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.
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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
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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
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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
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