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01-210 Resolution No. 01-210 RESOLUTION AUTHORIZING EXECUTION OF A FACADE IMPROVEMENT PROGRAM AGREEMENT WITH JOE DEMERCURIO (40 DuPage Court) 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 Joe DeMercurio for the property commonly known as 40 DuPage Court, a copy of which is attached hereto and made a part hereof by reference . s/ Ed Schock Ed Schock, Mayor Presented: July 25, 2001 Adopted: July 25, 2001 Omnibus Vote : Yeas : 7 Nays : 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk r CITY OF ELGIN FACADE IMPROVEMENT PROGRAM AGREEMENT THIS AGREEMENT is made and entered into this 207H day of U W , 2001, by and between the City of Elgin, Illinois, a munici al corporation (hereinafter referred to as "City" ) , and Joe DeMercurio, the authorized agent of the property owner, Lora Seigle (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 Area, 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 50% of subject commercial building (s) , or is the tenant of commercial building (s) located within Rehabilitation Area, with owner having provided the owner' s consent and authority 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 . The total approved project costs for facade improvements for the structure referred to at Section 16 herein shall be $107, 308 . 00, as set forth in Attachment A attached hereto (such total approved project costs for facade improvements are hereinafter referred to as "Eligible Costs" and such structure is hereinafter referred to as the "Structure" ) . The City shall pay the Owner a sum not to exceed $37, 557 . 80 of the Eligible Costs, being 35% of the total Eligible Costs, for facade improvements for the structure approved pursuant to the provisions of this Agreement The project shall be confined to approved improvements made to that 1 a part of the Structure visible from any public right-of-way. All parties hereto agree that all payments from the City provided for herein shall be made to Joe DeMercurio, who shall provide the City with a full release upon receipt . Section 2 . Eligible costs shall include labor, material and equipment 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 the "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" ) . Section 3 . No Work shall be undertaken or shall be considered to 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 Urban Design and Preservation Specialist and City' s Principal Planner, and any other member designated on the Project Review Team. 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 . The Project Review Team shall be permitted access to Structure 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 5 . Upon completion of the Work, and upon final inspection and 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, 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 6 . City shall pay to Owner the sum provided for at Section 1 herein within thirty (30) days of owner' s compliance with the provisions of Section 5 herein. In no event shall the amount paid to Owner exceed the amount specified in this Agreement or in the contractor statement . 2 y Section 7 . In the event Owner fails to complete the Work in accordance 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 8 . Upon completion of the Work, and for a period of five (5) 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 9 . Nothing herein is intended to limit, restrict or prohibit the 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 10 . This Agreement shall be binding upon City and its successors, and upon Owner, Owner' s successors and assigns for a period of five (5) 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 11 . If Owner does not own the underlying property for which Work 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 authorized 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 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 12 . 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 . 3 i Section 13 . This Agreement shall not be construed to create a partnership, joint venture or employment relationship between the parties hereto. Section 14 . 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 the Circuit Court of Kane County, Illinois. Section 15 . The terms of this Agreement shall be severable. In the 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 16 . Owner' s Name : Lora Seigle Agent of Owner: Joe DeMercurio Address: JDM Associates 40 DuPage Court, #209 City: Elgin, IL 60120 Telephone Number: (847) 695-4408 Property Location: 40 DuPage Court Ownership Interest : Agent of Owner Contact Person: Joe DeMercurio IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first appearing above. As to CITY OF ELGIN As to O By: 1 ercurio e7-1W1, el* Agen of Owner ATTEST: /GJ 412 Dolonna Mecum, Clty Clerk 4 Work Item Contractor#1 Contractor#2 New Signs Schroeder Sign Co. $8,600.00 Paint