95-132 Resolution No. 95-132
RESOLUTION
AUTHORIZING EXECUTION OF A SUPPLEMENTAL AGREEMENT TO
THIRD AMENDMENT TO DEVELOPMENT AGREEMENT AND GROUND
LEASE AGREEMENT WITH ELGIN RIVERBOAT RESORT
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Kevin Kelly, Mayor, and Dolonna Mecum, City
Clerk, be and are hereby authorized and directed to execute a
Supplemental Agreement to Third Amendment to Development
Agreement and Ground Lease Agreement on behalf of the City of
Elgin with Elgin Riverboat Resort for lighting improvements on
the bike path area north of the riverboat pavilion, a copy of
which is attached hereto and made a part hereof by reference.
s/ Kevin Kelly
Kevin Kelly, Mayor
Presented: June 14, 1995
Adopted: June 14, 1995
Vote: Yeas 7 Nays 0
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
Hyatt Development Corporation
200 West Madison
Chicago, IL 60606 USA
Telephone: 312.750.1234
FAX: 312.750.8084
August 2, 1995
Mr. Raymond Moller
City of Elgin
150 Dexter Court
Elgin, IL 60120-5555
Dear Ray:
Enclosed is signed copy of the Supplement Agreement to Third Amendment to
Development Agreement and Ground Lease Agreement.
Sincerely,
Jackie Tasker
Asst. to Dan Azark
:jt
RIVERBT.SA3
6/7/95
SUPPLEMENTAL AGREEMENT TO THIRD AMENDMENT TO DEVELOPMENT
AGREEMENT AND GROUND LEASE AGREEMENT
This Agreement is made and entered into as of
June 14, 1995, by and between the CITY OF ELGIN, an Illinois
municipal corporation, (hereinafter referred to as the
"City") , and ELGIN RIVERBOAT RESORT, an Illinois partnership
(hereinafter referred to as the "Developer" ) .
WHEREAS, the City and Developer have previously
entered into a certain Development Agreement dated as of
June 24, 1992, contemplating the establishment of a riverboat
gaming facility along the Fox River on the property owned by
the City and legally described therein; and
WHEREAS, Development Agreement was subsequently
amended by (i) a certain Amendment to the Development
Agreement dated as of June 23, 1993, (ii) a certain Second
Amendment to the Development Agreement and Ground Lease
Agreement dated as of January 20, 1994; and (iii) a certain
Third Amendment to the Development Agreement and Ground Lease
Agreement dated as of June 9, 1994 (the "Third Amendment" ) ; and
WHEREAS, pursuant to the Third Amendment the
Developer has made certain improvements referred to therein as
the South Grove Street Project providing for the removal of
the existing pedestrian mall and the reopening of a portion of
South Grove Street to vehicular traffic and the construction
and installation of certain related landscaping features and
other public improvements; and
WHEREAS, the Developer is now proceeding with
certain restoration and other improvements to the bike path
between the riverboat gaming pavilion and Prairie Street; and
WHEREAS, the parties desire that as part of the
restoration and improvements to said bike path area that the
Developer install the same pole mounted path lighting as was
installed by the Developer adjacent to the riverboat gaming
pavilion; and
WHEREAS, the parties desire to provide for the
construction and payment of the additional lighting
improvements on the bike path area between the riverboat
gaming pavilion and Prairie Street by supplementing the Third
Amendment to include such additional lighting in the listing
of specifications to the South Grove Street Project.
NOW, THEREFORE, in consideration of the foregoing
recitals, the mutual promises and undertakings contained
herein, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows :
1 . That the foregoing recitals are incorporated
into this Agreement in their entirety.
2 . That words and phrases not defined herein shall
have the meaning subscribed to them in the Third Amendment.
