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98-309 Resolution No. 98-309 RESOLUTION AUTHORIZING EXECUTION OF A FACADE IMPROVEMENT PROGRAM AGREEMENT ( 11-15 Douglas Avenue) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Joyce A. Parker, 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 Frederick J. Steffen for the property commonly known as 11-15 Douglas Avenue, a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: December 16, 1998 Adopted: December 16, 1998 Omnibus Vote: Yeas 6 Nays 0 Attest: sl Dolonna Mecum Dolonna Mecum, City Clerk CITY OF ELGIN FACADE IMPROVEMENT PROGRAM AGREEMENT THIS AGREEMENT is made and entered into this j06 C, � 9 J L by and between the City of Elgin, Illinois, a municipal corporation (hereinafter referred to as "City" ) , and Frederick J. Steffen, (hereinafter referred to as "Owner" ) . WHEREAS, City has established a facade improvement program (hereinafter referred to as "Program" ) for application within certain areas of the corporate limits of City designated by City as appropriate for such application (hereinafter referred to as "Rehabilitation Areas" ) ; and WHEREAS, Program is administered and funded solely by City for purposes of the control and prevention of blight, dilapidation and deterioration of Rehabilitation Areas; and WHEREAS, pursuant to Program, City has undertaken to share the cost of facade improvements to certain structures within Rehabilitation Areas, pursuant to the criteria set forth herein; and WHEREAS, City has or shall retain the services of an architectural consultant (hereinafter referred to as "Consultant" ) to provide participants in Program with certain conceptual design work regarding proposed improvements, including, but not necessarily limited to, a color rendering of draft improvement designs and an outline of work specifications at no cost to Program participants; and WHEREAS, Owner owns at least 500 of a commercial building (s) , or is the tenant of a commercial building (s) located within a Rehabilitation Area, and Owner desires to participate in Program pursuant to the terms and provisions of this agreement . 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 : Section 1 . City shall pay to Owner a sum not tb exceed 35 per cent ot the total approved project costs, such costs not to exceed $56, 497 for facade improvements approved pursuant to the provisi—on—s—of this agreement (hereinafter referred to as "Eligible Costs" ) for the structure referred to at Section 16 herein (hereinafter referred to as "Structure" ) . AII par I.es hereto agree that all payments from the City provided for herein shall be made to Frederick Steffen, who shall provide the City with a full release upon receipt . Section 2 . Eligible costs shall include labor, material and equipmen costs, and such other costs as may be reasonably necessary for the execution and completion of the facade improvement hereby provided for (hereinafter referred to as "Work" ) as designated from the design drawings and specifications approved by the Project Review Team pursuant to the provisions of Section 3 herein and prepared by Consultant (hereinafter referred to as "Plans" ) , which design photos and cost estimates are attached hereto and made a part hereof as Attachment "A" . Section 3 . No Work shall be undertaken or shall be cons i ere o constitute the basis for an Eligible Cost until the design for such Work has been submitted to and approved in writing by the Project Review Team, consisting of the City' s Director of Business Services and Properties, City' s Historic Preservation Specialist, and City' s Rehabilitation Specialist . Such design shall include, but not be limited to, a date certain by which the Work shall be completed. In no event shall such work be completed more than one hundred eighty (180) days from the date of this agreement, without the written consent of the Project Review Team. Section 4 . Notwithstanding anything to the contrary provided in is agreement, it is understood by the parties that the phase one project activities include exploratory demolition on the west elevation which may disclose required facade improvements in addition to the work contemplated in this agreement . In such an event it is understood that the owner may pursue an amended application to the City for further improvements to be included within the facade improvement program for the subject property and further participation by the City. Any such further participation by the City shall be at the sole and exclusive discretion of the City and shall require a written amendment to this agreement executed by the parties . Section 5 . The Project Review Team shall be permitted access o ructure to periodically review the progress of the Work. Such review shall not be in lieu of any other inspections which may otherwise be required by law or by City. Any and all portions of the Work which do not, in the sole discretion of the Project Review Team, conform to the Plans or other applicable terms of this Agreement, shall be made to conform to the Plans and other applicable terms of this agreement upon written notice of the existence of such non-conforming portions . Section 6 . Upon completion of the Work, and upon final inspect ion an written approval by the Project Review Team and such other final inspections and approvals as may be required by law, Owner shall submit to City: (1) an executed, notarized itemized contractor statement reflecting the total cost of the Work and each portion thereof, including, but not limited to, -2- the cost of labor (whether provided by any contractor or subcontractor) , materials and equipment; (2) copies of all bids, contracts and invoices submitted, executed or incurred pursuant to the Work; and (3) reasonable proof of payment of all costs incurred pursuant to the Work. Section 7 . City shall pay to Owner the sum provided for at Section 7 herein within thirty (30) days of Owner ' s compliance with the provisions of Section 6 herein. In no event shall the amount paid to Uwner exceed the amount specified in this agreement or in the contractor statement . Section 8 . In the event Owner fails to complete the Work in actor ance with the terms of this Agreement, or otherwise breaches the terms of this Agreement, City may terminate this Agreement upon written notice of breach and termination to Owner, and any and all financial or other obligations on the part of City shall cease and become null and void. Section 9 . Upon completion of the Work, and for a period of five years thereafter, Owner shall properly maintain the Work in its finished form, without alteration or change thereto, and shall not enter into any agreement, or take any other steps to alter, change or remove such Work, or to create or undertake any other work which may constitute a deviation from the Plans, without prior written approval from the Project Review Team in its sole discretion. Section 10 . Nothing herein is intended to limit, restrict or pro i i e Owner from undertaking any other work in