HomeMy WebLinkAbout14-124 Resolution No. 14-124
RESOLUTION
AUTHORIZING EXECUTION OF A COMMERCIAL PROPERTY LEASE AGREEMENT
WITH 164 DIVISION, LLC FOR THE ELGIN ART SHOWCASE
(164 Division Street)
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS,
that David J. Kaptain, Mayor, and Kimberly A. Dewis, City Clerk, be and are hereby
respectively authorized and directed to execute a Commercial Property Lease Agreement with
164 Division, LLC for the Elgin Art Showcase for the premises commonly known as 164
Division Street, Suite 801-803, Elgin, Illinois, a copy of which is attached hereto and made a part
hereof by reference.
s/David J. Kaptain
David J. Kaptain, Mayor
Presented: September 10, 2014
Adopted: September 10, 2014
Vote: Yeas: 8 Nays: 1
Attest:
s/Kimberly Dewis
Kimberly Dewis, City Clerk
COMMERCIAL PROPERTY LEASE AGREEMENT
THIS LEASE is made and entered into as of the 10th day of September, 2014, by and
between 164 Division LLC, of 164 Division Street, Suite 705, Elgin, Illinois 60120, (hereinafter
referred to as "Lessor"), and the City of Elgin, an Illinois municipal corporation (hereinafter
referred to as the "Lessee")
1. Lessor hereby leases to Lessee and Lessee hereby leases from Lessor the space
presently known as 164 Division Street, Suite 801-803, hereinafter referred to as the "Premises",
in the building located at 164 Division Street, Elgin, Illinois 60120, hereinafter referred to as the
"Building".
2. The Premises is leased for a term of 36 months, to commence on January 1, 2014,
and to continue until December 31, 2016.
3. The monthly rent for the first year of the lease term shall be $3,529.17, the
monthly rent for the second year of the lease term shall be $3,635.05, and the monthly rent for
the third year of the lease term shall be $3,744.10. The Lessee is hereby granted an option to
extend this Lease for an additional three year term. The rent under such an additional three year
term will go up at a rate of three percent (3%) from the previous years rent amount. To exercise
the option to so extend this Lease the Lessee shall provide the Lessor written notice to exercise
such option prior to October 1, 2016.
4. Lessee shall pay rent, and any additional rental as provided below to Lessor at
Lessor's above-stated address, or at such other place as Lessor may designate in writing, without
demand, and without counterclaim, deduction or setoff. Lessee shall pay the monthly rent in two
annual installments for each year of the lease term. Lessor shall provide Lessee an invoice each
January during the term of the Lease for the monthly rent of January through June and each July
during the term of the Lease for the monthly rent for July through December. Lessee shall pay
such invoices for such rent to the Lessor within thirty (30) days of the receipt of such an invoice.
5. Lessee shall use and occupy the Premises as an art studio and live theater and for
no other purpose. Lessor represents that the Premises may be lawfully used for such purpose. It
is understood and agreed that Lessee's use of the Premises as an art studio and live theatre may
include, but not be limited to, as accessory uses, the service of food and beverages including
alcoholic beverages as authorized by the Liquor Commission of the City of Elgin.
6. Lessee shall commit no act of waste and shall take good care of the Premises and
the fixture and appurtenances therein, and shall, in the use and occupancy of the Premises,
conform to all laws, orders and regulations of the federal, state, and municipal government of
any of their departments. All improvements made by Lessee to the Premises which are so
attached to the Premises that they cannot be removed without material injury to the Premises,
shall become the property of Lessor upon installation.