-2-
3 . That the document identified as "Annex 1"
attached to the Third Amendment is hereby supplemented by
adding the following additional item under the section
"PEDESTRIAN LIGHTING" on page 2 thereof:
"Contemporary pole mounted 18 Each 1,000 18,000
path lights the same type as
are in front of the riverboat
gaming pavilion to be placed
along bike path between the
riverboat gaming pavilion
and Prairie Street"
4 . That Developer shall cause the installation of
the 18 additional lights as part of the restoration and
improvements to the bike path between the riverboat gaming
pavilion and Prairie Street. The City shall reimburse
Developer for the cost thereof pursuant to the terms of the
Third Amendment.
5. That except as modified hereby, this Agreement
shall not be deemed to amend or modify the terms and
provisions of the Third Amendment.
IN WITNESS WHEREOF, the parties have caused this
agreement to be executed on the date first written above.
CITY OF ELGIN, a municipal ELGIN RIVERBOAT RESORT, an
corporation ,,/ Illinois partnership
By p�v..__ fi By RBG, L.P. , One of Its
Mayor General Partners
By /CC ' orporation, Its
Attest: G: r.4, 'artner
4
City Clerk �'.L. Sc ulze, Vice President
-3-
Agenda Item No.
A ( o - y
June 5, 1995
TO: Mayor and Members of the City Council
FROM: Richard B. Helwig, City Manager
SUBJECT: Bike Path Lighting - Downtown Entertainment District
PURPOSE
The purpose of this memorandum is to request the Mayor and
members of the City Council consider authorizing the installa-
tion of decorative lighting along the bike path north of the
riverboat pavilion.
BACKGROUND
The Elgin Riverboat Resort (ERR) and Hyatt Development Corpo-
ration are in the process of restoring the area north of the
Pavilion, including the bike path. This area was disturbed
when the boat yard was constructed. As part of the restora-
tion, the ERR suggested the bike path lighting be enhanced
with decorative fixtures matching those near the pavilion.
ERR requested the Kane County Forest Preserve Commission to
finance the proposed lighting upgrade from the to-be-estab-
lished Fox River Trust Fund. The Commission, however, has
declined to participate in the project.
Recognizing the proposed ornamental lighting fixtures would
enhance the appearance of the bike path and the riverfront as
well as complement the existing riverboat development, Hyatt
and the City staff explored how the project could be accom-
plished this year. As a result of these discussions, a plan
is suggested whereby Hyatt would install the decorative fix-
tures as part of the current restoration work. The cost of
the lighting fixtures is $18,000 and Hyatt is willing to
upfront the cost using some of the remaining proceeds from
the $2.4 million dollar authorization for the South Grove
Avenue mall reopening project. The cost of the South Grove
reopening project stands at $2,222,490 (see attached letter) .
r
Mayor and Members of City Council
June 5, 1995
e* Page 2
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
The Hyatt Development Corporation and the Elgin Riverboat
Resort.
FINANCIAL IMPACT
If authorized, the $18,000 cost for the lighting fixtures
would be funded from the $177,510 remaining from the $2 .4
million dollar mall reopening project. Up to $2 .4 million
expended by ERR for the reopening of the mall will be deducted
from future riverboat lease payments once the developers
recapture $75 million dollars of their investment, probably in
early 1997 .
LEGAL IMPACT
The authorization to make the payments for the light fixtures
requires City Council approval of the attached resolution.
RECOMMENDATION
It is recommended that the City Council authorize the instal-
lation of 18 ornamental light fixtures along the bike path.
Respectfully submitted,
Ro ert 0. Maim
Chief Operating Officer/
Assistant City Manager
Richard B. Helwig
City Manager
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RE: Grove Avenue Ranovation
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John Ryden./
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Memorandum
Nay 23, 1995
TO: Mayor and Members of the City Council
FROM: Richard B. Helwig, City Manager
SUBJECT: Bike Path Lighting for Park Area
North of Riverboat Pavilion
You have previously received copies of the attached correspon-
dence from Hyatt Development Corporation to the Forest Pre-
serve District of Kane County regarding bike path lighting
and a seawall fishing railing for the park area being con-
structed north of the Riverboat Pavilion. In addition to
sending these two letters, Dan Azark and John Ryden have
recently met with Forest Preserve District officials who have
again turned down the offer for Hyatt Development to
"upfront" the $43,000 necessary to make these improvements
while the area is under construction. The purpose of this
memorandum is to propose an alternative means to install the
lighting only at a cost of $18,000.
