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Home My WebLink AboutG16-18 Ordinance No. G16-18 AN ORDINANCE ESTABLISHING A FIRE SPRINKLER ASSISTANCE FOR RESIDENTIAL CONVERSIONS GRANT PROGRAM WHEREAS,the city council of the City of Elgin has adopted Ordinance Nos. S6-99,S1-02, S2-02, S3-02 and S4-02 proposing, approving and creating the Elgin Central Area Tax Increment Financing Redevelopment Plan and Project(the"ECA TIF District")pursuant to the Tax Increment Allocation Redevelopment Act at 65 ILCS 5/11-74.4-1, et seq.); and WHEREAS,the ECA TIF District was established on April 10,2002 and will continue for 23 years thereafter; and WHEREAS,the upper floors of certain downtown buildings which are located in the ECA TIF District are not being converted into residential dwelling units at the desired rate partly because of building code requirements requiring the installation of fire sprinklers; and WHEREAS, city staff and the Downtown Neighborhood Association have recommended using TIF funds to cover a portion of the material and installation costs for fire sprinklers as an incentive for property owners to add residential dwelling units in the downtown; and WHEREAS,the city council of the City of Elgin has determined, and hereby finds,that the proposed fire sprinkler assistance for residential conversions grant program will provide an incentive for property owners to add residential dwelling units in the downtown,which will in return improve the economic viability of those properties, promote greater utilization of currently vacant or underutilized buildings, and help enrich the downtown by providing more potential customers to revenue generating non-residential establishments; and WHEREAS,the creation of additional residential dwelling units downtown will result in an increase in the city's tax revenues,and will result in renovation and restoration of existing buildings in the downtown; and WHEREAS,the creation of additional dwelling units downtown is currently hindered by the economic viability thereof including certain building code requirements regarding fire sprinklers and would not occur in the absence of limited development assistance from the city as provided in the proposed fire sprinkler assistance for residential conversions grant program; and WHEREAS, in order to incent and facilitate the creation of additional residential dwelling units in the ECA TIF District and in the downtown which will further the goals and objectives of the ECA TIF District plan and project the city council has determined that it is necessary and desirable to adopt the proposed fire sprinkler assistance for residential conversions grant program; and WHEREAS, the City of Elgin is a home rule unit authorized to exercise any power and perform any function pertaining to its government and affairs; and WHEREAS,the fire sprinkler assistance for residential conversions grant program which will result in furthering and achieving the goals and objectives of the Elgin Central Area Tax Increment Financing Redevelopment Plan and Project,are matters within the government and affairs of the city; and WHEREAS, the fire sprinkler assistance for residential conversions grant program will strengthen the commercial sector of the downtown and the city; and WHEREAS, the fire sprinkler assistance for residential conversions grant program will enhance the tax base of the city; and WHEREAS,the fire sprinkler assistance for residential conversions grant program is in the best interest of the city. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section 1. The city council of the City of Elgin hereby approves and establishes the fire sprinkler assistance for residential conversions grant program pursuant to the attached program document entitled "Fire Sprinkler Assistance for Residential Conversions Grant Program" dated March 13, 2018, incorporated herein by this reference. Section 2. That this ordinance shall be in full force and effect upon its passage and publication in the manner provided by law. --7 04 ay David J. Ka, ain, or Presented: March 21, 2018 Passed: March 21, 2018 Omnibus Vote: Yeas: 9 Nays: 0 Recorded: March 21, 2018 Published: March 23, 2018 Attest. -'� 5ti imberly Dewis, City lerk 2 ' JJj ..„....rellillillo ---- .. a i "pg. Illi s fitt+ i; • .I +{ ' _ A , ;i.,_..,._ e./ . j - '_ _ a . ?t a►. March 13, 2018 Downtown Elginlik downtown Fire Sprinkler Assistance for neighborhood E LG I N ASSOCIATION OF ELGIN THEcmriNn-esueuRBs Residential Conversions Grant Program The City of Elgin has implemented a Fire Sprinkler Assistance for Residential Conversions Grant Program for eligible buildings within the downtown.This program is intended to provide an incentive for property owners to add residential dwelling units downtown, which in turn will improve the economic viability of those properties, promote greater utilization of currently vacant or underutilized buildings, and help enrich the downtown by providing more potential customers to revenue-generating nonresidential establishments, such as retail shops and restaurants. This program is intended to complement other public and private initiatives that encourage the residential use of the upper floors of buildings in the downtown. Eligible Area The eligible area for this program are properties in the project area depicted in Exhibit A attached hereto, which can commonly be described as the traditional downtown area plus several buildings fronting State Street on the west side of the Fox River in the area of Highland Avenue. Eligible Improvements Costs associated with the installation of a new fire sprinkler system in connection with the creation of residential upper floor dwelling unit(s) in existing buildings, or with code-required improvements or upgrades to an existing fire sprinkler system in connection with the creation of residential upper floor dwelling unit(s) in existing buildings, are eligible expenses under this grant.Costs associated with drywall, paint, and other interior repairs associated with installing or concealing a fire sprinkler system are not eligible expenses under this grant.City will waive permit and plan review fees associated with the sprinkler installation as well as any associated tap fees. Downtown Elgin ��t h Sprinkler Assistance for downtown Fire �--�--� neighborhood E LG I N Residential Conversions THE CITY,NSUBURBS Grant Program Program The program shall involve the reimbursement of expenses incurred by an owner for the construction of an approved fire sprinkler system by the city.The city shall not pay funds to an approved applicant before the completion of the construction and installation of the fire sprinkler system and the associated residential upper floor dwelling unit(s) are completed and the issuance of a certificate of occupancy by the city for the new residential upper floor dwelling unit(s) being created. 