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HomeMy WebLinkAbout25-0121 Lexington Inn AGREEMENT FOR BLOCK OF ROOMS This Agreement is hereby made and entered into this 9 day of January, 2025, by and between the City of Elgin, Illinois, a municipal corporation(hereinafter referred to as"City"), and Litchfield Motel, Inc., an Illinois corporation(hereinafter referred to as "Litchfield"). WHEREAS, Litchfield operates a hotel known as the"Lexington Inn& Suites" located at 1585 Dundee Avenue, Elgin, Illinois (said hotel is hereinafter referred to as"Lexington"); and WHEREAS, City desires to reserve a block of fifty (50) rooms at the Lexington from Litchfield for a four(4)month term,to be occupied and utilized by members of the City's homeless population as temporary accommodations; and WHEREAS,City and Litchfield have each determined it to be in their best interests to enter into this Agreement by which City will reserve such block of rooms from Litchfield at Lexington. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which is mutually acknowledged, the parties agree to as follows: 1. Room Block Reservation At all times during the term of this Agreement, Litchfield shall reserve and set aside a block of fifty (50) rooms at the Lexington for the exclusive use of the City (the "Rooms"), with the understanding and acknowledgment that said Rooms shall be occupied and utilized by members of the City's homeless population as emergency accommodations (the "Room Occupants"). The City shall identify the individual Room Occupants in the City's sole discretion. Litchfield agrees to permit the Room Occupants identified by the City to occupy the Rooms in accordance with the terms of this Agreement. 2. Occupancy Rates and Other Charges The City shall be charged by Litchfield for the Rooms as follows: a. The rate for a single-occupancy Room shall be $65.00 per day of occupancy. b. The rate for a double-occupancy Room shall be $75.00 per day of occupancy. c. City shall pay an additional weekly charge of$35.00 if an occupied Room contains one (1) pet of a Room Occupant. City shall pay an additional weekly charge in the total amount of$50.00 if an occupied Room contains two (2) or three (3) pets of a Room Occupant. In no event shall more than three (3)pets be allowed in a Room. d. Litchfield shall only charge occupancy fees to the City for days when a Room is actually occupied by a Room Occupant. There shall be no charge to the City for Rooms that are not occupied by a Room Occupant. e. There shall be no minimum occupancy fees guaranteed by this Agreement,and the City is under no obligation to utilize any of the Rooms under this Agreement. 1 f. The City of Elgin shall have the right to end the occupancy of a Room Occupant from any of the Rooms in its discretion, and Room Occupants shall have the right to end their occupancy of a Room at any time, subject to any separate agreement between the Room Occupant and the City. g. Room Occupants shall be considered hotel guests for all purposes under Illinois law including, but not limited to, the provisions of the Illinois Innkeepers Protection Act (740 ILCS 90/1 et seq.). It is agreed that the provision of Rooms as emergency accommodations to Room Occupants under this Agreement is intended to be for an indefinite and temporary period of time in order to identify and assist in securing permanent accommodations for the Room Occupants. h. In the event that any Room Occupant continues to occupy a Room after being advised that their occupancy of a room has been terminated and/or the expiration of the term of this Agreement, the City agrees to pay to Litchfield the room charges at the rates set forth herein until such Room Occupant vacates the Room. 3. Invoices and Payment a. Litchfield shall submit invoices to the City on a weekly basis in a format approved by the City. b. Such invoices shall be itemized and contain records showing actual Rooms occupied, the type of Room, whether a Room has an animal occupant, any additional charges related to cleaning the Rooms,and any other reimbursement being sought by Litchfield in accordance with this Agreement. c. The City shall make payments to Litchfield based upon occupancy within thirty (30) days after receipt and approval of invoice. Anything in this Agreement to the contrary notwithstanding, in no event shall payment by the City to Litchfield under this Agreement exceed the total amount of Four Hundred Twenty-Five Thousand Dollars ($425,000.00). d. Litchfield shall permit the City to inspect and audit records of the Litchfield for costs incurred under this Agreement. Litchfield shall make these records available upon request at reasonable times during the Agreement period, and for one year after termination of this Agreement. 4. Term This Agreement shall become effective as of the date first set forth above,and shall be deemed concluded at the end of a four(4)month period beginning on the date that a Room is first occupied by a Room Occupant under this Agreement. The initial four-month term may be extended for successive four (4) month periods under the same terms and conditions as set forth in this Agreement by mutual written consent of both parties (the initial term of the Agreement and any extensions of the initial term are hereinafter referred to as the "Term"). 2 The City agrees cooperate with Litchfield to the extent permitted under Illinois law in securing the removal of any Room Occupant from the Lexington that continues to occupy a Room after the expiration of the Term of this Agreement, or after a Room Occupant has been advised by either Litchfield or the City to vacate a Room as provided in this Agreement, including but not limited to taking appropriate actions under Illinois law to enforce the removal of a Room Occupant pursuant to section 11 of the Illinois Innkeeper Protect Act (740 ILCS 90/11). 