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HomeMy WebLinkAbout96-171 Resolution No. 96-171 RESOLUTION AUTHORIZING EXECUTION OF A FACADE IMPROVEMENT PROGRAM AGREEMENT ( 100 E. Chicago Street) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Richard B. Helwig, City Manager, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute a facade improvement program agreement on behalf of the City of Elgin with William Stickling for the property commonly known as 100 E. Chicago Street, Elgin, Illinois, a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: June 12 , 1996 Adopted: June 12 , 1996 Omnibus Vote: Yeas 6 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk CITY OF ELGIN FACADE IMPROVEMENT PROGRAM AGREEMENT THIS AGREEMENT is made and entered into this 12th day of June, 1996, by and between the City of Elgin, Illinois, a municipal corporation (hereinafter referred to as "City" ) , and William Stickling, (hereinafter referred to as "Owner") . WHEREAS, City has established a facade improvement program (hereinafter referred to as "Program" ) for application within certain areas of the corporate limits of City designated by City as appropriate for such application (hereinafter referred to as "Rehabilitation Areas") ; and WHEREAS, Program is administered and funded solely by City for purposes of the control and prevention of blight, dilapidation and deterioration of Rehabilitation Areas; and WHEREAS, pursuant to Program, City has undertaken to share the cost of facade improvements to certain structures within Rehabilitation Areas, pursuant to the criteria set forth herein; and WHEREAS, City has retained or shall retain the services of an architectural consultant (hereinafter referred to as "Consultant" ) to provide participants in Program with certain conceptual design work regarding proposed improvements, including, but not necessarily limited to, a color rendering of draft improvement designs and an outline of work specifications at no cost to Program participants; and WHEREAS, Owner owns at least 50% of a commercial building(s) , or is the tenant of a commercial building(s) located within a Rehabilitation Area, and Owner desires to participate in Program pursuant to the terms and provisions of this agreement. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: Section 1 . City shall pay to Owner the sum of $103,442 .50 for facade improvement approved pursuant to the provisions of this agreement (hereinafter referred to as "Eligible Costs" ) , consisting of up to 244 feet of storefront for the structure(s) referred to at Section 16 herein (hereinafter referred to as "Structure" ) . All parties hereto agree that all payments from City provided for herein shall be made to William Stickling, who shall provide City with a full release upon receipt. Section 2 . Eligible costs shall include labor, material and equipment costs, and such other costs as may be reasonably necessary for the execution and completion of the facade improvement hereby provided for (hereinafter referred to as "Work" ) as designated from the design drawings and specifications approved by the Project Review Team pursuant to the provisions of Section 3 herein and prepared by Consultant (hereinafter referred to as "Plans" ) , which design Plans are attached hereto and made a part hereof as Attachment "A" . Section 3. No Work shall be undertaken or shall be considered to constitute the basis -for an Eligible Cost until the design for such Work has been submitted to and approved in writing by the Project Review Team, consisting of the Director of the New Century Partnership for Elgin, an Illinois not-for-profit corporation, City' s Historic Preservation Specialist, and City' s Rehabilitation Specialist. Such design shall include, but not be limited to, a date certain by which the Work shall be completed. In no event shall such work be completed more than one hundred eighty ( 180) days from the date of this agreement, without the written consent of the Application Review Team. Section 4 . The Project Review Team shall be permitted access to Structure to periodically review the progress of the Work. Such review shall not be in lieu of any other inspections which may otherwise be required by law or by City. Any and all portions of the Work which do not, in the sole discretion of the Project Review Team, conform to the Plans or other applicable terms of this Agreement, shall be made to conform to the Plans and other applicable terms of this agreement upon written notice of the existence of such non-conforming portions . Section 5 . Upon completion of the Work, and upon final inspection and written approval by the Project Review Team and such other final inspections and approvals as may be required by law, Owner shall submit to City: ( 1) an executed, notarized itemized contractor statement reflecting the total cost of the Work and each portion thereof, including, but not limited to, the cost of labor (whether provided by any contractor or subcontractor) , materials and equipment; (2) copies of all bids, contracts and invoices submitted, executed or incurred pursuant to the Work; and (3) reasonable proof of payment of all costs incurred pursuant to the Work. Section 6 . City shall pay to Owner the sum provided for at Section 1 herein within thirty (30) days of Owner' s compliance with the provisions of Section 5 herein. In no event shall the amount paid to Owner exceed the amount specified in this agreement or in the contractor statement. -2- t Section 7 . In the event Owner fails to complete the Work in accordance with the terms of this Agreement, or otherwise breaches the terms of this Agreement, City may terminate this