or about the subject premises which is unrelated to the facade improvement provided for in this Agreement . Section 11 . This Agreement shall be binding upon City and its successors, and upon Owner, Owner' s successors and assigns for a period of five (S) years from and after the date of completion and approval of the work. Owner shall provide subsequent Owner (s) of structure with a copy of this Agreement . This Agreement shall run with the land underlying structure. Section 12 . If Owner does not own the underlying property for w is wort is being done, Owner warrants and represents to City that Owner has a lease at the location for which the work is proposed for a term of at least six (6) years . Owner further warrants and represents that he has received authorization from all owners of the property for which work is to be done to accept funds under this program and to undertake the work. Further, such owner (s) of the property for which work is to be done hereby acknowledges that he is aware of this Agreement and authorizes the work which is to be made to the structure . Said owner (s) of the property for which improvements are to be made further acknowledge, that, as owner of the property, he is a party to this Agreement and is bound by the provisions of this Agreement specifically, but not -3- limited to, the provisions of Section 6 of this Agreement . Each "Owner" signature hereto hereby warrants and represents that there are no other entities having an ownership interest in the structure, which have not executed this agreement . Section 13 . Owner hereby holds harmless and indemnifies City from and against any and all causes of action, suits, claims for damages, and any and all other liability which may arise out of or in connection with Owner' s or Owner' s agents, employees and assigns ' negligent performance of any of the terms of this Agreement . Section 14 . This agreement shall not be construed to create a par nership, joint venture or employment relationship between the parties hereto. Section 15 . This agreement shall be subject to and governed by the laws of the State of Illinois . The parties hereto hereby agree that venue for any and all actions which may be brought by each and either of them to enforce the provisions of this agreement shall be in Kane County, Illinois . Section 16 . The terms of this Agreement shall be severa e . n e event that any of the terms or provisions of this Agreement are deemed to be void or otherwise unenforceable for any reason, the remainder of this agreement shall remain in full force and effect . Section 17 . Owner' s Name : Frederick J. Steffen Address : 17 Doug as Avenue City: Elgin_ state : IE zip state: ode : 60120_ Telephone umber: (Sq7) 741-050 Property Location: 17 Dougias venue Ownership Interest : wner Contact Person: Owner ' s Name : Address : City: State : Zip Code : Telephone Number: Property Location: Ownership Interest : Owner Owner ' s Name : Address : City: Elgin State : IL_ Zip Code : Telephone Number: Property Location: Ownership Interest : tenant Owner' s Name : Address : City: State : Zip Code : Telephone Number: -4- IN WITNESS WHEREOF, the parties hereto have executed this agreement on the date first appearing above . R C ELGIN By: (J( Ap;,Fe J e rker City Manager OWNER ATTEST: Dolonna Mecum, City Clerk OWNER OWNER OWNER FACIMP. STF/COWMEMO. 98/DEC2 -6- � . Agenda Item No. City of Elgin November 20 , 1998 TO: Mayor and Members of the City Council FROM: Joyce A. Parker, City Manager SUBJECT: Facade Program for 11-15 Douglas Avenue PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider a Facade Improvement project for 11-15 Douglas Avenue . BACKGROUND The owner of the property, Frederick J. Steffen, wishes to participate in the Facade Improvement Program. On July 22 , 1998 , the City Council approved a contract with C. O 'Neil Designers, Inc . to provide architectural services for a facade project at 11-15 Douglas Avenue . These services include design, preparation of construction documents, bidding and construction administration. Under the Facade Improvement Program, the City pays all architectural fees . C. O 'Neil ' s fee is a not-to-exceed amount of $9, 450 and will be billed on an actual time basis . Services beyond design would not proceed unless construction is approved by the City. Design work has been completed. The architect is proposing that construction proceed in two phases . The first phase involves the removal of the brick masonry veneer that covers the west elevation of the building. The estimated cost for Phase I is $21, 350 . Phase II calls for the restoration of the west, east, north and south elevations . Phase II of the west elevation is anticipated to cost $86 , 550 . The work on the west elevation is proposed to include masonry cleaning and repair, cornice construction, window replacement, trim work, lighting and signs . Work on the south, north and east elevations would include windows, doors and masonry repairs, painting and lighting. This work is estimated to cost $53 , 520 . Estimates for the Phase II work on the west elevation are preliminary due to the fact that the original facade has been covered by a brick veneer. Because the cost of the improve- ments to the west facade may change, staff feels that it would be appropriate to allow Mr. Steffen the opportunity to amend his application based upon more accurate cost estimates . Facade Project for 11-15 Douglas Avenue November 20 , 1998 Page 2 Language has been included in the agreement that allows the owner to pursue an amended application for the facade restora- tion which may require further participation by the City. Further participation by the City would be at the sole discre- tion of the City. The estimated project cost is $161, 420, not including archi- tectural services . Under the provisions of the Facade Im- provement Program, the participants would be entitled to a rebate of 35 percent of the construction cost . The rebate would be approximately $56 , 497 . COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED Downtown Neighborhood Association and New Century Partnership . FINANCIAL IMPACT Approval of the comprehensive facade project for 11-15 Douglas Avenue at the 35 percent level would equal $56 , 497 . The total amount budgeted for the Facade Improvement Program in 1999 is $100 , 000 . Sufficient funds exist from the Downtown Develop- ment Fund, account number 350-0000-795 . 78-99 , project number 079503 , and Fund 275-0000-791 . 78-99 . Currently, there are two other facade projects in the con- struction cost development stage and two projects that have recently filed applications . LEGAL IMPACT None . ALTERNATIVES 1) Approve the request by Frederick J. Steffen for partici- pation in the Facade Improvement Program. 2) Reject the request to proceed with the project . RECOMMENDATION It is recommended that the request to proceed with the Facade Improvement project for 11-15 Douglas Avenue be approved. Respectfully submitted, Joyce A. Parker eolk City Manager amp