HomeMy WebLinkAbout02-54 Resolution No. 02-54
RESOLUTION
AUTHORIZING EXECUTION OF A PURCHASE OF SERVICE AGREEMENT WITH
NEIGHBORHOOD HOUSING SERVICES OF ELGIN, INC . FOR THE
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
multifamily conversion program, a copy of which is attached
hereto and made a part hereof by reference .
s/ Ed Schock
Ed Schock, Mayor
Presented: February 13, 2002
Adopted: February 13 , 2002
Vote: Yeas : 7 Nays : 0
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
PURCHASE OF SERVICE AGREEMENT BETWEEN
NEIGHBORHOOD HOUSING SERVICES OF ELGIN, INC.
AND THE CITY OF ELGIN
THIS AGREEMENT is made and entered into this 7 day of , Jrtuc.4 , 2002,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. City shall pay to NHS the sum of Five Hundred Thousand Dollars ($500,000). Said
payment will be made within thirty(30) days following the execution of this agreement.
2. NHS shall directly and solely utilize Four Hundred and Seventy Five Thousand Dollars
($475,000) of the aforementioned Five Hundred Thousand Dollars($500,000) 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 and Thirty Seven Thousand, Five
Hundred Dollars ($237,500) of the aforementioned Five Hundred Thousand Dollars ($500,000)
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 Five
Thousand Dollars ($25,000) of the aforementioned Five Hundred Thousand Dollars ($500,000)
shall be retained by NHS to cover its costs for administering the program.
3. The City authorizes NHS to provide a grant of One Hundred and Five Thousand Dollars
($105,000) to be paid out at the discretion of NHS on or before December 31, 2002, said funds to
be taken from the aforementioned Four Hundred and Seventy Five Thousand Dollars ($475,000)
listed in paragraph 2, for the conversion of an eight unit rooming house located at 814 Brook St.
Elgin, Illinois to a single-family residence. Said conversion shall take place by December 31,
2002. Additionally, said conversion shall comply in all respects with applicable ordinances and
requirements of law.
4. The terms, conditions and criteria by which recipients of the aforementioned payments to
property owners shall be selected and governed by and shall be pursuant 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 provision of the Multifamily Conversion Program
from time to time in its sole discretion by providing written notice of such amendments to NHS.
5. To the fullest extent permitted by law,NHS agrees to indemnify, defend and hold harmless
the City, its officers, employees,boards and commissions from and against any and all claims,
suits,judgements, costs, attorneys fees, damages or other relief arising out of or resulting from or
through or alleged to arise out of any reckless or negligent act or omission of NHS officers,
employees, agents or volunteers in the performance of this agreement. In the event of any action
against the City, its officers, employees, agents,boards or 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.
6. This agreement shall be effective March 1, 2002 and shall terminate December 31, 2002.
Unless otherwise terminated as provided herein, this agreement shall terminate December 31,
2002.
7. This agreement may be terminated by City upon thirty(30) days written notice to NHS for
any reason.
8. 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.
9. 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 31,2002,NHS shall refund to the
City on a prorata basis for the funds paid hereunder for the portion of the year such programs or
NHS operations were not conducted.
10. NHS shall provide two written reports detailing the disbursement of$500,000. These
reports shall be provided to the City Council by May 31, 2002 and December 31, 2002, and shall
include all program activity. These reports shall be submitted to the City Manager's office, 150
Dexter Court, Elgin, Illinois 60120.
11. NHS shall provide the City with financial statements relative to the organization's total
operations. These statements shall be provided on or before July 31, 2002 and December 31,
2002.
12. 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, 2002.
13. 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 any reason, the remainder
of this agreement shall remain in full force and effect.
14. This agreement shall be subject to and governed by the laws of the State of Illinois.
Venue for the resolution of any dispute or the enforcement of any right pursuant to this
agreement shall be in the Circuit Court of Kane County,Illinois.
15. 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.
16. This agreement shall not be deemed or construed to create an employment,joint venture,
partnership or other agency relationship between the parties hereto.
17. No official, director, officer, 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.
CITY OF ELGIN NEIGHBORHOOD HOUSING SERVICES
OF ELGIN,INC.
By '- -, B
.�_ _ y
Vt.+t+M City M.O a v.__ Board President \/LQ eY S t Q Vt
Attest:
sikreftw-4-__ ji.e.44,.—
Dolonna Mecum, City Clerk
NHS.PS2/RAGREE
Attachment A
MULTIFAMILY CONVERSION PROGRAM
1. "Nonconforming Residential Conversion"shall mean a residential structure in which
dwelling units were established(1) consistent with the provisions of the then applicable
zoning ordinance,but in which the additional dwelling units are no longer permitted
under 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. The program shall operate under established objective criteria with respect to selection of
participating properties.
