98-69 Resolution No. 98-69
RESOLUTION
AUTHORIZING EXECUTION OF A REDEVELOPMENT AGREEMENT WITH
PARK BLUFF VENTURE, INC.
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
Redevelopment Agreement on behalf of the City of Elgin with
Park Bluff Venture, Inc. for a duplex development at Terrace
Avenue and Kingsley Court, a copy of which is attached hereto
and made a part hereof by reference.
s/ Kevin Kelly
Kevin Kelly, Mayor
Presented: March 25, 1998
Adopted: March 25, 1998
Omnibus Vote: Yeas 5 Nays 0
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
REDEVELOPMENT AGREEMENT
This agreement is hereby made and entered into this / ,
day of A 4 f (.H , 1998, by and between the City of Elgin,
Illinois, a municipal corporation (hereinafter referred to as
"City" ) , and Park Bluff Venture, Inc . , an Illinois corporation
(hereinafter referred to as "Developer" ) .
WHEREAS, Developer owns certain real property located
within City, on which Developer intends to develop a duplex
development east of Willard Avenue and south of Bode Road, to
be commonly known as Park Bluff Development, a description of
which is attached hereto and made a part hereof as
Attachment "A" (hereinafter referred to as "Development" ) ; and
WHEREAS, Development is adjacent to and immediately south
of a public right-of-way commonly known as Terrace Avenue; and
WHEREAS, each of the parties hereto have determined it to
be in their best interests and in the best interests of the
citizens of City, that certain improvements be made to the
aforementioned right-of-way, including but not limited to a
widening of such right-of-way; and
WHEREAS, City is a home rule unit authorized to exercise
and perform any function relating to its government and
affairs; and
WHEREAS, in order to provide for the continued development
of City, including the development of the property which is the
subject of this agreement by Developer and Developer' s
additional undertakings as set forth herein, City has agreed to
provide certain developmental assistance; and
WHEREAS, Developer, as part of the reasonable development
of its property and City' s property has agreed to donate to
City certain property for the expansion and improvement of
public right-of-way adjoining such existing public
right-of-way.
NOW, THEREFORE, in consideration of the mutual promises
and covenants contained herein, the sufficiency of which are
hereby • acknowledged, the parties hereto hereby agree as
follows :
1 . Developer shall grant to City certain property
adjacent to Terrace Avenue to be used as a public right-of-way
which shall widen Terrace Avenue, including, but not limited to
treebanks and other improvements . Such grant of real property
(hereinafter referred to as "Property" ) is described by
Attachment "B" , which is attached hereto and made a part
hereof.
" ..
2 . Developer shall coordinate and perform the
development of Property, and such other development as provided
in Paragraph 4, including, but not limited to hiring such
engineers and contractors and under such terms and conditions
as may be reasonably required to develop Property as provided
by the terms of this agreement and pursuant to all applicable
codes, regulations, laws and other reasonable requirements of
City. Such right-of-way dedication shall be completed on or
before June 30, 1998 . Such development and right-of-way
dedication shall be completed on or before December 31, 1998,
as may reasonably be extended by written agreement of the
parties hereto.
3 . City shall provide street trees adjacent to and along
Property in accordance with the terms and provisions of City' s
subdivision ordinance.
4 . Development of Property shall further include, but
not be limited to, reconstruction and widening of Terrace
Avenue from Willard Avenue to Kingsley Court and reconstruction
of Kingsley Court from Bode Road to Terrace Avenue.
5 . All development as provided for herein shall conform
to City' s subdivision standards and ordinances, including but
not limited to adequate street lights, sidewalk on the south
side of Terrace Avenue, B6 . 18 curb and gutter improvement on
both sides of Kingsley Court and the south side of Terrace
Avenue, and roll curb on the north side of Terrace Avenue to
provide access to private parking lots adjacent to Terrace
Avenue. The entire length of Kingsley Court and intersections
shall also be improved with the same improvements as
practicable.
6 . All plans and specifications for the development of
Property and all construction contracts as described herein
shall be subject to review and approval by the City Engineer.
All amendments to such plans and specifications and contracts
shall also be subject to such review and approval prior to
execution. Such approval shall not be unreasonably withheld.
