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99-132 Resolution No. 99-132 RESOLUTION AUTHORIZING EXECUTION OF A REVERSION OF tETS AGREEMENT WITH THE SENIOR SERVICES ASSOCIATES FOR BUIL ING REHABILITATION BE IT RESOLVED BY THE CITY COUNCIL 0 THE CITY OF ELGIN, ILLINOIS, that Joyce A. Parker, City M nager, and Dolonna Mecum, City Clerk, be and are hereby aut orized and directed to execute a Reversion of Assets Agreemerl t on behalf of the City of Elgin with the Senior Services As ociates for building .i rehabilitation at 101 S. Grove Avenue, a copy of which is attached hereto and made a part hereof by reference. s/ Ed Schock Ed Schock, Mayor Presented: April 28, 1999 Adopted: April 28, 1999 Omnibus Vote: Yeas 6 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk REVERSION OF ASSETS gGREEMENT On this 721t, day of , 1999 the City of Elgin, Illinois, by and between the 'eni•r Services Associates, an Illinois not for profit corporation ( ereinafter referred to as "Agency" ) , and the City of Elgin, Illinois, a municipal corporation (hereinafter referred to as "City" ) . WHEREAS, the City has appl ' ed for and received Community Development Block Grant (here ' nafter referred to as "CDBG" ) funds from the United States government pursuant to Title I of the Housing and Community De elopment Act of 1974, Public Law 93-383 ; and WHEREAS, the Agency operates a multipurpose center exclusively for senior citizens locate. at 101 South Grove Avenue in Elgin, Illinois (hereinafter referred to as "Facility" ) which provides transportation, recreation, health, education, information, referral and •utreach services and programs; and WHEREAS, the Agency lacks the c.pital 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 herei , the sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows : 1 . The Agency will operate a multipurpose center exclusively for senior citizens providing transportation, recreation, health, education, information, referral and o treach services and programs . The provision of t e services shall take place at the Facility. 2 . The Agency shall maintain any ecessary local , state, and federal licensing for each of the Facility' s programs, services, and event . . The Agency shall maintain the Facility for a pe iod of five (5) years commencing on the date of this .greement . 3 . The City shall allocate CDBG f nds for the Facility' s improvements, the total amount of improvement funding not to exceed $ 31, 879 . The i provement funding will be used to rehabilitate the small, second story windows and for the development of plans and specifications for the repair and replacement, when necessary, of deteriorated wood, lead cams, cracked lights, sash cords, caulkin• , painting, and the installation of interior combin.tion storm windows . 4 . The City and Agency shal develop plans and specifications for facility improvements to be accomplished at the Facilit . The plans and specifications developed sha 1 be reviewed and approved by both parties hereto, as well as the Illinois Historic Preservation Agency prior to bidding. Bids on the spe4ified work shall be solicited by the City. T e 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 corpo ation 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 CIBG funds expended for plan and specification developent and for building improvements made with the CDG funds in an amount equal to the remaining useful life of the building improvements as determined br 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 reiburse 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 usefil 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 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 fiv (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 . SENIOR SEVICES ASSOCIATES By cII 4111k,‘ Executive Director CITY OF ELGIN BY A ' f 4"Cit Manager Manager Attest : t(211/-1 City Clerk OFE-4 ( ) .G,ooN• „41,,, § % v 3 I City of Elgin i Agenda Item No. ' , -7,- 67 IIII Op oz. I)\ April 2 , 1999 TO: Mayor and Members of the City Coi. ncil FROM: Joyce A. Parker, City Manager SUBJECT: Reversion of Assets Agreement with Senior Services Associates PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with informa ion to consider a t reversion of assets agreement with Senior ervices Associates . BACKGROUND The 1998 Community Development Block Grant Program provided $31, 879 in funding to Senior Services AsOociates (101 South Grove Avenue) for rehabilitation of the small, second story windows . The attached reversion of assets agreeme t provides $31, 879 for the development of plans and specif cations and window t rehabilitation. The agreement provides f r reimbursement to the CDBG Program by the agency in the eveththe operation of the facility ceases . Reimbursement is ba ed on the remaining useful life of the building improvement over a five-year period. The reversion agreement is required by HUD if more than $25, 000 is expended for building improvements to a privately owned building. The reversion agreement has been reviewed and approved by the Legal Department and the Executive Director of Senior Services Associates . COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED Senior Services Associates . FINANCIAL IMPACT CDBG funds totaling $31, 879 have already been allocated for the project under account number 230-000d -79l . 93-36, project number 154408 . riveLEGAL IMPACT None. Reversion Agreement-Senior April 2, 1999 Page 2 r ALTERNATIVES k A reversion of assets agreement is require by federal regula- tion when more than $25, 000 of Communit Development Block Grant funds are used for building improvem nts . 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 1 agreement will be prepared for the April 28, 1999 regular Meeting of the City Council . Res.ectfully submitted, 4.e A.i Parker Ci y Man- ger VRB/vb r rft.