Agreement upon written notice of breach and termination to Owner, and any and all financial or other obligations on the part of City shall cease and become null and void. Section 8 . Upon completion of the Work, and for a period of five (5) years thereafter, owner shall properly maintain the Work in its finished form, without alteration or change thereto, and shall not enter into any agreement, or take any other steps to alter, change or remove such Work, or to create or undertake any other work which may constitute a deviation from the Plans, without prior written approval from the Project Review Team in its sole discretion. Section 9 . Nothing herein is intended to limit, restrict or prohibit the owner from undertaking any other work in or about the subject premises which is unrelated to the facade improvement provided for in this Agreement. Section 10 . This Agreement shall be binding upon City and its successors, and upon owner, owner's successors and assigns for a period of five (5) years from and after the date of completion and approval of the work. owner shall provide subsequent Owner(s) of structure with a copy of this Agreement. This Agreement shall run with the land underlying structure. Section 11. If owner does not own the underlying property for which work is being done, owner warrants and represents to City that owner has a lease at the location for which the work is proposed for a term of at least six (6) years. owner further warrants and represents that he has received authorization from all owners of the property for which work is to be done to accept funds under this program and to undertake the work. Further, such owner(s) of the property for which work is to be done hereby acknowledges that he is aware of this Agreement and authorizes the work which is to be made to the structure. Said owner(s) of the property for which improvements are to be made further acknowledge, that, as owner of the property, he is a party to this Agreement and is bound by the provisions of this Agreement specifically, but not limited to, the provisions of Section 6 of this Agreement. Each "Owner" signature hereto hereby warrants and represents that there are no other entities having an ownership interest in the structure, which have not executed this agreement. Section 12 . Owner hereby holds harmless and indemnifies City from and against any and all causes of action, suits, claims for damages, and any and all other liability which may arise out of or in connection with owner's -3- or Owner's agents, employees and assigns ' negligent performance of any of the terms of this Agreement. Section 13 . This agreement shall not be construed to create a partnership, joint venture or employment relationship between the parties hereto. Section 14 . This agreement shall be subject to and governed by the laws of the State of Illinois. The parties hereto hereby agree that venue for any and all actions which may be brought by each and either of them to enforce the provisions of this agreement shall be in Kane County, Illinois . Section 15 . The terms of this Agreement shall be severable. In the event that any of the terms or provisions of this Agreement are deemed to be void or otherwise unenforceable for any reason, the remainder of this agreement shall remain in full force and effect. Section 16 . Owner' s Name: William R. Stickling Address : 100 E. Chicago St. City: Elgin State: IL Zip Code: 60120 Telephone Number: (847) 742-8939 Property Location: 100 East Chicago St. Ownership Interest: owner IN WITNESS WHEREOF, the parties hereto have executed this agreement on the date first appearing above. OWNER ] CITY OF ELGIN 3� tiv By: William Sticklin Richard B. Helwig City Manager Attest: Dolonna Mecum, City Clerk -4- AM RR a _ N-1 WEST ELEVATION (PROPOSED) l l a _ I A I-- fffll h9F 3 EAST ELEVATION (PROPOSED) A 4.1 EA tt r SOUTH ELEVATION (PROPOSED) a . 1/8" ..r-o. FACADE IMPROVEMENT PROGRAM PROJECT COST ESTIMATE PROJECT: 100 East Chicago Street (Phase I) ITEM COST ESTIMATE Demolition $ 6 ,500 . 00 Tuckpointing 10 ,200 . 00 Brick Cleaning 9 ,000 . 00 New Storefront Windows 52 , 000 . 00 Stonework 104 ,500 . 00 Interior Finish 3 , 500 . 00 $185 , 700 . 00 Contingency-15% 27 ,855 . 00 Total Project Estimate $213,555 . 00 *This cost may vary if a historic window profile is selected. PROJECT: 100 East Chicago Street (Phase II) Total Phase II Estimate: $81,995 Elv,*n Agenda Item No. i i May 2, 1996 TO: Mayor and Members of the City Council FROM: Richard B. Helwig, City Manager SUBJECT: Facade Improvement Program Project for 100 East Chicago Street (Tower Building) PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider a facade project for 100 East Chicago Street. BACKGROUND An application has been submitted for restoration of 100 East Chicago Street, commonly known as the Tower Building. The applicant and property owner is William Stickling. Drawings and project cost estimates have been prepared for the project. Mr. Stickling is desirous of a project which would restore the first two floors as close to the original facade as possible. Project estimates for the first two floors are $213,555 . The maximum rebate allowed under the Facade Improvement Program would be $60,750 ($243 .01 lineal feet = 8 . 1 facades; 8 . 1 X $7 ,500 .= $60,750) . The existing program budget could support this project. A cost estimate is attached. Mr. Stickling has asked staff to consider a project which would include the entire building. The estimated project costs to restore the first two floors and rehab floors 3-15 is $295,550. Without question, the Tower Building is a sig- nificant building in the Center City. Such a project would have a high impact. However, the existing program budget would not allow for such an expenditure. The percentage re- bate based on the estimated total project cost would be $103,442 .50 . Mr. Stickling has requested that the City Coun- cil consider making funds available for the entire project. A letter from Mr. Stickling making this request is attached. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None. Facade Improvement Program/100 East Chicago Street May 2, 1996 Page 2 FINANCIAL IMPACT If a project involving the first two floors is undertaken, the rebate allowed would be 35 percent of the project cost, or a maximum of $60,750, whichever is less . Funds for this project are available from the Downtown Redevelopment Fund (Account No. 350-0000-795.78-99) and the Riverboat Fund (Ac- count No. 275-0000-791.78-03) . The total amount budgeted for the Facade Improvement Program is $150, 000 . LEGAL IMPACT None. ALTERNATIVES 1. Enter into an agreement for a project which would fund restoration of floors 1 and 2 of 100 East Chicago Street with work on floors 3-15 included in subsequent phases . 2 . Consider $42,692 .50 in additional funding to allow for restoration/re b C could ion be of the he$225,000 sbudgeted• for funding source "Economic Development Initiatives" . RECOMMENDATION Direction is requested tickling the t fund Council with regard project. to the inquiry from Mr. Respectfully submitted, �. �) LU,Uw Deborah- K. Nier, Director New Century Partnership Bobb i.chardson Rehabilitation Specialist Ja,. ,,/, p� Sarosh Saher Historic Preservation Specialist I 1� • 1 1 Richard B. Helwig City Manager dkn/dkm Facade Improvement Program/100 East Chicago Street May 2 , 1996 Page 3 FACADE IMPROVEMENT PROGRAM PROJECT COST ESTIMATE PROJECT: 100 East Chicago Street (Phase I) ITEM COST ESTIMATE Demolition $ 6 ,500 .00 Tuckpointing 10,200 . 00 Brick Cleaning 9 ,000 . 00 New Storefront Windows 52, 000 .00 Stonework 104 ,500 . 00 Interior Finish 3,500 . 00$185,700 . 00 Contingency-15% 27 ,855 .00 Total Project Estimate $213,555 . 00 *This cost may vary if a historic window profile is selected. 100 EAST CHICAGO STREET • ELGIN, ILLINOIS 60120 PHONE SHerwood 2-8939 April 26, 1996 City Manager, Mayor and Members of the City Council: Recent discussions with City of Elgin staff personnel have indicated that insufficient uncommitted funds remain in the City of Elgin's 1996 Facade Program to complete the entire Elgin Tower Building facade renovation in one phase this year. Although it is quite possible to restore the Elgin Tower Building facade in two phases (first two floors this year and third through fifteenth floors next year) , there are definite advantages in accomplishing the entire project this year. From my personal point of view, I am concerned about the added risks of damage to the first and second floor work caused by the subsequent work on the upper floors. I also see the possibility of damage to completed work below from the elements leaking behind the upper floor limestone stone facade if the tuck pointing and reglazing work is not completed at the same time. Likewise, the concept of pressure cleaning the upper building and painting the upper windows above freshly completed limestone work below seems to me to constitute a - questionable construction procedure. Obviously, if the work is to be phased, the upper portion of the building could be completed as the first phase. This, however, would not allow me to rent the first floor until the second phase is completed in 1997. Without this immediate off-setting rental income, the facade improvement does not represent an acceptable investment to me from a cash flow perspective and does not accomplish the City's objective of revitalizing downtown as quickly as possible. Since I am paying the o o majority of the cost of the work, I am also concerned o ol about the added expense of mobilizing contractors and subcontractors twice and the loss of economies of scale which could be realized by contracting the entire project at once. THE ELGIN TOWER ELGIN'S TALLEST AND MOST OUTSTANDING OFFICE BUILDING City Manager, Mayor and Members of the City Council April 26, 1996 Page 2 From the public's perspective, the sooner this landmark building is restored to its original grandeur, the sooner the residents of Elgin will realize the benefit of this significant aesthetic improvement. There is also the aspect of public convenience and safety. Work on both the first floor and the upper floors will likely require the erection of scaffolding around the building and diversion of pedestrian traffic on Douglas Avenue, Chicago Street and Grove Avenue sidewalks for safety purposes. Accomplishing all of the restoration work at once would minimize the necessary inconvenience to downtown businesses and their patrons. Given the strategic location of the Elgin Tower Building in Elgin's Center City area, I suggest that the City's interests would be best served by your approving additional funding of the 1996 Facade Program to allow me to complete the renovation of the building this year. Full occupancy of the highly visible first floor of this building can only be regarded as a large step forward in the revitalization of downtown Elgin. Please regard this letter as my request for your consideration of this action at the Council's earliest convenience. Very truly yours, ILLIAM R. STICKLING I it 1.mlp�p l 1 [� SOUTH ELEVATION (PROPOSED) F ll TTI Ili IFM a a 3 EAST ELEVATION (PROPOSED) A4.1 WEST ELEVATION (PROPOSED) 11 fill ] if j-fl ti WEST ELEVATION (PROPOSED) I i I tt to 101� FF Nil W" WWI I EAST ELEVATION (PROPOSED) A 4.1 t l 4TT I-F SOUTH ELEVATION (PROPOSED) �.., pie• . r.o•