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98-128 r` M w Resolution No. 98-128 RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH KURT KRESMERY AND MARC KRESMERY AND R.R. DONNELLEY & SONS COMPANY 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 an agreement on behalf of the City of Elgin with Kurt Kresmery and Marc Kresmery and R.R. Donnelley & Sons Company for the relocation of the Digital Colorgraphics Division of R.R. Donnelley & Sons Company to the Highland Lofts Building at 168 E. Highland Avenue, a copy of which is attached hereto and made a part hereof by reference. sl Kevin Kelly Kevin Kelly, Mayor Presented: May 27, 1998 Adopted: May 27 , 1998 Omnibus Vote: Yeas 6 Nays 0 Attest: sl Dolonna Mecum Dolonna Mecum, City Clerk t 5/14/98 RAGREE/DONNELLE.DA AGREEMENT This agreement made and entered into this 27th day of May, 1998, by and between the City OF ELGIN, an Illinois municipal corporation, (hereinafter referred to as the "City" ) , KURT KRESMERY and MARC KRESMERY (hereinafter referred to as the "Kresmerys" ) and R.R. DONNELLEY & SONS COMPANY, a Delaware corporation, (hereinafter referred to as "R.R. Donnelley" ) . WITNESSETH WHEREAS, the Kresmerys are the owners of the property commonly known as 168 E. Highland Avenue, Elgin, Illinois (hereinafter referred to as the "Highland Lofts" ) ; and WHEREAS, R.R. Donnelley has determined to proceed with the relocation of its Digital Colorgraphics Division to the Highland Lofts which is anticipated to initially involve the lease of not less than 40,000 square feet of the Highland Lofts Building and intends to employ approximately 150 full time employees at such location; and WHEREAS, in order to provide for the continued development of the City including the development of the center City area the City has agreed to provide certain development assistance in the form of a security system and reserved parking for R.R. Donnelley; and WHEREAS, the City providing development assistance to R.R. Donnelley to facilitate the relocation of its Digital Colorgraphics Division to the Highland Lofts building will result in new and additional employment opportunities in the Elgin center City area and spur additional economic development in the center City; and WHEREAS, the City of Elgin is a home rule unit authorized to exercise any power and perform any function relating to its government and affairs; and WHEREAS, development initiatives resulting in significant increases in employment opportunities within the Elgin center City area are matters within the government and affairs of the City of Elgin. NOW, THEREFORE, for and in consideration of 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 in this agreement in their entirety. 2 . That to facilitate R.R. Donnelley' s relocation of its Digital Colorgraphics Division to the Highland Lofts building the City agrees to furnish at its sole cost during the term of this agreement a CCTV security system and two-way audio system for the City of Elgin Spring Street parking facility including, but not limited to, monitoring equipment to be installed at the Highland Lofts building all as described in -2- Exhibit A attached hereto (hereinafter referred to as the "security system" ) . The City shall provide for the installation of the security system on or before July 15, 1998, and shall during the term of this agreement maintain at its cost said security system in good working order. Notwithstanding the foregoing, R.R. Donnelley intends to purchase one camera for the security system ( "the R.R. Donnelley camera" ) . If R.R. Donnelley purchases the R.R. Donnelley camera, the City shall install the R.R. Donnelley camera at a location determined by R.R. Donnelley at the Division Street entrance and pursuant to R.R. Donnelley's instructions . Such installation shall be at the city' s sole cost and expense. The City' s installation and maintenance of the security system shall not unreasonably interfere with R.R. Donnelley' s business operations at the Highland Lofts Building. Notwithstanding anything to the contrary provided herein, at the option of the City the recording equipment for the security system may be installed at a City facility as determined by the City. 3 . That the City at its sole cost shall provide a safety orientation to R.R. Donnelley employees during the transition of the R.R. Donnelley facility to the Highland Lofts building. 