HomeMy WebLinkAbout98-152 Resolution No. 98-152
RESOLUTION
AUTHORIZING EXECUTION OF A CODE VIOLATION ESCROW AGREEMENT
WITH HAYWOOD HUGHES
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Joyce A. Parker, City Manager, be and is hereby
authorized and directed to execute a Code Violation Escrow
Agreement on behalf of the City of Elgin with Haywood Hughes
for the properties located at 603 Raymond Street and
629 Wellington Avenue, a copy of which is attached hereto and
made a part hereof by reference.
s/ Kevin Kelly
Kevin Kelly, Mayor
Presented: June 24 , 1998
Adopted: June 24 , 1998
Vote: Yeas 6 Nays 0
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
II
ELGIN POLICE DEPARTMENT CHARLES A. GRUBER
151 DOUGLAS AVENUE Police Chief
ELGIN. ILLINOIS 60120-5503 847/289-2740
FAX 847/289-2750
,cN CF f40i
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OFFICIAL NEWS RELEASE
FOR IMMEDIATE RELEASE, THURSDAY, AUGUST 20, 1998, 2:00PM
On Wednesday evening August 19, 1998, members of the Elgin Police Department executed a
search warrant at the home of Haywood Hughes, 603 Raymond St. Elgin.
Approximately 1.5 grams suspect crack cocaine was seized from the residence and a subject who
was at the residence.
Arrested in the execution of this warrant were:
Hughes, Haywood, 48 years old, 603 Raymond St. Elgin.
Barnes, Bessie L., 35 years old, 603 Raymond St. Elgin
LaRocca, Michael V. Jr. 41 years old. 6025 Longview Drive, Countryside, Il.
All three subjects were arrested for unlawful possession of a controlled substance.
All three subjects have been to a bond call and are currently being held in the Kane Co.
Correctional Facility in Geneva, Il.
Bail was set for Hughes at $35,000.00, Barnes at $30,000.00, and LaRocca at $7,500.00
et Mr. Hughes will forfeit $8,632.67 to the City of Elgin. This forfeiture is the result of a previous
I code violation escrow agreement. The funds are forfeit regardless of the outcome of this case.
For further information regarding the code violation escrow agreement, contact the City of Elgin
legal Department, Mr. Rick Kozal at 847 931-6633.
For further information regarding the case against Hughes, Barnes or LaRocca, contact Lt. Terry
Sterricker Major Investigations, at 847 289-2602.
Authority:
dc—cejL__
Lt. David Buck
Assistant to the Chief
847 289-2746
PcwICE
L= PRINTED ON RECYCLED PAPER
ELGIN
ILL.
CITY OF ELGIN
CODE VIOLATION ESCROW AGREEMENT
DATE: June 26 , 1998
PROPERTY : 603 RAYMOND STREET and 629 WELLINGTON AVENUE
PROMISOR: HAYWOOD HUGHES
This Code Violation Escrow Agreement ("Agreement') is made and entered into this
26th day of June , 1998, by and between the City of Elgin (the
"City")and Haywood Hughes (the "Promisor'').
WHEREAS: Certain violations of the Elgin Property Maintenance Code (the "Code"),
fully described in Exhibit A, are existing on the properties commonly known as 603 Raymond
Street Elgin, Illinois and 629 Wellington Avenue, Elgin, Illinois (hereafter collectively referred
to as the "Property"), and must be corrected to bring the Property into compliance with the
•- Code;
WHEREAS: In order to induce the City to release a Housing Court Judgment Lien on
the premises located at 603 Raymond Street (Case No. 94 OV 1007) notwithstanding the
existing Code violations, the Promisor and the City agree to the terms set forth in this
Agreement;
NOW, THEREFORE, in consideration of the mutual promises and covenants contained
in this Agreement, and other good and valuable considerations, the receipt and sufficiency of
which are hereby acknowledged, the Promisor and the City agree as follows:
1. ESCROW: Upon execution of this Agreement, Promisor shall deposit the sum of
eight thousand six hundred thirty-two and 67/100 ($8632.67) (the "Escrow Funds") with the
City of Elgin in a non-interest bearing account. The sum deposited shall be in the form of a
check or money order made payable to "City of Elgin." The City shall hold and apply the
Escrow Funds as set forth in this Agreement.
