94-177 Resolution No. 94-177
RESOLUTION
AUTHORIZING EXECUTION OF A TERMINATION AGREEMENT WITH
HOME FEDERAL SAVINGS AND LOAN ASSOCIATION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Richard B. Helwig, City Manager, be and is
hereby authorized and directed to execute a Termination
Agreement on behalf of the City of Elgin with Home Federal
Savings and Loan Association for the mall banking facility, a
copy of which is attached hereto and made a part hereof by
reference.
s/ George VanDeVoorde
George VanDeVoorde, Mayor
Presented: July 13, 1994
Adopted: July 13, 1994
Vote: Yeas 5 Nays 0
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
TERMINATION AGREEMENT
THIS AGREEMENT is made and entered into this 2nd
day of July , 1994, by and between Home Federal Savings and
Loan Association, a federal corporation (hereinafter referred
to as "Home Federal" ) and the City of Elgin, a municipal
corporation (hereinafter referred to as "City" ) .
WHEREAS, the parties hereto are parties to a
certain lease agreement dated November 4, 1975, which
agreement is attached hereto and made a part hereof as
Attachment "A" (hereinafter referred to as "lease") ; and
WHEREAS, the parties hereto have each determined it
to be in their respective best interests to terminate the
aforementioned lease agreement;
NOW, THEREFORE, in consideration of the mutual
promises and covenants contained herein, the sufficiency of
which is mutually acknowledged, the parties hereto hereby
agree as follows :
1. Home Federal shall make rental payments to City
pursuant to the lease through the payment due on June 1, 1994 .
2 . Home Federal shall fully vacate the subject
property of the lease on or before June 27, 1994 .
3. Home Federal may remove any personal property or
fixtures from the subject property of the lease through June
27, 1994 .
4 . Home Federal shall pay and be liable for the
payment of any applicable taxes affecting the subject property
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of the lease through June 27, 1994, including, but not limited
to, any property or transfer taxes .
5. Pursuant to the terms of the lease, Home Federal
shall convey any interest it may have in any structures
described in the lease, and shall provide city with a bill of
sale to such structures on or before June 27, 1994 .
6 . The lease shall terminate effective June 28,
1994 .
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HOME F RAL S ' , AND LOAN
ASSOCI° ON
By: 4-e49-1,f , 461111 AQ,-T.,�.s-��1
President
George L. Perucco
CITY OF ELGIN
By 1.�- .fie,.C2--►�
Richard B. Helwig
City Manager
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LEASE
ikThis lease agreement made this L day of kinor-IM b /Z.
1975, between the City of Elgin, a municipal corporation, (hereinafter
referred to as Lessor) and Horne Federal Savings and Loan Association,
(hereinafter referred to as Lessee).
WITNESSETH
WHEREAS, Lessor is causing a portion of Grove Avenue in the City
of Elgin, Illinois, to be reconstructed as a pedestrian shopping mall; and
WHEREAS, vehicular traffic will not be permitted in the principle
area of the pedestrian shopping mall; and
WHEREAS, a portion of Grove Avenue within said pedestrian shopping
)t'41:. mall is no longer necessary for the exclusive use of the public; and
,x�"
WHEREAS, the City Council of the City of Elgin has determined that
M it is necessary and desirable to provide a service facility in the mall
for use by pedestrians which is also suitable for commercial activities; and
WHEREAS, Lessor has advertised for bids for the lease of space in
the mall upon certain terms and conditions; and
WHEREAS, Lessee has submitted its written bid in accordance with
the terms and conditions of the advertisement for bids; and
WHEREAS, Lessor deems it to be in the public interest to accept
Lessee's bid.
NOW, THEREFORE, Lessor and Lessee agree as follows:
1. Lessor, in consideration of the compensation and covenants and
agreements set forth herein to be kept and performed by Lessee, does hereby
demise and lease unto Lessee, upon the conditions hereinafter set forth,
the following described premises: 300 square feet of public property in
Grove Avenue in the City of Elgin located at the end of the pedestrian
walkway between the commercial establishment commonly known as Scotty's Shoe
Store and the commercial establishment commonly known as the Joseph Spiess
Company, which property is currently devoted to use as a public street.
