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HomeMy WebLinkAbout01-79 Resolution No . 01-79 RESOLUTION AUTHORIZING EXECUTION OF A PURCHASE OF SERVICE AGREEMENT WITH NEIGHBORHOOD HOUSING SERVICES OF ELGIN, INC. (Multifamily Conversion Program) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Joyce A. Parker, City Manager, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute a Purchase of Service Agreement on behalf of the City of Elgin with Neighborhood Housing Services of Elgin, Inc . for the administration of the multifamily conversion program, a copy of which is attached hereto and made a part hereof by reference . s/ John Walters John Walters, Mayor Pro Tem Presented: March 28 , 2001 Adopted: March 28 , 2001 Omnibus Vote : Yeas 5 Nays : 0 Attest : s/ Suellyn Losch Suellyn Losch, Deputy City Clerk ?URCHASE OF SERVICE AGREEMENT BETWEEN NEIGHBORHOOD HOUSING SERVICES OF ELGIN, INC . AND THE CITY OF ELGIN THIS AGREEMENT is made and entered into this day of , 2001 , by and between the City of Elgin, Illinois , an Illinois municipal corporation, (hereinafter referred to as "City" ) and Neighborhood Housing Services of Elgin, Inc . , an Illinois not-for-profit corporation (hereinafter referred to as "NHS" ) ; and WHEREAS, City has determined that it is in the best interests of City and its citizens to promote and facilitate the conversion of lawful nonconforming multifamily residential properties to single family use ; and WHEREAS , NHS has successfully provided redevelopment services and administration in the Elgin, Illinois area and is familiar with and otherwise experienced in the historical , geographic and architectural attributes of the City of Elgin and surrounding area; and WHEREAS, the City and NHS have determined that within the South East Elgin Neighborhood, a large number of residences that were originally constructed as single-family dwellings have been converted into multiple-family dwellings . NOW, THEREFORE, ' for and in consideration of the mutual promises and covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows : 1 . On or before March 31 , 2001 , City shall pay to NHS the sum of Five Hundred Twenty-five Thousand Dollars ($525 , 000 . 00) . 2 . NHS shall directly and solely utilize Four Hundred Ninety-Eight Thousand Eight Hundred Dollars ($498 , 800 . 00) of the aforementioned Five Hundred Twenty-five Thousand Dollars ($525, 000 . 00) as and for direct payments to property owners of "nonconforming residential conversion" properties located within the corporate boundaries of the City of Elgin, Illinois, pursuant to the terms and conditions provided herein. Not less than Two Hundred Forty-Nine Thousand Four Hundred Dollars ($249, 400 . 00) of the aforementioned Five Hundred Twenty-Five Thousand Dollars ($525 , 000 . 00) shall be expended in payment to property owners other than NHS for nonconforming residential conversion properties located within the corporate boundaries of the City of Elgin. Twenty-Six Thousand Two Hundred Dollars ($25 , 200) of the aforementioned Five Hundred Twenty-FThousand Dollars ($525 , 000 . 00) shall be retained by NHS to cover its costs for administering the program. 3 . he terms , conditions and criteria by which recipients of the aforementioned payments to property owners shall be selected and governed shall be cursuant to the terms of the Multifamily Conversion Program, which is attached hereto and made a part hereof as Exhibit "a" . The City may amend the terms and provisions of the Multifamily Conversion Program from time to time in its sole discretion by providing written notice of such amendments to NHS . 4 . NHS shall hold harmless and indemnify City from and against any and all claims for damages, lawsuits, causes of action or any and all other liability which may arise out of or in connection with NHS ' negligent performance of the terms of this agreement , specifically including, but not limited to, failure to adhere to the provisions of the Multifamily Conversion Program. 5 . This agreement shall be effective March 1, 2001 and shall terminate December 31 , 2001 . Unless otherwise terminated as provided herein, this agreement shall terminate December 31, 2001 . 6 . This agreement may be terminated by City upon thirty (30) days written notice to NHS for any reason. 7 . Upon termination of this agreement , NHS shall return any funds provided by City pursuant to this agreement , which have not been expended directly to property owners pursuant to this agreement , to City within thirty (30) days of termination . NHS shall not expend any funds acquired from City pursuant to this agreement upon receiving notice of termination. 8 . In the event the program for which the City funds provided herein are to be applied is discontinued or NHS ceases its operations prior to December 31 , 2001 , NHS shall refund to the City on a prorata basis the funds paid hereunder for the portion of the year such programs or NHS operations were not conducted. 