7 . Developer shall include in its covenants for the Park
Bluff Development Association, an agreement to maintain
Property' s turf and landscaping exclusive of parkway trees on
the south side of Terrace Avenue in a manner consistent with
the maintenance of other properties and grounds maintained or
controlled by such association.
8 . City shall pay to Developer a sum equal to 80% of the
reasonable costs for development of Terrace Avenue from Willard
Avenue to Kingsley Court and 100% of the reasonable costs for
development of Kingsley Court from Bode Road to Terrace Avenue,
or $225, 000, whichever is less . Payment shall be made in two
equal installments . The first payment shall be made on
completion of 50% of the development, as verified and approved
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by the City Engineer. The final payment shall be made on 100%
completion of the development, as verified and approved by the
City Engineer. The payments shall be made within 45 days of
written request and submission of invoices by Developer.
Reasonable costs for development of Property shall include, as
a limitation, preliminary design, engineering and construction
costs.
9 . Time is of the essence of this agreement.
10 . This agreement shall be subject to and governed by
the laws of the State of Illinois . Venue for the resolution of
any disputes or the enforcement of any rights pursuant to or
arising out of this agreement shall be in the Circuit Court of
Kane County, Illinois .
11 . The terms of this agreement shall be severable. In
the event 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.
12 . This agreement shall not be construed so as to create
a joint venture, partnership, employment or other agency
relationship between the parties hereto.
13 . Developer hereby warrants and represents that it
holds fee simple title to Property.
14 . This agreement shall be binding on the parties hereto
and their respective successors and assigns . Any assignment or
delegation of this agreement by Developer shall be subject to
written approval by City.
IN WITNESS WHEREOF, the parties hereto have e . -cuted this
agreement on the date and year first ritten . .•
CITY OF ELGIN
PARK :Air VENT N .
By: e4,4_,_ i�� By:
..:.ijfi1l/ J
Mayor
7
6
Attest: z� / -CL -fr-- Attest: A , 4
City Clerk Its : i :AT�:�%
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ATTACHMENT "A"
LEGAL DESCRIPTION
Outlot A in Lord' s Park Terrace, being a subdivision
of part of Lot 16 of the County Clerk' s Subdivision in the
Southwest Quarter of Section 18, Township 41 North, Range 9
East of the Third Principal Meridian, in the City of Elgin, in
Hanover Township, Cook County, Illinois (said property is
commonly known as 55 North Willard Avenue) .
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4
ATTACHMENT "B"
LEGAL DESCRIPTION
The Northerly 20 feet of the Westerly 720 .55 feet and
the Northerly 40 feet of the Easterly 94 .41 feet of the
following described property:
Outlot A in Lord' s Park Terrace, being a subdivision
of part of Lot 16 of the County Clerk' s Subdivision in the
Southwest Quarter of Section 18, Township 41 North, Range 9
East of the Third Principal Meridian, in the City of Elgin, in
Hanover Township, Cook County, Illinois (said property is
commonly known as 55 North Willard Avenue) .
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1.:7"
K�OFE�C/
y City of Elgin Agenda Item No.
January 20, 1998
TO: Mayor and members of the City Council
FROM: Joyce A. Parker, City Manager
SUBJECT: Terrace Avenue Improvements/Park Bluff Development
PURPOSE
The purpose of this memorandum is to present to the Mayor and
members of the City Council information to consider options
for improvement to Terrace Avenue .
BACKGROUND
The City Council in December gave approval to a petition for a
32-unit duplex development east of Willard Avenue and south of
Bode Road to be known as the Park Bluff Development . The
development as proposed represents significant input and
rm. direction by neighbors and staff to create a quality
residential development .
The planned development ordinance approval has not been
forwarded to the City Council until a remaining issue could be
resolved. Staff was requested to investigate a cost-sharing
agreement for improvements to Terrace Avenue, immediately
north of the proposed duplex development. The roadway is
currently a public alley, providing access for six apartment
buildings . The alley is in poor condition. There are no
street lights, sidewalk, curb or gutter; and there is no
opportunity to provide these improvements given the current
narrow right-of-way.
