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HomeMy WebLinkAbout18-96 Resolution No. 18-96 RESOLUTION AUTHORIZING EXECUTION OF A FIRE SPRINKLER ASSISTANCE GRANT AGREEMENT WITH MARK NOVELLI AND THKFL, INC. FOR CONSTRUCTION OF A NEW WATER SERVICE LINE AND FIRE SPRINKLER SYSTEM (216 Prairie Street, Imago Creative Studio) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Richard G. Kozal, City Manager, and Kimberly A. Dewis, City Clerk, be and are hereby authorized and directed to execute a Fire Sprinkler Assistance Grant Agreement with Mark Novelli and THKFL, Inc. for construction of a new water service line and fire sprinkler system at 216 Prairie Street, Imago Creative Studio, a copy of which is attached hereto and made a part hereof by reference. s/David J. Kaptain David J. Kaptain, Mayor Presented: September 12, 2018 Adopted: September 12, 2018 Omnibus Vote: Yeas: 8 Nays: 0 Attest: s/Kimberly Dewis Kimberly Dewis, City Clerk CITY OF ELGIN FIRE SPRINKLER ASSISTANCE GRANT AGREEMENT (216 Prairie Street, Imago Creative Studio) THIS AGREEMENT is made and entered into this 12 day of September 92018, by and between the City of Elgin,Illinois,a municipal corporation(hereinafter referred to as"City"), Mark Novelli (hereinafter referred to as " Novelli"), and THKFL, Inc. (hereinafter referred to as "Owner"). WHEREAS,the City Council of the City of Elgin has previously created the Elgin Central Area Tax Increment Financing Redevelopment Plan and Project(the"ECA TIF District")pursuant to the Tax Increment Allocation Redevelopment Act at 65 ILCS 5/11-74.4-1, et seq; and WHEREAS,the ECA TIF District was established on April 10,2002,and will continue for 23 years thereafter; and WHEREAS, the Owner is the owner of the subject commercial building(s) and of the property commonly known as 216 Prairie Street, Elgin, Illinois (hereinafter referred to as the "Subject Property"); and WHEREAS,Novelli has entered into an agreement with the Owner dated May 17,2017,to purchase the Subject Property from Owner,and pursuant to such agreement Novelli is the Contract Purchaser of the Subject Property with the right to use and occupy the Subject Property; and WHEREAS, the Subject Property is located within the area commonly referred to as Downtown Elgin; and WHEREAS,the Subject Property is located within the ECA TIF District; and WHEREAS,Novelli has created a co-working office space and event venue at the Subject Property, and the creation of same at the Subject Property requires the construction of a new water service line and fire sprinkler system for the Subject Property; and WHEREAS, the City Council of the City is determined, and hereby finds, that Novelli's redevelopment and reuse of the Subject Property as herein described will further the goals and objectives of the Elgin Central Area TIF Increment Financing Redevelopment Plan and Project and assist the City in its objective creating more economically viable and sustainable downtown business district through strategic redevelopment, all of which are hereby declared by the City to be a valid public purpose of the City; and WHEREAS,the redevelopment of the Subject Property will result in an increase in the City's tax revenues, and will result in the adaptive reuse of a downtown building; and WHEREAS,the redevelopment and reuse of the Subject Property including the construction of a fire sprinkler system and new water service line at the Subject Property would not occur in the absence of limited development assistance from the City as herein provided; and WHEREAS, in order to incent and facilitate the redevelopment and reuse of the Subject Property as herein described which will further the goal and objectives of the Elgin Central Area Tax Increment Finance and Redevelopment Plan and Project, the City has agreed to provide certain limited development assistance as hereinafter described; and WHEREAS,the City of Elgin is a home rule unit and may exercise any power and perform any function pertaining to its governmental affairs; and WHEREAS, this Grant Agreement, resulting in furthering and achieving the goals and objectives of the Elgin Central Area Tax Increment Finance and Redevelopment Plan and Project, and resulting in the benefits the City has hereinabove stated, are matters within the government affairs of the City; and WHEREAS, the redevelopment and reuse of the Subject Property will strengthen the commercial sector of the downtown in the City; and WHEREAS,the redevelopment and reuse of the Subject Property will enhance the tax base of the City; and WHEREAS,this Agreement is made in the best interests of the City. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein,the sufficiency of which is hereby mutually acknowledged,the parties hereto hereby agree as follows: Section 1. The above recitals are incorporated into and made a part of this agreement. Section 2. The total approved project costs for the fire sprinkler installation for the entire building on the Subject Property and associated new water service line for the building on the Subject Property shall be$72,578 as set forth in Exhibit A attached hereto made a part hereof(such total approved project costs for the fire sprinkler installation and associated new water service line are hereinafter referred to as "Eligible Costs" and such structure is hereinafter referred to as the "Structure"). The City shall pay Novelli $40,000 toward the Eligible Costs of an approved fire sprinkler system and associated new water service line pursuant to the provisions of this Agreement. All parties hereto agree that all payments from the City provided for herein shall be made to Novelli, who shall provide the City with a full release concurrently with receipt.The City also agrees to waive all building permit fees,plan review fees, inspection fees,and/or utility and tap fees associated with the installation of the new fire sprinkler system and associated new water service line. Section 3. 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 fire sprinkler installation for the entire building on the Subject Property and associated new water service line hereby provided for(hereinafter referred to as the"Work"),as set forth in the proposal from General -2- Fire Sprinkler Company dated May 8,2018 and the proposal from Top to Bottom Installations dated June 5, 2018, attached hereto made a part hereof as Exhibit A. Section 4. Novelli shall commence with the Work for the installation of the new fire sprinkler system and the associated new water service line on the Subject Property within sixty(60) days of the entry into this Agreement. All Work shall be completed within one hundred eighty(180) days from the date of this Agreement, unless written consent for an extension is provided by the City's Director of Community Development. All Work relating to the installation of the new fire sprinkler system and associated new water service line at the Subject Property shall be performed in accordance with final plans and permits therefore approved by the City and in accordance with all applicable city ordinances and other requirements of law. Section 5. The City's Director of Community Development 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 that may otherwise be required by law or by the City. Section 6. Upon completion of the Work,and upon final inspection and approvals as may be required by law, Novelli 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. Section 7. City shall pay to Novelli the sum provided for at Section 1 herein within thirty (30) days of Novelli's compliance with the provisions of Section 6 herein. In no event shall the amount paid to Novelli exceed the amount specified in this Agreement or in the contractor statement, whichever is less. Section 8. In the event Novelli fails to commence and/or complete the Work in accordance with the terms of this Agreement,or Novelli or Owner otherwise breach the terms of this Agreement, City may terminate this Agreement upon written notice of breach and termination to Novelli and Owner,and any and all financial or other obligations on the part of City shall cease and become null and void. Additionally,Novelli shall refund to City all money paid to Novelli 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 9. Upon completion of the Work, and for a period of five (5) years thereafter, Novelli and 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 the Work, without prior written approval from the City's Director of Community Development in his sole discretion. Section 10. Nothing herein is intended to limit, restrict or prohibit Novelli or Owner from undertaking any other work in or about the subject premises that is unrelated to the fire sprinkler system and associated new water service line provided for in this Agreement. -3- Section 11. This Agreement shall be binding upon City and its successors,and upon Novelli, Owner, and their respective successors and assigns for a period of five (5)years from and after the date of completion and approval of the Work. Novelli and Owner shall provide subsequent Owner(s)of the Subject Property with a copy of this Agreement. This Agreement shall run with title to the Subject Property. The City may record a memorandum of this Agreement against title to the Subject Property. Notwithstanding the aforementioned five (5)-year period, the provisions of Sections 8, 13 and 20 herein shall survive the expiration, completion and/or termination of this Agreement. Section 12. The failure by a party to enforce any provision of this Agreement against the other party shall not be deemed a waiver of the right do so thereafter. Section 13. To the fullest extent permitted by law, Novelli agrees to and shall indemnify, defend and hold harmless, the City, its officials, officers, employees, agents, attorneys, boards and commissions from and against any and all claims,suits,judgments,costs,attorneys'fees,damages or other relief,including,but not limited to,workers' compensation claims, in any way resulting from or arising out of this Agreement, the Work to be performed and/or negligent acts or omissions of Novelli in connection herewith, including negligence or omissions of contractors, subcontractors, employees or agents of Novelli, arising out of the performance of this Agreement and/or the Work. In the event of any action against the City, its officers, employees, agents, attorneys, boards and commissions covered by the foregoing duty to indemnify, defend and hold harmless, such action shall be defended by legal counsel of the City's choosing. The provisions of this Section shall survive any expiration, completion and/or termination of this Agreement. Section 14. This Agreement shall not be construed to create a partnership,joint venture or employment relationship between the parties hereto. Section 15. 