2. Lessee shall improve the site herein demised by the construc-
tion of a building substantially in accord with the architectural rendering
and sketch attached hereto as Exhibit "A" and incorporated herein by reference.
Page 1 of 3
ATTACHMENT A
3. Lessee shall pay all costs of construction and maintenance of
the building described in Section 1 of this agreement, shall bear all costs
of utilities and any and all other expenses incident to the operation of the
facility as herein.provided.
4. The structure herein described shall be completed and fully
operational prior to July 1, 1976.
5. The structure herein provided shall be designed and operated to
provide the following services:
a. Banking and other financial services for the surrounding
central business district.
b. Collect utility payments and parking tickets.
: ., c. Sell tickets to events held at Hemmen's Auditorium.
s` _ d. Provide personnel to assist pedestrians with directions
and provide pedestrians with information cone
pro pe ruing the location
t,4 1{ • of shopping, parking lots and other places of interest.
e. Provide and maintain postal drops, central business
district directory, public telephone and drinking fountain.
f. Provide normal teller services for Lessee's customers
including check cashing, deposit and withdrawal actions, loan
payments and the sale of money orders.
g. Otherwise use the facility for promotions in accordance
with accepted financial institution practices.
h. To operate said facility during normal business hours of
the central business district.
6. No name or identification sign, window advertising or other display
shall be maintained unless written approval is received by Lessor.
7. Within ten (10) days of the execution of this agreement, Lessee
Q pay to Lessor the sum of $5,593.89 representing the equivalent cost of
(); ile-
slall
participation in the local improvement made by the City of Elgin to construct
A
��'�1)1 M a pedestrian shopping mall in the area of the leased premises.
8. In addition to the consideration described in the Pr eceding
paragraph, Lessee shall pay to Lessor the sum of $100.00 per month on the
first day of each moth, commencing with occupancy of the completed facility.
Page2of3 J
7A-9/7
'Lessee may revise and adjust said amount every five (5) years upon written
notice to Lessee; however no increase shall exceed the percentage change
in the U.S. Department of Labor Consumer Price Index for the item entitled
"Rent" for the previous five (5) year period.
9. Upon termination of this agreement all improvements including
the structure described herein shall became the property of Lessee.
10. During the term of this agreement, Lessee shall pay real
estate taxes on the value of the building to be erected on the basis of a
lease-hold estate on exempt land.
11. The term of this agreement shall be for twenty (20) years
following the execution of this agreement.
12. Lessee shall indemnify and hold harmless Lessor for any and
all claims for damages arising out of Lessee's performance of this agreement
for use of the demised premises.
13. Lessee shall obtain all permits required by law prior to
commencement of construction no later than fourteen (14) days from the
date of this agreement. Construction shall commence within thirty (30)
days of the date of this agreement and shall be completed;in 195 days of
the date of this agreement.
14. In the event of default by Lessee, all sums held for Lessor
shall be forfeited and become property of the Lessee; Lessor shall be
liable for the cost of removal of any uncompleted structure and such costs
as may be incurred by Lessor in restoring the demised premises to its present
condition. t `
Krw_
CI M OF ELGIN
Attest:
Ali' I
By LGa
rfn . `e son, ty T-F ger
/0•LNIA-411-6-"14-441"
City Clerk
HOME FEDERAL SAVINGS AND LOAN ASSOCIATION
Attest:
By Q(..1%-te _
. President() * -
retary
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Page 3 of 3
BILL OF SALE NO. 120 GEORGE E.COLE®
(Illinois) June,1993 LEGAL FORMS
CAUTION.Consult a lawyer before using or acting under this form All warranties,including merchantability and fitness,are excluded.