7. Not later than the last day of the term Lessee shall at Lessee's expense, remove all
of the Lessee's personal property and those improvements made by Lessee which have not
become the property of the Lessor, including trade fixtures, cabinet work, movable paneling,
partitions and the like; repair all injury done by or in connection with the installation or removal
of the property and improvements; surrender the Premises in as good condition as they were at
the beginning of the term, reasonable wear and damage by fire, the elements, casualty, or other
cause not due to the misuse or neglect by Lessee or Lessee's agents, servants, visitors, servants or
licensees, excepted. All property of the Lessee remaining on the Premises after the last day of
the term of this Lease shall be conclusively deemed abandoned and may be removed by Lessor,
and Lessee shall reimburse Lessor for the cost of such removal. Lessor may have any such
property stored at Lessee's risk and expense.
8. Lessee may make interior revisions to the Premises to accommodate Lessee's
intended art studio and live theater, subject to all applicable code regulations and with the prior
written approval of the Lessor, which approval shall not be unreasonably withheld. Prior to
commencing any such work approved by Lessor, Lessee shall procure certificates of insurance
from all contractors and subcontractors showing general liability and worker's compensation
coverage and naming Lessor as an additional insured.
9. Lessee shall not do or suffer anything to be done on the Premises which will
cause an increase in the rate of fire insurance on the Building.
10. Lessee shall not permit the accumulation of waste or refuse matter on the
Premises or anywhere in or near the Building.
11. Lessee shall not, without first obtaining the written consent of the Lessor,
abandon the Premises,or allow the Premises to become vacant or deserted.
12. Lessee shall not, without obtaining the written consent of the Lessor, assign,
mortgage, pledge, or encumber this Lease, in whole or in part. Notwithstanding the foregoing, or
anything to the contrary in this Lease, it is agreed and understood that Lessee may enter into
agreements with third party organizations or individuals to use the Premises for the intended art
studio and live theater purposes.
13. Lessee shall observe and comply with such reasonable rules and regulations as
may be established from time to time by Lessor, provided that such rules and regulations do not
unreasonably interfere with Lessee's intended art studio and live theatre use of the Premises.
14. If the Building is damaged by fire or any other cause to such extent that the cost
of restoration, as reasonably estimated by Lessor, will equal or exceed 60% of the replacement
value of the Building,just prior to the occurrence of the damage, then Lessor may, no later than
the seventh day following the damage, give Lessee a notice of election to terminate the Lease. In
the event of such election this Lease shall be deemed to terminate as of the date of the damage or
destruction, and Lessee shall surrender the Premises within a reasonable time thereafter, and any
pre-paid rent shall be refunded proportionally.
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15. If the Premises or any part of the Premises, or any part of the Building materially
affecting Lessee's use of the Premises, be taken by eminent domain, this Lease shall terminate on
the date when title vests pursuant to such taking. The rent shall be apportioned as of the
termination date and any rent paid for any period beyond such date shall be repaid to Lessee.
16. This Lease shall be subject and subordinate to all underlying leases and to
mortgages which may now or hereafter affect such leases or the real property of which the
Premises form a part, and also all renewals, modifications, consolidations, and replacements of
the underlying leases and mortgages. Lessee agrees to execute such estoppel letters or other
documents required to confirm the same.
17. Lessor may enter the Premises at any reasonable time, upon adequate notice to
Lessee (except that no notice need be given in case of an emergency) for the purpose of
inspection of the making of such repairs, replacements, or additions in, to, on and about the
Premises or the Building, as Lessor deems necessary or desirable.
18. Lessor at its cost shall within thirty (30) days of the entry into and execution of
this Lease provide for the repairs and improvements to the Premises as set forth in Exhibit A
attached hereto and made a part hereof by this reference. In addition thereto Lessor at its cost
shall no later than January 31, 2015, provide for (i) the installation of a complete active fire
alarm system with smoke detection installed in all occupancies in the Building on the subject
property in accordance with plans and specifications therefore approved by the City, and (ii) the
improvements listed as items 5, 6 and 7 at the conclusion of the September 2, 2014, report of B
& F Construction Code Services, Inc., a copy of such report being attached hereto as Exhibit B.
