Loading...
HomeMy WebLinkAbout98-270 Resolution No. 98-270 RESOLUTION AUTHORIZING EXECUTION OF A REVERSION OF ASSETS AGREEMENT WITH THE YWCA OF ELGIN 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 Reversion of Assets Agreement on behalf of the City of Elgin with the YWCA of Elgin for building rehabilitation at its facility located at 220 E. Chicago Street, a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: November 4 , 1998 Adopted: November 4 , 1998 Vote: Yeas 6 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk REVERSION OF ASSETS AGREEMENT On this ((1 .14, day of 199_, the City of Elgin, Illinois, by and between the YWCA of Elgin, an Illinois not for profit corporation (hereinafter referred to as "Agency" ) , and the City of Elgin, Illinois, a municipal corporation (hereinafter referred to as "City" ) . WHEREAS, the City has applied for and received Community Development Block Grant (hereinafter referred to as "CDBG" ) funds from the United States Government pursuant to Title I of the Housing and Community Development Act of 1974 , Public Law 93-383 ; and WHEREAS, the Agency operates a facility for the physical, mental, and social well-being of women and their families through its programs, services, classes and events located at 220 East Chicago Street in Elgin, Illinois (hereinafter referred to as "Facility" ) . WHEREAS, the Agency lacks the capital to undertake all needed repairs to the Facility; and WHEREAS, the City has determined it to be in its best interest to enter into this agreement with the Agency to assist the Agency in repairing the Facility. 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 : 1 . The Agency will provide programs, services, classes and events for the physical, mental, and social well-being of women and their families . The provision of the services shall take place at the Facility. 2 . The Agency shall maintain any necessary local, state, and federal licensing for each of the Facility' s programs, services, classes, and events . The Agency shall maintain the Facility for a period of five (5) years commencing on the date of this agreement . 3 . The City shall allocate CDBG funds for the Facility' s improvements, the total amount of improvement funding not to exceed $200, 000 . The improvement funding will be used for architectural services and building rehabilitation to address deteriorated systems and building components; included are repair and replacement of pool deck area sections, piping systems, conduit and wiring within tunnel area beneath pool , asbestos removal, emergency lighting, men' s and women' s washroom, shower and locker room ADA improvements, and exterior repairs . 4 . The City and Agency shall develop specifications for facility improvements to be accomplished at the Facility. The specifications developed shall be reviewed and approved by both parties hereto. Bids on the specified work shall be solicited by the City. The completed facility improvements shall be approved by the Agency, in writing, prior to payment by the City. The Agency shall not unreasonably withhold such approval . 5 . In the event that either the Agency or a suitable substitute not for profit corporation approved at the sole discretion of the City, does not continue providing the services identified in paragraph 1 of this agreement, the Agency shall reimburse the CDBG Program or the City for all CDBG funds expended for architectural services and also for the building improvements made with the CDBG funds in an amount equal to the remaining useful life of the building improvements as determined by the provisions of paragraph 6 of this agreement . 6 . In the event that the services identified in paragraph 1 of this agreement are no longer provided at the Facility, the Agency shall reimburse the CDBG Program or the City for all CDBG funds expended for building improvements made with those funds in an amount equal to 20% for each year and portion of each year remaining on the five year useful life of the building improvements . The term of the building improvement ' s five year useful life shall commence on the date of this agreement . This provision shall not be construed as limiting the City' s from asserting claims against the Agency for breach of any other terms of this agreement . 7 . Changes contained in this Agreement, unless otherwise noted, may only be made through a written amendment to this Agreement, executed by the Agency and the City. 8 . This agreement shall expire five (5) years from the date of this agreement . IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed on the above written date . YWCA OF ELGIN By C Executive Director CITY OF ELGIN i�� , P.�v By , A Mayor Attest : City Clerk § —City of Elgin q ��'�-I Agenda Item No: I fU I1,, October 16, 1998 TO: Mayor and Members of the City Council FROM: Joyce A. Parker, City Manager SUBJECT: Reversion of Assets Agreement with the YWCA of Elgin PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider a reversion of assets agreement with the YWCA of Elgin. BACKGROUND The 1997 and 1998 Community Development Block Grant (CDBG) Program provided funds to the YWCA of Elgin located at 220 E. Chicago Street for building rehabilitation ($25, 000 in 1997 and $175, 000 in 1998) . em. The attached reversion of assets agreement provides $200, 000 for architectural services and building rehabilitation to address deteriorated systems and building components . The agreement provides for reimbursement of CDBG building improve- ment funds by the agency in the event the operation of the facility ceases . Reimbursement is based on the remaining useful life of the building improvements over a five year period. The reversion agreement is required by HUD if more than $25, 000 is expended for a rehabilitation project . The attached agreement has been reviewed and approved by the Legal Department and representatives of the YWCA of Elgin. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED YWCA of Elgin FINANCIAL IMPACT CDBG funds totaling $200, 000 have already been set aside . Account number 230-0000-791 . 93-36 (Building/Structures at $200 , 000) and project numbers 154306 and 154406 will be charged. p iy LEGAL IMPACT None . Reversion of Assets Agreement-YWCA October 16 , 1998 Page 2 ALTERNATIVES A reversion of assets agreement is required by federal regula- tion when more than $25, 000 of Community Development Block Grant funds are used for building improvements . RECOMMENDATION It is recommended that the Mayor and City Council approve the attached reversion of assets agreement . If approved, a resolution authorizing execution of the agreement will be prepared for the November 4 , 1998 regular meeting of the City Council . spectfully submitted, i. •yc: A. Parker City Manager VRB/vb