It seems to make sense to have the bike path lighting in-
stalled at the same time the path is under construction and
to have the bike path lighting fixtures in the park area
match the fixtures already in place along the bike path at
the Riverboat Pavilion. The cost is $1,000 per fixture (18)
for a total cost of $18,000.
Dan Azark and I have discussed including this work item total-
ling $18,000 in the leftover amount "upfronted" by Hyatt
Development in reopening the South Grove mall. He states
that we will be well within the $2.4 million maximum reim-
bursement by the City of Elgin for the reopening of the South
Grove mall.
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Bike Path Lighting
May 23, 1995
rb- Page 2
Construction of the bike path will soon be completed. The
lighting installation needs to proceed. Unless you have
objections, we will prepare the appropriate letter to Mr.
Azark indicating our desire to have the bike path lighting in-
stalled as outlined in this memorandum. Your formal approval
would then be sought at the June 14, 1995 City Council meet-
ing.
Respectfully submitted,
Richard B. Helwig
City Manager
amp
c: Loni Mecum .
Dan Azark
John Ryden
Robert Malm
Ery Jentsch
Ray Moller
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• OCT BY: 8-21-85 ; 12:28 ; 17088815610 4 2/ 5
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HYATT DEVELOPMENT CORPORATION
Daniel Ma
Mat h.W.nt
March 20, 1995
Mr. Jack E. Cook
FOIiF.ST PRESERVE DISTRICT
OF KANE COUNTY
Kane County Government Center
719 Batavia Avenue
Building G
Geneva, IL 0134
Dear jack:
Thanks to you and Jon Duerr for taldng the time to meet with us last week. In
ow meeting we proposed that the Forest Preserve District consider using a portion of
the payment to the Fox River Trust Fund that the Grand Victoria Casino will be making
later this year to upgrade the riverfront between Lake Street and Prairie Avenue, ,
immediately to the north of our riverfront pilion. As you have noted, we have an
existing obligation to restore the bike path from National Street to Prairie Avenue. At
the onset of our construction we&pad with the District to reconstruct to the preexisting
quality level.
We are in process of returning the boat construction site west of Grove Street into
an attractive grassy field. We believe that • significant opportunity exists to greatly
enhance the river's use for a modest investment. We are reconunending that you
consider upgrading the lighting along the bike path to be consistent with the attractive
tight fixtures in front of our pavilion. We are also recommending that you consider
physical improvements along the sea wall to enhance its use as an attractive
Oohing location.
1.1CMING. The bike pathhlighting that existed prior to ow construction was'industrial
strength* fixturing mo to Comaony�th Edison poles. We would like to
recommend that we continue the use of the attractive light fixtures that are cv=rra ttly
pfang the path at the pavilion. The cost of this upgrade would be sppto:dmataty$1,000
er 6xhne. There are eighteen fixtures. The increased cost of these fixtures over and
r . above a more utilitarian device would need to be agreed eed between hats.
Alicia*.Phase 200 West Median Chicago.Illinois W606 USA 0121750.1!34 711111404 Tden iS71520
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BENT BY: 9-21-85 ; 12:28 ; -+ 17088915810;# 9/ 5
Mr.jack E.Cook
Martin 20, 1995
time 2
FISHING. As part of our DNR penult we agreed to install fish habitats in the sea wall
and to put several fish "structures` at the bottom of the river along the seawall. The
water in this area is now appro�danately 12 feet deep. We would like to offer to propose
that the area behind the sea wall be upgraded to include a sidewalk and a railing that
would enhance it$safety and its use as a fishing destination. I am attaching pictures of
the fishing railing that is used in Chicago at Burnham Harbor that we think might be
• • . .riate in this area. We have estimated the cost of the railing to be about$50 per
-. foot. If the railing were installed along the entire 500 foot length of the seawall,
the cost would be about$25,000. The sidewalk could be either concrete or asphalt and
would cost a few thousand more.
