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HomeMy WebLinkAbout99-4 Resolution No. 99-4 RESOLUTION AUTHORIZING EXECUTION OF A REVERSION OF ASSETS AGREEMENT WITH THE CHANNING YMCA BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Joyce A. Parker, City Manager, 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 Channing YMCA for building rehabilitation at its facility located at 111 North Channing Street, a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: January 13, 1999 Adopted: January 13, 1999 Omnibus Vote: Yeas 5 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk L REVERSION OF ASSETS AGREEMENT On this day of r,,_ , 199 ?, the City of Elgin, Illinois, by and between the Channin YMCA, 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 men, women and children through its programs, services, classes and events located at 111 North Channing 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 men, women and children. 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 $ 70, 000 . The improvement funding will be used for the development of specifications and the replacement of a deteriorated boiler system; 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 specification development and for 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 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 . CHANNING YMCA • By Executive Director CITY OF ELGIN BY l. I , l City Manager Attest : Aa■e4e■s City Clerk �A�OF E SC/ `: 00w' y City of Elgin Agenda Item No. ,iq AF , , ilia; irn e ti7‘ December 10, 1998 TO: Mayor and Members of the City Council FROM: Joyce A. Parker, City Manager SUBJECT: Reversion of Assets Agreement with the Channing YMCA 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 Channing YMCA. BACKGROUND The 1998 Community Development Block Grant (CDBG) Program provided $70, 000 in funding to the Channing YMCA (111 North Channing Street) for the replacement of a deteriorated boiler. The attached reversion of assets agreement provides for a $70, 000 reimbursement to the CDBG Program by the agency in the event the operation of the facility ceases . Reimbursement is based on the remaining useful life of the building improvement over a five_ year period. The reversion agreement is required by HUD if more than $25, 000 is expended for building improvements to a privately owned building. The attached agreement has been reviewed and approved by the Legal Department and Executive Director of the Channing YMCA. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED Channing YMCA Ot3INANCIAL IMPACT CDBG funds totaling $70 , 000 have previously been allocated for this project under account number 230-0000-791 . 93-36, project number 154402 . LEGAL IMPACT AVNone . eft' . - 4 Reversion of Assets Agreement-YWCA December 10, 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 . R- ,pectfully submitted, /yce A . Parker City Manager PAA/pa r