96-108 Resolution No. 96-108
RESOLUTION
AUTHORIZING FUNDS FOR PHASE II OF THE MARKET RECONNAISSANCE
FOR SOUTH GROVE AVENUE PROPERTIES
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that it hereby authorizes the sum of $14, 000 for
Phase II of the Market Reconnaissance for a physical
assessment and financial evaluation of certain South Grove
Avenue properties in accordance with an agreement between
Urban Discovery, Inc. and the New Century Partnership for
Elgin, a copy of which is attached.
s/ Kevin Kelly
Kevin Kelly, Mayor
Presented: April 24 , 1996
Adopted: April 24, 1996
Vote: Yeas 4 Nays 3
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
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Resolution No. 96-109
RESOLUTION
AUTHORIZING FUNDS FOR PHASE II OF THE MARKET RECONNAISSANCE
FOR SOUTH GROVE AVENUE PROPERTIES
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that it hereby authorizes the sum of $14,000 for
Phase II of the Market Reconnaissance for a physical
assessment and financial evaluation of certain South Grove
Avenue properties in accordance with an agreement between
Urban Discovery, Inc. and the New Century Partnership for
Elgin, a copy of which is attached.
Kevin Kelly, Mayor
Presented: April 24, 1996
Adopted:
Vote: Yeas Nays
•
Recorded:
Attest:
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Dolonna Mecum, City Clerk
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FROM :M. P. PRri TO OCC 1 702 460 795 8 1996.223-27 12:46 #.062 P.04/06
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AGREEMENT
THIS AGREEMENT is made and entered into this day of . 19 ,by and between
Urban Discovery,IDC,consultant hereinafter referred to as UDI,and the New Century Partnership for
Elgin,an Illinois not-for-profit organization,hereinafter referred CO as NCP_
SAS,NCP has elected to retain the services of UDI to complete market research and
radevdoprnent implementation consulting services within a defined target area in Elgin..Illinois.
NOW,THEREFORE,in consideration of the agreements and payments hereinafter mentioned,UDI and
NCP hereby mutually agree as follows:
Ag7TCLE 1-SCOPE OF SERVICES
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UDI is authorized by NCP to provide consulting services to complete Phase 2 as defined inn the proposal in
Attachment"A".
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ARTICLE 2-COMPENSATION
Compensation for consulting services for 5 to 7 buildings selected by NCP shall be a not-to-exceed fee for
Phase 2 as follows_
Phase 2:Physical Analysis and Financial
Evaluation of Selected Buildings $14,000
An individual breakdown of the overall ca,Z per unit is as follows:
Seldon ofPriority Buildings S 600
Building Inspection Reports 51,200 per building
Financial Evaluation S 500 per building
Task Force Meeting St Reports 51.200
UDI is authorized by the NCP to proceed with Phase 2 for a total not-to-exceed fee of 514,000. NCP shall
be the owner of all wodk reports and materials prepared by UDI under any and all phases of the work.
A£7,000 zctai.ner is required prior to commencement of Phase 2. UD1 will submit monthly progress
billings for the percentage of work completes The retainer will be applied to the billings.
FROM :M. P. .4RM1TO 000 1 700 458 7998 1585.03-27 12:49 1052 P.05/08
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ARTICLE 3-INDEMNIFICATION
UDI hereby agrees to hold and save NCP harmless from any and all claims, settle:rlents. and judgments
including all reasonable investigative feet,attorney's fees, suit and court costs for personal injury,property
damage,and/or death arising out of the errors,omissions or negligenr acts of UDI,or its agents.servants
Of employees in connection with services rendered under this agreeatieni
ARTICLE 4-SCHEDULE
UDI's services for Phase 2 provided under this agreement shall commence on or about April 10.1996 and
be completed by May 15. 1996 assuming a signed agreement and retainer to commence the project is
provided to UDI by March 29, 1996.
The New Century Partnership for Elgin,NCP and Urban Discover)+, Inc., UD1 hereby execute this
Agreement as of the day and year first above written.
