96-108 Resolution No. 96-108 RESOLUTION AUTHORIZING FUNDS FOR PHASE II OF THE MARKET RECONNAISSANCE FOR SOUTH GROVE AVENUE PROPERTIES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that it hereby authorizes the sum of $14, 000 for Phase II of the Market Reconnaissance for a physical assessment and financial evaluation of certain South Grove Avenue properties in accordance with an agreement between Urban Discovery, Inc. and the New Century Partnership for Elgin, a copy of which is attached. s/ Kevin Kelly Kevin Kelly, Mayor Presented: April 24 , 1996 Adopted: April 24, 1996 Vote: Yeas 4 Nays 3 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk brttu 1111tbbillit TO FROM ..---/ Pe.',- ---K--e 11-,..12,,,. SUBJECT 627\9.--enr.07 ve.,: 4— C.,/,--e€,,,--, X/C-- 7:2 (P-"v (.1 -1--C-7-L. ''" '' - i; ' / /() / *- -t' .---r • DATE in -"VLA i Lz. / .i = i a-- ,1A- ■.- I t"--T-Or 41-4-,2--/ 4 e"--, _..e-,--A.g4,-,./1/ c-_--ft.„--(,,..-„, - ,, -<_.f. .df/ ,a, I - - I u ( \ 7 \-,,....., 4_,.Q---C.-6.,:t.,---( .6",_, ---• --t..<_"1:-/- / ( . ./.4. (._ ,.„__,/ c ;7 . , , .. , 6 .k 1,,, _442,c7 '6, aa4.4 kidkw 61-r----,6/4., ait, -2 SIGNED /ra-7----'1,-1 INWilsonJones® WHITE-ORIGINAL CANARY-DUPLICATE 44-900•Duplicate • • ,.. O - O Resolution No. 96-109 RESOLUTION AUTHORIZING FUNDS FOR PHASE II OF THE MARKET RECONNAISSANCE FOR SOUTH GROVE AVENUE PROPERTIES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that it hereby authorizes the sum of $14,000 for Phase II of the Market Reconnaissance for a physical assessment and financial evaluation of certain South Grove Avenue properties in accordance with an agreement between Urban Discovery, Inc. and the New Century Partnership for Elgin, a copy of which is attached. Kevin Kelly, Mayor Presented: April 24, 1996 Adopted: Vote: Yeas Nays • Recorded: Attest: r Dolonna Mecum, City Clerk • FROM :M. P. PRri TO OCC 1 702 460 795 8 1996.223-27 12:46 #.062 P.04/06 • nr[-_r-_»o .v•�1 JL1/�Fil�l Ut51t�N P.02 (Pk AGREEMENT THIS AGREEMENT is made and entered into this day of . 19 ,by and between Urban Discovery,IDC,consultant hereinafter referred to as UDI,and the New Century Partnership for Elgin,an Illinois not-for-profit organization,hereinafter referred CO as NCP_ SAS,NCP has elected to retain the services of UDI to complete market research and radevdoprnent implementation consulting services within a defined target area in Elgin..Illinois. NOW,THEREFORE,in consideration of the agreements and payments hereinafter mentioned,UDI and NCP hereby mutually agree as follows: Ag7TCLE 1-SCOPE OF SERVICES • UDI is authorized by NCP to provide consulting services to complete Phase 2 as defined inn the proposal in Attachment"A". elk ARTICLE 2-COMPENSATION Compensation for consulting services for 5 to 7 buildings selected by NCP shall be a not-to-exceed fee for Phase 2 as follows_ Phase 2:Physical Analysis and Financial Evaluation of Selected Buildings $14,000 An individual breakdown of the overall ca,Z per unit is as follows: Seldon ofPriority Buildings S 600 Building Inspection Reports 51,200 per building Financial Evaluation S 500 per building Task Force Meeting St Reports 51.200 UDI is authorized by the NCP to proceed with Phase 2 for a total not-to-exceed fee of 514,000. NCP shall be the owner of all wodk reports and materials prepared by UDI under any and all phases of the work. A£7,000 zctai.ner is required prior to commencement of Phase 2. UD1 will submit monthly progress billings for the percentage of work completes The retainer will be applied to the billings. FROM :M. P. .4RM1TO 000 1 700 458 7998 1585.03-27 12:49 1052 P.05/08 ro-fm—co'1770 14.31 iuU1'JN1P i DcoluN ARTICLE 3-INDEMNIFICATION UDI hereby agrees to hold and save NCP harmless from any and all claims, settle:rlents. and judgments including all reasonable investigative feet,attorney's fees, suit and court costs for personal injury,property damage,and/or death arising out of the errors,omissions or negligenr acts of UDI,or its agents.servants Of employees in connection with services rendered under this agreeatieni ARTICLE 4-SCHEDULE UDI's services for Phase 2 provided under this agreement shall commence on or about April 10.1996 and be completed by May 15. 