Seller, HOME FEDERAL SAVINGS AND LOAN ASSOCIATION
, of Elgin, Illinois , in con-
sideration of Ten and 00/100 ($10.00) dollars,receipt whereof
is hereby acknowledged,does hereby sell,assign,transfer and set over to Buyer, CITY OF ELGIN, a
municipal corporation of Elgin, Illinois
, the following described personal property, to-wit:
All structures, improvements, and personal property located on the following
described property as of June 27, 1994: the 300 square feet of public
property in Grove Avenue in the City of Elgin located at the end of the
pedestrian walkway as described in a certain lease between the City of Elgin
and Home Federal Savings and Loan Association dated November 4, 1975.
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Seller hereby represents and warrants to Buyer that Seller is the absolute owner of said property,
that said property is free and clear of all liens,charges and encumbrances,and that Seller has full right,power
and authority to sell said personal property and to make this bill of sale. All warranties of quality,fitness,
and merchantability are hereby excluded.
If this bill of sale is signed by more than one person,all persons so signing shall be jointly and severally
bound hereby.
IN WITNESS WHEREOF,Seller has signed and sealed this bill of sale at Elgin, Illinois
this 2nd iik day of J , 19 94.
Home � . •ral Savin•s an.j Loa,, Association [SEAL]
By �� 'c a-t 7- _c),„-i,c...c....6-_. .-ice [SEAL]
President
George L. Perucco
II •
B cc)
-+ Agenda Item No.
yam ,
July 6, 1994
TO: Mayor and Members of the City Council
FROM: Richard B. Helwig, City Manager
SUBJECT: Lease Termination Agreement for Home Federal Savings
and Loan Fountain Square Mall Facility
PURPOSE
To present to the City Council a Lease Termination Agreement
with Home Federal Savings and Loan for the bank facility
located on Fountain Square Plaza.
BACKGROUND
On November 4, 1975 the City and Home Federal Savings and Loan
entered into a lease agreement for space on Fountain Square
Plaza for the pllrpose cf opening a walk-in banking and service
facility. Tne terms of the lease was twenty years. The rent
payable to the City was $100 per month. In order to reopen
South Grove Avenue to vehicular traffic the lease must be
terminated and the bank facility demolished.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
Home Federal Savings and Loan.
FINANCIAL IMPACT
The City will lose $1,700 in lease payments.
LEGAL IMPACT
None.
Lease Termination Agreement
July 6, 1994
Page 2
RECOMMENDATION
Authorize the City Manager to enter into a Lease Termination
Agreement with Home Federal Savings and Loan.
Respectfully submitted,
Richard B. Helwig
City Manager
RHM:daw
Attachment
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TERMINkiION AGREEWENT
THIS AGREEMENT is made and entered into this
day of , 1994, by and between Home Federal Savings and
Loan Association, a _ (hereinafter referred
to as "Home Federal") and the City of Elgin, a municipal
corporation (hereinafter referred to as "City") .
WHEREAS, the parties hereto are parties to a
certain lease agreement dated November 4, 1975, which
agreement is attached hereto and made a part hereof as
Attachment "A" (hereinafter referred to as "lease") ; and
WHEREAS, the parties hereto have each determined it
to be in their respective best interests to terminate the
aforementioned lease agreement;
NON, THEREFORE, in consideration of the mutual
promises and tanyouauii.i contained herein, the sufficiency of
which is mutually acknowledged, the parties hereto hereby
agree as follows:
1. Home Federal shall make rental payments to City
pursuant to the lease through the payment due on June 1, 1994.
2. Some Federal shall fully vacate the subject
property of the lease on or before June 27, 1994.
3. Home Federal may remove any personal property or
fixtures from the subject property of the lease through June
27, 1994.
elk 4. Nome Federal shall pay and be liable for the
payment of any applicable taxes affecting the subject property
of the lease through June 27, 1994, including, but not limited
to, any property or transfer taxes.
S. Pursuant to the terms of the lease, Hose Federal
shall convey any interest it may have in any structures
described in the lease, and shall provide city with a bill of
sale to such structures on or before June 27, 1994.
6. The lease shall terminate effective June 28,
1994.
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BOWS FEDERAL SAVINGS AND LOAN
ASSOCIATION
By:
President
CITY OF ELGIN
By
Richard B. Helwig
City Manager
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