1. The city agrees to reimburse the owner for the equipment and installation cost of an approved fire sprinkler system in an amount not to exceed $4 per square foot of protected building floor area. 2. The fire sprinkler system shall be designed in conformance with the then currently adopted editions of the International Building Code, International Fire Code, and NFPA 13. 3. To be eligible to participate in this program, an applicant must meet all of the following requirements: a. Own an existing building within the program area shown on Exhibit A. b. Owe no outstanding property taxes or fees and have no judgements or liens on the property. c. Complete the attachcdan application in a form required by the city and submit a plan and project timeline for approval. Plans shall be sealed by a licensed, qualified fire sprinkler professional. Plans shall include a code-compliant and otherwise properly designed fire sprinkler system and two cost estimates. Plans shall also include code compliant plans for the creation of residential upper story dwelling unit(s) associated with the fire sprinkler system. 4. The city reserves the right to approve or not approve applications on the basis of the location of the project and public benefit and beneficial economic impact of the proposed improvements to the downtown as determined by the city council in its sole discretion. If more applications are received than current funding levels will allow,the city also reserves the right to prioritize the applications on the basis of the location of the project and the public benefit and beneficial economic impact of the proposed improvements to the downtown as determined by the city council in its sole discretion. 5. Retroactive applications submitted when a project was completed in a previous calendar year will not be funded under this grant program. 6. After the applicant has received at least two bids for the approved work,the city will approve the contractor. The applicant shall provide the city with the contract, contract amount, and the anticipated date of construction. Copies of all bids and proposals shall be submitted to the city. 7. Required building permits for all of the proposed work including the fire sprinkler system and the associated residential upper story dwelling unit(s) must be obtained before the work begins. 21 Page Downtown Elgin downtowno Fire Sprinkler Assistance for neighborhood E LG I N Residential Conversions ASSOCIATION OF ELGIN THE CITY IN THE SUBURBS Grant Program 8. The applicant shall sign a program agreement in a form approved by the Corporation Counsel that, among other things, requires all improvements for all of the proposed work including the fire sprinkler system and the associated residential upper story dwelling unit(s) to be completed within 180 days of the date of the agreement, unless otherwise authorized by the city. A copy of the signed contract for work to be performed shall be made a part of the agreement. Extensions may be granted by the Director of Community Development Department upon the showing of active and continued construction. 9. Any existing violations of the Elgin Municipal Code shall be corrected, and the property and structure must otherwise be in compliance with all applicable codes and ordinances, prior to reimbursement. 10. Upon completion of the project, copies of all invoices must be submitted to the Community Development Department along with the contractor's waivers of lien. City staff will inspect the work for compliance with city codes and conformance with the design plans approved for this project. 11. Prior to receiving payout, and only after all requirements listed above are satisfied, a check will be issued from the city to the applicant. Payment will be issued only upon completion and approval of all work items as originally approved and the issuance of a certificate of occupancy by the city for the new residential upper floor dwelling unit(s) being created. 12. The provisions of this Fire Sprinkler Assistance for Residential Conversions Grant Program are intended to provide guidelines for considering applications from property owners that are seeking to participate in the Fire Sprinkler Assistance for Residential Conversions Grant Program. The city council of the City of Elgin, in its sole and exclusive discretion, shall determine whether to provide any of the grants contemplated in this program after duly considering the costs incurred by the City of Elgin for providing the grants and after considering the relative gain derived by the public from those grants. The city council of the City of Elgin further expressly reserves the right and option to decide at any time whether or not to provide continued or additional funding for this program. The creation or existence of this program shall not be construed to create or provide any vested rights in any person or organization to obtain approval of a program application, a program agreement or any grant or funding thereunder. 31 ' . I i ‘.• -, t Downtown Elgin 44411 '' PI 4., IRV . ' [: i "----lir 1111111- ilK,,!balii s'simiHt1-FAIIIMIIII ' ''.111 -'*Willikw"9;7' iwarrire4,- -•-• —illa —ale ';i. , 411•—•••• 11,.11.. • ••••... . .., AMMIMMill ...142‘...../M. ihr..... •• Exhibit A .....• % ... ....;................ t , , ----sir - . : . \ I • , .ira I la. . .., 1, ., ......r. _, ..4c , -: .;5141t, , •' it —-1 - - ' ,?/ 4 Project Area A .I e' '''' •-7,,----- . ; ez i• • 1 C . t • I , "11/4."ht- •— . 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