1996 assuming a signed agreement and retainer to commence the project is provided to UDI by March 29, 1996. The New Century Partnership for Elgin,NCP and Urban Discover)+, Inc., UD1 hereby execute this Agreement as of the day and year first above written. Thomas F. Weigand President New Century Partnership for Elgin Urban Discovery,Inc. An Illinois not-for-profit organization Date: Date: _ Attest: • FROM :M. P. ARMATO OCr_ 1 70G 463 7999 1995.0:-27 12:49 #052 P.05/05 ,Imm cG-177 c) UCJLUN r ATTACHMENT A SCOPE OF SERVICES Phase 2: Physical Analysis and Financial Evaluation of Selected Buildings In cooperation with the Design Organization,Inc. (DO),UDI will prepare a physical and financial evaluation of several key buildings in the Target Area The scope of services,based upon the Task Force recommenrbuirine,is outlined below: A Selection of Priority Buildings UDI will meet with the Task Force to identify buildings in the Target area which should be included in the physical and financial analysis at this time. The buildings selected y the Task Fora would be deemed by the Task Forcc and UDI as key catalyst buildings to encourage and promote the redevelopment opportunities identified in the Market Reconnaissance. It is estimated that between 6 to 10 buildings will be identified. B.. Building Inspectinc Deports UDI and DO will conduct a walk-through inspection of selected buildings in the target Area to assess the physical condition and prepare a general cost estimate range for desired rehabilitation improvements based upon market findings. A one to three page summary of the physical assessment and cost estimates will be provided for convenient dirnbution to property owners and prospective d_velapers. The information collected in the inspection will also allow for the preparation of a financial pro forma for each building. C. Financial Evaluation UDI shall prepare a financial proforma for each selected building in the target area based upon preliminary cost estimates and the desired improvements needed for prospective users. The financial proforrna will determine the amount of public moneys, if any is required to assist the owner in proceeding with the recommended improvements. The pro formers will be prepared in an easy to understand format allowing all property owners to rsognize their respective economic potential and corresponding risks. D. Task Force Meeting to Review Physical &Financial Analysis UD1 and DO will attend a meeting with the Task Force to review the physical&financial evaluations. Based upon the evaluations,11DI and the Task Force will determine the appropriate steps to implement the redevelopment scenario's. r TO'A:. F.04 in Agenda Item No. / 4- T,sa aryu� e April 1, 1996 TO: Mayor and Members of the City Council FROM: Richard B. Helwig, City Manager SUBJECT: Request from New Century Partnership for Funding of Physical Assessment and Financial Evaluation of Selected South Grove Avenue Properties PURPOSE It is the purpose of this memorandum to present a funding request from New Century Partnership for Elgin relative to the development of the South Grove Avenue area. BACKGROUND In 1995, the Elgin City Council approved funding a Market Reconnaissance by Urban Discovery, Inc. , of Madison, Wiscon- sin, for the purpose of identifying the market potential for properties in the South Grove Avenue target area. This ap- proval followed a request from New Century Partnership to fund the "market reconnaissance" at an amount not to exceed $14,000. It was the goal of this endeavor to identify the existing market conditions impacting this area of the Center City and identifying market opportunities which would lead to redevelopment in the area. The market analysis represented the first phase of what UDI proposed as a comprehensive mar- ket approach to revitalization in the area. The first phase has been completed. The Council was provided with a copy of UDI 's findings and conclusions. The New Century Partnership has accepted the report and feels that there is sufficient justification to continue with the second phase of the proposed program. This phase involves a condition assessment of buildings in the target area and evaluation of the type and cost of rehabilitation necessary to prepare the buildings for a use determined by the market findings of Phase I. Seven buildings in the South Grove area have been recommended for this study: 6 South Grove Avenue 29 South Grove Avenue low 31 South Grove Avenue 56 South Grove Avenue Sti South Grove Avenue 66 South Grove Avenue 96 South Grove Avenue NCPE Request for Funding April 1, 1996 Page 2 rak *It should be noted that 29 South Grove Avenue is owned by Frank Halsey, a member of the Partnership's Board of Direc- tors. 6 South Grove Avenue is owned by NBD whose President, Robert Carlile, is a member of the Board. Buildings were selected based on ( 1) the prominence of the building in the target area and (2) willingness of the proper- ty owner to participate as evidenced by attendance at two informational meetings . A business pro forma will be produced for each site which will identify the financial needs of a project to prepare the building for a use identified