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HomeMy WebLinkAboutG22-10 (4) Ordinance No. G22-10 AN ORDINANCE AUTHORIZING EXECUTION OF A DEVELOPMENT AGREEMENT WITH ARTSPACE PROJECTS, INC. FOR DEVELOPMENT AT 51 S. SPRING STREET BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS,that Ed Schock, Mayor, and Diane Robertson, City Clerk, be and are hereby authorized and directed to execute a Development Agreement on behalf of the City of Elgin with Artspace Projects. Inc. regarding the City's conveyance of the property at 51 S. Spring Street and the development of such property for live/work space for artists,a copy of which is attached hereto and made a part hereof by reference. Schock. Mayor Presented: May 12, 2010 Passed: May 12, 2010 Vote: Yeas: 6 Nays: 1 �" ,�_ p '� Recorded: May 13, 2010 • f ��`� : , Published: May 14, 2010 ' « Attest: r>`Y x y 4 r'77.'. Diane Robertson, City Jerk 4-27-10 DEVELOPMENT AGREEMENT THIS AGREEMENT made and entered into as of the 12th day of May,2010,by and between the CITY OF ELGIN, an Illinois municipal corporation(hereinafter referred to as the"City"); and ARTSPACE PROJECTS,INC.,a Minnesota non profit corporation,authorized to do business in the State of Illinois(hereinafter referred to as"Developer"). WHEREAS,Developer's mission is to create, foster and preserve affordable space for artists and arts organizations; and WHEREAS,the City desires to create a major,new,affordable live/work space with a tenant selection preference program for artistically creative individuals and their families to live and work in the City of Elgin in downtown Elgin; and WHEREAS, the City and Developer have previously entered into an Agreement dated May 28,2008,wherein the City engaged Developer to furnish certain services in connection with an individual artist survey in the City of Elgin and the neighboring Chicago metropolitan area; and WHEREAS,the City and Developer have also previously entered into an Agreement dated August 14, 2008, wherein the City engaged Developer to furnish certain Phase I Feasibility Study and Phase II Pre-Construction Services in connection with the proposed new affordable,affordable live/work space with a tenant selection preference program for artistically individuals and their families to live and work in the City of Elgin in the downtown; and WHEREAS,the City and Developer have identified a site in the downtown for the proposed project commonly known as 51 S. Spring Street, Elgin, Kane County, Illinois 60120, Permanent Index Number 06-13-305-001,such property being legally described on Exhibit A attached hereto and incorporated herein by reference (such property is hereinafter referred to as the "Subject Property"); and 1 WHEREAS,the Subject Property is currently owned by Elgin Community College and the City has entered into a Real Estate Sale Agreement with Elgin Community College dated January 27, 2010,whereby the City is now the contract purchaser of the Subject Property; and WHEREAS, Developer has submitted a proposal to the City for the redevelopment of the Subject Property which will result in the desired major, new, affordable, live/work space with a tenant selection preference program for artistically creative individuals and their families,with such proposed project to expected consist of 55 rental apartment units, a new three story building along the southern edge of the property and retail space of approximately 6,051 square feet located along Spring Street at the first floor; and WHEREAS, the City Council of the City of Elgin has adopted Ordinance Numbers S6-99, S1-02, S2-02, S3-02, and S4-02 proposing, approving and creating the Elgin Central Area Tax Increment Financing Redevelopment Plan and Project pursuant to the Tax Increment Allocation Redevelopment Act at 65 ILCS 5/11-74.4-1 et seq.;and WHEREAS, the Subject Property is located within the Elgin Central Area Redevelopment Project area; and WHEREAS, the City Council of the City has determined that Developer's proposed redevelopment of the Subject Property will further the goals and objectives of the Elgin Central Area Tax Increment Financing Redevelopment Plan and Project; and WHEREAS, the Subject Property is currently developed and the buildings on the Subject Property are improved with classrooms and require substantial renovation and redevelopment and the Subject Property does not comply with current building codes for the intended redevelopment of the Subject Property by the Developer; and 2 WHEREAS,the Subject Redevelopment(hereinafter defined in Section 13A)of the Subject Property is expected to create or retain job opportunities within the City;and WHEREAS, the Subject Redevelopment of the Subject Property will serve to further the development of adjacent areas; and WHEREAS,without this Agreement,the Subject Redevelopment(as hereinafter defined)of the Subject Property would not be possible; and WHEREAS,the Developer meets high standards of credit worthiness and financial strength; and 'WHEREAS, the Subject Redevelopment of the Subject Property will strengthen the commercial sector of the City; and WHEREAS,the Subject Redevelopment 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; and WHEREAS, in order to provide for the proposed redevelopment of the Subject Property as hereinafter described which will result in the development of a high quality, affordable live/work space with a tenant selection preference program for artistically creative individuals and their families to live and work, the likely redevelopment of areas near the Subject Property,which will further the goals and objectives of the Elgin Central Area Tax Increment Financing Redevelopment Plan and Project and which will result in increases in the City's tax base, the City has agreed to provide the limited development assistance as hereinafter described; and WHEREAS, the City of Elgin is a home rule unit authorized to exercise any power or perform any function pertaining to its government and affairs; and 3 WHEREAS,this Development Agreement resulting in the establishment of a quality major, new,affordable live/work space with a tenant selection preference program for artistically creative individuals and their families to live and work in the City, the redevelopment of areas near the Subject Property to be redeveloped,the furthering and achieving the goals and the objectives of the Elgin Central Area Tax Increment Financing Redevelopment Plan and Project and increases in the City's tax base are matters within the government and affairs of the City; and WHEREAS, the City desires to convey and the Developer desires to acquire the Subject Property in accordance with the terms and conditions provided herein. NOW,THEREFORE,for and in consideration of the mutual undertakings as set forth herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,the parties hereto agree as follows: 1. Recitals. The foregoing recitals are incorporated into this Agreement in their entirety. 2. Application to Illinois Housing Development Authority. If Developer has not already done so, Developer shall not later than May 17, 2010, file with the Illinois Housing Development Authority an application applying for low income housing tax credits in the amount of approximately$1,000,000 in federal low income housing tax credits and$1,000,000 in state HOME funds for use by the Developer for the Subject Redevelopment of the Subject Property. In the event the Illinois Housing Development Authority does not approve such application by the Developer on or before August 15,2010,then either party hereto shall have the right,by written notice to the other party,to terminate this Agreement whereupon this Agreement shall be cancelled and null and void with no further liability of either party hereunder. 3. Development Application. Not later than May 1,2010,the Developer shall file with the City an application or applications(the"Development Application")for the approval by the City 4 • of a Planned Development Ordinance and such other approvals as may be required or otherwise sought so as to authorize and facilitate the Subject Redevelopment of the Subject Property. All costs and expenses relating to the preparation of the Development Application shall be the responsibility of and shall be paid for by the Developer. The Development Application to be submitted by the Developer to the City shall include all materials and documents customarily required by the City for such development applications and zoning petitions and shall also include a pro forma for the Subject Redevelopment identifying all of the anticipated expenses and funds for the Subject Redevelopment,architectural elevations of the buildings to be renovated and/or constructed on the Subject Property showing and describing the architectural styling and materials of such building,the floor plans for each of the floors, a description of standard finishes and amenities for each of the apartments, the anticipated rental amounts for the apartments,preliminary engineering plans, site plans, landscape plans, lighting plans, estimated development schedules for the project and such other and further materials and documentation as may be reasonably required by the City. This Agreement and all of the parties' obligations hereunder are expressly subject to and contingent upon the City Council of the City adopting an ordinance or ordinances which provide for the approval of the proposed rezoning and Planned Development Ordinance of the Subject Property which authorizes the improvement of the Subject Property with the Subject Redevelopment. In the event an ordinance to provide for such rezoning and Planned Development Ordinance authorizing the Subject Redevelopment on the Subject Property has not been adopted on or before September 1,2010,then either party shall have the right, by written notice to the other party, to terminate this Agreement whereupon this Agreement shall be cancelled and null and void with no further liability of either party hereunder. In the event of any conflict between the terms and provisions of the plans attached to this Agreement and the terms and provisions of the Planned Development Ordinance for the 5 Subject Property as may hereinafter be adopted by the City Council,the terms and provisions of such Planned Development Ordinance shall control. 4. City Acquisition of Subject Property. The parties hereto acknowledge and agree that the Subject Property is currently owned by Elgin Community College and the City has entered into a real estate sale agreement with Elgin Community College dated January 27,2010,whereby the City is now the contract purchaser of the Subject Property. This Agreement is contingent upon the City acquiring title to the Subject Property from Elgin Community College pursuant to such real estate sale agreement on or before October 1,2010. In the event the City does not acquire title to the Subject Property from Elgin Community College on or before October 1, 2010, then either party shall have the right,by written notice to the other party,to terminate this agreement whereupon this Agreement shall be cancelled and null and void with no further liability of either party hereunder. 5. Developer Financing. This Agreement is further contingent upon the Developer obtaining the additional financing necessary to provide for the construction of the Subject Redevelopment and identifying a purchaser for the tax credits associated with the Subject Redevelopment on or before August 15,2010. If Developer is unable to obtain such financing or to identify such a purchaser for the tax credits on or before August 15, 2010, the Developer shall provide the City written notice thereof on or before August 15,2010,and in such event,either party shall have the right,by written notice to the other party,to terminate this Agreement whereupon this Agreement shall be cancelled and null and void without further liability of either party hereunder. 6. Conveyance of Subject Property to Developer. In the event this Agreement has not been terminated pursuant to Sections 2, 3, 4 or 5 hereof, the City shall thereafter convey to the Developer title to the Subject Property by recordable special warranty deed, subject only to: (a) general real estate taxes not yet due and payable as of the closing; (b) public utility easements; 6 (c)covenants, conditions and restrictions of record, if any, which do not prohibit or unreasonably restrict Developer's intended use of the Subject Property as hereinafter described;(d)zoning laws, statutes and ordinances, including, but not limited to, matters relating to the Tax Increment Allocation Redevelopment Act and the Elgin Central Area Tax Increment Financing Redevelopment Plan and Project; (e) a reservation by the City of any and all rights, title or interest to the former railroad right-of-way lying easterly of the Subject Property; and(f)the terms and conditions of this Development Agreement. The purchase price to be paid by the Developer to the City for the Subject Property shall be$0,it being agreed and understood that the City is conveying the Subject Property to the Developer without a monetary purchase price as the City's sole and only development assistance to the Developer as consideration for the Developer providing for the Subject Redevelopment of the Subject Property as provided for in this Agreement. 7. Survey. Not less than thirty(30)days prior to Closing,the City at its own expense, shall furnish the Developer a plat of survey for the Subject Property prepared by a licensed land surveyor dated not more than one hundred twenty(120)days prior to the closing date,made and so certified by the surveyor to the Developer, or other person designated by Developer, Developer's financing parties, and the title company as having been made in accordance with the minimum standard detail requirements for ALTA-ASCM Land Title Surveys and Mapping, 1992, without Table A items. 8. Closing. The time of closing for the Subject Property shall be on or before May 1, 2011. Unless subsequently mutually agreed otherwise,Closing shall take place at the office of title company providing title is shown to be good or is accepted by Developer. 9. No Brokers or Agents Involved in this Transaction. The City and Developer each warrant to the other that they have dealt with no brokers or agents in connection with this transaction. 7 Each party agrees to indemnify, hold harmless and defend the other party from any loss, cause, damages or expenses(including reasonable attorney's fees)arising out of a breach of the warranty contained in this section. 10. Title. Not less than thirty(30) days prior to Closing, the City at its own expense, shall deliver or cause to be delivered to Developer or Developer's agent title commitments for a 1970 ALTA Owner Title Insurance Policy issued by a title company licensed to do business in the State of Illinois agreed to by the parties(the"Title Company")in the minimum amount of insurance covering title to the Subject Property on or after the date herein,showing title in the City of Elgin subject only to: (a)title exceptions set forth in Section 6 above, (b)title exceptions pertaining to liens or encumbrances of a definite or ascertainable amount which maybe removed by the payment of money at the time of closing and which the City shall so remove at that time,(c) acts of the Developer and all parties through or for the Developer,(d)zoning laws,statutes and ordinances,including,but not limited to matters relating to the Tax Increment Act and the Elgin Central Area Tax Increment Redevelopment Plan and Project and (e)other matters of title over which the Title Company is willing to insure without cost to Developer. At Closing,the City shall also furnish to Developer an affidavit of title in customary form covering the date of Closing and showing title in the City subject only to the permitted exceptions and such other documents as are customary to complete the Closing of this transaction. 10. Title Clearance. If the title commitment or the plat of survey discloses either unpermitted exceptions or survey matters that render the title not in conformance with the provisions of this Agreement(hereinafter referred to as "Survey Defects")the City shall have thirty(30)days from the date of delivery thereof to have the exceptions removed from the commitment or to correct such Survey Defects or to have the title company commit to insure against loss or damage that may 8 be associated by such exceptions or Survey Defects,and,in such event,the time of Closing shall be thirty(30) days after the delivery of the commitment or the time expressly specified in Section 8 hereof, whichever is later. If the City fails to have the exceptions removed or correct any Survey Defects,or in the alternative,to obtain the commitment for title insurance specified above as to such exceptions or survey defects within the specified time,Developer may terminate this Agreement or may elect, upon notice to the City within ten (10) days after the expiration of the thirty(30) day period, to take title as it then is. If Developer does not so elect, this Agreement shall be deemed cancelled and null and void with no further liability of either party hereunder. 12. Prorations. General taxes shall be adjusted ratably as of the time of Closing. If the amount of current general taxes is not then as ascertainable,the adjustment thereof shall be made on the basis of the amount of the most recent ascertainable taxes. The City shall pay the amount of any stamp tax imposed by state or county law or local ordinance on the transfer of title, if any, and furnish a completed real estate transfer declaration signed by the City or the City's agent in the form required pursuant to the Real Estate Transfer Tax Act of the State of Illinois and shall furnish any declaration signed by the City or the City's agent or meet other requirements as established by any county or local ordinance with regard to a transfer or transaction tax. 13. Redevelopment for Artspace Live/Work Apartment Project. A. It is agreed and understood that the Subject Property is being conveyed by the City to the Developer for the sole purpose of Developer redeveloping the Subject Property and constructing thereon the Artspace Live/Work Apartments Project in substantial conformance with the BKV Group Artspace Live/Work Apartments Schematic Design Report dated January 6,2010, (hereinafter the "Subject Schematic Design Report")with first 13 pages thereof being attached hereto as Exhibit B, and in conformance with theplanned development ordinance for the Property as hereinafter P Subjectp Y 9 may be adopted by the City Council of the City of Elgin(such planned development ordinance as may be hereinafter adopted by the City Council for the Subject Property is hereinafter referred to as the"Subject Planned Development Ordinance"and such redevelopment of the Subject Property in substantial conformance with the Subject Schematic Design Report and the Subject Planned Development Ordinance is hereinafter referred to as the"Subject Redevelopment') In the event of any conflict between the terms of the Subject Schematic Design Report and the terms and provisions of the Subject Planned Development Ordinance, the terms and provisions of the Subject Planned Development Ordinance shall control. The Subject Redevelopment of the Subject Property shall conform in all respects with the Subject Planned Development Ordinance,the final engineering plans as approved by the City Engineer, the terms of this Development Agreement, or as directed by the City as is necessary to comply with ordinances,building codes or other requirements of law,or as otherwise authorized by the City to facilitate the Subject Redevelopment. Developer shall also cause all work performed in connection with the Subject Redevelopment of the Subject Property to be performed in a workmanlike manner. With the sole exception of the City's agreement to convey the Subject Property to the Developer without a monetary purchase price as provided in this Agreement, all costs and expenses relating to the Subject Redevelopment of the Subject Property including, without limitation, the renovation of the Subject Property, the public improvements and all appurtenances relating thereto,shall be the responsibility of and shall be paid for by the Developer. B. Developer shall commence construction of the Subject Redevelopment on the Subject Property within ninety(90) days of the Closing. Developer shall be deemed to have commenced construction of the Subject Redevelopment of the Subject Property upon commencement of demolition activities for existing improvements on the Subject Property. Developer shall continue with the construction of the Subject Redevelopment on the Subject Property in as expeditious a 10 manner as is reasonably practicable. Developer shall complete the entire Subject Redevelopment of the Subject Property no later than within eighteen (18) months after the commencement of construction (hereinafter referred to as the "Completion Date") provided, however, that such Completion Date for the Subject Redevelopment of the Subject Property shall be extended by one day for each day of which construction is delayed or stopped due to accidents, strikes, shortages of materials,extreme weather or acts of God. In the event Developer requires any further extension of the Completion Date for the Subject Redevelopment of the Subject Property,any such requests shall be submitted to the City in writing specifying reasons for such an extension and the amount of additional time being requested. The City agrees to reasonably consider a request to further extend the Completion Date for the Subject Redevelopment of the Subject Property. The Subject Redevelopment of the Subject Property shall be deemed completed when Developer has completed construction of all improvements for the Subject Redevelopment and has obtained temporary or final occupancy permits for all of the apartment units and the commercial space to be constructed within the Subject Redevelopment. The City shall not withhold a final occupancy permit for any building or unit within the Subject Redevelopment that otherwise complies with this Agreement and all City codes,ordinances or other requirements of law as to such building or unit. C. The parties acknowledge that the low income housing tax credits and state HOME funds which are proposed to be utilized by the Developer for the Subject Redevelopment require that the apartment units on the Subject Property shall be occupied by persons at or below 60%of area median income. The parties further acknowledge that the City does not have an independent requirement as to income levels for occupants. Developer agrees that the apartment units will be marketed to persons with an artist or literary pursuit and that Developer shall apply its artistic preference program for tenant selection for a period of not less than twenty(20)years following the 11 completion of the Subject Redevelopment on the Subject Property. Such artistic preference program of the Developer is further described in Group Exhibit C attached hereto which includes the documents "Artspace Projects, Inc. Artist Preference FAQ", "Artist Selection" dated 1/29/09, "Artspace Projects, Inc. Tenant Selection Process Interview Questions"dated 5/11/07 and "Artist (definition)", as it may be reasonably revised from time to time in a manner that is consistent with maintaining a tenant selection preference program for artistically creative individuals and their families. D. The deed of conveyance from the City conveying the Subject Property to Developer shall contain a provision making such conveyance subject to the terms and obligations of this Development Agreement. In the event the Developer is in default of a term or condition of this Agreement,the City may file suit within the Circuit Court for the Sixteenth Judicial Circuit,Kane County,Illinois,for a determination that Developer has so breached this Agreement and therein may pursue any legal remedies at law or equity against the Developer but not including but not limited to specific performance,or,only in the event the Developer has failed to commence construction of the Subject Redevelopment on the Subject Property by the date specified in this Agreement,a judgment and order providing for the remedy of conveyance or reversion of all or part of the Subject Property to the City. To the extent required for Developer to obtain financing for the Subject Redevelopment the City agrees to subordinate its right to the remedy of reconveyance or reversion of the Subject Property to the City as provided for in this paragraph. 14. Redevelopment to Remain on Subject Property.The Developer agrees that except as otherwise agreed to by the City the Subject Redevelopment on the Subject Property shall be maintained and remain on the Subject Property for a period of not less than twenty (20) years 12 following the date of this Agreement. The provisions of this paragraph shall be binding upon the Developer and its successors, assigns and grantees. 15. Assessment of Subject Property. The City and the Developer agree that the Subject Redevelopment on the Subject Property should be assessed for general real estate taxes in the manner provided by Illinois Compiled Statutes as they may be amended from time to time. This provision shall not be deemed to prevent Developer or its successors or permitted assigns from appealing or challenging assessments against the Subject Property which Developer or its successors or permitted assigns consider to be contrary to law. The Developer agrees that for a period of twenty (20)years following the date of this Agreement that the Developer and no person affiliated with the Developer or any successor or permitted assign of the Developer shall do any of the following: A. Request a full or partial exemption for general real estate taxes for any portion of the Subject Property; or B. Request an assessment for any portion of the Subject Property at a value not otherwise permitted by law. The provisions of this paragraph shall be binding upon the Developer and its successors, assigns and grantees. 16. Compliance with Laws. Notwithstanding any other provisions of this Agreement it is expressly agreed and understood by Developer and the City that in connection with the performance of this Agreement and the redevelopment of the Subject Property that Developer shall comply with all applicable federal,state,city and other requirements of law. Developer shall also at its 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 necessary to provide for the redevelopment of the Subject Property as described in this Agreement. Without limiting the 13 foregoing, and notwithstanding anything to the contrary in this Agreement, Developer and its contractors and sub-contractors shall comply with the Prevailing Wage Act in all respects of the Subject Redevelopment of the Subject Property. 17. Survival. All representations, warranties, indemnities and covenants made by the parties under this Agreement,the terms of this Agreement and the obligations of the parties under this Agreement shall be deemed remade as of the closing and shall survive the closing, and the remedies for breach thereof shall survive the closing and shall not be merged into the closing documents. 18. Default. The City and Developer agree that, in the event of a default by the other party,the other party shall,prior to taking any such actions as may be available to it,provide written notice to the defaulting party stating that they are giving the defaulting party thirty(30)days within which to cure such default. If the default shall not be cured within the thirty (30) days period aforesaid,then the party giving such notice shall be permitted to avail itself of remedies to which it may be entitled under this Agreement. 19. Remedies. Subject to paragraph 18 hereof,if either party fails or refuses to carry out any of the material covenants or obligations hereunder,the other party shall be entitled to pursue any and all available remedies as specified herein or otherwise available at law, equity or otherwise. Notwithstanding the foregoing or anything else to the contrary in this agreement,no action shall be commenced by the Developer against the City for monetary damages. Venue for the resolution of any disputes or the enforcement of any rights pursuant to this Agreement shall be in the Circuit Court of Kane County, Illinois. 20. Time. Time is of the essence of this Agreement. 14 21. Notices. All notices shall be required to be in writing and shall be served on the parties at the addresses following their signatures. The mailing of a notice by registered or certified mail, return receipt requested,or personal delivery by courier service shall be sufficient service. 22. Interpretation. This Agreement shall be construed,and the rights and obligations of the City and the Developer hereunder shall be determined in accordance with the laws of the State of Illinois without reference to its conflict of laws rules. 23. Relationship of the Parties. This Agreement shall not be deemed or construed to create an employment,joint venture, partnership or other agency relationship between the parties hereto. 24. Failure to Enforce Provisions. 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 to do so thereafter. 25. Amendments. This Agreement maybe modified or amended only in writing signed by both parties hereto, or their permitted successors or assigns as the case may be. 26. Entire Agreement. This Agreement contains the entire Agreement and understandings of the parties hereto with respect to the subject matter as set forth herein, all prior agreements and understandings having been merged herein and extinguished hereby. 27. Joint and Collective Work Product. This Agreement is and shall be deemed and construed to be a joint and collective work product of the City and the Developer,and, as such,this Agreement shall not be construed against the 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, in the terms and provisions contained herein. 28. Assignment. This Agreement shall be binding on the parties hereto and their respective successors and permitted assigns. This Agreement and the obligations herein may not be 15 assigned without the express written consent of each of the parties hereto, which consent may be withheld at the sole discretion of either of the parties hereto. Notwithstanding the foregoing, the Developer may assign this Agreement to a newly formed, single purpose entity of which the Developer directly or indirectly is the managing partner or member. The City shall be provided prompt notice of any such assignment to such single purpose entity. 29. No Conflicting Interests. Developer hereby represents and warrants that the Developer,nor any associated person or organization,presently owns or has any beneficial interest in the Subject Property being conveyed to Developer or presently is entitled to receive any income from the Subject Property. In compliance with 50 ILCS 105/3.1,Developer shall provide the City with a written statement subscribed by an owner,authorized trustee,corporate official,or managing agent, under oath, disclosing the identity of every person or entity that will have an interest, real or personal, in the Subject Property upon the acquisition of any interests by the Developer in the Subject Property and every person or entity entitled to receive more than seven and one/half(7'/2%) percent of the total distributable income of any person or entity which will have an interest,real or personal, in such property upon the acquisition of any interest by the Developer in the Subject Property. 30. As Is: Covenant Not To Sue. Except as otherwise expressly provided herein: A. The City agrees and shall deliver to the Developer at Closing possession of the Subject Property including but not limited to all improvements thereon and appurtenances thereto in "AS IS"condition. B. The parties hereto further understand and agree that the City shall have no responsibility for any response or corrective actions or remediation of any Environmental Condition (as hereinafter defined) at, on, under or about the Subject Property and that the Developer hereby 16 waives and releases any claim for contribution against, and covenants not to sue the City, or the City's officials, officers, employees, agents, attorneys, personal representatives, successors or assigns,whether asserted directly or indirectly,or whether in the nature of an action for contribution, third party proceeding or other action or proceeding whatsoever,for all damages including,without limitation, punitive damages, liabilities, costs, losses, diminutions in value, fines, penalties, demands,claims,cost recovery actions,lawsuits,administrative proceedings,orders,response action costs, compliance cost, investigation expenses, consultants fees, attorneys fees,paralegal fees and litigation expenses(collectively"Claims"),arising out of or in connection with any Environmental Condition (as hereinafter defined) on the Subject Property or its migration to any other site or location or arising out of or in connection with any Environmental Law(as hereinafter defined). C. The Developer hereby acknowledges and agrees that it is purchasing the Subject Property in its "as is" and "where is"condition and that, as of the Closing, the Developer will be purchasing the Subject Property with no direct recourse or direct rights of action against the City or the City's officials, officers,employees, agents, attorneys, personal representatives, successors or assigns. D. The Developer for itself and its successors, assigns and grantees, hereby covenants and agrees that in consideration of this contract,neither the Developer nor its successors or assigns shall directly or indirectly sue the City or the City's officials,officers,employees,agents,attorneys, personal representatives,successors or assigns for any Claims with respect to,or arising out of any Environmental Condition(as hereinafter defined)or any other condition of,or situation existing with respect to the Subject Property or any Environmental Law (as hereinafter defined). The covenant and Agreement of the Developer as set forth in the preceding sentence shall hereinafter be called the "Covenant Not to Sue". The parties hereto understand and agree that The Developer's Covenant Not 17 to Sue the City as stated herein does not apply to any action taken by the Developer to enforce any contractual obligations of the City as may be specifically set forth in this contract and does not constitute an indemnity agreement between the parties and that the City retains any liability it may have for claims brought by third parties including but not limited to any governmental agencies, provided,however,that the Developer agrees not to assign any claims against the City or the City's officials,officers,employees,agents,attorneys,personal representatives,successors and assigns to any third parties. E. "Environmental Condition"shall mean any condition or situations existing on,under, at or about the Subject Property, any improvements thereon, the groundwater, subsurface water, and/or the underground soil and geologic conditions thereunder, as of the date of the execution of this contract which(i)constitutes a violation of any State of Illinois or federal environmental law, regulation or ordinance and/or(ii)which does or might form the basis of any public or private claim or cause of action for the cleanup or remediation as a result of the release, threatened release, migration or the existence of any contaminants, pollutants, petroleum and petroleum byproducts, crude oil or any fraction thereof, chemicals, wastes or substance (including, without limitation, regulated substances and hazardous wastes and hazardous substances as such terms are commonly used and understood within the framework of existing federal and Illinois environmental laws and regulations) and/or (iii)are a release or a threat of release of hazardous substances or hazardous waste,and/or(iv) are described or included in any report provided by the City to the Developer or in any report generated by the Developer's Environmental Investigations of the Subject Property. F. "Subject Property"shall mean the property described on Exhibit A attached hereto, any and all improvements thereon,and the soils,subsoils,geologic formations and groundwater on and under such property. 18 G. "Environmental Lawee shall mean any federal or state law, statute, regulation, rule, order, decree,judgment or direction concerning environmental protection or environmental health and safety including,without limitation,common law,the Comprehensive Environmental Response, Compensation and Liability Act of 1980,as amended,the Resource,Conservation and Recovery Act, as amended, the Toxic Substances Control Act, as amended, and the Illinois Environmental Protection Act, as amended. H. "The City" shall mean the party designated herein and such party's heirs, personal representatives,successors,assigns and grantees,and if such party is an entity,then additionally such party's officers, employees, agents, partners, shareholders,directors,members and/or managers. I. The provisions of this Section 30 shall be deemed remade as of the Closing and shall survive the Closing and shall not be merged into the closing documents. 31. Reports Regarding Redevelopment of Subject Property. Developer agrees to and shall provide to the City written reports on the status of the Subject Redevelopment of the Subject Property. Such written reports shall be provided to the City quarterly following the Closing or upon request of the City. Such written reports shall contain a status report on construction activities and marketing efforts and such other information as may be requested by the City. 32. Legality of the Agreement. Developer on behalf of itself and its respective successors, assigns and grantees of the Subject Property hereby acknowledges the propriety, necessity and legality of all of the terms and provisions of this Agreement,including,but not limited to, the Subject Planned Development Ordinance which may hereinafter be adopted by the City Council for the Subject Property and any fees and/or contributions which may be charged by the City in connection with the Subject Redevelopment of the Subject Property,and does hereby further agree and does waive any and all rights to any and all legal or other challenges or defenses to any of the 19 terms and provisions of this Agreement and hereby agrees and covenants on behalf of itself and its successors, assigns and grantees of the Subject Property, not to sue the City or maintain any legal action or other defenses against the City with respect to any challenges of the terms and provisions of this Agreement. IN WITNESS WHEREOF, the parties hereto have entered into and executed this agreement on the date and year first written above. CITY OF ELGIN, a municipal ARTSPACE PROJECTS, INC. corporation a Minnesota nonprofit corporation By By Mayor Its Attest: City Clerk Cityof Elgin Arts ace Projects, Inc. g p c/o City Manager Greg Handberg 150 Dexter Court Senior Vice President, Property Development Elgin, IL 60120-5555 250 Third Avenue N, Suite 500 Minneapolis, MN 55407 With a Copy of Any Notice to: William A. Cogley Corporation Counsel City of Elgin 150 Dexter Court Elgin, IL 60120-5555 F:\Legal Dept'Agreement\Development Agr-Artspace-clean 4-27-I0.docx 20 EXHIBIT A Legal Description of the Subject Property Lots 7, 8, 9 and 10, and that part of Lots 5, 6, 11 and 12 lying Southwesterly of the Southwesterly right-of-way line of the Chicago and Northwestern Railway Company,all in Block 12 of the original Town of Elgin,Kane County, Illinois, including all improvements and structures thereon. 21 EXHIBIT B BKV Group Artspace Live/Work Apartments Schematic Design Report Dated January 6, 2010-Pages 1-13 22 B K V GROUP Artspace Live/Work Apartments Elgin, Illinois I I+i1 1 1 711 • ,t.,,EI I MI Schematic Design Report Date: January 06, 2010 BKV Group, Inc. Architecture Interior Design Engineering 222 North Second Street Minneapolis, Minnesota 55401 COMMISSION NO.: 1569.04 Exhibit B Artspace Live/Work Apartments B 1l \ / Elgin, IL I� V GROUP Index 1 Owner Review/Approval Signature Sheet 2 Executive Summary 3 Visioning / Design Concept Statement 4 Administrative Area Programming • 5 Building Area Tabulation 6 Schematic Design Code Analysis (under separate cover) 7 Sustainability Included in Project 8 Project Schedule 9 Schematic Design Project Cost Estimate 10 Schematic Design Narrative Specifications Appendix 1 Property Needs Assessment Appendix 2 Schematic Design Drawings Appendix 3 Certification I hereby certify that this report was prepared by me or under my direct supervision and that I am a duly registered Architect under the laws of the State of Illinois Signed: J. Owen Boarman Registration Date: 01/06/10 Number: IL- 001017467 Schematic Design Narrative Comm.No.1569.04 November 23,2009 Page 1 Q:\1569-04\bus\SD Report\1569_04-SD-report-010610.doc Artspace Live/Work Apartments B K V Elgin, IL GROUP F'.,.' :f'fL v ZTZE :xY"..+.iu7,:.'dt'ir.T;.1:.' `uBt '..IMVZ H' w..7,r £i:%.' 'i: �`i1',T.Za'..`t!6' Owner Review / Approval Signature Sheet TO: Heidi Kurtze Director, Property Development FROM: Jack Boorman CLIENT: Artspace Projects, Inc. PROJECT: Artspace Live/Work Apartments COMM. NO.: 1569.04 DATE: January 06, 2010 RE: Approval of Schematic Design Documents Please sign below indicating your review and acceptance of the Schematic Design Documents, as included in this report. The signature below indicates authorization for BKV Group to proceed to the next phase. Please sign and return one copy of this report to BKV Group. BKV cannot proceed further without this written authorization. Name (print) Signed Company Title Date Schematic Design Narrative Comm.No. 1569.04 November 23,2009 Page 2 Q:\1569-04\bus\SD Report\1569_04-SD-report-010610.doc Artspace Live/Work Apartments ►/ Elgin, IL D I\ y g' g GROUP MU i'kAa.la:'a ZIMM .4I TM MA" lei :F Executive Summary The following information documents the Schematic Design status for the construction of the Artspace Live/Work Apartments.The project consists of three primary components: • Residential Component: The design includes 55 rental units housed in both the north wing of the existing 2-story building (with basement) and a new 3 story building along the southern edge of the property. The unit mix will consist of a variety of dwelling types (studios, 1 bedroom, 2 bedroom and 3 bedroom) including street-level walk-ups, terrace units, and upper level flats and will range in size from 730 to 1,500 sq.ft. The two buildings are positioned to create a private cloistered courtyard area in the middle of the site that will contain a tot lot, rain gardens and a plaza are for gathering and outdoor art exhibit space. • Commercial Component: There will be a small enclave of retail space of approximately 6,051 square feet located long Spring Street at the first floor. 3,567 square feet will be housed in the historic building, while 2,484 square feet of space will reside in the new building footprint. It is anticipated that the retail tenant profile for the first floor will consist of local neighborhood service oriented businesses that will enhance the urban vitality of the community. . • Historic Building: The property is located within the business district of downtown Elgin, Illinois and currently contains two irregular shaped buildings connected with a staircase and an elevator. The north wing of the building was constructed in 1908 as a department store with two stories, a dock area and a full basement. The south wing was constructed in 1948 and is 2 stories in height. The south sing will be removed. The north wing will be gutted and transformed into housing units plus common areas for the artist residence including a business center, gallery, community room, and some retail space. The skylight will be reintegrated into the space providing daylight to both levels of the historic building. The exterior masonry will be repointed where necessary and cleaned. The windows will be refurbished or replaced with new windows that recall the original historic character. The basement will essentially remain as is and cleaned up, leaving in place the original tin ceilings and moldings that were a part of the buildings original showroom. • Parking Component: The project will include 46 parking stalls for its residents located on an adjacent city lot to the east. 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MU"-Mir :-FLT-•*-7-: ;.7 fr- • ... ....- --..'."tfflilinMer7-tr.! _M -,F•i.'..—..gltirtl.MILIIIPIKIL.V. * .•.- -..,. - 2 - —-- -,-P', — if__.....,...„ ,A,_.r .._ • \.._ , uset-r F-At-u.., South Elev•tion \--_,. 1 01,12-rr 60NC.1,7.-ri.5.i•S•roor Z..7---,, --•' " r , ..,rq,......., 1 r 4, ---k. " ...i-Ar..,,ig . 4.,v.i4c.:...E`'..' . „,,,,,:_. .,,..1.1-,-,... -......1,,,, ;,....k , ,,..„. .,, ....,..: ..-.*- •,,,,,,i; ,t,,',,, ,;„.-,,,,,,. rendered elevations 1 , - 1 ,7., • . &•41 •_ .1,F.•vr-..r.lf.....iNco l• ..1 1.... • , . 1 ?,, • ' :-..'-, ..c.-:•it,":frii,•:.4•;',..9,-n:'',,,,,..1‘.?: f....`:,i-:;-_,•75.4,',.•, ' •-,-2.,,` . '.....AW..4:;:_'..,.-:',' '. ,,,,,.. ',..,z-!,,,.,‘.4.-. .z.qi.:,,,', -.1.4ii,;'.7.,• Artspace Live/Work Apartments Q V Elgin, IL (.� (� V Ro P Unit Matrix and Building Area Tabulation The following represents the Unit Matrix and Building Area Tabulation of the Schematic Design documents. Schematic Design Narrative Comm.No. 1569.04 November 23,2009 Page 5 Q:\1569-04\bus\SD Report\1569_04-SD-report-010610.doc Live/Work Apartments UNIT MATRIX 1569.04 Artspace Elgin,Nlinois 3-STORY NEW BUILDING,NEW LINK,RENOVATED EXISTING 2-STORY BUILDING w/BASEMENT Wood-frame New Construction Not.:First Laval Rousing 1100•-0'•.?TT) Unit Type Description . Unit Sl& y^-y yy -I Level Features 3 ' 2 a d 7 7C. 0 • 9 4 t 6 f to '8 i it o V�i 1 E 7 $ a m a2 i Wk $ 0 4F 3 i a 4_ i• . II 8 6 a 2_E yg 5 g 3 {{ 4! a i No 2` a :io 1 2 1 5= �46 i L! J a Studio Units VlstfDutton Goal_% . STUDIO Slud,oIAlcove I.., - 732 -_ 732 630 732 1 0 0 1 0 0 0 0 1 0 1 STUDIO SIUNo/Ncove 2 - 793 793 703 1,580 I 1 _ 0 1 0 0 0 0 0 0 0 STUDIO Sludo/Mcove 3 - 820 820 713 2.460 0 3 0 3 0 0 0 0 0 0 0 T*I.I STUDIOS ' 6 0 2 4 0 6 0 0 0 0 1 0 1 11. 1 Bedroom Units Dlstn21ution Goal_% 1 BD 1 Br/1 Ba 2 - 504 804 701 1008 0 I 1 2 0- 0 0 2 _ 0 2 1 SD I Br l 1 Be I - 826 828 734 626 0 1 0 1 0 0 0 0 0 0 1 BD 1 Br/I Ra 18 - 893 893 800 18,074 8 6 6 _ 18 0 6 3 12 0 16 1 BD 1 8r/1 Bo 3 -- 1.036 10313 931 3,108 0 3 0 3 0 0 0 0 0 0 1 BD 1 Br/I Be 3 - 1,079 1079 982 3,237 1 1 1 3 0 0 0 1 0 1 1BD 1Br/19a 0 0 0 0 0 0 0 0 0 0 0 0 0 Total 1 BEDROOMS 27 0- 7 12 8 27 0 ' -6 0 I 15 0 21 49. 2 Bedroom Units UIStriOUlton Goal % 260 26r/2 B. 2 - 1,080- 1060 957 2,160 1 0 2 0 0 0 0 - 280 213r/213a 2 - 1,104 1104 940 2.205 1 0 2 0 1 0 1 2BD 204/200 3 - 1,107 1107 981 3,321 1 I 3 0 0 0 0 2BD 28r/2Be 2 - 1,134- 1134 982 2,268• 1 0 2 0 0 0 0 2BD • 2131/28a 2 - 1,182 1162 1022 2,324 - 0 I 2 0 0 0 -0 260 2Br/2Ba 3 - 1,108 1150 1055 3,504 I 1 3 0- 0 0 0 2BD 2Br/213a 2 - 1,190" 1198 1064 2,392 - 1 0 - 2 0 ' 0 0 0 Toler 2 BEDROOMS 16 0 8 3 16 0 1 0 1 20. 3 Bedroom Units Distribution Goal Ye 3 80 3 8r/2 Be • . - 1,323 ..1323 1296 2,646 10 1. i 1 2 0,. 0... 0 0 0 - 0 I 0 I r 3 B0 3 Br/2 0a f 1,423 1423 1248 1,423 1 0 0 -1 0 0 C 0 0 0 0 3 BD 3 13r/2 Ba 2 1,460 1460 1266 2,920 I 1 0 2 0 C 0 0 0 0 0. 3BD ' 38r/1 Ba 1 - 1505 1505 1317 1505 0 1 0 1 0 0 0 0 0 0 - 0 Total BEDROOMS 6 0 2 3 1 I 8 0 0 0 0 0 0 0 11% ' 0 - 0 -I 0 0 0 1 0 0 0 0 0 0 0 0 0 / 0 0 0 - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - 0 -- 0 0 0 0 0 3 If 0 0 0 0 0 0 0 0 0 • 0 0 0 0 0 0 0 0 0 0 0 0 0 0% SUMMARY Ramapo Unit Ma. 1 1,025 1 UNIT TOTALS 155 10 I 156,362 I 11 126 1 12 II 55 1 0 I 7 I 0 I 0 1 17 10 I 24 I L 100% BUILDING SUMMARY -R0oeinp OFA Net Unit• Common Area SF Unit Net Area SF Non.R.nt.I OBA RETAIL .. Parking Moos Are. Common Ar.a SF Al..(SF) SF Flow Parking Stalls In Building 3RD LEVEL ROUSING 13,637 0 0 12,024 1,613 0 0 0 0 2RD LEVEL ROUSING 34,094 0 0 26,723 7,371 , 0 0 0 0 1ST LEVEL ROUSING 35,588 0 - 0 24,520 11,068 _ 0 6863 0 0 Total 63,319 0 0 63,87 20,052 0 6,863 0 0 SF Efficiency 76% . 0% Average Unit Sloe - • (Parking SF per 801V101 GRAND TOTAL 11b,uinp• I I • , Parking OFA) _ 83,310 R.t.N Total Pepe I Artspace Live/Work Apartments B K V Elgin, IL "`. 4�»+ch Yl.Ya.'12z�aL.Tlf.:I'.L.auFF�Vi`¢IY'13w��ltSw\/G4A'Y¢�Y+S�m9M1'N.� Schematic Design Code Analysis The following report summarizes the schematic code review conducted by BKV Group. The interpretations and assumptions included in this report are based on the concept design included in this report and a preliminary review with local building officials. Future document phases will require review and approval with local building officials. (This document will be provided under a separate cover) Schematic Design Narrative Comm.No. 1569.04 November 23,2009 Pace 6 Q:\1569-04\bus\SD Report\1569_04-SD-report-010610.doc Artspace Live/Work Apartments B K V Elgin, IL q� +� G R O ,j w"Z.av� -..J,.a�..w,.�s,..�..4..e,:. .,.., d�.a.:: "ra ate,. '•"�i�?u'k��,a�.i aw......3ti'�,w.,sn2.. stirs. .".k::b�,...>,,,ri� Sustainability Included in Project The direction of the project is to incorporate a "green" strategy for sustainability within the projects economic feasibility. The project will comply with the IHDA's Green Housing Initiatives 'Multi-Family Renovation: Green Homes Checklist.' Schematic Design Narrative Comm.No. 1569.04 November 23,2009 Page 7 Q:\1569-04\bus\SD Report\I 569_04-SD-report-010610.doc Artspace Live/Work Apartments L7 Q K " Elgin, IL V GROUP Visioning / Design Concept Statement The BKV Group design process focuses on the development of a clear statement of aesthetic intent that guides the design effort. The new project will retain the historic original 1908 building, and keep the loading dock, elevators and transitional stairs between the north and south wings. The remaining south wing will be demolished along with the parking area. A new 3 story wood-framed building will be constructed along the southern property line with a 2 story connecting link between the historic and new building. A new landscaped courtyard will be developed between the buildings with a new access drive along the eastern edge accessed from Fulton at the southeast corner of the site for loading and service vehicles. 48 parking stalls will be provided in the adjacent city owned lot to the east. The design concept revolves around integrating a new building with the historic building, allowing each to be distinct in their own right, but linked together to create a cohesive project as well. The new building is designed as a simple 3-story linear bar along the southern edge of the site creating some separation from the historic building, and then linking the two with a 1 '/2 story transparent common entrance along the west edge. The new link and new 1S' floor retail continues the rhythmic pattern of the historic building's arched storefronts with a fully glazed storefront pattern broken up by freestanding or integrated columns complementing this rhythm. The new building is clad in planes of brick on the north and south sides with glass and metal forms extruding out behind and beyond the brick planes. The new building also has a complimentary rhythm of openings and balcony projects reflecting the character of Elgin's street frontages but also having an artistic and playful dialogue of the parts. The three edges of the complex form an interior private 'agora' or cloister that incorporates a unique and artful private space with a plaza for art exhibits and sculpture, an artistic play component and tot lot for children and rain gardens as well. The new building also incorporates walk-up terraces and private patios, giving the project an active street presence on all public street sides. The following images indicate the resulting design which has evolved from the response to project goals and constraints. Schematic Design Narrative Comm.No. 1569.04 November 23,2009 Page 4 Q:\1569-04\bus\SD Report\1569_04-SD-report-010610.doc ARTSPACE PROJECTS, INC. Artist Preference FAQ Artspace Projects' nonprofit mission includes making affordable space available for artists and their families. This space includes residential live/work space in our various projects nationwide. Recognizing the creative energy and economic development benefits that result when a concentration of artists live and work in proximity to each other,Artspace uses a tenant selection preference for artists in choosing among otherwise qualified applicants. 1. What is Artist Preference? Artist Preference is a tenant selection preference applied to a pool of qualifying prospective tenants by which to provide a preference for acceptance into rental units qualified applicants who have a commitment to and/or participate in creative endeavors. 2. How do you define Artist? We consider an artist to be anyone that can demonstrate consistent participation in or commitment to a creative pursuit. We reserve the right to limit artistic/creative pursuits to those which are consistent with applicable local laws, health and safety regulations and practices which do not unreasonably impose on other residents or neighbors (such as loud, heavy or toxic endeavors). 3. Does your definition require employment as an artist and/or that a significant component of income be from a prospective tenant's creative pursuit? NO. Artist Preference has nothing to do with employment. How much income(if any)that a qualifying applicant earns from his or her artistic pursuit is not considered in assessing whether the applicant has a commitment to or participation in a creative endeavor. In fact, most of our residents do not earn a significant component of income from artistic pursuit. 4. How is the preference used? Each Artspace community includes an Artist Selection Committee comprised of between 3 and 5 people. Each qualifying prospective tenant who self-identifies as an artist is interviewed by the ASC using an established set of questions. Each interviewer scores the response to each question on a scale of 1-5. The scoring EXHIBIT C sheets are collected anonymously and the scores are tabulated. Those that score above the established threshold(e.g. a minimum of 3 or higher) are then matched to available units for which they qualify, based on income and family size. Qualifying prospective tenants who do not self-identify as artists or who score below the minimum threshold are placed on a non-artist list and qualifying non- artist applicants are matched with units only if a qualifying artist is not available to fill the unit. 5. Who is on the Artist Selection Committee? In a new community, the ASC is comprised of one Artspace staff member, one representative from our local property management company, and the balance are artists and others in the local creative community who have been active in or are familiar with the project but who will not be residents themselves. Once a community is rented and operating, the Artspace staff member steps off and interested residents of the Project are added. We always strive to have participation by non-residents in order to maintain the input of the broader community in which our project is located. An owner representative is always a member of the ASC. 6. Are applications accepted from non-artists? YES 7. Does Artist Preference violate Fair Housing Law? NO. Artspace accepts applications from anyone without regard to gender, race, ethnicity, religion, sexual orientation, physical disability, or any other form of prohibited discrimination. All applicants are qualified as to income in accordance with the requirements of the various funding programs we use in our projects and are subjected to standard background, criminal and credit checks consistent with prudent multifamily housing management. In accepting a qualified prospective tenant into the project, we employ a preference for those sharing a commitment to or participation in creative endeavors. Distinguishing between artists and non- artists in a tenant selection preference does not violate federal Fair Housing Law. 8. Does qualifying based on income and satisfactorily passing background and credit checks mean someone is accepted and guaranteed a unit? NO. Our acceptance process has two steps. The first is to be income qualified and pass the required background checks. Once through that process, qualified prospective tenants who have self-identified as artists are interviewed as described in this FAQ. ARTIST SELECTION Artspace is committed to attracting creative individuals and families from diverse artistic and cultural backgrounds. We encourage all people in the