5. Additional Services and Conditions: a. The Rooms may be a single-occupancy unit or double-occupancy unit. b. Litchfield agrees that pets of the Room Occupants will be permitted to stay in the Rooms. Pets shall be defined as a dog or domestic cat. c. Rooms shall be cleaned twice weekly by Litchfield staff. The days and times of the cleaning shall be a set schedule and Room Occupants shall be notified twenty-four(24) hours in advance of the cleaning. Litchfield may request that Room Occupants leave their respective Room for a one (1) hour period for such cleaning where the Room Occupant has been notified in advance as provided herein. If any damage to the Rooms is observed during the cleaning,Litchfield is required to notify the City of such damage in accordance with paragraph 6, herein. d. Litchfield agrees that unless otherwise provided herein the Room Occupants identified by the City shall peaceably have, hold, and enjoy their respective Rooms without hindrance by Litchfield or its officers, agents, or employees. 6. Damage to Rooms The City agrees to assume responsibility for any damages to the Rooms or to the Lexington property caused by the Room Occupants and/or their pets that are occupying the Rooms under this Agreement. Litchfield agrees that it shall as soon as reasonably practicable, and in no event later than forty-eight (48) hours, notify the City when Litchfield or any of its agents or employees becomes aware or should have become aware that the Rooms or the Lexington property or premises have been damaged by a Room Occupant or pet of a Room Occupant. If Litchfield knows or should have known of damage to the Rooms or the Lexington property caused by a Room Occupant or pet and fails to notify the City of such damages in accordance with this paragraph, then the City shall not be liable for any additional damages to the Rooms or the Lexington property that is incurred after forty-eight (48) hours from the time Litchfield know or should have known of the previous damage unless otherwise agreed to in writing by the City. Upon request,Litchfield shall provide to the City proof of any damages claimed to have been incurred under this paragraph and/or any records relating to the same. Anything to the contrary notwithstanding, the City is not responsible for any damages caused by fire (if such fire was not directly caused by Room Occupants), flood, tornado, hurricane, earthquake, windstorm, hail, epidemics, acts of God, or for any other reason not directly caused by the Room Occupants or their guests. 3 7. Termination of Agreement Notwithstanding any other provision hereof, the City may terminate this Agreement at any time upon fifteen (15) days prior written notice to Litchfield. In the event that this Agreement is so terminated, Litchfield shall be paid for the charges actually incurred prior to termination, with no further obligation hereunder. 8. Maintenance and Repair a. Litchfield shall be and remain in compliance will all local,state,and federal regulations with regard to fire and health safety. b. Litchfield, at its own expense, shall maintain and keep in good repair the Rooms including all electrical, plumbing, heating, and cooling equipment. c. Litchfield shall repair and replace its fixtures and appliances as required. d. Litchfield shall perform any maintenance in such a way as to minimize the interference with the Room Occupants use of the Rooms. e. Litchfield shall provide its own cleaning and janitorial services. f. The City shall have the right during the Term of this Agreement to inspect the Rooms at any time for damage or other reasons, subject to any separate agreement the City may have with Room Occupants. 9. Insurance Litchfield agrees that it has and shall maintain in effect during the Term of this Agreement policies of insurance as follows: a. Comprehensive Liability. A policy of comprehensive general liability insurance with limits of at least $1,000,000 aggregate for bodily injury and $1,000,000 aggregate for property damage. b. Property Insurance. A policy of property insurance providing coverage for the full replacement value of the Lexington. c. Litchfield shall provide proof of such insurance policies upon request of the City. 10. Compliance With Laws Notwithstanding any other provision of this agreement, it is expressly agreed and understood that in connection with the performance of this agreement that Litchfield 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. Third party contractors shall be also 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. 4 11. Governing Law This agreement shall be subject to and governed by the laws of the State of Illinois. Venue for 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. 12. Relationship Between the Parties;Entire Agreement Nothing in this Agreement construed as creating a partnership or joint venture between the City and Litchfield. This Agreement represents the entire agreement between the parties and supersedes any and all prior negotiations,representation,or agreements either written or oral. This Agreement may be amended only by written instrument signed by both of the parties. The person(s) signing this Agreement certifies that s/he has been authorized by Litchfield to commit Litchfield and has been authorized to execute this Agreement on its behalf. IN WITNESS WHEREOF, the Parties have hereto set their hands the day and year first above written. FOR T FOR LITCHFIELD MOTEL, INC.: ( By: B J G 1cd-r City Manager Name/Print: 1 A i-no P( /f Title: 01 cc' i Gb-QA Att t: City Clerk 5