Terrace Avenue Improvement
The developer of Park Bluff, L.E. Zannini and Co. , Inc. , has
agreed to dedicate to the City an additional 20 feet of
right-of-way for Terrace Avenue. The additional property will
allow for construction of a street built to City standards and
include the desired safety and convenience improvements . It
is anticipated there will be no parking allowed on the new
street . The developer has also agreed, at the City' s request,
to coordinate the construction project, hiring the engineers
and contractors with City supervision and oversight . The City
would then reimburse the developer for the City participation.
001"- Construction of a new Terrace Avenue and Kingsley Court (a
block-long extension of the current alley to Bode Road) is
estimated to cost $255, 000 .
Terrace Avenue Improvements/Park Bluff Development
January 20, 1998
Page 2
em. Cost Sharing
Upgrades to unimproved Terrace Avenue would constitute a
public improvement similar to those in special assessment
projects . Therefore, the City would normally require cost
participation by the adjoining property owners . In the most
recent special assessment, the City has provided 60% of the
project costs as the public benefit portion and adjoining
property owners 40% . Given these ratios and the project cost
estimate, the initial position in approaching property owners
is that the City would contribute $153, 000 and the property
owners a total of $102, 000 (the developer was not going to get
a credit for their land dedication) . Of the private
contribution, L. E. Zannini and Co. , Inc. owns slightly less
than one-half of the total frontage and has agreed to
participate up to $40, 000 for Terrace Avenue (letter
attached) .
The remaining property owner participation ($62, 200) expected
of the apartment building owners remains an open issue. Of
the six owners of the rental property, the owner of 75 Willard
Avenue has expressed an interest in participating. The owner
of two buildings has been called but not returned the call .
The owner has apparently placed the buildings on the market
for sale . Further discussions with other owners have not
proceeded. It is assumed that if any of the property owners
elk balk at a voluntary special agreement, the others would not
proceed.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
Residents from the surrounding area of the Park Bluff Duplex
proposal and owners of the Bode Avenue apartments have been
involved in reviewing the duplex proposal .
rTINANCIAL IMPACT
he City has included $170, 500 in the 1998 Budget for Terrace
Avenue improvements (275-0000-791 . 93-80) .
The cost estimate and the targeted public benefit
participation, completed without the benefit of engineering
plans and specifications, is as follows :
Terrace Avenue Improvements/Park Bluff Development
January 20, 1998
Page 3
ruk 60%
Total City Share
$ 45, 000 $ 27, 000 Terrace Avenue from Willard Avenue
east to duplex development
entrance Park Bluff circle
(approximately 190 linear feet)
170, 500 102, 300 Terrace Avenue from Park Bluff Circle
east to Kingsley Court (approximately
531 linear feet)
39, 500 23, 760 Kingsley Court (Terrace Avenue to Bode
Road)
$255, 000 $153, 060 Total
Engineering and construction inspection are planned to be
completed by the developer. Any City participation in these
costs are expected to be accommodated within the above
estimate.
LEGAL IMPACT
,J \ Review of any Special Service Area will be required.
ALTERNATIVES
Options include :
1) Approve the planned development ordinance for the Park
Bluff Development. The developer would dedicate
additional right-of-way for Terrace Avenue but improve
that street only from Willard Avenue to the entrance of
their development . The remainder of Terrace Avenue would
remain unimproved until some future date .
2) Same as above but the City accepts a contribution of
$43, 000 from the duplex developer for 20% of the
improvement to Terrace Avenue (the developer does not
have any frontage on Kingsley Court) . The City would
then be responsible for an estimated $212, 000 remaining
balance . The cost sharing by the existing apartment
building owners who would typically be participating in
improvements to an unimproved street would be absorbed
the City.
3) Same as above except the apartment owners participate
through a Special Service Area (SSA) . SSAs are provided
for by state statute . Regulations are not as complex as
for special assessment areas such as the current Area III
project . SSAs may only be established with the
concurrence of 51 percent or more of the adjoining
property owners . The improvement to Terrace Avenue would
commence once the SSA process was completed (estimated to
Terrace Avenue Improvements/Park Bluff Development
January 20, 1998
Page 4
tow take three to four months) . Use of the SSA may require
that the City, as opposed to the developer, bid and
construct the roadway.
