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HomeMy WebLinkAboutS9-96 (2) • Ordinance No. S9-96 AN ORDINANCE PROVIDING FOR A LOAN PROGRAM TO ASSIST PROPERTY OWNERS WITH SIDEWALK VAULT CLOSURES BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section 1 . That there is hereby established a loan program to assist property owners in the closing of vaults under sidewalks . Section 2 . That property owners in the Center City area owning property adjacent to sidewalk vaults to be closed by the city shall be responsible for relocating utilities and constructing the interior wall between the vault and their property. The city shall fill the vaults including providing fill material and replace the sidewalk as part of the vault closure. Section 3 . That in order to assist property owners in the Center City area with relocating utilities and constructing the interior wall between the vault and their property as part of sidewalk vault closures property owners may receive a loan from the city in an amount not to exceed $5, 000 per vault. Any such loan monies shall be used solely for purposes directly related to the sidewalk vault closure. Payments of principal and interest on the loan shall be made to the city in annual installments over a period of not more than five ( 5) years with the first installment to be due on July 1, 1997 . Applications for such loans shall be made to the Director of the New Century Partnership of Elgin. The annual interest rate for any such loans shall be five (5%) percent and will begin accruing on July 1, 1997 . The City Manager is hereby authorized to enter into and execute such loan agreements on a forms approved by the corporation counsel . Section 4 . That all ordinances or parts of ordinances in conflict with the provisions of this ordinance be and are hereby repealed. Section 5 . That this ordinance shall be in full force and effect from and after its passage and publication in the manner provided by law. s/ Kevin Kelly Kevin Kelly, Mayor �. . • Presented: September 11, 1996 Passed: September 11, 1996 Omnibus Vote: Yeas 7 Nays 0 Recorded: September 12, 1996 Published: September 12, 1996 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk 40F 7 ElgjnHanoi Memorandum L . i.t;) 04.4„I/ August 8 , 1996 TO: Rick Helwig, City Manager ) I } FROM: Dave Lawry, Public Works ✓L- Deborah Nier, Director, New Century Partership for Elgin 'U SUBJECT: Unfinished 1996 Projects--Consideration of Financial Assistance for Vault Closure Projects Efforts are currently underway to move forward with the project-budgeted for 1996--which would provide new ornamental street lighting and sidewalk repairs for selected areas of the Center City. As previously reported in a presentation to the City Council on July 10, a critical component of the project involves the closing of vaults under the sidewalks. The City will fill the vaults and replace the sidewalk as part of the project. Property owners whose vaults are to be filled will be responsible for relocating utilities and constructing the interior wall between the vault and their property. This is a departure from current City policy which would require the owners to perform all the tasks involved in vault closure, including sidewalk replacement (City would provide fill material. ) Critical to the progress of the project schedule, this vault work must be completed before any other work can begin. Some property owners are currently involved in closing their vaults. Staff has also been contacted by some property owners who, although willing to do the work, are concerned that they must incur the full cost at this time, not having planned for this expense. The question has been raised if the City would offer loans to property owners in order to complete this work. Staff from Engineering, Legal and New Century Partnership have met to discuss the possibility of a loan fund available for work associated with vault closures. Since there is not a "typical" vault and, to date, no work has been completed on a vault to use as an example, it is difficult to arrive at an average unit price. It would be reasonable to assume that average cost range would be $3 , 500--4 , 500. With 29 vaults needing work, a loan fund of $100, 000 would seem adequate. Some work is expected to proceed without use of the loan program. To provide a manageable payment schedule, a term of five years would be suggested, with semi-annual or annual payments at the prime interest. Of course, loan term, payment schedule and interest rate can be varied. The primary benefit for providing for a loan program is that work might be completed on a faster schedule if property owners have an opportunity to use a funding source other than themselves. As mentioned previously, this vault work is a critical component in the project schedule. The program will also demonstrate the City's good faith effort to assist the property owner in making the implementation of this potentially disruptive project as smooth as possible. Under a loan program, the City of Elgin and Owner of Record would enter into an agreement establishing the loan amount, payment schedule, and use of funds. The property owner would maintain sole responsibility for work performed relative to the vault. Another option would be to provide a full or partial grant of the costs to the property owner. Alternatives: 1. Establish a loan program--at prime interest--to assist property owners in covering costs associated with vault closures. 2 . Establish a loan program--at below prime interest--to assist property owners in covering costs associated with vault closures. 3 . Establish a no-interest loan program to provide financial assist for vault closures. 4 . Provide for a full or partial grant to property owners to cover the costs associated with the vault closure. 5. Provide no financial assistance for this activity. JKLL5208 .92/STUCKE_E