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HomeMy WebLinkAbout08-9 Resolution No. 08-9 RESOLUTION AUTHORIZING EXECUTION OF A FACADE IMPROVEMENT PROGRAM AGREEMENT WITH RODNEY CAVITT (203-209 and 211-213 National Street) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Olufemi Folarin,City Manager,and Diane Robertson,City Clerk,be and are hereby authorized and directed to execute a Facade Improvement Program Agreement on behalf of the City of Elgin with Rodney Cavitt for the property commonly known as 203-209 and 211-213 National Street,a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: January 9, 2008 Adopted: January 9, 2008 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Diane Robertson Diane Robertson, City Clerk 4 CITY OF ELGIN FACADE IMPROVEMENT PROGRAM AGREEMENT 203-209 and 211-213 National Street Phases 1 and 2 THIS AGREEMENT is made and entered into this 31 day of crm e! ,2007,by and between the City of Elgin, Illinois, a municipal corporation(hereinafter referred to as"City"), and Rodney D. Cavitt, the owner of the properties commonly known as 203-209 and 211-213 National Street, Elgin, Illinois, (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 Area, pursuant to the criteria set forth herein; and, WHEREAS,Owner owns at least 50%of subject commercial building(s),or is the tenant of commercial building(s)located within Rehabilitation Area,with owner having provided the owner's consent and authority 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.The total approved project costs of facade improvements under Phases 1 and 2 for the structure referred to at Section 15 herein shall be $105,570.00, as set forth in Attachment A attached hereto(such total approved project costs for facade improvements under Phases 1 and 2 are hereinafter referred to as "Eligible Costs" and such structure is hereinafter referred to as the "Structure"). Under Phase 1 of the project, the City shall pay the Owner a sum not to exceed $17,818.50,being retroactively paid at 35%of the total Eligible Costs, for facade improvements to the Structure approved pursuant to the provisions of this Agreement. Under Phase 2 of the project, the City shall pay the Owner a sum not to exceed$26,135.00,being paid at 50%of the total Eligible Costs, for facade improvements to the Structure approved pursuant to the provisions of this Agreement. The City shall not be responsible for any project costs relating to Phase 3 of the project unless this Agreement is amended in writing to explicitly provide for the City's payment of such costs. The project shall be confined to approved improvements made to those parts of the Structure that are generally visible from any public right-of-way. All parties hereto agree that all payments 1 form the City provided for herein shall be made to Rodney D. Cavitt, 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 design drawings and/or specifications approved by the Project Review Team pursuant to the provisions of Section 3 herein and prepared by Consultant (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 City's Project Review Team (hereinafter referred to as "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 year 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 submitted, executed or incurred pursuant to the Work; and (3) reasonable proof of payment of all costs incurred pursuant to the Work.Notwithstanding anything to the contrary in any Contract Documents, City shall be entitled to withhold payments pending the submission of partial or full waivers of lien, and/or certifications, verifying the receipt of payment for all work performed by all contractors and/or subcontractors up to the date of the Contractor's application for partial and/or final payment in City's sole discretion. City shall further be entitled to make such payments directly to any contractor and/or subcontractor as may be necessary to obtain such lien waivers and/or certifications. In the event the City makes any such payments directly to the contractor and/or subcontractors,the amount of such payments shall be deducted from the total amount due to the Owner pursuant to this agreement and Contractor shall provide a written release to City in the amount of any such payments pursuant to this agreement. Concurrent with all applications for payment, contractor and/or subcontractors shall provide the City with a written sworn certification of all work performed by all subcontractors and/or contractor and amount paid to all subcontractors and/or contractor as of the date of application for payment. 2 Section 6. City shall pay to Owner the sum provided for in Section 1 herein within thirty (30)days of Owner's compliance with the provisions of Section 5 herein, subject to the approval of the City. In no event shall the amount paid to Owner exceed the lesser of the not-to-exceed amount specified in this Agreement or the appropriate percentage of the total cost of the Work indicated in the contractor statement. 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.Additionally,Owner shall refund to the City all money paid to Owner by City pursuant to this agreement upon thirty(30)days written demand. This provision shall not constitute a restriction on City to pursue any and all other rights to which it may be entitled by law. 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.Notwithstanding the aforementioned five (5) year period, the provisions of Sections 7 and 11 herein shall survive the termination and/or expiration of this agreement.The City may record this agreement with the Kane County recorder of deeds. Section 11. To the fullest extent permitted by law, Owner agrees to and shall indemnify, defend and hold harmless the City, its officers, employees, boards and commissions from and against any and all claims,suits,judgments,costs,attorneys' fees,damages or other relief or liability arising out of or resulting from or through, or alleged to arise out of any acts or acts of negligent or omissions of the Owner,Owner's officers,employees,agents or contractors or subcontractors in the performance of this agreement or arising out of or in connection with litigation based on any mechanics' lien or other claims suit,judgments and/or demands for damages by contractors and/or subcontractors. In the event of any action against the City its officers,employees,agents,boards or commissions covered by the foregoing duty to indemnify, defend and hold harmless, such action shall be defended by legal counsel of City's choosing. In the event and to the extent that any legal work is performed by the City's in-house legal counsel pursuant to the provisions of this section, City shall be reimbursed by Owner for such legal work at the rate of$200 per hour, which rate 3 Owner hereby agrees and acknowledges to be a reasonable rate for such in-house attorneys' fees. The provisions of this section shall survive any expiration and/or termination of this agreement. Section 12. This Agreement shall not be construed to create a partnership,joint venture or employment relationship between the parties hereto.No entity and/or person shall have any rights or obligations created by this agreement and specifically no entity and/or person shall be in any way construed to be a third party beneficiary under this agreement. 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: Rodney D. Cavitt Address: 601 East Lake Street City: Streamwood, IL 60107 Telephone Number: 630-233-2858 Property/Structure Location: 203-209 and 211-213 National Street Ownership Interest: property owner Contact Person: Rodney D. Cavitt 601 East Lake Street Streamwood, IL 60107 630-233-2858 Section 16. This Agreement and its attachments constitutes the entire Agreement of the parties on the subject matter hereof and may not be changed, modified, discharged or extended except by written amendment duly executed by the parties. No other agreements exist between the parties hereto,either oral or written,and each party agrees that no representations or warranties shall be binding upon the other party unless expressed in writing herein or in a duly executed amendment hereof. 4 IN WITNESS WHEREOF,the parties hereto have executed this Agreement on the date first appearing above. As to CITY OF ELGIN As to OWNER: B By: �. Zu je , rolari Rodney D. Cavitt Property Owner ATTEST: ATTEST: By: c�� Diane Robertson City Clerk 5 October 5, 2007 TO: Mayor and Members of the City Council FROM: Olufemi Folarin, City Manager Sarosh Saher, Urban Design& Preservation Specialist SUBJECT: Facade Project for 203-209 and 211-213 National Street Owned by Mr. Rodney Cavitt PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider Facade Improvement projects for the properties located at 203-209 and 211-213 National Street. RECOMMENDATION It is recommended that the City Council approve Phases 1 and 2 of the fagade improvement project for 203-209 and 211-213 National Street in the amount of $43,953, and consider budgeting the remaining Phase 3 in the amount of $206,481 for consideration in the FY2008 budget of the State and National Street Facade Program. BACKGROUND The two buildings at 203-209 and 211-213 National Street are located in the National Street corridor between Raymond Street and Wellington Avenue and were built in the 1890s. The properties are eligible for funding under the State and National Street Facade Improvement Program which offers property owners a grant of 50% of the cost of exterior fagade improvements up to a maximum of$100,000 per property. The property owner, Mr. Rodney Cavitt, proposes to rehabilitate the front and rear facades of the buildings, addressing such items as restoring the front porches to their original configuration, exterior paint removal, masonry cleaning, tuckpointing, cornice repair and