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HomeMy WebLinkAbout06-229 Resolution No. 06-229 RESOLUTION AUTHORIZING EXECUTION OF A BUSINESS IMPROVEMENT PROGRAM GRANT AGREEMENT WITH STEVEN KRAFT,D/B/A SPEED FASTENERS PLUS,INC. (1173 Dundee Avenue) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Olufemi Folarin,City Manager,and Dolonna Mecum,City Clerk,be and are hereby authorized and directed to execute a Business Improvement Program Grant Agreement on behalf of the City of Elgin with Steven Kraft,d/b/a Speed Fasteners Plus,Inc.,for the property located at 1137 Dundee Avenue, a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: September 27, 2006 Adopted: September 27, 2006 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk CITY OF ELGIN BUSINESS IMPROVEMENT PROGRAM AGREEMENT THIS AGREEMENT is made and entered into this 1/fit day of September , 2006, by and between the City of Elgin, Illinois, a municipal corporation (hereinafter referred to as "City") , and Steven Kraft, (hereinafter referred to as "Owner") . WHEREAS, City has established a Business Improvement Program (hereinafter referred to as "Program") for application within all entry corridors within the City designated by City as appropriate for such application (hereinafter referred to as "Business Areas") ; and WHEREAS, Program is administered and funded by the City for purposes of the control and prevention of blight, dilapidation and deterioration of Business Areas; and WHEREAS, pursuant to the Program, City has undertaken to share the cost of certain exterior improvements to structures within the Business Areas, pursuant to the criteria of the Program and as set forth herein; and WHEREAS, Owner owns at least 50% of a building (s) , or is the tenant of a business related building(s) located within a Business Area, and owner desires to participate in Program pursuant to the terms and provisions of this Agreement. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the sufficiency of which is hereby mutually acknowledged, the parties hereto hereby agree as follows : Section 1 . City shall pay to Owner $11, 200, said sum not exceeding 50% of the total approved project costs; provided, however that the City shall not be liable for any such cost in excess of $15, 000 for exterior improvements approved pursuant to the provisions of this Agreement (hereinafter referred to as "Eligible Costs") for the Structure referred to at Section 16 herein (hereinafter referred to as "Structure") . All parties hereto agree that all payments from the City provided for herein shall be made to Steven Kraft, who shall provide the City with a full release upon receipt. Section 2 . Eligible costs shall include labor, material and equipment costs, and such other Costs as may be reasonably necessary for the execution and completion of the exterior Improvements to the structure hereby provided for (hereinafter referred to as the "Work") , as designated from the proposal approved by the Project Review Team pursuant to the provisions of Section 3 herein. Section 3 . No Work shall be undertaken or shall be considered to constitute the basis for an Eligible Cost until the Proposal for such Work has been submitted to and approved in writing by the Project Review Team, consisting of the City' s Director of Business Services and Properties, Manager of Property Maintenance and a Code Enforcement Officer. Such proposals shall include, but not be limited to, a date certain by which the Work shall be completed. All work relating to the exterior Improvements to the Structure shall be completed within 180 days from the date of the Agreement, unless Owner obtains the written consent of the Project Review Team. Section 4 . The Project Review Team shall be permitted access to Structure to periodically review the progress of the Work. Such review shall not be in lieu of any other inspections which may otherwise by required by law or by City. Any and all portions of the work which do not, in the sole discretion of the Project Review Team, conform to the Plans or other applicable terms of this Agreement, shall be made to conform to the Plans and other applicable Terms of this Agreement upon written notice of the existence of such non-conforming portions . Section 5 . Upon completion of the Work, and upon final inspection and written approval by the Project Review Team and such other final inspections and approvals as may be required by law, Owner shall submit to City: (1) an executed, notarized itemized contractor statement reflecting the total cost of the Work and each portion thereof, including, but not limited to, the cost of labor (whether provided by any contractor or subcontractor) , materials and equipment; 2 co ies of all bids, contracts and invoices ( ) p submitted, executed or incurred pursuant to the Work; and (3) 2 reasonableproof of payment of all costs incurred pursuant to the P Ym Work. Section 6 . City shall pay to Owner the sum provided for at Section 1 herein within thirty (30) days of owner' s compliance with the provisions of Section 5 herein. In no event shall the amount paid to Owner exceed the amount specified in this Agreement or in the contractor statement. Section 7 . In the event Owner fails to complete the Work in accordance with the terms of this Agreement, or otherwise breaches the terms of this Agreement, City may terminate this Agreement upon written notice of breach and termination to Owner, and any and all financial or other obligations on the part of City shall cease and become null and void. Section 8 . Upon completion of the Work, and for a period of five (5) years thereafter, Owner shall properly maintain the Work in its finished form, without alteration or change thereto, and shall not enter into any agreement, or take any other steps to alter, change or remove such Work without prior written approval from this Project Review Team in its sole discretion. Section 9 . Nothing herein is intended to limit, restrict or prohibit the Owner from undertaking any other work in or about the subject premises which is unrelated to the exterior improvement provided for in this Agreement. Section 10 . This