In the event the Lessor fails to provide for the installation of such a complete active fire alarm
system with smoke detection installed in all occupancies in the Building on the subject property
in accordance with plans and specifications therefor approved by the City and for the
improvements identified as items 5, 6 and 7 in the attached September 2, 2014, report of B & F
Construction Code Services, Inc., on or before January 31, 2015, the Lessee may terminate this
Lease upon five (5) days written notice to the Lessor whereupon this Lease shall be terminated
with no further obligations of the Lessee hereunder. Lessor shall also at its cost maintain the
Premises and the Building in compliance with all codes, ordinances and other requirements of
law. In the event a repair has been made necessary by the misuse or neglect by the Lessee or the
Lessee's agents, servants, visitors or licensees, Lessor shall give the Lessee written notice thereof
and the cost of such a repair shall be born by the Lessee.
19. Lessor agrees to and shall furnish at its cost all utilities for the Premises and the
Building including electricity, water and any utilities required for the heat of the Premises and
the Building. Lessee shall not use any electrical equipment which in Lessor's reasonable opinion
will overload the wiring installations or interfere with the reasonable use of such installations by
Lessor or other tenants in the Building.
20. Nothing in this Lease is intended or shall be deemed or construed as creating the
relationship of principal and agent, partnership or joint venture between the parties hereto.
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21. Lessor shall, at Lessor's own cost and expense, bear, pay and discharge prior to
delinquency, all real estate taxes, special assessments, leasehold taxes or any other taxes which
are or may be levied, charged, and/or assessed upon the Premises, the Building and/or the
leasehold of the Premises during the term of this Lease.
22. The Lessee shall at all times maintain public liability insurance with a minimum
$300,000 bodily injury liability. Lessee shall provide proof of this coverage to the Lessor.
23. Notwithstanding anything to the contrary in this Lease, the parties understand and
agree that the fiscal year of the Lessee is a twelve (12) month period ending December 31 of
each year. The obligations of the Lessee under any contract for any fiscal year are subject to and
contingent upon the appropriation of funds sufficient to discharge the obligations which accrue
in that fiscal year and authorization to spend such funds for the purposes of the contract. If, for
any fiscal year during the term of this Lease, sufficient funds for the discharge of the Lessee's
obligations under this Lease are not appropriated and authorized, then the Lease shall terminate
as of the last day of the preceding year, or when such appropriated and authorized funds are
exhausted, whichever is later, without liability to the Lessee for damages, penalties or other
charges or any other relief whatsoever on account of such termination.
24. This document represents the entire agreement of the parties and there are no
representations not stated herein,and this agreement may only be modified by a writing executed
by both parties hereto.
LESSEE: LESSOR:
CITY OF ELGIN, 164 DIVISION, LLC
an Illinois municipal corporation AI
B/.i ._I4./� By ��
Mayor
Its: L 6 N'k A AIA £ /`
Attest:
Walzi 6/.t(ifi &74(1.(}A
City Clerk
F:1Legal Dept\Agreement1Lease-I 64Division-Ste 801-803-ElginArtsCen ter-clean-9-2-14.docx
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EXHIBIT A
Listing of repairs and improvements to be made by the Lessor to the Premises at
164 Division Street, Suites 801-803, Elgin, Illinois
1. Repair leaks in roof or otherwise causing water damage to the ceiling and walls.
2. Replace the carpet in hallway.
3. Patch shallow hole in floor of storage room.
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OFFICE&SHIPPING: CONSTRUCTION CODE SERVICES, INC.