painting, window and door replacement and exterior lighting. On the rear of the building, non-original additions to the building will be removed and new rear stairs and deck will be constructed. Additionally, he has also requested the City to share in the cost of repairing the sidewalk and retaining wall that are partially located on his property. • Y Facade Improvement Project—203-209 and 211-213 National Street October 5, 2007 Page 2 Mr. Cavitt has obtained the services of Mr. Greg Berna of Berna Architects and Design of Elgin to develop the drawings and specifications, along with a cost estimate for the project which will enable the property owners to bid out and obtain the minimum two required bids for the work. Phases 1 and 2 The application to participate in the program was submitted in July, 2005. Prior to submitting the application, work to strip the paint from the exterior of both buildings was completed (Phase 1). The City, in keeping with the guidelines of the program, also obtained an independent 2"d cost estimate to allow for retroactive participation at 35%. The entire project was unable to be funded right away due to the magnitude of the funding request along with the need for additional specifications on the work to the sidewalk and retaining wall. However, following submission of the application, the property owner, with close supervision of City staff, also completed work to clean and tuckpoint the exterior of the building, and repair and paint the cornice (Phase 2). The work under Phases 1 and 2 were completed in accordance with the guidelines of the Facade Improvement Program. The property owner was also informed that the projects completed in Phase 2 would be considered under the regular program funded at 50%. The amounts requested for Phases 1 and 2 are as follows: Phase Amount requested Phase 1 $17,818 —retroactively funded at 35% Phase 2 $26,135 —funded at 50% Total $43,953 The State and National Street Facade Improvement Program is currently budgeted in an amount of$50,000. If funding for Phases 1 and 2 are approved for payment, the balance in the program will be $5,209. Phase 3 Phase 3 of the project will involve the remaining work to the exterior facades of the buildings along with the street and sidewalk work. Street and sidewalk work are not eligible costs under the fagade program but could be funded through other sources. The complete project cost for both properties is estimated by the property owner at $717,910. The maximum eligible dollar amount per property within the Facade Improvement Program is $100,000 for a total of $200,000. However, since the current program budget is unable to fund the work, the property owner is requesting that the City Council consider budgeting funds in FY2008. The costs proposed for Phase 3 to be completed in 2008 are as follows: ' J Facade Improvement Project—203-209 and 211-213 National Street October 5, 2007 Page 3 Phase 3 -Scope of work City participation requested City/Property Sidewalk work $50,435 Remaining fagade work $156,046 ($200,000-$43,954) Total $206,481 (requested for funding in FY2008) Prior to bringing the final request for funding Phase 3 before the City Council, the property owner will be required to provide updated cost estimates for the work to be completed. COMMUNITY GROUPSANTERESTED PERSONS CONTACTED The property at 217-219 National Street is located within the Elgin National Watch Historic District. The Elgin Heritage Commission's Design Review Subcommittee has reviewed and approved the work proposed to the property and a Certificate of Appropriateness (COA) issued. FINANCIAL IMPACT There are sufficient funds budgeted ($44,791) and available ($43,954) in the 2007 State and National Street Facade Improvement Program, account number 275-0000-791.78-99, project number 79837A to approve payment of Phases 1 and 2 totaling $43,954. After payment the State and National Street fagade program would have a remaining balance of$5,209. Phase 3 expenditures, if approved, would need to be included as part of the 2008 budget process. The property in question is located within the Central Area Tax Increment Financing District and therefore appropriate as a funding source for eligible improvements. LEGALIMPACT An agreement between the City of Elgin and property owners at 203-209 and 211-213 National Street will be required. ALTERNATIVES 1. Approve Phases 1 and 2 of the fagade improvement project for 203-209 and 211-213 National Street in the amount of$43,953 and consider budgeting the remaining Phase 3 in the amount of $206,481 for consideration in the FY2008 budget of the State and National Street Facade Program. 2. Reject the Facade Improvement project proposed for 203-209 and 211-213 National Street. Respectfully Submitted for Council consideration. Facade Improvement Project—203-209 and 211-213 National Street October 5, 2007 Page 4 SBS/sr Attachments