HomeMy WebLinkAbout94-53 Resolution No. 94-53
RESOLUTION
AUTHORIZING EXECUTION OF A JOINT ORDER ESCROW DISBURSEMENT
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Robert 0. Malm, Interim City Manager, be and is
hereby authorized and directed to execute a Joint Order Escrow
Disbursement in the sum of $90, 000 to the Children' s Discovery
Museum from the Center City Development Corporation loan
proceeds escrow.
s/ Robert Gilliam
Robert Gilliam, Mayor Pro Tem
Presented: March 9, 1994
Adopted: March 9 , 1994
Vote: Yeas 5 Nays 0
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
inA ( )(1'
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Agenda Item No .
Jr �����fif of�P c;en rite
March 2, 1994
TO: Mayor and Members of the City Council
FROM: Robert O. Malm, Interim City Manager
SUBJECT: Escrow Agreement
PURPOSE
The purpose of this memorandum is to forward to the Mayor and
City Council a Joint Order Escrow Disbursement for considera-
tion.
BACKGROUND
The City of Elgin and the Center City Development Corporation
(CCDC) entered into a Joint Escrow Agreement for the distribu-
tion of $1, 050, 000 in loan proceeds. The purpose of the
escrow agreement is to purchase and remodel the former Spiess
Building. The building has been purchased except for a minor
lease hold interest, and the remodeling work is underway.
Attached is a request for a $90,000 disbursement from the
escrow account to the Children' s Discovery Museum (CDM) . The
escrow agreement, however, does not provide for disbursements
to CMD, although it has been the CCDC's clear intent to pro-
vide $125, 000 from the loan proceeds as start-up funding for
the museum. In December, the City Council authorized a dis-
bursement of $15,000 to the CMD from the escrow account.
FINANCIAL IMPACT
The attached escrow account report from CCDC, dated December 1
31, 1993, indicates a balance available for disbursement of
$195,447 . 86 . The $90, 000 for the CMD would be provided from
these available funds .
Escrow Agreement
March 2, 1994
Page 2
LEGAL IMPACT
The agreement for commercial development and the escrow agree-
ment do not appear to authorize disbursements to CDM. The
negotiations between the City and CCDC over the agreement for
commercial development included discussions that CCDC intend-
ed to fund the start-up of the CDM. However, such a provi-
sion was not specifically included in the agreement or in the
amendments thereto. As such, City Council authorization
should be obtained prior to execution of the proposed Joint
Order Escrow Disbursement.
RECOMMENDATION
If the City Council approves the request for the disbursement
to the Children' s Discovery Museum, a resolution authorizing
the Interim City Manager to execute the Joint Order for Es-
crow Disbursement should be adopted.
ele
Rob rt O. Malm, Interim City Manager
amp
Attachments
'Ul/113/84 17:Y!! 'D(U�f a31. 0144 ht.t�ln rAlcila,it t,
ski vuc
•
Center City
E L Development Corp.
(Tana nit , 81 Fountain Square Plus Stein,IL 60120-5555
(708)931-5945 . • (?O0)931-6144
ESCROW ACCOUNT REPORT
For period ending December 31, 1993
. Loan Amount $1; 050,000.100
Loan Closing Disbursements:
Attorneys ' Fees: Brady McQueen,
Ritt & Dalton and Laser Schostok $44,431.05
Initial Interest 1,181.25
$45,612.30
Legal Fees 7,338.00
Operating Account (Old Kent) 500.00
Loan Payments 35 392.00
Children's Museum & Imaginasium 25,000.00
Children's Discovery Museum 35,000.00
Property Insurance 3,752.00
•
Design Work 37,890.73
Construction 103,772.38
Environmental 25,467.23
Chicago Title Company Fees 812.50
Mortgage Takeover and Lot Purchase:
New York Life, Carol Kasper
Ri.tt & Dalton and
Sonnenschein Nath, Attys . 534,015.00
•
TOTAL DISBURSED TO DATE $ 864,55244
BALANCE AVAILABLE FOR DISBURSEMENT
195,447:86
TOTAL LOAN •
$1,050,000 00
.