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HomeMy WebLinkAbout08-219 Resolution No. 08-219 RESOLUTION AUTHORIZING EXECUTION OF A BUSINESS IMPROVEMENT PROGRAM GRANT AGREEMENT WITH McGRATH NISSAN, INC. (945 East Chicago Street) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Olufemi Folarin,City Manager,and Diane Robertson,City Clerk,be and are hereby authorized and directed to execute a Business Improvement Program Grant Program Agreement on behalf of the City of Elgin with McGrath Nissan,Inc. for the property located at 945 East Chicago Street,a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: September 24, 2008 Adopted: September 24, 2008 Omnibus Vote: Yeas: 5 Nays: 0 Attest: s/Diane Robertson Diane Robertson, City Clerk CITY OF ELGIN BUSINESS IMPROVEMENT PROGRAM AGREEMENT THIS AGREEMENT is made and entered into this // day of September , 2008, by and between the City of Elgin, Illinois, a municipal corporation (hereinafter referred to as "City") , and McGrath Nissan Inc. , an Illinois Corporation (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 $9, 500 or fifty percent (50%) of the cost of services identified in Owner' s application for participation in the Program, whichever is less . All parties hereto agree that all payments from the City provided 1 for herein shall be made to Owner, which 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 Economic Development and Business Services, the City' s Manager of Property Maintenance and a City 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 within such time deadlines as may be established by the Project Review Team. Owner shall be solely liable for any and all costs resulting from additional work or materials of any kind which may be required to conform to the provisions of the written notice provided for in this paragraph. 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 2 and equipment; (2) copies of all bids, contracts and invoices submitted, executed or incurred pursuant to the Work; and (3) reasonable proof of payment of all costs incurred pursuant to the Work. Notwithstanding anything to the contrary, the City shall be entitled to withhold any payments pending the submission of partial or full waivers of lien and/or certifications verifying the receipt of payment for all work performed by the contractor and/or all subcontractors up to the date of application for partial or final payment in the City' s sole discretion. Concurrent with all applications for payment, City shall be provided sworn certification of all work performed by contractor and subcontractor and amounts paid to all contractors and subcontractors as of the date of application. 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 maximum amount specified in this Agreement or the amount of the applicable aforementioned contractor' s statement, whichever is less . City shall not be liable for the payment of any amount in excess of such aforementioned contractor' s statement without the written agreement of the City, which may be provided in the City' s sole discretion. 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. If the City terminates the Agreement for a breach of the Agreement by the Owner, the Owner shall within thirty (30) days of such termination repay the City all money paid to the Owner pursuant to this Agreement. 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. 3 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. The City may record this Agreement with the Kane County Recorder of Deeds. 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 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 . To the fullest extent permitted by law, the Owner agrees to and shall indemnify, defend and hold harmless the City and its officers, employees, boards and commissions from and against any and all claims, suits, judgments, costs, attorneys' fees, damages or any and all other relief or liability arising out of or resulting from or through or alleged to arise out of any acts or negligent acts or omissions of City or City' s officers, employees, or agents in the performance of this agreement or arising out of or in connection with litigation based on any mechanics' lien or other claims, suits, judgments, and or demands by contractors and/or subcontractors . In the event of any action against the City, its officers, employees, agents, boards and 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 and cost to the Owner. The provision of this paragraph shall survive any expiration and/or termination of this agreement. Section 13 . This Agreement shall not be construed to create a partnership, joint venture or employment relationship between the 4 parties hereto. No entity and/or person shall have any rights or obligations created by this agreement and specifically no entity and/or person shall be in any way construed to be a third party beneficiary under this agreement. 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: Scott A. McGrath Address : 11N130 Rohrson Rd. City: Elgin State: IL Zip Code: 60120 Telephone Number: (847) 695-8209 Property Location of Structure: 945 E. Chicago St. Elgin, Illinois. Ownership Interest: Owner Contact Person: Scott McGrath Owner' s Name: Address : City: State: Zip Code: Telephone Number: Property Location: Ownership Interest: Owner: 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: 5 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. Section 18 . Notwithstanding any other provision of this Agreement, it is expressly agreed and understood in connection with the performance of this Agreement that the Owner shall comply with all applicable Federal, State, City and other requirements of law, including, but not limited to, any applicable requirements regarding prevailing wages, minimum wage, workplace safety and legal status of employees. Without limiting the foregoing, Owner hereby certifies, represents and warrants to the City that all Owner' s employees and/or agents who will be providing products and/or services with respect to this Agreement shall be legal residents of the United States. Owner 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, and/or the products and/or services to be provided for in this Agreement. The City shall have the right to audit any records in the possession or control of the Owner to determine Owner' s compliance with the provisions of this section. In the event the City proceeds with such an audit the Owner shall make available to the City the Owner' s relevant records at no cost to the City. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first appearing above . OWNER CITY OF ELGIN By By: ,,t4-4. Olufemi Folarin, ity Manager Scott A. McGrathal McGrath Nissan Inc. /Z". ATTEST: Diane Robertson, Ci Clerk 6 • • • CITY OF ELGIN BUSINESS IMPROVEMENT GRANT PROGRAM Application Form Applicant information • • Name: Sesr'" 4 • Home address: //Ai3 0 /siessf J ,• E4.4, ) Z_ 4/Z•42 Phone: RV-7 • 69.57&0O79 Fax: 2.Business information(the building or establishment for which the grant is sought) • , Name: %2. tS SAAi .. c- • Address: 91/-s 6. C.4,cALia . .�. (oil Phone: eFV7. 6f f. 6?ora Fax: ''7• 80-• 76.23 Applicant is: Owner X Tenant X if tenant,term of lease: 5-yR Is this location a commercial building or a commercial business?Yes X No Facade to be improved: Front Side Rear 3.Addresses of additional storefronts,if any: Total number of storefronts: Total number of stories: 4. Proposed use of program: . • Canopy/awning • Signage ' . . • Windows/doors Exterior lighting Painting/tuckpointing Restoration of architectural feature Brick cleaning X Landscaping . Exterior ADA accessibility Street furniture and fixtures Other(please specify • 5. Statement of Understanding: ' A,The applicant(undersigned)agrees to comply with the guidelines and procedures of - the Business Improvement Grant(BIG)Program and the conceptual design and outline • specifications as agreed to by the applicant and the application review team. B. The applicant understands that the applicant must submit detailed cost documentation, copies of building permits,bids,contr is and invoices and contractor's final waivers of lien upon completion of th ov' i""proverrients. Applicant's signature: Date: &/a od" If the applicant is other th n the owner,the following line must be completed: I certify that I,the owner of th property at 9`!S 6- ChicAa P Z1- / 4i ) " oca/22) Revised July 200 • do authorize the applicant to apply for a rebate under the Neighborhood Business . - Improvement Grant Program d t dertake the approved-improve' nts • Lease beginning date: 4 l O Sf ease ending date: 7 1 /D . Owner's signature: . • Date: /��� Return completed application form to:Raymond H. Moller,Director Economic • Development and Business Services • City of Elgin 150 Dexter Court Elgin, IL 60120 FOR OFFICE USE ONLY • • . Date application'received: Zoning: • -Minimum of two cost estimates obtained for each work item: Yes No • Ineligible improvements, if any: . Grant Approved Date: Grant Denied Date: • TotaI estimated project cost: $ Reason: Percent applied for grant Total amount of grant: $ • • • Program Coordinator: Raymond H.Moller - • • • • • • • • Revised,lulu 2005 FROM : I-HA NU. : Hug. i_, .OUP CD•J1rr r� • • LIELLA LANDSCAPE DESIGN •- _ i 7gtl l O'Cock Rd Union,IL 60180 • 815-994-6I 60 • August 19, 2008 To: rich RE: McGrath Nissan .Here is the quote you requested for removal and installation of the following material. • Removal of Trees . * Installation of Bushes • Installation of Trees •Installation of Outcroppings • * Installation of Grasses • Installation of Mulch • a Topsoil. e Grading V OP. Watering V • Total: $22,500.00 . Everything is according to the blue print. Please contact me @ 815-994- 6160 with any questions or concerns you may have. • Thank you, _V\fir Kelly Durbin-Owner LlElla Landscape Desip . INVOICE AE -Miram.4;I 0 ° S 2‘? 7 %.04:;.(6,:to DATE: LANDSCAPING WATER WORKS BRICK PATIOS • UNDER GROUND RETAINING WALLS SPRINKLER SYSTEMS FREE ESTIMATES aurelio.h@sbcglobal.net 311 N Division Harvard, IL 60033 (815) 509-6139 Bill To: DESCRIPTION AMOUNT Itemized as follows: -F- 0 uk).e (.5'1 e_,S Roc-lc-5 LA \ Tree P._emo ( 1-11 ej-S‘Ael415 if . Brutp ( tAft--. _ • ji )0() ° • • 1 TOTAL $ 7000 sg= THANK YOU FOR YOUR BUSINESS! September 4, 2008 to.; T TO: Mayor and Members of the City Council cononric Grou,tl:and FROM: Olufemi Folarin, City Manager Diversified lax Base Raymond H. Moller, Director of Economic Development&Business Services SUBJECT: Business Improvement Grant—McGrath Nissan 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 McGrath Nissan Inc. at 945 E. Chicago Street. RECOMMENDATION It is recommended that the City Council approve a business improvement grant with McGrath Nissan, Inc. for landscaping in the amount of$9,500. 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; and 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 landscaping at the site. The owner has provided the following estimates for the exterior work: Business Improvement Grant—McGrath Nissan Inc. September 4, 2008 Page 2 Landscape Improvements 1. Liella Landscape Design $22,500 2. Aurelio's Landscaping $19,000 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 McGrath Nissan, Inc. would total $9,500. There is $727,460 budgeted and $266,801 available in the Riverboat Lease Fund, account number 276-0000-791.80-27, "Economic Development Incentives," project number 177112 for the Business Improvement Grant Program. Following the approval of this project (number 17711R), $257,301 is remaining available. LEGAL IMPACT None ALTERNATIVES 1. The City Council may choose to authorize a Business Improvement Grant Agreement with McGrath Nissan, Inc. in the amount of$9,500. 2. The City Council may choose not to enter into a Business Improvement Grant Agreement with McGrath Nissan, Inc. Respectfully submitted for Council consideration. RHM/jr Attachment