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95-109 Resolution No. 95-109 RESOLUTION AUTHORIZING EXECUTION OF A FACADE IMPROVEMENT PROGRAM AGREEMENT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Richard B. Helwig, City Manager, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute. a facade improvement program agreement on behalf of the City of Elgin with Greg Berna for the property commonly known as 221 DuPage, a copy of which is attached hereto and made a part hereof by reference. sl Kevin Kelly Kevin Kelly, Mayor Presented: May 24, 1995 Adopted: May 24 , 1995 - Omnibus Vote: Yeas 6 Nays 0 Attest: sl Dolonna Mecum Dolonna Mecum, City Clerk CITY OF ELGIN FACADE IMPROVEMENT PROGRAM AGREEMENT S r' THIS AGREEMENT, entered into this day of TLC n P_ , 19 9S between the City of Elgin, Illinois (hereinafter referred to as the "City" ) and the following designated owner, to wit: Owner' s Name: Greg Berna Address : 2282 Knollwood Drive City: Elgin - State: IL Zip Code: 60123 Telephone Number: (708) 377-4067 Property Location: 221 DuPage WITNESSETH WHEREAS, the City has established a Facade Improvement Program for application within certain designated rehabilita- tion areas of the City; and WHEREAS, said Facade Improvement Program is administered by the Facade Review Team of the City and is funded solely from City funds provided for purposes of control and preven- tion of blight, dilapidation and deterioration of designated areas within the Community; and WHEREAS, pursuant to said Program, the City has agreed to participate in sharing the cost of Facade Improvements to establishments within a designated rehabilitation area accord- ing to the formula set forth in Section 1 . of this Agreement; and WHEREAS, the architectural consulting firm retained by the City shall provide participants in said Program with certain conceptual design work regarding the proposed improve- ment, including a color rendering of the improvement design, and an outline work specification; which work shall be at no cost to the participant; and WHEREAS, the participant is the owner of a commercial building or the tenant of a commercial building located with- in a designated rehabilitation area, and the owner desires to participate in the Facade Improvement Program pursuant to the terms and provisions of this agreement. NOW, THEREFORE, in consideration of the mutual covenants and agreement obtained herein, the City and the Owner do hereby agree as follows : SECTION 1 . The City shall share in the facade improve- ment cost for the owner' s property by providing a rebate of 35% for 178 feet of store front which extends upwards through a maximum of two story levels, up to a maximum amount not exceeding $29 , 665 . An additional rebate of 0% up to a maxi- mum of $0, will also be provided for facade improvements which extend into that part of the structure extending above the initial two stories of the building. (For each 30-foot increment of front, a pro-rata rebate has been applied. ) Two or more building owners and/or business owners repre- senting same block properties may submit a joint applica- tion. In such case, the amount of rebate will be adjusted upward 2 - depending upon the number of property owners and/or business owners involved: No. Properties Percent Rebate 2 400 3 45% 4 50% This adjusted rebate (does) /does not (circle one) apply to this application and applicants shall receive a 35% rebate up to a maximum of $29 ,665 . The facade improvement costs which are eligible for City par- ticipation include all labor, materials, equipment and other contract items necessary for the proper execution and comple- tion of the work as designated from the design drawings ap- proved by the Facade Review Team and prepared by an architec- tural consultant . Said design drawings and cost estimates are attached hereto as Exhibit A. Section 2 . No facade improvement work shall be undertaken until the design therefore has been submitted to and approved by the Facade Review Team, consisting of the Director, New Century Partnership for Elgin, Historic Preservation Officer and Rehabilitation Specialist. Following approval, the Owner shall contract for the work and shall commence and complete all such work within one hundred eighty ( 180) days from the date of execution of this Agreement. Section 3 . The Facade Review Team and the City's Historic Preservation Officer shall periodically review the progress of the contractor' s work on the facade improvement pursuant - 3 - to this Agreement. Such inspections shall not replace any re- quired permit inspection by the Department of Code Administra- tion of the City. All work which is not in conformance with the approved drawings and specifications shall be immediately remedied and deficient or improper work shall be replaced and made to comply with the approved drawings, specifications, and terms of this Agreement. Section 4 . Upon completion of the facade improvement and upon its final inspection for code compliance and conformance with the approved design plans, the approval by the Facade Review Team and other relevant City departments, the Owner shall submit to the City a properly executed and notarized contractor statement showing the full cost of the work as well as each separate component amount due to the contractor and each and every subcontractor involved in furnishing la- bor'. materials or equipment in the work. Copies of all bids, contracts and invoices shall be included with this submit- tal . In addition, the owner shall submit to the City proof of payment of the contract cost pursuant to the contractor' s statement. The City shall, within fourteen ( 14) days of receipt of the contractor' s statement and proof of payment issue a check to the Owner in payment -of the applicable re- bate as indicated in Section I . of this Agreement. In no case shall the amount paid to the Owner exceed the amount specified in this Agreement or in the contractor statement. SECTION 5 . If the Owner or his contractor fails to complete the facade improvement work provided for herein in conformity 4 - with the plans, specifications and terms of the Agreement, then, upon written notice being given by the Facade Review Team to the Owner, by certified or registered mail addressed to the Owner' s address as set forth in this Agreement, this Agreement shall terminate and the financial obligation on the part of the City shall cease and become null and void. SECTION 6 . Upon completion of the facade improvement work pursuant to this Agreement and for a period of five (5) years thereafter, the Owner shall be responsible for properly main- taining such facade improvement in its finished form