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HomeMy WebLinkAbout04-306 Resolution No. 04-306 RESOLUTION AUTHORIZING EXECUTION OF A FIRST AMENDED FACADE IMPROVEMENT PROGRAM AGREEMENT WITH CRAIG BAKSTAD (213 E. Chicago Street) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that David M.Dorgan,City Manager,and Dolonna Mecum,City Clerk,be and are hereby authorized and directed to execute a First Amended Facade Improvement Program Agreement on behalf of the City of Elgin with Craig Bakstad for the property commonly known as 213 E. Chicago Street,a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: November 17, 2004 Adopted: November 17, 2004 Omnibus Vote: Yeas: 6 Nays: 0 Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk CITY OF Elgin FIRST AMENDED FACADE IMPROVEMENT PROGRAM AGREEMENT 213 E. CHICAGO STREET THIS AGREEMENT is made and entered into this day of mIOU�/►t L�61L 2004, by and between the City of Elgin, Illinois, a municipal corporation (hereinafter referred to as "City") , and Craig Bakstad, the property owner, (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, Owner owns at least 500 of subject commercial building (s) , or is the tenant of commercial building (s) located within one of these Rehabilitation Areas, with owner having provided the owner' s consent and authority to participate in Program pursuant to the terms and provisions of this Agreement. WHEREAS, the parties hereto have previously entered into a Fagade Improvement Program Agreement, dated January 21, 2003 (hereinafter referred to as "Original Agreement") ; and WHEREAS, the parties hereto wish to amend the Original Agreement to reflect revised costs and scope of work. 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 . The total approved project costs for facade improvements for the structure referred to at Section 15 herein shall be $149, 299. 72, as set forth in Attachment A attached hereto (such total approved project costs for facade improvements are 1 f hereinafter referred to as "Eligible Costs" and such structure is hereinafter referred to as the "structure") . The City shall pay the Owner a sum not to exceed $52, 254 . 88, being 350 of the total Eligible Costs, for facade improvements to the structure approved pursuant to the provisions of this Agreement. The project shall be confined to approved improvements made to that part of the Structure visible from any public right-of-way. All parties hereto agree that all payments from the City provided for herein shall be made to Craig Bakstad, who shall provide the 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 the "Work") , as designated from the specifications approved by the Project Review Team pursuant to the provisions of Section 3 herein (hereinafter referred to as "Plans") . 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 City' s Urban Design and Preservation Specialist and City' s Principal Planner, and any other member designated on the Project Review Team. 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 Project 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 2 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, which ever is less . 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 authorized the Work which is to be made to the Structure. Said owner (s) of the 3 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 . This Agreement shall not be construed to create a partnership, joint venture or employment relationship between the parties hereto. Section 13. 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 the Circuit Court of Kane County, Illinois . Section 14 . 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 15 . Owner' s Name: Craig Bakstad Address: 219 N. Fifth Street City: West Dundee, Illinois 60118 Telephone Number: 847-488-1400 Property Location: 213 East Chicago Street Ownership Interest : property owner Contact Person: Craig Bakstad, property owner Section 16. This agreement shall amend and supersede the Original Agreement between the parties hereto in all respects. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first appearing above. As to CITY OF ELGIN As to OWNER: 4 B � BY' -----------Y� David Dorgan Craig Bakstad City Manager Property Owner ATTEST: h,4�� Dolonna Mecum, City Clerk 5 Attachment A Item Total cost City participation Original agreement $110, 123 . 97 $38, 543. 37 Change Order #1 $39, 175 . 75 $13, 711. 51 Total $149,299.72 $52,254 .88 6 J w September 17, 2004 TO: Mayor and Members of the City Council ALIVE DOWNTOWN FROM: David Dorgan, City Manager Sarosh Saher, Urban Design &Preservation Specialist SUBJECT: Change Order#1 - Facade Project for 213 E. Chicago Street PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider a change order to the Facade Improvement project for the property located at 213 E. Chicago Street. RECOMMENDATION It is recommended that the City Council approve Change Order #1 to allow for additional work on the facade along with additional architectural services in the amount of $17,711.51 for the property at 213 E Chicago Street. BACKGROUND In November 2002, a Facade Improvement project was approved to restore the front and rear facade of the property at 213 E. Chicago Street, owned by Mr. Craig Bakstad. The building is located in downtown Elgin. The property was eligible for funding under the Center City Facade Improvement Program which offers property owners a grant of 35% of the cost of exterior facade improvements up to a maximum of$100,000.00, with high impact projects eligible for up to $150,000. The scope of work approved in 2002 included restoring the storefronts to their original configuration, masonry cleaning, tuckpointing, window and door replacement, exterior lighting, and canopy treatments. Work was also approved for the rear facade of the property, visible from the public alley, which included reconstruction of the rear deck and stairs and the attached vehicle shelter. The total cost of the project amounted to $110,123.97, with the City's participation at 35% amounting to $38,543.37. The City had also obtained the services of Greg Berna of Berna Architects and Design of Elgin to develop the drawings and specifications, along with a cost estimate for the project which would enable the property owners to bid out and obtain the minimum two required bids for the work. As part of the program, architectural services were paid for by the City($6,985.00). l Facade—213 E Chicago Street—Change Order#1 September 17, 2004 Page 2 Work is currently under way on the project. The front fagade restoration has been completed, but for minor detailing, painting and the cornice restoration. The rear fagade restoration is currently under way. The change order being requested is to accommodate for the change in the material being proposed for the rear deck in steel, along with carpentry and electrical work. The total additional cost for completion of the project is estimated at $39,175.75, with the City's participation level at 35% estimated to be $13,711.51. The cost of additional architectural services requested is $4,000.00, which is fully reimbursed by the Facade Improvement Program. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED Downtown Neighborhood Association, (DNA). FINANCIAL IMPACT The proposed change order will amount to $17,711.51. The 2004 budget for the Downtown Facade Improvement Program is funded through account numbers 275-0000-791.78-99 Riverboat Fund, budgeted at $75,000 with a current balance of$53,648, and 276-0000-791.78- 99 Riverboat Lease Fund, budgeted at $100,000 with a current balance of$40,724. The change order will be charged to 276-0000-791.78-99 Riverboat Lease Fund, Project No. 079818. If the change order is approved, the City's total participation on this project will amount to $63,239.90. LEGAL IMPACT The existing agreements between the City of Elgin and property owner at 213 E Chicago Street, along with the architect, Berna Architects and Design will need to be amended. ALTERNATIVES 1. Approve Change Order #1 to allow for additional work on the fagade along with additional architectural services in the amount of $17,711.51 for the property at 213 E Chicago Street. 2. Reject the requested Change Order#l. Respectfully Submitted for Council consideration. SBS/sr Attachments