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 that 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 16. 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 17. All notices, reports and documents required under this Agreement shall be in writing and shall be mailed by first-class mail, postage prepaid, addressed as follow: As to the City: City of Elgin 150 Dexter Court Elgin, IL 60120-5555 Attn: Community Development Director -4- With a copy of any such notices to: City of Elgin 150 Dexter Court Elgin, IL 60120-5555 Attn: Corporation Counsel As to Novelli: Mark Novelli 216 Prairie Street Elgin, IL 60120 As to the Owner: THKFL, Inc. Attention: Steve Knisely 502 Northwest Highway Fox River Grove, IL 60021 Section 18. No official, director, officer, attorney agent or employee of the City shall be charged personally or held contractually liable under any term or provision of this Agreement or because of their execution, approval or attempted execution of this Agreement. Section 19. In all hiring or employment made possible or resulting from this Agreement, there shall be no discrimination against any employee or applicant for employment because of sex, age, race, color, creed, national origin, marital status, of the presence of any sensory, mental or physical handicap, unless based upon a bona fide occupational qualification, and this requirement shall apply to, but not be limited to, the following: employment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. Section 20. Notwithstanding anything to the contrary in this Agreement, with the sole exception of an action to recover the monies the City has agreed to pay to Novelli pursuant to Section 1 hereof, no action shall be commenced by Novelli and/or the Owner against the City for monetary damages. Novelli and Owner hereby further waive any and all claims to interest on money claimed to be due pursuant to this Agreement and waive any and all such rights to interest which it claims it may otherwise be entitled to pursuant to law, including, but not limited to, the Local Government Prompt Payment Act(50 ILCS 501/1,et seq.),as amended,or the Illinois Interest Act (815 ILCS 205/1, et seq.), as amended. The parties hereto further agree that any action by Novelli and/or Owner arising out of this Agreement must be filed within one(1)year of the date the alleged cause of action arose or the same will be time-barred. Section 21. This Agreement and its attachments constitutes the entire agreement of the parties hereto and the subject matter hereof and may not be changed, modified, discharged or extended except by written amendment duly executed by the parties. 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. -5- Section 22. This Agreement is and shall be deemed and construed to be a joint and collective work product of the parties hereto, and as such, this Agreement shall not be construed against any other party, as the otherwise purported drafter of same, by any court of competent jurisdiction in order to resolve any inconsistency, ambiguity, vagueness or conflict, if any, of the terms and provisions contained herein. Section 23. This Agreement and the obligations herein may not be assigned by Novelli and/or the Owner without the express written consent of the City,which consent may be withheld at the sole discretion of the City. Section 24. Novelli shall comply with the Illinois Prevailing Wage Act, 820 ILCS 130/0.01, et seq., including, but not limited to, paying the prevailing wage and requiring all contractors and subcontractors to pay the prevailing wages required therein and completing all necessary documentation and reporting requirements in connection with the Work to be performed pursuant to this Agreement. Without limiting the foregoing Novelli and all contractors and subcontractors rendering services under this Agreement must comply with all requirements of the Prevailing Wage Act, including, but not limited to, all wage, notice and recordkeeping duties. Section 25. Notwithstanding any other provision of this Agreement, it is expressly agreed and understood that in connection with the performance of this Agreement, Novelli shall comply with all applicable federal,state,city and other requirements of law,including,but not limited to,any applicable requirements regarding prevailing wages, minimum wage, workplace safety and legal status of employees. Without limiting the foregoing, Novelli hereby certifies, represents and warrants to the