99-4 Resolution No. 99-4
RESOLUTION
AUTHORIZING EXECUTION OF A REVERSION OF ASSETS AGREEMENT
WITH THE CHANNING YMCA
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 Reversion of Assets Agreement on behalf of the City
of Elgin with the Channing YMCA for building rehabilitation at
its facility located at 111 North Channing Street, a copy of
which is attached hereto and made a part hereof by reference.
s/ Kevin Kelly
Kevin Kelly, Mayor
Presented: January 13, 1999
Adopted: January 13, 1999
Omnibus Vote: Yeas 5 Nays 0
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
L
REVERSION OF ASSETS AGREEMENT
On this day of r,,_ , 199 ?, the City of Elgin,
Illinois, by and between the Channin YMCA, 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 men, women and children through its
programs, services, classes and events located at 111 North Channing
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
men, women and children. 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 $ 70, 000 . The improvement funding will be used
for the development of specifications and the replacement
of a deteriorated boiler system;
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 specification development and for
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 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 .
CHANNING YMCA
•
By
Executive Director
CITY OF ELGIN
BY l. I , l
City Manager
Attest :
Aa■e4e■s
City Clerk
�A�OF E SC/
`: 00w' y City of Elgin Agenda Item No. ,iq
AF
,
, ilia;
irn e ti7‘
December 10, 1998
TO: Mayor and Members of the City Council
FROM: Joyce A. Parker, City Manager
SUBJECT: Reversion of Assets Agreement with the Channing YMCA
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 Channing YMCA.
BACKGROUND
The 1998 Community Development Block Grant (CDBG) Program
provided $70, 000 in funding to the Channing YMCA (111 North
Channing Street) for the replacement of a deteriorated boiler.
The attached reversion of assets agreement provides for a
$70, 000 reimbursement to the CDBG Program by the agency in
the event the operation of the facility ceases . Reimbursement
is based 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 attached agreement has been reviewed and approved by the
Legal Department and Executive Director of the Channing YMCA.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
Channing YMCA
Ot3INANCIAL IMPACT
CDBG funds totaling $70 , 000 have previously been allocated for
this project under account number 230-0000-791 . 93-36, project
number 154402 .
LEGAL IMPACT
AVNone .
eft'
. - 4
Reversion of Assets Agreement-YWCA
December 10, 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 .
R- ,pectfully submitted,
/yce A . Parker
City Manager
PAA/pa
r