3. Program expenditures shall be awarded for the full amount per dwelling unit as listed in
paragraph five (5). This award is to provide an incentive to participate in the program
and offset the loss of revenue experienced by the property owner for the reduction in
dwelling units. 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 expenditure be made to increase
the number of dwelling units on a property.
4. All work performed under the 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.
Final payment shall not be made until a letter of compliance has been issued by the City
of Elgin.
5. The program shall provide a maximum of Twenty Thousand Dollars ($20,000) 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)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.
6. 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 permit is issued, and shall not sell or otherwise convey their
interest in the subject property prior to completion of their participation in the
Multifamily Conversion Program. Such agreement shall further require compliance with
all other provisions of the Multifamily Conversion Program, and shall provide that such
recipient shall indemnify, reimburse and hold harmless the City of Elgin, Illinois from
and against any claims for damages, causes of action, lawsuits, and any and all other
liability which may arise out of or in connection with said recipient's breach of the terms
of the aforementioned agreement or other negligent or reckless acts.
s
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8
/ ..„.4,�1- Agenda Item No. (0,,,... . •
4 City of Elgin g c,
February 8, 2002 ,
L N ,--11. .- '
TO: Mayor and Members of the City Council _ , }
FROM: Olufemi Folarin, Acting City Manager QUALITY HOUSING
SUBJECT: 2002 Purchase of Service Agreement with
Neighborhood Housing Services of Elgin
for Multifamily Conversion Program
PURPOSE
The purpose of this memorandum is to provide information to the
Mayor and members of the City Council to consider a Purchase of
Service Agreement with Neighborhood Housing Services of Elgin, Inc.
(NHS) for the Multifamily Conversion Program.
BACKGROUND
The 2002 Budget includes $500, 000 for the Multifamily Conversion
Program (MFC) .
NHS is chartered through a national , Congressionally-chartered
organization, Neighborhood Reinvestment Corporation. The NHS
partnership is a structure fostering involvement and cooperation
from the community, bringing together citizens, financial
institutions and city government . The cooperation is evident in
the NHS budget, which supplements City support by leveraging
contributions from local banks, grants and other fund raising.
Beginning in 1996, NHS operational support has increased, allowing
NHS to provide services City-wide. In previous years, NHS work had
been directed to selected target areas . While still focused on
older, established neighborhoods, NHS is growing its capability to
meet the needs that occur in similar neighborhoods throughout
Elgin.
Since 1995, the Multifamily Conversion Program, administered by NHS
and funded by the City of Elgin, has reduced density of 206
properties with the removal of 163 units . In 2001, 25 properties
participated -in the program, eliminating 38 units . In recent
years, the City Council has increased funding for these voluntary
conversions . Participation in the program increased in 2001, with
em. the change in grant allotment from $12 , 000 per dwelling unit to
$20, 000 per dwelling unit . The entire allotment for 2001 was
expended. For 2002, there are ten properties already on a waiting
list which, when completed, will remove another 25 dwelling units .
NHS Multi-family Conversion Program
February 8, 2002
fir•. Page 2
The program for 2002 contains a one-time project for the conversion
of an eight-unit rooming house to a single family use at 814 Brook
Street . The allotment for this project is $105, 000 and will be
taken from the $500, 000 allocated for this fund. Rooming houses
are not generally covered under the Multifamily Conversion Program,
however, this project was approved because of it is a high priority
with the North East Neighborhood Association and it will have a
positive impact on the surrounding area. This item has been placed
on the Committee of the Whole agenda and the regular City Council
Agenda to facilitate the impending sale of the property at 814
Brook Street .
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
North East Neighborhood Association
k(--
FINANCIAL IMPACT
The Multifamily Housing Conversion Program has $500, 000 budgeted in
the 2002 Riverboat Fund. Account number 275-0000-791 . 92-32,
project 157200, will be charged.
(41/7VEGAL IMPACT
Vv None.
ALTERNATIVES
Alternatives are to approve the Purchase of Service Agreement as
presented, edit the draft agreement, or decline to provide the
support for the program being supplied by NHS.
RECOMMENDATION
It is recommended that the City Council approve the Agreement with
NHS for the Multifamily Conversion Program.
Respectfully submitted,
VI!, gq111114
Olufemi ..sarin '
Actin• Cit - _ ..er
MTB/mm -
Attachment