2. COMPLETION OF WORK: Promisor shall be solely responsible for correcting the
Code violations listed on Exhibit A and shall correct each of the Code violations listed on
Exhibit A for the premises located at 629 Wellington Avenue before 31 July 1998, and each
of the items listed on Exhibit A for the premises located at 603 Raymond Street before
1 October 1998. The City of Elgin agrees that Promisor's obligation to complete and correct
items is restricted to those items specifically listed in Exhibit A.
Upon Promisor's determination that each Code violation listed on Exhibit A has been
corrected, Promisor shall notify the City of Elgin, in writing, of the correction of all Code
violations.
3. NOTICE TO CITY: After receiving written notification from the Promisor that certain
Code violations listed on Exhibit A have been corrected, the City shall arrange for the Property
to be inspected by the Property Maintenance Division Manager of the City's Department of
Code Administration and Neighborhood Affairs (the "Manager"), or his designee. The
Manager's determination as to whether the certain Code violations listed in Exhibit A have
been corrected and as to the accuracy of the furnished receipts will be the sole governing factor
in the disbursement of funds by the City.
If the Manager determines certain Code violations listed on Exhibit A have been
corrected, the Manager shall notify the City's Finance Director in the form marked as Exhibit
B ("Disbursement Authorization") that the Promisor is entitled to payment of the Escrow Funds
in accordance with Paragraph Four of this Agreement.
If the Manager determines certain Code violation listed on Exhibit A have not been
corrected and there is remaining work to be performed, the Manager shall issue, within seven
(7) business days, a written objection to the Promisor identifying the Code violations on Exhibit
A that have not been corrected, and specifying the measures that must be taken to correct the
violations.
4. RELEASE OF ESCROW FUNDS: Upon receiving notice of the correction of all Code
violations listed on Exhibit A in the form marked as Exhibit B, seven thousand six hundred
thirty-two and 67/100 ($7632.67) of the Escrow Funds shall be disbursed to the Promisor by
the City.
5. FAILURE TO COMPLETE WORK: In the event the Promisor (1) fails to complete
and correct any of the items listed on Exhibit A for the premises located at 629 Wellington
Avenue before 31 July 1998, as approved by the Manager in accordance with Paragraph Three
of this Agreement, or (2) fails to complete and correct any of the items listed on Exhibit A for
the premises located at 603 Raymond Street before 1 October 1998, as approved by the
Manager in accordance with Paragraph Three of this Agreement, and upon written notice from
the City of Elgin of Promisor's failure, all Escrow Funds will be retained by the City.
6. FAILURE TO COMPLY WITH ADDITIONAL CONDITIONS: As further inducement
for the City to release a Housing Court Judgment Lien on the premises located at 603 Raymond
Street (Case No. 94 OV 1007) notwithstanding the existing Code violations on the Property,
and in further consideration of the mutual promises and covenants contained in this Agreement,
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and other good and valuable considerations, the receipt and sufficiency of which are hereby
acknowledged, the Promisor and the City further agree as follows:
(a) In the event any person is arrested on the Property on or before 1 October 1998 for
any violation of either the Criminal Code of 1961 (720 ILCS 5/1-1 et seq.), the Cannabis
Control Act (720 ILCS 550/1 et seq.), the Illinois Controlled Substances Act (720 ILCS 570/101
et seq.), the Drug Paraphernalia Control Act (720 ILCS 600/1 et seq.) or the Hypodermic
Syringes and Needles Act (720 ILCS 635/0.01 et seq.), all Escrow Funds will be retained by the
City.
(b) In the event the Promisor fails to appear in court for any duly scheduled hearing in
the case of People n. Haywood Hughes, Case No. 97 CF 2055, or People o. Haywood Hughes, Case No.