9 . NHS shall provide two written reports detailing the disbursement of $525 , 000 . These reports shall be provided to the City Council by May 31 , 2001 , and December 31 , 2001 , and shall include all program activity. These reports shall be submitted to the City Manager ' s Office , City Hall , 150 Dexter Court , Elgin, Illinois 60120 . 10 . NHS shall provide the City with financial_ statements relative to the organization ' s total operations . Tese statements shall be provided on cr before July 31 , 2001 and December 3 '1 , 2001 . 11 . NHS shall work cooperatively with the City and neighborhood representatives to evaluate the Multifamily Conversion Program. NHS shall present its written findings and recommendations to increase participation in the Multifamily Conversion Program to the City by July 1 , 2001 . 12 . The terms and provisions of this agreement shall be severable . In the event that any portion of this agreement is deemed to be void or otherwise unenforceable for :tny reason, the remainder of this agreement shall remain in full force and effect . 13 . This agreement shall be subject to and governed by the laws of the State of Illinois . 14 . This agreement represents the entire agreement between the parties hereto . No other oral or written agreements currently exist which shall modify or supersede the terms of this agreement . 15 . This agreement shall not be deemed or construed to create an employment , joint venture, partnership or other agency relationship between the parties hereto . CITY OF ELGIN NEIGHBORHOOD HOUSING SERVICES OF ELGIN, INC . Bys , By ) ALA-Ie Parker ee • c rk r Je fr/ Goc In City Manager r ar President Attest : pLLAT-4., — Dolonna Mecum, y Clerk NHS . PS2/RAGREE EXHIBIT A MULTIFAMILY CONVERSION PROGRAM Nonconforming Resident nv r_ ; on shall mean a residential structure in which dwelling units were established ) consistent with crov_slons of ^.e then applicable zoning ordinance , but in which the additional dwelling units are no longer perm_`tedunder current provisions of the current zoning ordinance, or (2) before January 1 , 1992 , as substantiated by three separate and distinct forms of written documentation . 2 . Program shall operate under established objective criteria with respect tO selection of participating properties . 3 . Program expenditures shall be limited to construction items required to convert a residential structure to the original residential use . It is the express purpose of the Multifamily Conversion Program to provide for a reduction of the number of dwelling units on a property . Program expenditures shall be limited to projects resulting in a reduction in the number of dwelling units on a property and in no event shall any expenditures be made to increase the number of dwelling units on a property. 4 . All work performed under program shall be performed in compliance with all applicable city codes and ordinances, specifically including, but not limited to, a final inspection made in conjunction with a request for the issuance of all required permits . 5 . Program shall provide a maximum of Twenty Thousand Dollars $20 , u00 . 00) in financial assistance per dwelling unit . For properties located in "User Defined Area 5 " as set forth in the United States Census designation (the South East Elgin Neighborhood) , a maximum of Twenty-Three Thousand Dollars ($23 , 000 . 00) per dwelling unit shall be provided. Funds shall be disbursed in accordance with the criteria adopted by NHS . NHS will work with SEEN to devise a marketing program specifically designed to induce nonconforming residential conversions in the South East Elgin Neighborhood. o . All recipients of funds pursuant to this Multifamily Conversion Program shall be required by NHS to enter into an agreement which shall specifically require that such recipient shall not participate , either directly or indirectly in the Elgin Residential Rehabilitation Grant Program or any other federally funded housing rehabilitation Program for one year from the date the conversion _ . e. permit t` issued, and shall not sell or otherwise convey their interest in the subject Property prior cc conoie:ion of their partfcfgation in the cult family llcversioc Program. Such acreemest shell Porcher recuire compliance with all other provisions ci the xiltifami2«_ Conversion Program, and shall provice that such recipient shall indemnify, reimburse and hold harmless the City of Elgin, Illinois from and against any claims for damages , causes off action, lawsuits , and any and all other liability which may arise out of or in connection with said recipient ' s breach of She terms of the aforementioned agreement or other neclicent or reckless acts .