FAX (847)428-7010
2420 Vantage Drive
CORRESPONDENCE: BUILDING&FIRE PROTECTION PLAN REVIEW Too-FREE 1-800-232-5523
P.O.BOX 5178 WEBSITE www.bfteebeseom
ELM.IL 60121-5178 TRAINING•INSPECTIONS•CODE CONSULTING E-MAIL bftechObrtechcLeom
September 2, 2014
Marc S. Mylott, AICP
Director of Community Development
City of Elgin
150 Dexter Court
Elgin, II 60120
RE: 164 Division Street
Dear Mr. Mylott:
This report will be a code analysis based on the 2003 edition of the International Building
Code using the compliance alternative section (3410)
The purpose of this section is to maintain a current degree of public safety without
compliance with Chapters 2 through 33. If the building passes the analysis with the
proposed change of occupancy, it is considered in compliance with the International
Building Code.
The significant question to be answered is: Is a complete fire sprinkler system required
because of the change of use?
A site inspection of the eighth floor, egress stairs to grade and the common areas on the
first floor was conducted. This is the floor with the change of occupancy and the means of
egress path for the top floor occupants. A complete inspection of each tenant space or
each individual floor(2—7)was not conducted.
There were some assumptions made during this analysis. Section 3401.2 indicates the
building and all systems shall be properly maintained. The other assumptions will be listed
in the appropriate part of the analysis and/or listed at the end of the report.
Attached are copies of completed Tables 3410.7 and 3410.9.
Table 3410.7 is used to compare the building conditions with the point values assigned by
Chapter 34. The top floor will be used as a theater which is group A-1. The remaining
parts of the building, which are group B are a lesser hazard.
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Type IB construction, with a partial sprinkler system on the first and second floors and a
complete newly installed fire alarm system were used in this review. Per the Fire Code
Official, the fire alarm system has been approved but not installed.This review will assume
the system will be installed.
The following sections are compared to the building condition and the appropriate
category and point value assigned.
Service With Integrity
Member
EXHIBIT B ICC NFPA IFIA IACET
Chapter 34
September 2, 2014
Page 2
3410.6.1 -This compares allowable height and number of stories with the lesser value
being applied to the table. The values from Table 503 were used: 160 feet and 5 stories.
The building is 8 stories and 92 feet in height. The construction factor(CF) is 1 because
(All)—(EBH) is positive:
AH—EBH/ 12.5 x 1 (CF) =5.44
AS—EBS x 1(CF)=-3
The lesser value of-3 is used in the analysis.
3410.6.2—The allowable area for type lB construction is unlimited area. The calculation
for allowable area will be unlimited so the maximum allowable points allowed will be
applied. This amount is'h the values in Table 3410.8. The values will be 8 for fire safety
and 13.5 for means of egress and general safety.
3410.6.3 The entire floor of 5,000 square feet is a compartment, which was used for this
section. It has a point value of 14.
3410.6.4-The wall which separates the tenant spaces cannot be used because the
corridors are used in the next section. This is category a with a point value of 0.
3410.6.5-The existing corridor walls are not constructed per the code but walls are in
place with non rated doors. This results in a category b, which is a value of-4.
3410.6.6-The stairs and elevator shafts are block with a minimum of a two hour fire
rating. The City of Elgin has accepted the existing layout on the first two floors. The
formula is VO=2 (PV)x 1.5(CF) = 3.
3410.6.7-The building is heated with hot water from a boiler with window air conditioners.
No mechanical shafts were found during a site inspection. This is category e which has a
point value of 5.
3410.6.8—A complete smoke detection system with smoke detection throughout is
proposed to be installed in the building. Per the Fire Code Official, the system has been
approved but not installed. This is category e which has a point value of 6.
3410.6.9-A complete smoke detection system is proposed to be installed in the building.
Per the Fire Code Official, the system has been approved but not installed. It does not
have a voice alarm system which is category c and a point value of 0.
3410.6.10—There is no smoke control in the building. There are no systems which would
comply with any categories except a. This has a point value of 0.
3410.6.11 —The building has two egress stairs. Each stair is 45.5 inches n width and can
accommodate 152 occupants. The maximum number of occupant for the floor is 304
occupants. This would include all occupants attending the performance and any staff or
employees on the floor.