and without change or alteration thereto, as provided in this Agreement, and for the said period of five (5) years follow- ing completion of the construction thereof, the Owner shall not enter into any Agreement, or contract or take any other steps to alter, change or remove such facade, or the approved design thereof, nor shall the Owner undertake any other chang- es, by contract or otherwise, to the improvement provided for in this Agreement unless such changes are first submitted to the Facade Review Team, and. any additional review body or commission designated by the Team, for approval; which approv- al shall not be unreasonably withheld if the proposed changes do not substantially alter the original design concept of the facade as specified in the drawings and plans approved pursu- ant to this Agreement. SECTION 7 . Nothing herein is intended to limit, restrict or prohibit the Owner from undertaking any other work in or about 5 - the subject premises which is unrelated to the facade improve- ment provided for in this Agreement. SECTION 8 . This Agreement shall be binding upon the City of Elgin and its successors, and upon the Owner to said property for a period of five (5) years from an d after the date of completion and approval of the facade improvement provided for herein. It shall be the responsibility of the Owner to inform subsequent Owner(s) of Section 6 of this Agreement. SECTION 9 . If the participant is the owner of a business and does not own the property for which improvements are being made, the participant assures the City that he has a lease at the location for which the facade improvement is proposed for a term of at least five years . (Copy of lease to be attached . to this Agreement. ) The participant acknowledges that he has received authorization but the Owner of the property for which improvements are to be made to accept funds under this program and to undertake the improvements. Further, such Owner of the property for which improvements are to be made hereby acknowledges that he is aware of this Agreement and authorizes the improvements which are to be made to the prem- ises . Said Owner of the property for which improvements are to be made further acknowledges, that, as Owner of the proper- ty, he is a party to this Agreement and is bound by the provi- sions of this Agreement specifically, but not limited to, the provisions of Section 6 of this Agreement. 6 _ IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first appearing above. OWNER CITY OF ELGIN Richard B. Helwig 7r -rj4.r City Manager ATTEST: Dolonna Mecum,�City Clerk 7 _ APPENDIX 1 FACADE IMPROVEMENT PROGRAM AGREEMENT NON-APPLICANT OWNER ASSURANCES As title holder to the property located at , Elgin IL, I 1 do acknowledge that, as a non-applicant owner of said proper- ty, I am aware that: 1 . The tenant, has entered into an agreement with the City of Elgin to perform approved improvements to the aforementioned property under the terms of the City of Elgin Facade Improvement Program, and I hereby acknowledge that I approve of the perfor- mance of the approved improvements to the aforementioned property. 2 . The Agreement between the above-named tenant and the City of Elgin is binding upon me as the Owner of the involved property, specifically, but not limited to the provisions of Section 6 of said Agreement. Signature of Non-Applicant Owner 8 - w i*n -� , Agenda ltem . Nom r.� May 1, 1995 TO: Mayor and Members of the City Council FROM: Richard B. Helwig, City Manager SUBJECT: Facade Improvement Program Agreement for 221 DuPage Street PURPOSE The purpose of this memorandum is to request City Council consideration of an agreement with Greg Berna for participa- tion in the Facade Improvement Program. BACKGROUND Since 1991, the City has offered center city property owners a financial incentive to improve their building exteriors in a manner sensitive to the original architecture and history of the building. The program provides for a rebate of 35% of the ,..project costs per storefront (defined as 30 linear feet) up to a .gkaximum $5,000 per storefront. In addition, the program payslor . architects' fees associated with the project. Since the program's beginning - it was enacted by City Council in-1991 - six projects have been. completed, which include: 209, 211 East Chicago Street 18 Villa Court 115 East Highland Avenue, 24 Douglas Avenue 151 East Highland Avenue 107, 109 East Highland Avenue; 25, 25 1/2, 27 North Grove Avenue 163, 165, 167 East Chicago Street The program has provided these property owners with an oppor- tunity to improve the appearance of their buildings and, subsequently, the appearance of the center city. In many cases, the property owner has undertaken interior improvements simultaneously with the exterior project. City staff and the architect work very closely with the property owner to ensure that the project adheres to the mission of -the program and is cost-conscious . Facade Improvement Program .Agreement May 1, 1995 Page 2 The project for which City Council consideration is being requested involves renovation of the property at 221 DuPage Street. Formerly used for commercial purposes and now vacant, the owner, Greg Berna, wishes to undertake both exterior and interior improvements. He plans to use the upper story, fronting on DuPage, for a private residence and the first story, facing west and fronting on a parking lot, for his architectural office. Staff considers this project significant in two ways. First, the project will provide for improvements to a presently vacant building in the core of the center city. Second, Mr. Berna's project provides the first venture of private residen- tial development by an individual for their own use in the center city. This is very crucial to center city, as it sets a stage for establishing a 24-hour residential population in the center city. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED New Century Partnership for Elgin and Elgin Heritage Commis- sion. FINANCIAL IMPACT The maximum rebate allowed under the program for this project is $29,665 ( 178 ft. of frontage : 30 ft./facade = 5.935 X $5,000 = $29,665) , or 35% of the actual project cost per facade, whichever is less, plus architects ' fees . Funds are available for this project under the Downtown Redevelopment . Fund (Acct. No. 350-0000-795 .78-99) . LEM IMPACT None. RECOMMENDATION The recommendation is to approve entering into an agreement (see attached) with Mr. Greg Berna for participation in the City of Elgin Facade Improvement Program. Respectfully submitted, `Deborah K. Nier, Director New Century Partnership for Elgin Richard B. Helwig City Manager. amp Attachment