98 CF 386, all Escrow Funds will be retained by the City.
7. LIQUIDATED DAMAGES: The parties to this Agreement do not intend any
provision of this Agreement to be construed, interpreted, or enforced as a liquidated damages
penalty against the Promisor.
8. WAIVER BY PROMISOR: Promisor waives all rights, claims, and causes of action
for all damages, losses, expenses and costs that each, or either, or any of them may have
against the City of Elgin for accepting, holding, and disbursing all or any portion of the Escrow
Funds. Promisor shall have the sole responsibility for obtaining a full and complete release from
all contractors, sub-contractors, sub-sub-contractors, laborers, materialmen, and suppliers who
furnished labor and materials for improvements on the Property, or from any other parties that
may have the right to place a lien against the Property. Promisor further acknowledges and
agrees that the City of Elgin shall be required to obtain, review, or pass judgment as to the
legal sufficiency of any releases, and that the City of Elgin shall not be liable for any mistake
of fact or error of judgment or for any act or omission of any kind, unless caused by the City
of Elgin's gross negligence, intentional misconduct, or failure to perform as specifically set forth
in this Agreement.
9. INDEMNIFICATION BY PROMISOR: Promisor shall indemnify and hold the City
of Elgin harmless for all damages, losses, expenses and costs incurred by the City of Elgin in
carrying out the terms and provisions of this Agreement.
10. GOVERNING LAW: This Agreement shall be construed pursuant to and governed
by the laws of the State of Illinois.
11. AGREEMENTS OF THE PARTIES: This Agreement constitutes the entire agreement
of the parties and any other agreements, conversations, or understandings, if not contained in
this Agreement, shall be of no force or effect.
12. ASSIGNMENT: Promisor may not assign this Agreement without the prior written
consent of all parties to this Agreement.
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13. ATTORNEY'S FEES: In the event any party to this Agreement is required to retain
counsel to enforce its rights as set forth in this Agreement, the prevailing party in such dispute
shall be entitled to payment of its reasonable attorney's fees, costs, and expenses of litigation.
14. RESIDENTIAL DECONVERSION GRANT PROGRAM: Nothing in this Agreement
shall preclude the Promisor for applying to the City's Residential Deconversion Grant Program
for reimbursement for the cost of eliminating the second floor dwelling unit located at 603
Raymond Street.
15. NOTICES: Any notices required or permitted to be given under this Agreement shall
be delivered by hand or mailed by certified or registered mail, return receipt requested, in a
postage paid envelope, and addressed as described below. Notices shall be deemed effective
only upon receipt or refusal of delivery.
DONE AND EXECUTED AT ELGIN CITY HALL, 150 Dexter Court,
Elgin, Illinois, this 26th day of June , 1998.
CITY OF ELGIN PROMISOR
By: lilt, 1J -
4 of 6
EXHIBIT A
CODE VIOLATIONS
603 Raymond Street
Replace front porch in accordance with Section PM-304.11
Repair or replace sidewalk leading to front porch in accordance with Section PM-303.3
Remove railroad ties from exterior yard in rear in accordance with Section PM-303.1
Replace unlawfully expanded gravel driveway area with approved paved surface and in accord with
approved plans in accordance with Chapter 19.45
Repair or replace missing or damaged shingles on roof in accordance with Section PM-304.7
Replace missing glazing in boarded window on second floor in accordance with Section PM-304.14.1
Obtain deconversion permit for second floor dwelling unit and remove and cap plumbing lines located
in the kitchen of the second floor dwelling unit
629 Wellington Avenue
Repair or replace retaining wall surrounding the premise's driveway in accordance with Section PM-
303.7
Repair or replace fence in the rear of premise's exterior yard in accordance with Section PM-303.7
Remove junk and debris from premise's exterior property areas, including yard waste and timbers, in
accordance with Section PM-303.1
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I
EXHIBIT B
ACKNOWLEDGMENT
Date:
Re:
Agreement Ng-
Property-
The City of Elgin and Promisor each acknowledge and agree that all items appearing on Exhibit
A to the , 1998 Code Violation Escrow Agreement have been
completed or corrected, as the case may be, and there are no remaining items to be completed or
corrected. The City of Elgin and Promisor further acknowledge and agree that the Promisor shall be
entitled to immediate payment of the Escrow Funds.