CONSTRLICIION We will be beginning the reconstruction of this area with the next
few weeks. We will be completing construction plans to review with John Duerr prior
lo beginning the work. We woul however,l ke to construct these improvements as a
part of that effort, and would offer to advance the cost of this work subject to a set-off
against the trust fund payment due later this year. We would,of course,make available
to you supporting cost or construction receipts that you might require. Our purpose is
to move quickly to restore this area as the good weather sets in.
We hope that you agree that the development of our facility is a great benefit to
County as well as to the City of Elgin. We all have a stake in enhancing this area as a
destination. We would like to request that you consider this proposal at your earliest
convenience and let us know how you would lilac to proceed.
Sincerely,
Dan Mark
DA.*t
athchment
1:c Petra Simeon
John ►
Jon Dow
Rick lwig
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11rA7T DEVELOPMENT CORPORATION
7ELECO,PY NUMBER: 012050304
FACSIMILE COVER MEET
DATE: 5- .2 "1 s
PAGES With cover sheet) 3
TO: adku7:g_
COMPANY:
PAX NUMBER: 114' C13/ SG I 0
elk PROM: DAN AZARK
(312) 75D-8404
COMMENTS:
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JAME TAS101 AT(314 708413. VANK YOAIC
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SENT BY: 5- 2-95 ; 14:39 ; 17089315610;# 2/ 3
Daniel Azark
W.President
Hytt Development Corporation
100 Wiest Madison
Chimp.X Kim USA
7lieplam 312.7%.1234
Duet Number 312.750.84 01
VAX 312.750. 84
May Z 1995
Mr.Jack E. Cook
FOREST PRESERVE DISTRICT
OF TUNE COUNTY
Kane County Government Center
719 Batavia Avenue
Building G
Geneva, IL 60134
Dear Jack
Since we have been unsuccessful in being able to reach yon hone,we wanted
to follow up on our conversations regarding suggested improvements to the Forest
Preserve's land north of the riverboat. As you know, we have agreed with the City of
.gin to restore the ship yard into a park The bike path separates the park from the
river and forms its western boundary. Since this area will be a prominent feature in
downtown Elgin and is important to our development,we felt it would be desirable to
continue to use the quality light fixtures that we use at the riverboat to provide visual
continuity to riverfront users.
In our March 20 letter to you,we offered to install the upgraded fixtures at our
cost and to advance the payment for the installation. The entire cost of the upgrade is
Jess than 320,000 and we proposed to deduct the cost (without any markup) from the
$500,000 payment to the Fox River Trust Fund to be made later this year.
In a related issue, we proposed to install a "fishing railing"at the seawall that is
adjacent to the park As part of our DNR permits,we have installed fish habitats at the
bottom of the river and in the seawall itself. (The depth of the water in this area is
approximately 12-16 feet deep along the wall) We proposed that we install both a
sidewalk and the railing to enhance both the use and the safety of this location as a
fishing destination, In a manner similar to the lighting upgrade, we proposed to
advance payment of the cost and to recover our expense through an offset against
the Trust
payment.
SEM BY: 5- 2-95 ; 14:40 ; 17089315610;# 3/ 3
M •
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Mr. Jack E. Cook
May 2,1995
rage 2
We were disappointed when John Duerr advised us that you had decided not to
upgrade this very visible and important area. In our minds the use of the Trust Funds
for an area in the vicinity of the source of the funds seems not only appropriate but also
wise as it is in our collective best interest to make this area as safe and appealing as
possible. John told us that the Forest Preserve will monitor the use of the seawall area
and will add railings and sidewalks if required. We would like to go on record that
responsibility for this decision rests entirely with the Commission.
As you probably know,we have begun the restoration of the park and bike path
and will be working in this area for the next few weeks. We invite you to reconsider
your decision if you are able to do so promptly.
�., Sincerely,
V
Dan Azark
DA4t
cc Warren Kammerer
Pat Sjjurmethh
Jon Duerr
Rick Helwig
Peter Simon
E