4) Approve the planned development ordinance for the Park
Bluff Development . The developer would dedicate
additional right-of-way for Terrace Avenue. The City
would contribute $168, 800 ( 60% of the project cost for
Terrace Avenue, 100% of the project cost for Kingsley
Court) and request the developer to contribute 40%
($86, 200) of the Terrace Avenue improvements .
RECOMMENDATION
Given the long-standing poor condition of the right-of-way and
the lack of options for improvement other than with the Park
Bluff Development, it is recommended that the City Council
adopt option #4 .
Respectfully submitted,
Roger K. Dahlstrom
Planning Dir tor
Clay J. Pearson, Director
Code Administration and
Neighborhood Affairs
David L. Lawry. P. .
Director of Pu. ' c Works
J ce A'. Parker
City Manager
Park Bluff Venture, Inc.
"x--:mit C` at' / x' - -r 4•.,z..N.,,z,.e_i:l..v' .:
Y�
452 N.McLean Blvd.
Elgin,IL 60123
•
Phone 847-742-4550
Fax 847-742-4556
Email zannini@mc.net
January 19, 1998
Messrs. Pearson and Deering
City of Elgin
150 Dexter Court
Elgin, IL 60120-5555
Re: Terrace Avenue
Lords Park Area
Elgin, IL
Gentlemen:
Pursuant to our recent meeting we are writing in regard to the improvements and
widening of the existing roadway known as Terrace Avenue, proposed by the City
of Elgin.
The existing roadway is located east of Willard Avenue and approximately midway
between Irving Park Road (Route 19) and Bode Road.
Terrace Avenue is approximately 20'-0"wide and 750'-0" in length, and provides
access from Willard Avenue to the apartment buildings and their respective
parking areas contiguous to the road. There is also a north-south connection to
the roadway at the east end of the apartments which provides access to Bode
Road.
During recent meetings with representatives from the Planning and Code
Administration Departments wherein the proposed improvements were discussed
in detail, we concurred with the City that the need for this improvement would be
beneficial to all parties concerned, and would serve to clear up a problem area in
Lords Park given the proximity of this road to the Park entrance and the residential
community at large.
The city requested that we grant an easement of 20'-0"in width along the entire
north boundary of our property so that the roadway could be widened to meet the
City ordnance of 30'-0" in width and in addition provide a parkway for sidewalks,
parkway trees and landscaping.
194.
Page Two
Additionally, the improvements would encompass new concrete curbs and
sidewalks which presently do not exist, and the installation of new storm sewers to
more adequately control excess water overflow into Willard Avenue.
One of the most significant benefits of the improvement would be the control of
the ongoing parking problem at the apartment building,proper location of the
trash enclosures north of the roadway, and the installation of street lighting along
the entire perimeter of the road.
The City proposed that the cost of the improvements which is budgeted at
approximately$200,000 be divided as follows:
* Twenty percent to be contributed by the developer of the adjacent
property, Park Bluff Venture, approximately$40,000, (not counting the
value of the land easement contribution which is valued at $25,000).
* Twenty percent to be contributed by the six apartment building owners
to the north of the roadway.
* Sixty percent to be contributed by the City.
Subsequently,we were informed by representatives of the City that the apartment
building owners have declined to participate in the improvement.
This is unfortunate since the majority of this improvement would directly benefit
their property, but the real value is for the Lords Park community in general, and
this would augment the proposed improvement currently scl::'duled for Lords
Park.
In this regard, it would be a significant benefit if the City could provide the
remaining cost to realize the overall improvement.
We have also agreed to provide and manage the construction of the roadway
improvements of Terrace Avenue for the City in conjunction with the road work in
our development.
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Page Three
The final and most important element in this proposal is the time frame which in
our opinion should precede the proposed IDOT reconstruction of Irving Park
Road which is scheduled for the following year, and run concurrent with the road
work of the proposed development. This would alleviate conflicts with the
improvements scheduled for Willard and the intersection at Irving Park Road.
At the present time,we are anticipating the start of construction in the spring of
this year. The initial phase would encompass the land development consisting of
site preparation and the construction of the new roadway.
rbk In conclusion, the benefits of the proposed improvements would enhance several
areas of the Lords Park area and be consistent with the overall reconstruction
currently planned.
incerely,
0117
Leonard Zannini
cc: Ronald Zannini
Todd Lipschutz
John O'Hara