City of Elgin
By:
Promisor
By:
Subscribed and sworn to before me this day of , 1998.
Notary Public
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• t 44 pF EL
Agenda Item No.
-��. City of Elgin
O?� y
May 15, 1998
TO: Mayor and Members of the City Council
FROM: Joyce A. Parker, City Manager
SUBJECT: Code Violation Escrow Agreement
PURPOSE
The purpose of this memorandum is to provide the Mayor and
members of the City Council with a proposed code violation
escrow agreement .
BACKGROUND
In 1995, an $20, 300 judgment was entered against 603 Raymond
Street, owned by Haywood Hughes, in response to uncorrected
property maintenance code violations . Violations included
roach infestation, illegal storage of junk and debris, miscel-
laneous interior maintenance, missing smoke detectors, broken
windows, etc . The building is a lawful nonconforming two
unit . After the judgment was entered, new cases were brought
for various problems -- working without a permit, garbage on
the treebank, and interior and exterior maintenance failures .
Mr. Hughes is buying a single-family house at 629 Wellington
on a land contract . This rental property has had problems
with overcrowding, and was red-tagged last year as uninhabit-
able when toilets and doors were unlawfully removed. Mr.
Hughes has recently obtained a mortgage on the property which
will allow for acquisition and repairs .
Negotiations with the owner have provided a proposed agreement
that should benefit the neighborhood, the City, and Mr.
Hughes . The proposed agreement requires that the following be
completed by October 1, 1998 :
* The judgment amount of $8, 632 . 67 (the entire amount
of the mortgage proceeds after the land contract was
paid) will be deposited with the City upon execution
of the agreement . If all the work is completed by
October 1, 1998, then $1, 000 will be kept by the
City as penalty for failure to correct the code
violations and the $7, 632 . 67 balance will be re-
turned to Mr. Hughes .
' ' Code Violation Escrow Agreement
May 19, 1998
Page 2
* All code violations must be repaired at both 603
Raymond Street and at 629 Wellington Avenue, includ-
ing replacing a porch, replacing a gravel driveway
with appropriate paved surface, and removing junk
and debris . In addition, improvements are being
required including removing railroad ties from the
front yard, repairing a retaining wall and fence .
* 603 Raymond will be deconverted from a two-flat to a
single-family use . The agreement does not guaran-
tee, but does allow him to apply for, the multi-
family conversion program. The City Council has
approved special incentives for deconversions in
this neighborhood because of a lack of interest in
the program.
Similar escrow agreements have been used in the past to
encourage property owners to bring their property into compli-
ance .
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None .
/ FINANCIAL IMPACT
The City would be foregoing its full judgment amount
($8, 632 . 37) which could conceivably be collected at some
future date when the property is sold. However, the City' s
judgment would be one of several outstanding claims, including
the mortgage, which may preclude the City from collecting the
full amount . If agreed, the $1, 000 fine would be deposited
with the General Fund Housing Code Fine account number
010-0000-478 . 01-00 .
LEGAL IMPACT
The Legal epartment has drafted the proposed escrow agree-
ment . "4
ALTERNATIVES
Alternatives include approving the agreement, rejecting the
option of entering into the agreement, or the City could
foreclose the judgment lien.
,
Code Violation Escrow Agreement
May 19, 1998
Page 3
RECOMMENDATION
It is recommended that the Mayor and members of the City
Council approve the code escrow agreement with Hayward Hughes
for 603 Raymond Street and 629 Wellington Avenue .
Re ectfully submitted,
4 A..... a, , ,,, ,i6...._
ce . Parker,
City Manager