The floor complies with the required number of exits and exit width for up to 304
occupants. This is category b with a point value of 0. See additional comments at the end
of this report for items which require correction.
Chapter 34
September 2,2014
Page 3
3410.6.12—There are no dead ends on the floor which is category c and a point value of
2.
3410.6.13—The maximum travel distance to an exit is 90 feet. The calculation of 20 x
Maximum allowable distance (200)—Maximum actual (90)_Maximum allowable (200) =
11.0 which is applied to the Table.
3410.6.14—Per the Fire Code Official, one of the elevators was changed to an automatic
elevator and complies with Phase I and II recall. The other elevator is not available to the
public. It can only be used by the maintenance stafe and the fire department in manual
operation. This will be category c with a point value of 0.
3410.6.15—The exit signs and emergency lights have emergency power. This is a
category b, which has an assigned point value of 0.
3410.6.16-The occupancy separation between the 7th and 8t'floor is a minimum of two
hours,which is in compliance with Table 302.2.3. This is category b and a point value of 0.
3410.6.17—Fire sprinklers are required throughout sprinklers are provided only on the first
an second floor. This is category a and has an assigned point value of-6.
3410.6.18-There are no incidental accessory area, which has a point value of 0.
The calculations in Table 3410.9 show a positive value for all three areas. This indicates
the space is code compliant using the alternate compliance section without the installation
of a complete fire sprinkler system.
The following assumptions were made or systems which have to be installed:
1. Type IB construction
2. A complete code compliant smoke detection and alarm system to be installed.
3. A maximum of 304 occupants on the top floor.
4. Any changes made have to comply with the code.
5. The hand rails and guard rails in the stairs have to be changed to comply with
the current code. This includes: height of the handrail, height of the guards and
handrail extensions.
6. A clear level path,which is accessible, to the public way from the rear exit door
shall be provided.
7. Provide tactile means of egress signs from the top floor through to the
discharge. Directional signage to any accessible restrooms is required.
Sincerely, ,/
I '
.1, L ✓.'.
I ✓J
Richard A. Piccolo
President
Master Code Professional
Chapter 34
September 2, 2014
Page 4
Table 3410.7
SAFETY PARAMETERS FIRE MEANS OF GENERAL
SAFETY(FS) EGRESS (ME0 SAFETY (GS)
3410.6.1 Building Height -3 -3 -3
3410.6.2 Building Area 8.00 13.5 13.5
3410.6.3 Compartmentation 14.0 14.0 14.0
3410.6.4 Tenant and Dwelling Unit Separation 0 0 0
3410.6.5 Corridor Walls -4 -4 -4
3410.6.6 Vertical Openings 3 3 3
3410.6.7 HVAC Systems 5 5 5
3410.6.8 Automatic Fire Detection 6 6 6
3410.6.9 Fire Alarm Systems 0 0 0
3410.6.10 Smoke Control **** 0 0
3410.6.11 Means-of Egress Capacity **** 0 0
3410.6.12 Dead Ends **** 2 2
3410.6.13 Maximum-Exit-Access Travel Distance **** 11.0 11.0
3410.6.14 Elevator Control 0 0
3410.6.15 Means-of-Egress Emergency Lighting **** 0 0
3410.6.16 Mixed Occupancies 0 **** 0
3410.6.17 Automatic Sprinklers -6 -6_2= -3 -6
3410.6.19 Incidental Accessory Occupancy 0 0 0
Building Score--Total Value 23.0 44.5 41.5
****No applicable
value to be inserted
Table 3410.9
Evaluation Formulas
Formula T 3410.7 T 3410.8 SCORE PASS FAIL
FS-MFS Z 0 23.0 (FS) - 16(MFS) = 7.00 XXXX
ME-MMES 0 44.5 (ME) - 27 (MME) = 17.5 �
GS-MGS?0 41.5 (GS) - 27 (MGS) = 14.5 X D.
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