Thomas F. Weigand President New Century Partnership for Elgin
Urban Discovery,Inc. An Illinois not-for-profit organization
Date: Date: _
Attest:
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FROM :M. P. ARMATO OCr_ 1 70G 463 7999 1995.0:-27 12:49 #052 P.05/05
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ATTACHMENT A
SCOPE OF SERVICES
Phase 2: Physical Analysis and Financial Evaluation of Selected Buildings
In cooperation with the Design Organization,Inc. (DO),UDI will prepare a physical and financial
evaluation of several key buildings in the Target Area The scope of services,based upon the Task Force
recommenrbuirine,is outlined below:
A Selection of Priority Buildings
UDI will meet with the Task Force to identify buildings in the Target area which should be included in
the physical and financial analysis at this time. The buildings selected y the Task Fora would be
deemed by the Task Forcc and UDI as key catalyst buildings to encourage and promote the redevelopment
opportunities identified in the Market Reconnaissance. It is estimated that between 6 to 10 buildings will
be identified.
B.. Building Inspectinc Deports
UDI and DO will conduct a walk-through inspection of selected buildings in the target Area to assess the
physical condition and prepare a general cost estimate range for desired rehabilitation improvements
based upon market findings. A one to three page summary of the physical assessment and cost estimates
will be provided for convenient dirnbution to property owners and prospective d_velapers. The
information collected in the inspection will also allow for the preparation of a financial pro forma for each
building.
C. Financial Evaluation
UDI shall prepare a financial proforma for each selected building in the target area based upon
preliminary cost estimates and the desired improvements needed for prospective users. The financial
proforrna will determine the amount of public moneys, if any is required to assist the owner in proceeding
with the recommended improvements. The pro formers will be prepared in an easy to understand format
allowing all property owners to rsognize their respective economic potential and corresponding risks.
D. Task Force Meeting to Review Physical &Financial Analysis
UD1 and DO will attend a meeting with the Task Force to review the physical&financial evaluations.
Based upon the evaluations,11DI and the Task Force will determine the appropriate steps to implement
the redevelopment scenario's.
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Agenda Item No.
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April 1, 1996
TO: Mayor and Members of the City Council
FROM: Richard B. Helwig, City Manager
SUBJECT: Request from New Century Partnership for Funding
of Physical Assessment and Financial Evaluation
of Selected South Grove Avenue Properties
PURPOSE
It is the purpose of this memorandum to present a funding
request from New Century Partnership for Elgin relative to
the development of the South Grove Avenue area.
BACKGROUND
In 1995, the Elgin City Council approved funding a Market
Reconnaissance by Urban Discovery, Inc. , of Madison, Wiscon-
sin, for the purpose of identifying the market potential for
properties in the South Grove Avenue target area. This ap-
proval followed a request from New Century Partnership to
fund the "market reconnaissance" at an amount not to exceed
$14,000. It was the goal of this endeavor to identify the
existing market conditions impacting this area of the Center
City and identifying market opportunities which would lead to
redevelopment in the area. The market analysis represented
the first phase of what UDI proposed as a comprehensive mar-
ket approach to revitalization in the area. The first phase
has been completed. The Council was provided with a copy of
UDI 's findings and conclusions.
The New Century Partnership has accepted the report and feels
that there is sufficient justification to continue with the
second phase of the proposed program. This phase involves a
condition assessment of buildings in the target area and
evaluation of the type and cost of rehabilitation necessary
to prepare the buildings for a use determined by the market
findings of Phase I. Seven buildings in the South Grove area
have been recommended for this study:
6 South Grove Avenue
29 South Grove Avenue
low 31 South Grove Avenue
56 South Grove Avenue
Sti South Grove Avenue
66 South Grove Avenue
96 South Grove Avenue
NCPE Request for Funding
April 1, 1996
Page 2
rak *It should be noted that 29 South Grove Avenue is owned by
Frank Halsey, a member of the Partnership's Board of Direc-
tors. 6 South Grove Avenue is owned by NBD whose President,
Robert Carlile, is a member of the Board.
Buildings were selected based on ( 1) the prominence of the
building in the target area and (2) willingness of the proper-
ty owner to participate as evidenced by attendance at two
informational meetings .