4 . That the Kresmerys agree that they shall provide space in a common area at the Highland Lofts building for the -3- installation of those aspects of the security system, including but not limited to monitoring equipment, to be installed at the Highland Lofts building. R.R. Donnelley, at its sole cost, shall cause plans to be prepared for the Console (the "Console" ) for the Highland Lofts Building that will house the monitoring equipment for the security system ( "the Console Plans" ) . R.R. Donnelley shall submit the Console Plans to the City for its approval which shall not be unreasonably withheld or delayed. Unless the City objects to the Console Plans within ten ( 10) days after delivery by R.R. Donnelley, the City shall be deemed to have approved the Console Plans . After the City has approved the Console Plans, R.R. Donnelley shall construct the Console at its sole cost in accordance with the Console Plans . In the event the Console at the Highland Lofts building is not complete to allow the City to install the security system before July 15, 1998, and such delay was not caused by the City, it is understood and agreed that R.R. Donnelley shall be responsible for the reasonable costs incurred as a result of any such delays including the cost of any change orders . It is further expressly agreed and understood that all equipment of the security system to be installed either at the Spring Street parking facility or the Highland Lofts building, except the R.R. Donnelley camera which shall at all times be and remain the sole and exclusive property of R.R. Donnelley, shall at all times be and remain -4- 1 the sole and exclusive property of the City of Elgin and may be removed by the City of Elgin upon the expiration or termination of this agreement. Any such removal of the security system shall not interfere with the business operations of R.R. Donnelley and upon such removal the City shall return the monitoring space to the condition it was prior to the installation of the Console. It is agreed and understood that the Kresmerys shall have no liability for the operation, maintenance or repair of the monitoring equipment or other aspects of the security system to be installed at the Highland Lofts . 5 . That this agreement shall not be deemed or construed to create an obligation on any party hereto to provide any monitoring of the security system installed in the Spring Street parking facility. 6 . That during the term of this agreement the City shall at its sole cost provide seventy (70) contiguous undercover parking spaces in the Spring Street parking facility designated for the use of R.R. Donnelley employees from 11 : 00 p.m. on Sundays through 11 :00 p.m. on Fridays . The location of said seventy (70) parking spaces in the Spring Street parking facility are identified in Exhibit B attached hereto. The City shall erect signs in the area of said designated parking spaces identifying the parking spaces being -5- reserved for the use of R.R. Donnelley employees from 11 : 00 p.m. Sundays through 11 : 00 p.m. on Fridays . 7 . That R.R. Donnelley shall at its cost issue its employees stickers or placards identifying the cars of R.R. Donnelley employees . Such stickers or placards shall be displayed on the driver' s side of the rear window of vehicles . R.R. Donnelley agrees to use reasonable efforts to require its employees to park within the seventy ( 70) designated spaces. The City shall enforce such reserved parking through the City's normal parking enforcement operations in the Spring Street parking facility. 8 . That the Kresmerys understand and agree that the City' s designation of said seventy (70) parking spaces for R.R. Donnelley employees as herein provided shall be in lieu of the City' s obligation to provide the use of twenty-five (25) of the fifty (50) parking spaces at the Spring Street parking deck as set forth in Paragraph 3 of that certain Facade Improvement Agreement between the Kresmerys and the City of Elgin dated August 28, 1996 . 9 . That the parties further understand and agree that during the term of this agreement the City may conduct surveys regarding R.R. Donnelley' s use of the 70 designated parking spaces . In the event the results of at least three consecutive surveys performed in intervals of not less than thirty (30) days of R.R. Donnelley' s use of the designated -6- parking spaces, taken on separate business days during employee shift changes, indicate that not all of the designated spaces are being utilized, after the City has given R.R. Donnelley advance 30-day written notice and R.R. Donnelley has not increased its utilization of the designated parking spaces, the number of designated parking spaces may be reduced accordingly by the City or reassigned to reflect limited times for designated use by R.R. Donnelley employees . In reducing the number of designated spaces the City shall consider R.R. Donnelley' s future staffing levels . If staffing levels or driving patterns require additional designated spaces above the reduced level, the City shall increase the number of designated spaces, but in no event to exceed 70 spaces . In the event of future increases in R.R. Donnelley staffing levels at the Highland Lofts R.R. Donnelley may make a request to the City for an increase of designated parking spaces in addition to the 70 designated parking spaces provided for herein. The City agrees to consider in good faith such a request from R.R. Donnelley for an increase of designated parking spaces in addition to the 70 designated parking spaces provided for herein, provided however, it is expressly understood and agreed the decision of whether or not to designate additional parking spaces for R.R. Donnelley above the 70 designated parking spaces provided for in this agreement shall be in the sole and exclusive discretion of the City taking into account the -7- parking needs of other downtown businesses and the general public. 10 . That the City at its sole cost shall provide ongoing maintenance of the Spring Street parking facility during the term of this agreement. 11 . That during the term of this agreement the City will authorize a 15 minute passenger loading zone on Highland Avenue, 3 handicap parking spaces on Division Street and a loading zone on Division Street adjacent to the truck dock being constructed on the northwest corner of the subject property, such handicap parking spaces and loading zone being shown and depicted on Exhibit C attached hereto. 12 . That the parties understand and agree that the undertakings of the City as set forth herein are expressly contingent upon R.R. Donnelley' s locating its Digital Colorgraphics Division at the Highland Lofts building as described herein. In the event R.R. Donnelley fails to relocate its Digital Colorgraphics Division to the Highland Lofts building as described herein and maintain such operations at the Highland Lofts building during the term of this agreement the parties understand and agree that the City may, after the City has given R.R. Donnelley advance 30-day notice and R.R. Donnelley has not cured its failure within the 30-day period, as its sole remedy terminate this agreement and remove all security equipment installed at the Highland Lofts -8- building, except the R.R. Donnelley camera, and terminate the designation of the reserve parking spaces at the Spring Street parking facility and this agreement and have no further force or effect. In the event of such termination of the designation of the reserved parking spaces it is agreed that the Kresmerys will be entitled to the free use of 50 parking spaces at the Spring Street parking deck for the balance of the three year period commencing ten ( 10) months after the date of the Kresmerys ' acquisition of the Highland Lofts, if any, as set forth in paragraph 3 of that certain Facade Improvement Agreement between the Kresmerys and the City dated August 28, 1996 . 13 . That this agreement shall not be deemed or construed to create an employment, joint venture, partnership or other agency relationship between the parties hereto. 14 . This agreement represents the entire agreement between the parties hereto and any oral representations, promises, terms or agreements not herein expressed shall be of no force and effect. 15 . That this agreement may not be assigned without the express written consent of all parties hereto. 16 . That this agreement is subject to and shall be governed by the laws of the State of Illinois . 17 . That the term of this agreement shall be for five (5) years commencing upon the execution of this agreement. -9- 18 . That all notices herein shall be in writing and shall be served on the parties at the addresses following their signatures . The mailing of a notice by registered or certified mail, return receipt requested, shall be sufficient service when the notice is mailed. IN WITNESS WHEREOF, the parties have entered into and executed this Agreement on the date and year first written above. CITY OF ELGIN, a municipal R.R. DONNELLEY & SONS COMPANY, / a Delaware corporation Kevin Kelly, Maycff Name Glenn-T. Ke ly Title Vice President/Real Estate A test: Dolonna Mecum, titly Clerk) CITY OF ELGIN R.R. DONNELLEY & SONS COMPANY 150 Dexter Court 77 W. Wacker Drive Elgin, IL 60120 Chicago, IL 60601 Attn: City Manager Attn: Real Estate Administrator (,�� 60�t� Kurt Kresmery 2 Marc Kresmer � KURT KRESMERY MARC KRESMERY c/o Kurt Kresmery 168 E. Highland Avenue Elgin, Illinois 60120 -10- Committee of :.-e W'-cie February 25 , 1998 Page c Recess Councilman McKevitt made a motion, seconded by Councilman Gavin, to go into executive session for the purpose of discussing the following matters . Discussion of Minutes of Meetings Lawfully Closed under this Act - Exempt under Section 120/2 (c) (21) of Open Meetings Act Purchase or Lease of Real Property for the Use of the Public Body - Exempt under Section 120/2 (c) (5) of Open Meetings Act Yeas : Councilmembers Gavin, McKevitt, Schock, Walters, Yearman, and Mayor Kelly. Nays : None . Whereupon, at 6 : 22 p .m. , the corporate authorities convened in executive session for the purpose of discussing the above-stated matters . At 7 : 22 p .m. , the corporate authorities returned to open session. Allocation of Parking Spaces at Spring Street Parking Deck Discussion was held concerning whether the City is obligated to designate the 130 spaces for Donnelley under roof . The Mayor stated that Donnelley will feel the City is going back on its previous agreement unless their spaces are under roof . Other potential parking areas were also discussed. Councilman Gilliam arrived during the discussion at 7 :42 p.m. Councilman McKevitt made a motion, seconded by Councilman Schock, to approve Alternate #1 , which is as follows : Allocate parking spaces as follows : R. R. Donnelley 130 Home Federal 50 Ten hour 101 Two hour 65 Handicap 8 Official 2 Diagram #1 Yeas : Councilmembers Gilliam, McKevitt , Schock, and Mayor Kelly. Nays : Councilmembers Gavin, Walters, and Yearman. Demolition of Borden Building Councilman McKevitt made a motion, seconded by Councilman Gavin, to direct staff to present bids as soon as possible for demolition of the Borden Building . Yeas : Councilmembers Gavin, Gilliam, McKevitt , Schock, Walters, Yearman, and Mayor Kelly. Nays : None . Agenda Item No. ' City of Elgin 9 February 12 , 1998 TO: Mayor and Members of the City Council FROM: Joyce A. Parker, City Manager SUBJECT: Allocation of Parking Spaces at Spring Street Parking Deck PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information on the allocation of parking spaces at the Spring Street parking deck. BACKGROUND Pursuant to the Resolution of Intent passed by the City Council on December 17, 1997, R. R. Donnelley will receive 130 designated parking spaces, contiguous and located under cover, at the Spring Street parking deck. Given the current assign- ment of parking time restrictions within the deck, a reassign- ment of spaces is necessary to accommodate R. R. Donnelley. In addition, Home Federal Savings has requested 50 spaces in the deck for employees . The bank also has requested that these 50 spaces be undercover. Since the implementation ,of the free parking system on Novem- ber 3 , 1997, the deck was divided into two parking time zones . Of the 356 available spaces, 108 are designated as two-hour parking and 238 are designated for long-term parking (ten hours) . Of these 238 long term spaces, 91 uncovered spaces are located on the top tier of the deck. Eight handicapped spaces are also provided at the entrances to the deck. The two hour parking area is intended to serve customers of downtown businesses and visitors . Turn-over is encouraged to ensure that the most convenient parking spaces are made available . Ten-hour parking is intended to be used by down- town employees and customers whose business downtown will not be concluded within two hours . According to recent counts of deck users, approximately 140 ten-hour spaces are used daily. These vehicles are parking in the covered portion of the deck . Ninety-one uncovered spaces at the top level are unused. A portion of those utilizing the ten-hour spaces are Home Federal employees . Allocation of Parking Spaces at Spring Stree: Parking Deck February 12 , 1998 Page 2 A survey of the existing two-hour parking spaces taken over a week-long time frame revealed an average daily usage of 38 vehicles . Some of these spaces are used by parking permit holders who, according