by the market findings. A memorandum from Norman Bartels, President, New Century Part- nership, describing the proposed project is attached. Includ- ed is a proposed agreement with Urban Discovery, Inc. present- ing the scope of services . COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED Two meetings were held with South Grove Avenue property own- ers relative to the project. FINANCIAL IMPACT eft New Century Partnership would enter irto an agreement with Urban Discovery, Inc. to provide services at an amount not to exceed $14,000. Adequate funds exist in Account No. 010-0701-711.30-99, Miscellaneous Professional Services. LEGAL IMPACT None. ALTERNATIVES 1. Proceed with Phase II of the Market Reconnaissance by Urban Discovery, Inc. 2. Proceed with condition assessment of buildings in the target area and the cost of rehabilitation only after potential tenants or buyers are identified. emk NCPE Request for Funding April 1, 1996 Page 3 RECOMMENDATION The New Century Partnership requests $14,000 from the City of Elgin to fund Phase II of the Market Reconnaissance (Alterna- tive One) . The NCP feels the Phase II program will identify • realistic market uses for the above properties as well as usable financial information. Respectfully submitted, m , `K, 1) 0.11-4 Deborah K. Nier Director, New Century Partnership Richard B. Helwig City Manager dkn/dkm Attachments r • MEMORANDUM TO: Mayor and City Council FROM: Norman Bartels, President of New Century Partnership of Elgin DATE: March 28, 1996 RE: New Century Partnership - South Grove Task Force Phase II with Urban Discovery, Inc. On behalf of the South Grove Task Force (Task Force) of the New Century Partnership of Elgin, Inc. (NCP), attached please find the proposed Agreement with Urban Discovery, Inc (UDI). New Century Partnership has authorized the Task Force to proceed with a revised Phase II program with UDI in an amount not to exceed $16,000.00. NCP is requesting the City of Elgin to fund the Phase II program as outlined in the attached Agreement in the amount of $14,000.00. This is a change from the original proposal submitted in which all of the buildings in the Target Area were to be analyzed at once at a cost in excess of$50,000. - By way of background, the Phase I work with UDI consisted of a Market Reconnaissance of the South Grove Avenue target area in February 1996, copies of which have already been provided to yourself and members of the City Council. After the review and analysis by the South Grove Task Force and discussion with UDI, the Task Force recommends that a detailed physical and financial analysis and evaluation of selected buildings by UDI be undertaken (referred to as the Phase II program), for the following reasons: 1. The Task Force generated the interest in a number of property owners in the target area to participate with the Phase II program and with the goal of cooperating to revitalize the downtown area. 2. The financial and physical evaluation and analysis of the selected buildings are expected to result in usable pro formas of key structures within the target area. 3. The Phase II analysis will assist in quantifying the marketability of the selected structures which should establish economic benchmarks to measure the development of the remainder of the task force area and the expected success of the Task Force. The South Grove Task Force has identified the following buildings for the Phase II program as a result of meetings and discussions with property owners: (1) 6 South Grove Avenue (2) 31 South Grove Avenue (3) 29 South Grove Avenue (4) 66 South Grove Avenue (5) 56 South Grove Avenue (6) 61 South Grove Avenue (7) 96 South Grove Avenue Each of the property owners has expressed a willingness to participate in this program. Once the authorization for funding is received, the South Grove Task Force anticipates receiving the reports and evaluations (identified on attachment A to the Agreement) within eight (8) weeks of the commencement of Phase II. The Phase II program will continue the process of identifying realistic market uses for properties within the target area. The Task Force's efforts have already generated participation of property owners for this cooperative effort, consistent with the public and private partnership concept for downtown redevelopment. The Phase II program for the initial buildings is necessary to move from the abstract discussions to a document including usable financial information. If the Phase II program for these initial buildings produces results that cause identifiable redevelopment, the Phase II program would be suggested for additional buildings within the Target Area. rbk W:\AL\TASKFOKUDI March 28.1996