A business pro forma will be produced for each site which
will identify the financial needs of a project to prepare the
building for a use identified by the market findings. A
memorandum from Norman Bartels, President, New Century Part-
nership, describing the proposed project is attached. Includ-
ed is a proposed agreement with Urban Discovery, Inc. present-
ing the scope of services .
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
Two meetings were held with South Grove Avenue property own-
ers relative to the project.
FINANCIAL IMPACT
eft New Century Partnership would enter irto an agreement with
Urban Discovery, Inc. to provide services at an amount not to
exceed $14,000. Adequate funds exist in Account No.
010-0701-711.30-99, Miscellaneous Professional Services.
LEGAL IMPACT
None.
ALTERNATIVES
1. Proceed with Phase II of the Market Reconnaissance by
Urban Discovery, Inc.
2. Proceed with condition assessment of buildings in the
target area and the cost of rehabilitation only after
potential tenants or buyers are identified.
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NCPE Request for Funding
April 1, 1996
Page 3
RECOMMENDATION
The New Century Partnership requests $14,000 from the City of
Elgin to fund Phase II of the Market Reconnaissance (Alterna-
tive One) . The NCP feels the Phase II program will identify •
realistic market uses for the above properties as well as
usable financial information.
Respectfully submitted,
m , `K, 1) 0.11-4
Deborah K. Nier
Director, New Century
Partnership
Richard B. Helwig
City Manager
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Attachments
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MEMORANDUM
TO: Mayor and City Council
FROM: Norman Bartels, President of New Century Partnership of Elgin
DATE: March 28, 1996
RE: New Century Partnership - South Grove Task Force
Phase II with Urban Discovery, Inc.
On behalf of the South Grove Task Force (Task Force) of the New
Century Partnership of Elgin, Inc. (NCP), attached please find the proposed
Agreement with Urban Discovery, Inc (UDI). New Century Partnership has
authorized the Task Force to proceed with a revised Phase II program with
UDI in an amount not to exceed $16,000.00. NCP is requesting the City of
Elgin to fund the Phase II program as outlined in the attached Agreement in
the amount of $14,000.00. This is a change from the original proposal
submitted in which all of the buildings in the Target Area were to be analyzed
at once at a cost in excess of$50,000. -
By way of background, the Phase I work with UDI consisted of a
Market Reconnaissance of the South Grove Avenue target area in February
1996, copies of which have already been provided to yourself and members
of the City Council. After the review and analysis by the South Grove Task
Force and discussion with UDI, the Task Force recommends that a detailed
physical and financial analysis and evaluation of selected buildings by UDI
be undertaken (referred to as the Phase II program), for the following reasons:
1. The Task Force generated the interest in a number of property
owners in the target area to participate with the Phase II program
and with the goal of cooperating to revitalize the downtown area.
2. The financial and physical evaluation and analysis of the selected
buildings are expected to result in usable pro formas of key
structures within the target area.
3. The Phase II analysis will assist in quantifying the marketability
of the selected structures which should establish economic
benchmarks to measure the development of the remainder of the
task force area and the expected success of the Task Force.
The South Grove Task Force has identified the following buildings for
the Phase II program as a result of meetings and discussions with property
owners:
(1) 6 South Grove Avenue (2) 31 South Grove Avenue
(3) 29 South Grove Avenue (4) 66 South Grove Avenue
(5) 56 South Grove Avenue (6) 61 South Grove Avenue
(7) 96 South Grove Avenue
Each of the property owners has expressed a willingness to participate in this
program.
Once the authorization for funding is received, the South Grove Task
Force anticipates receiving the reports and evaluations (identified on
attachment A to the Agreement) within eight (8) weeks of the commencement
of Phase II.
The Phase II program will continue the process of identifying realistic
market uses for properties within the target area. The Task Force's efforts
have already generated participation of property owners for this cooperative
effort, consistent with the public and private partnership concept for
downtown redevelopment. The Phase II program for the initial buildings is
necessary to move from the abstract discussions to a document including
usable financial information. If the Phase II program for these initial
buildings produces results that cause identifiable redevelopment, the Phase
II program would be suggested for additional buildings within the Target
Area.
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W:\AL\TASKFOKUDI
March 28.1996