City that all Novelli employees and/or agents who will be providing products and/or services with respect to this Agreement shall be legal residents of the United States. Novelli shall also at his expense secure all permits and licenses, pay all charges and fees and give all notices necessary and incident to the due and lawful prosecution of the work, and/or the products and/or services to be provided for in this Agreement. The City shall have the right to audit any records in the possession or control of Novelli to determine Novelli's compliance with the provisions of this section. In the event the City proceeds with such an audit,Novelli shall make available to the City Novelli's relevant records at no cost to the City. Novelli shall pay any and all costs of such audit. Section 26. Time is of the essence of this Agreement. Section 27. In compliance with 50 ILCS 105/3.1,Owner shall provide the City with a written statement subscribed by an Owner,authorized trustee,a corporate official or managing agent of the Owner, under oath, disclosing the identity of every person having interest, real or personal, in the Owner and every equity owner entitled to receive more than 7 '/z percent of the total distributable income of the Owner. Section 28. This Agreement may be executed in counterparts. Signatures transmitted by facsimile or email shall have the same legal effect as an original signature. -6- IN WITNESS WHEREOF,the parties hereto have executed this Agreement on the date first appearing above. CITY OF E GIN: T E T: By: PwV'6 Richard G. Kozal Kimberly Dewis, 6ey Clerk City Manager 79"A)&"&: THKFL, Inc. Mark Novelli By: / Steve Knisley, its Pre ent F:\Legal Dept\Agreement\Grant Agreement-Imago Creative Studio Fire Sprinker Assistance-Clean 8-24-18.doc -7- EXHIBIT A Fire Sprinkler and Water Service Line Work, consisting of the following attached two (2)pages: One(1)page Scope of Work from General Fire Sprinkler Company dated 5/8/20118; and One (1)page Proposal from Top to Bottom Installations dated 6/5/2018. -8- 00IFS General Fire Sprinkler Company 1708 Berkley Avenue- Elgin, IL 60123 Phone 847.289.6382-Fax 847.289.6515 Date: 5/8/2018 To: Aimee aimee@imagocreative.com Re: Imago Creative Studios 216 Prairie St. Elgin IL, 60120 Dear Aimee, We appreciate the opportunity to provide our estimate for the fire protection work for the above referenced project. SCOPE OF WORK • Bringing in new 4"water service to building • Install new back flow preventer • Supply and install new mains, lines&heads to cover basement&first floor spaces • Hydro test new piping when complete • Complete drawings for submittal to City Of Elgin CLARIFICATIONS • All work is priced to be performed during normal working hours of 7:00 AM to 3:30 PM, overtime or premium time is excluded. • Plan review, permit fee and inspection fees are excluded. • Taxes are included. • Fire extinguishers and cabinets are excluded. • Fire alarm work is excluded. This proposal constitutes the agreement between General Fire Sprinkler and the customer. The qualifications/clarifications of this proposal/agreement will supersede any contract or P.O. that may be issued from the customer. In cases where a contract for plans and specifications or a P.O. is issued,that does conflict with the scope of this proposal,the scope of this proposal will prevail and supersede the conflicting contract or P.O.By signing this agreement the customer recognizes and agrees to this covenant PRICE Our price to perform the work as described above Incoming water service $32,890.00 Front portion of the building $25,925.00 Complete sprinkler system entire building $38,888.00 We trust you will find our proposal satisfactory, and we look forward to working with you on this project. Should you have any questions or require more information, please contact us. Sincerely yours, Frank Clifford Sales/Superintendent frankCcDgeneralfiresprinkler.com 224-760-0302 Design— Installations—Service—Inspections 1 of 1 Top to Bottom Installations June 5, 2018 This PROPOSAL is presented to Aimee &Mark Novelli We are pleased to submit the following proposal to hook up new sprinkler system Waterflow and Tampers to the current fire alarm panel, and install a radio to monitor the system. FIRE ALARM BID The Alarm project will consist of Labor and the following Material: I Lot of wire and labor. I Radio for Monitoring(monitoring monthly charge is 35.00 and is billed Semi annually) The total for the project will not exceed 800.00 A commercial burglar alarm system with remote access can be installed for an additional 500.00 it would consist of a keypad,2 door contacts, I overhead door contact, 2 motions,a siren and monitoring would be an additional 20.00 a month. PAYMENT TERMS: 20%Down Balance Due at completion of work Should you wish us to proceed with this work Please sign and return this proposal to the address above. Should you require additional information or if you have any questions please feel free to call our office. This proposal may be withdrawn if not accepted within 60 days. Approval and Accepted by: Submitted by: DATE: DATE: