98-270 Resolution No. 98-270
RESOLUTION
AUTHORIZING EXECUTION OF A REVERSION OF ASSETS AGREEMENT
WITH THE YWCA OF ELGIN
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
Reversion of Assets Agreement on behalf of the City of Elgin
with the YWCA of Elgin for building rehabilitation at its
facility located at 220 E. Chicago Street, a copy of which is
attached hereto and made a part hereof by reference.
s/ Kevin Kelly
Kevin Kelly, Mayor
Presented: November 4 , 1998
Adopted: November 4 , 1998
Vote: Yeas 6 Nays 0
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
REVERSION OF ASSETS AGREEMENT
On this ((1 .14, day of 199_, the City of Elgin,
Illinois, by and between the YWCA of Elgin, an Illinois not for
profit corporation (hereinafter referred to as "Agency" ) , and the
City of Elgin, Illinois, a municipal corporation (hereinafter
referred to as "City" ) .
WHEREAS, the City has applied for and received Community
Development Block Grant (hereinafter referred to as "CDBG" ) funds
from the United States Government pursuant to Title I of the Housing
and Community Development Act of 1974 , Public Law 93-383 ; and
WHEREAS, the Agency operates a facility for the physical,
mental, and social well-being of women and their families through its
programs, services, classes and events located at 220 East Chicago
Street in Elgin, Illinois (hereinafter referred to as "Facility" ) .
WHEREAS, the Agency lacks the capital to undertake all
needed repairs to the Facility; and
WHEREAS, the City has determined it to be in its best
interest to enter into this agreement with the Agency to assist the
Agency in repairing the Facility.
NOW, THEREFORE, in consideration of the mutual promises and
covenants contained herein, the sufficiency of which is hereby
acknowledged, the parties hereto hereby agree as follows :
1 . The Agency will provide programs, services, classes and events
for the physical, mental, and social well-being of women and their
families . The provision of the services shall take place at the
Facility.
2 . The Agency shall maintain any necessary local, state, and
federal licensing for each of the Facility' s programs, services,
classes, and events . The Agency shall maintain the Facility for a
period of five (5) years commencing on the date of this agreement .
3 . The City shall allocate CDBG funds for the Facility' s
improvements, the total amount of improvement funding not to exceed
$200, 000 . The improvement funding will be used for architectural
services and building rehabilitation to address deteriorated systems
and building components; included are repair and replacement of pool
deck area sections, piping systems, conduit and wiring within tunnel
area beneath pool , asbestos removal, emergency lighting, men' s and
women' s washroom, shower and locker room ADA improvements, and
exterior repairs .
4 . The City and Agency shall develop specifications for facility
improvements to be accomplished at the Facility. The specifications
developed shall be reviewed and approved by both parties hereto.
Bids on the specified work shall be solicited by the City. The
completed facility improvements shall be approved by the Agency, in
writing, prior to payment by the City. The Agency shall not
unreasonably withhold such approval .
5 . In the event that either the Agency or a suitable substitute not
for profit corporation approved at the sole discretion of the City,
does not continue providing the services identified in paragraph 1 of
this agreement, the Agency shall reimburse the CDBG Program or the
City for all CDBG funds expended for architectural services and also
for the building improvements made with the CDBG funds in an amount
equal to the remaining useful life of the building improvements as
determined by the provisions of paragraph 6 of this agreement .
6 . In the event that the services identified in paragraph 1 of this
agreement are no longer provided at the Facility, the Agency shall
reimburse the CDBG Program or the City for all CDBG funds expended
for building improvements made with those funds in an amount equal to
20% for each year and portion of each year remaining on the five year
useful life of the building improvements . The term of the building
improvement ' s five year useful life shall commence on the date of
this agreement . This provision shall not be construed as limiting
the City' s from asserting claims against the Agency for breach of any
other terms of this agreement .
7 . Changes contained in this Agreement, unless otherwise noted, may
only be made through a written amendment to this Agreement, executed
by the Agency and the City.
8 . This agreement shall expire five (5) years from the date of this
agreement .
IN WITNESS WHEREOF, the parties hereto have caused this
agreement to be executed on the above written date .
YWCA OF ELGIN
By C
Executive Director
CITY OF ELGIN
i�� ,
P.�v
By , A
Mayor
Attest :
City Clerk
§ —City of Elgin
q
��'�-I Agenda Item No:
I fU I1,,
October 16, 1998
TO: Mayor and Members of the City Council
FROM: Joyce A. Parker, City Manager
SUBJECT: Reversion of Assets Agreement with the YWCA of Elgin
PURPOSE
The purpose of this memorandum is to provide the Mayor and
members of the City Council with information to consider a
reversion of assets agreement with the YWCA of Elgin.
BACKGROUND
The 1997 and 1998 Community Development Block Grant (CDBG)
Program provided funds to the YWCA of Elgin located at 220 E.
Chicago Street for building rehabilitation ($25, 000 in 1997
and $175, 000 in 1998) .
em. The attached reversion of assets agreement provides $200, 000
for architectural services and building rehabilitation to
address deteriorated systems and building components . The
agreement provides for reimbursement of CDBG building improve-
ment funds by the agency in the event the operation of the
facility ceases . Reimbursement is based on the remaining
useful life of the building improvements over a five year
period. The reversion agreement is required by HUD if more
than $25, 000 is expended for a rehabilitation project .
The attached agreement has been reviewed and approved by the
Legal Department and representatives of the YWCA of Elgin.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
YWCA of Elgin
FINANCIAL IMPACT
CDBG funds totaling $200, 000 have already been set aside .
Account number 230-0000-791 . 93-36 (Building/Structures at
$200 , 000) and project numbers 154306 and 154406 will be
charged.
p iy LEGAL IMPACT
None .
Reversion of Assets Agreement-YWCA
October 16 , 1998
Page 2
ALTERNATIVES
A reversion of assets agreement is required by federal regula-
tion when more than $25, 000 of Community Development Block
Grant funds are used for building improvements .
RECOMMENDATION
It is recommended that the Mayor and City Council approve the
attached reversion of assets agreement . If approved, a
resolution authorizing execution of the agreement will be
prepared for the November 4 , 1998 regular meeting of the City
Council .
spectfully submitted,
i.
•yc: A. Parker
City Manager
VRB/vb