creative arts to apply regardless of race,color, creed,religion,national origin, ethnicity,gender,gender identity, marital status, familial status, sexual orientation,occupation or status with regard to public assistance, or physical disability. We are especially interested in individuals who are committed to building community and will give some of their time and energy toward this goal. ARTIST SELECTION COMMITTEE The selection committee screens applicants to determine their participation in, and commitment to, the arts; they do not judge the content of an applicant's artistic work. An artist, for the purpose of this committee, is a person who has a commitment to and/or participation in the arts and not simply as a hobby. This does not mean that the art the artist creates generates any or all of the artist's source of income. Artist shall be defined as: • A person who works in or is skilled in any of the fine arts, including but not limited to painting, drawing, sculpture,book art, and print-making. • A person who creates imaginative works of aesthetic literature, costume design, photography,music composition and architecture. • A person who creates functional art, including but not limited to jewelry,rugs, decorative screens and grates, furniture,pottery,toys,and quilts. • A performer, including but not limited to singers, musicians, dancers,actors, and performance artists. • NOTE: Artistic processes that are extremely noisy,require industrial zoning or involve hazardous materials generally will not be permitted. All uses must comply with applicable code. What does the Artist Selection Committee do? The selection committee meets with prospective residents and their families,(who have been income/background-qualified by the property manager),to determine their level of commitment to the arts,community and their art form. The selection committee does not jury the artist's work. An interview is conducted, scored by interviewers and average scores are ranked for selection. Who makes up the Artist Selection Committee? Initially the committee members will come from a pool of artists, representing a range of disciplines,who are members of the arts community in which the project is located. 1/29/09 Subsequent vacancies in the pool will be filled with the Artist Selection Committee made up of residents in good standing,other members from the broader arts community, and an owner representative. How are the meetings conducted? The owner representative or designated moderator coordinates the interview,runs the meeting and acts as the liaison to the property manager. Prior to the meeting, committee members are provided an artist questionnaire and or personal statement, if completed by the applicant. Committee members are also provided a scoring sheet with specific questions that prospective residents are to be asked. Prospective residents are given an opportunity to answer the questions, share their artwork and ask any questions that they may have. Fair Housing Attached is the Fair Housing Act and supplemental information regarding fair housing guidelines. In general,members of the selection committee are required to limit questions to those listed on the scoring sheet. Clarification questions can be asked to help a member of the committee to better understand an answer that has been given. The scoring sheet questions have been specifically chosen because they prompt answers that help committee members ascertain the artists and their family's commitment to their art form and their commitment to the community, without violating provisions of the fair housing act. Prospective residents may have questions for committee members. Please be advised that questions pertaining to any of the protected classes of fair housing may not be addressed. Feel free to refer interviewees to the property manager for further questions that they may have about the project or their application status. Although this process may seem formal, it is extremely important. We want to be sure that every applicant that comes before the artist selection committee be treated consistently and fairly. Interview Guidelines: • Each interview committee is comprised of 3-5 persons • Each interview committee includes at least one owner representative • Residents serving on the selection committee must be in good standing(no outstanding rent or fees and no lease violations)management will confirm good standing • Selection committee interviews are run by the owner representative or by the person designated by the owner representative 1/29/09 • If any member of the committee does not adhere to the process or guidelines of the Artist Selection Committee, that member will be removed from the committee pool • All interviews are confidential • Representatives of the Property Manager audit interview sufficiently frequently to ensure objective evaluation of all processes vis a vis fair housing and other public program guidelines. Scorin&: • Be sure to sign your scoring sheet. • Each question must be scored; all sheets are collected and aggregated. • Applicants are assigned to the artist preference list if their average score is 3 or greater. Those scoring less than 3 are placed on the non-artist list. All lists are kept in order of lottery priority. • Each adult applicant is scored separately,but the household is accepted or rejected in whole. Only one member of a household needs to demonstrate a commitment as a practicing artist, in order to qualify for the artist preference. 1/29/09 • Interviewer: Date: Artspace Projects, Inc. Tenant Selection Process Interview Questions Instructions to Interviewer: Questions should be asked clearly by one member of the committee. Each interviewer should rank the response honestly on a scale of 1 —5, with 1 being the lowest, and 5 being the highest, as described below: 1: Very Unsatisfactory 2: Satisfactory 3: Good 4: Very Good 5: Excellent Questionnaires should be collected confidentially and tabulated bya designated .r Y g committee member. Applications with an average score of 3 or higher will he eligible for the preference. 1. Describe your art form and present your portfolio,resume and/or examples of your work. We will not be judging the quality of your work,but rather the energy and commitment shown by the effort put into your work. -Describe the time you spend developing your work. - Describe the intention of your current work. -Describe your process 1 2 3 4 5 2. Why does your artwork require a designated workspace not found in standard residential space? Will you maintain a separate workspace in addition to this space? 1 2 3 4 5 3. What are your long-term artistic goals? 1 2 3 4 5 4. Please tell us why you need stable, low-income live/work housing? 1 2 3 4 5 5. Do you create art primarily at your design and directive, or primarily at the design and directive of someone else? • 1 2 3 4 5 6. Because the building is a creative workspace in addition to a residential space, additional noise or disturbances may be present. How do you typically resolve disagreements with your neighbor? 1 2 3 4 5 7. How do you see yourself contributing to this artist live/work community? 1 2 3 4 5 8. How do you see yourself as an artist benefiting from living here? 1 2 3 4 5 9. Why would you, as an artist,choose this neighborhood to live in? 1 2 3 4 5 10. Do you have a history of or an interest in participation with local city government, social, or community activity? If yes, please be specific. 1 2 3 4 5 interviewer S/1 1/07 • ARTIST (definition). (1) A person who works in or is skilled in any of the fine arts, including but not limited to painting, drawing, sculpture, book art, and print-making. (2) A person who creates imaginative works of aesthetic value, including but not limited to film, video, digital media works, literature, costume design, photography, architecture, and music composition. (3) A person who creates functional art, including but not limited to jewelry, rugs, decorative screens and grates, furniture, pottery, toys and quilts. (4) A performer, including but not limited to singers, musicians, dancers, actors and performance artists.