Removal Singles Roofing Co. $29,155.00 Seylers,Inc. $34,395.00 Masonry Sealing Singles Roofing Co. $8,450.00 Seylers, Inc. $14,900.00 Exterior Painting All-tech Decorating $43,200.00 Agrarian Way $56,480.00 New Awnings Hunzinger Canvas $8,563.00 Co. New Aluminum Mark Industries $9,340.00 Fox Valley $11,149.00 Doors at Entrance Glazing totals $107,308.00 $116,924.00 City of Elgin Agenda Item No. July 6, 2001 ALIVE DOWNTOWN TO: Mayor and Members of the City Council FROM: Joyce A. Parker, City Manager SUBJECT: Facade Project for 40 DuPage Court 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 40 DuPage Court . BACKGROUND The owner of the property, Lora Seigle, wishes to participate in the Facade Improvement Program. This turn-of-the-century building, commonly referred to as the Elgin Commerce Building, is a unique example of Elgin' s downtown commercial buildings . It was commissioned in 1892 by Gen. A. B. Spurling, a Civil War hero, and founder of what is now CR Industries . Designed by the well-known architect, W. W. Abell, the building originally had three-story high bay windows which were removed when the building was modernized. The applicant for the project is Joe DiMercurio, of JDM Associates, an architectural firm, representing the property owner for the project . Mr. Mercurio has put together the proposal and has submitted all the required documentation to complete the project . Under normal procedures of the Facade Improvement Program, the City invites local area architects to bid on providing architectural services for projects . The City directly enters into a contract with the architect and reimburses fees independent of any allocation for the project . However, in this case, with applicant being the architect, the City has saved the additional cost of architectural fees . Facade Project at 40 DuPage Court July 6, 2001 Page 2 The work to the facade involves paint removal from all the brick on the building to return it back to its original condition, cleaning and repainting the metal panels on the facade and the aluminum storefronts to a darker green color that will compliment the exposed brick work, installing new awnings above all storefront windows and the entrances, cleaning and tuckpointing the common brick on the north elevation which is visible from Spring Street, and installing new signage on the building. The applicant does not intend to reconstruct the bay windows on the facade due to the high cost . The estimated project cost is $107, 308, not including architectural services . Under the provisions of the Facade Improvement Program, the participants would be entitled to a rebate of 35 percent of the construction cost . The rebate, as calculated, would be approximately $37, 557 . 80 . COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED Elgin Heritage Commission. F NANCIAL IMPACT Approval of the comprehensive facade project for 40 DuPage Court at the 35 percent level would equal approximately $37, 557 . 80, which would amount to the total City participation since no architectural fees are involved. The total amount budgeted for the Facade Improvement Program in 2001 is $82 , 056 . 00 (account number 350-0000- 795 . 78-99, Downtown Development Fund, Facade Improvement Program) . To date, $70, 082 . 30 has been spent or encumbered, leaving a balance of $11, 973 . 70 . The amount is not sufficient to fund the project . However, funds previously allocated to the State Street Facade Improvement Program have not been utilized (account number 270- 0000-791 . 78-99, project number 079505) . A balance of $49, 000 is available to ' fund the $25, 585 needed to proceed with this project . There are no pending or anticipated projects for the State Street program at this time . A budget adjustment will be required. GAL IMPACT An agreement between the City of Elgin and the property owner at 40 DuPage Court will be required. Facade Project at 40 DuPage Court July 6, 2001 Page 3 ALTERNATIVES 1 . Approve the request by Joe DiMercurio for participation 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 40 DuPage Court be approved. Respectfully submitted, n 9 Joyce A. Parker City Manager JAP/sbs Attachments Work Item Contractor#1 Contractor#2 New Signs Schroeder Sign Co. $8,600.00 Paint Removal Singles Roofing Co. $29,155.00 Seylers, Inc. $34,395.00 Masonry Sealing Singles Roofing Co. $8,450.00 Seylers, Inc. $14,900.00 Exterior Painting All-tech Decorating $43,200.00 Agrarian Way $56,480.00 New Awnings Hunzinger Canvas $8,563.00 Co. New Aluminum Mark Industries $9,340.00 Fox Valley $11,149.00 Doors at Entrance Glazing totals $107,308.00 $116,924.00 CHEMICALLY REMOVE MINT - TO NATURAL MICR 9 MT 1LU[FAMELE .. ..WITH EPDXY MUTT I DARK GREY GREEN APFRUNI ._ .. ._._:_. .. ... .. .....J. T.ALUY MIDIDOIE.._. PRA. s►DKY.lM T SOUTH ELEVATION- _....._..EAST_ELEVATION-__ .. _ ELGINLCOMMERCE_.BUILDING 40 DuPAGB Cr.-.-.- TEL,,"T) W5-4"8' L