Agreement shall be binding upon City and its successors, and upon Owner, Owner' s successors and assigns for a period of five (5) years from and after the date of completion and approval of the Work. Owner shall provide subsequent Owner (s) of Structure with a copy of this Agreement. This Agreement shall run with the land underlying Structure . Section 11 . If Owner does not own the underlying property for which work is being done, Owner warrants and represents to City that Owner has a lease at the location for which the work is proposed for a term of at least five (5) years . Owner further warrants and represents that he has received authorization from all owners of the property for which work is to be done to accept funds under this program and to undertake the work. Further, such owner (s) of the property for which work is to be done hereby acknowledges that he is aware of this Agreement and authorized the work which is to be made to the Structure. Said owner (s) of the property for which improvements are to be made further acknowledge 3 that, as owner of the property, he is a party to this Agreement and is bound by the provisions of this Agreement specifically, but not limited to, the provisions of Section 6 of this Agreement. Each "Owner" signature hereto hereby warrants and represents that there are no other entities having an ownership interest in the Structure, which have not executed this Agreement. Section 12 . Each Owner and Tenant hereby holds harmless and indemnifies City from and against any and all causes of action, suits, claims for damages, and any and all other liability, which may arise out of in connection with Owner' s or Owner' s agents, employees and assigns' negligent performance of any of the terms of this Agreement. Section 13 . This Agreement shall not be construed to create a partnership, joint venture or employment relationship between the parties hereto. Section 14 . This Agreement shall be subject to and governed by the laws of the State of Illinois . Venue for the resolution of any disputes or the enforcement of any rights arising out of or in connection with this agreement shall be in the Circuit Court of Kane County, Illinois . Section 15 . The terms of this Agreement shall be severable. In the event that any of the terms or provisions of this Agreement are deemed to be void or otherwise unenforceable for any reason, the remainder of this Agreement shall remain in full force and effect. Section 16 . Owner' s Name: Steven Kraft Address : 1173 Dundee Ave. City: Elgin State: IL Zip Code: 60120 Telephone Number: (847) 888-4666 Property Location of Structure: 1173 Dundee Ave Elgin, Illinois . Ownership Interest: Owner Contact Person: Steve Kraft Owner' s Name: Address : City: State: Zip Code: Telephone Number: Property Location: Ownership Interest: Owner: 4 Owner' s Name: Address: City: State: Zip Code: Telephone Number: Property Location: Ownership Interest: Tenant: Owner' s Name: Address: City: State: Zip Code: Telephone Number: Property Location: Ownership Interest: Section 17 . The City of Elgin Business Improvement Grant Program Guidelines dated July 13, 2005, as amended from time to time by the City, are hereby incorporated by reference into this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first appearing above. OWNER CITY OF ELGIN By: . J Steven Kraft 01 emi Folarin, City M.nager ATTEST: Do onna Mecum, City Clerk 5 M� r • August 18, 2006 .• TO: Mayor and Members of the City Council s41 , cs FROM: Olufemi Folarin, City Manager c og/. (.rowrli an,f Raymond H. Moller, Director of Economic vturrsiricd Tax 13a3c Development&Business Services SUBJECT: Business Improvement Grant—Steven Kraft d/b/a Speed Fasteners Plus, Inc. PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to approve a business improvement grant with Mr. Steven Kraft, d/b/a as Speed Fasteners Plus, Inc., for improvements to 1173 Dundee Avenue. RECOMMENDATION It is recommended that the City Council approve a business improvement grant with Speed Fasteners Plus, Inc. in the amount of$11,200.00. BACKGROUND On July 27, 2005, the City Council approved changes to the Neighborhood Business Improvement Grant Program that established guidelines for the implementation of assistance for certain businesses. The implemented changes are: 1. Change the name of the grant program to Business Improvement Program 2. Amend the target areas to include all businesses within the City's corridors 3. Amend the guidelines to give priority to Route 31, Route 25, and Villa Street from January 1 — July 1, after which the grant would be available to businesses along any of the City's corridors. 4. Increase the maximum City contribution from $15,000 to $25,000 in order to encourage more extensive improvements to the participating properties The grant application submitted indicates improvements to the following elements of the existing building and site: 1. Remove old front porch framing 2. New 12"X42"concrete porch piers 3. New Floor Framing Business Improvement Grant— Speed Fasteners Plus, Inc. August 18, 2006 Page 2 4. New Windows and Doors 5. Landscape 6. Parking Lot Resurfacing The owner has provided the following estimates for the exterior work: Building Improvements Landscaping Services 1. Gustafson Construction $19,700.00 1. Down to Earth $2,700.00 2. Ameri-Craft Exteriors, Inc. $23,490.00 2. Tom's Landscaping $3,535.00 3. Monarch $3,920.00 The grant program provides that the property owner can receive matching funds equal to 50% of the project cost, up to a total City contribution of$25,000 per location. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None FINANCIAL IMPACT The grant award to Mr. Kraft would total $11,200.00. There is $95,000 budgeted and available in the Riverboat Lease Fund, account number 276-0000-791.80-27, project number 177112 for the Business Improvement Grant Program. LEGAL IMPACT None ALTERNATIVES 1. Authorize a Business Improvement Grant Agreement with Steven Kraft in the amount of $11,200.00. 2. Choose not to enter into a Business Improvement Grant Agreement with Steven Kraft. Respectfully submitted for Council consideration. RHM/jr Attachment