to the existing policy, may park in any time zone . Some of these parking permits are held by employ- ees of Home Federal . PARKING SPACE REALLOCATION As stated earlier, 130 spaces will be allotted to R. R. Donnelley. All of these spaces need to be contiguous, under- cover and designated for the exclusive use of R. R. Donnelley. Assignment of Levels 2 and 3 meets their criteria and allows for the most conveniently-located spaces (those located adjacent to street entrances and exits) to be available for other downtown customer and visitor parking. Home Federal has requested 50 designated spaces, undercover. Although Home Federal also desires these spaces be signed specifically for their use, they have agreed that the spaces could be utilized after 5 : 00 p.m. to accommodate the need of businesses with evening hours . Providing 180 spaces for R. R. Donnelley and Home Federal eight handicapped spaces, two "official" spaces (city vehicles) and 65 two-hour spaces at the entrances and exits of the deck, will leave 101 spaces for ten-hour parking. Ninety-one of the remaining 101 ten-hour parking spaces are located on the upper level of the deck and uncovered. It becomes vital that adequate snow removal be provided in order to maximize the availability of long-term parking. Diagram One details the preliminary reallocation of the parking designations described above . Diagram Two eliminates designated parking for Home Federal and makes 50 additional covered spaces available for ten-hour parking on a first come basis . ISSUES Issues to consider include : 1 . An unknown factor is the type of demand created by new businesses moving into the area, such as those locating at Highland Lofts . Related to this is a provision of the development agreement with Highland Lofts (formerly Ackemann' s) which obligates the City to provide 50 parking spaces (although not designated) for use by the tenants . Twenty-five of those 50 are counted among those designated for Donnelley. Allocation of Parking Spaces at Spring Street. Parking Deck February 12 , 1998 Page 3 2 . Long-term parkers may prefer lower level , covered spaces which could be available by purchasing a permit . Their presence, under these circumstances, would deplete the availability of short-term spaces for customers and visitors . 3 . As parking needs of the CBD evolve, there is a need to respond to changes expeditiously. This could be accom- plished by allowing revisions in the system at the deck to be made administratively with approval from the City Manager, based upon recommendations from the New Century Partnership parking committee and Neighborhood Services Committee . Presently, the time restrictions on the spaces in the deck are controlled by ordinance . 4 . The New Century Partnership Parking, Traffic, Maintenance and Security Committee has asked that the City Council recognize the petition signed by 250 downtown business people protesting the assignment of designated spaces to any business . Moreover, the lack of discussions with current users is felt to be a concern. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED New Century Partnership e�FINANCIAL IMPACT The estimated cost for preparing and installing 180 designated signs is $3 , 330 . Funds are available in account number 270-0000-791 . 93-80 , project number 079502, Spring Street parking deck improvements, for this expenditure . LEGAL IMPACT None . ALTERNATIVES 1 . Allocate parking spaces as follows : R. R. Donnelley 130 Home Federal 50 Ten hour 101 Two hour 65 Handicap 8 Official 2 Diagram #1 2 . Allocate parking spaces as follows : R. R. Donnelley 130 Ten hour 151 Two hour 65 Handicap 8 Official 2 Diagram #2 Allocation of Parking Spaces at Spring Street Parking Deck February 12 , 1998 Page 4 RECOMMENDATION It is recommended the parking spaces in the Spring Street deck be allocated as outlined in Alternative One . tfully submitted, Rob t 0. Malm Chie Operating Officer/ Assistant City Manager J ce A Parker City Manager js 1� geCar� cP X11 � r F HC HE HE H. Za $ c, �a SPRING STREET PARKING RAMP Preliminary Space Allocation Diagram 1 ® 10 Hour Parking (10 1) HC = Handicap (8) - R. R. Donnelley& Sons (130) OF =Officials (2) 2 Hour Parking (65) Home Federal (50) ftr ^ �l c rte{ f ry. O b, K� Y `11 � S' HE H HE HC,,- 213 F �a SPRING STREET PARKING RAMP Preliminary Space Allocation Diagram 2 ® 10 Hour Parking (15 1) HC =Handicap (8) - R. R. Donnelley& Sons (13 0) OF = Officials (2) 2 Hour Parking(65)