02-389 Resolution No. 02-389
RESOLUTION
AUTHORIZING EXECUTION OF A FACADE IMPROVEMENT PROGRAM AGREEMENT
WITH DAVID VARGAS
(65 S . Grove Avenue)
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Olufemi Folarin, Interim 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 David Vargas for the property commonly known
as 65 S . Grove Avenue, a copy of which is attached hereto and
made a part hereof by reference .
s/ Ed Schock
Ed Schock, Mayor
Presented: December '18 , 2002
Adopted: December 18 , 2002
Omnibus Vote : Yeas : 7 Nays : 0
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
CITY OF ELGIN
FACADE IMPROVEMENT PROGRAM AGREEMENT
65 S . GROVE AVENUE
THIS AGREEMENT is made and entered into this 1� day of
PC-C&M ,dE2 , 2002, by and between the City of Elgin, Illinois, a
municipal corporation (hereinafter referred to as "City") , and David
Vargas, the property owner, (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, Owner owns at least 50% of subject commercial
building(s) , or is the tenant of commercial building(s) located within
one of these Rehabilitation Areas, 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 $105, 014 .40, 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 $36, 755 . 04, being 35% of the total Eligible Costs, for facade
improvements to the structure approved pursuant to the provisions of
this Agreement . The project shall be confined to approved improvements
made to that 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 David Vargas, 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 specifications approved by the Project Review Team pursuant to
the provisions of Section 3 herein (hereinafter referred to as
1
"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. All work shall be completed
within a reasonable time as determined by City in City' s sole
discretion.
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, which ever is
less .
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
2
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 . To the fullest extent provided by the law, Owner
agrees to and shall indemnify, defend and hold harmless, the City, its
officials, officers, employees, attorneys, agents, boards and
commissions from and against any and all claims, suits, judgments,
costs, attorney' s fees, damages or other relief, including but not
limited to worker' s compensation claims, in any way resulting from or
arising out of or alleged to be resulting from or arising out of
negligent acts or omissions of the Owner in connection herewith,
including negligence or omissions of employees, agents, contractors or
subcontractors of the Owner arising out of the performance of this
agreement, or in any way resulting from or arising out of or alleged to
be resulting from or arising out of any violation and/or breach of the
terms or the provisions of this agreement by the Owner, including any
violation and/or breach by employees, agents or subcontractors of the
Owner. In the event of any action against the City, its officials,
officers, employees, agents, attorneys, boards or commissions covered
by the foregoing duty to indemnify, defend and hold harmless, such
action shall be defended by legal counsel of the City' s choosing.
Section 13 . This Agreement shall not be construed to create a
partnership, joint venture or employment relationship between the
parties hereto.
3
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: David Vargas
Address: 60 South Spring Street
City: Elgin, Illinois 60120
Telephone Number: 847-697-0848
Property Location: 65 South Grove Avenue
Ownership Interest : property owner
Contact Person: David Vargas, property owner
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement on the date first appearing above .
As to CITY OF ELGIN As to OWNER:
c
t
By BY
4
Olufemi ola in Davi rg
Interim City aye Property Owner
ATTEST:
Dolonna Mecum, City Clerk
4
A
PROJ No. DATE: 11!14102
2107 BERNA ARCHITECTS AND DESIGN
Mr David Vargas
60-65 S GROVE AVE ONLY
FACADE PROGRAM CITY OF ELGIN
Eas*V Buildup 2&3 ONLY
FACADE EXTERIOR REMODEL ESTIMATE(Grow SO
PROJECT COST ESTIMATE
DMSION 2-SITE WORK
SITE ELECTRICAL
EXTERIOR LIGHTING 1 Ell $200.00 EA 1 $200.00
LOW INTENSITY,LOW LEVEL
DIVISION 2A-SUBSTRUCTURE
DISPOSAL DUMPSTERS OFFSITE 1 2 EA 5500.00 lEA 1 $1,000.00
DMSION 3-CONCRETE
CONCRETE
5*ACCESSIBLE PAD FOR FRONT STEP 100 S.F. 54.75 S.F. $475.00
REINFORCED CONCRETE
DIVISION 4-MASONRY
TUCK PT. 700 S.F. 57.50 S.F. $5,250.00
CLEAN BRICKWORK 1,500 S-F. $3.00 IS.F. I $4,500.00
NEW MASONRY 68 S.F. $18.00 S.F. I 51,224.00
DIVISION 5-METALS
METAL CORNICE REPAIR 10 L.F. 5460 L.F $4,800.00
DIVISION 6-WOOD&PLASTIC
ROUGH CARPENTRY
TEMPORARY PROTECTION 1,000 ADD $1.00 JADD $1,000.00
MISC.WOOD BLOCKING 1,000 ADD $1.00 JADD $1,000.00
DIVISION 7-THERMAL&MOISTURE PROTECTION
CAULK AND SEALANTS
INTERIOR CAULK 1,000 ADD $1.00 D $1,000.00
EXTERIOR CAULK 1,000 ADD $1.00 $1,000.00
ROOFING
BUILT UP ROOF SYSTEM 200 S-F. $10.00 S.F. $2,000.00
MECH.FASTENED w/FLASHING&
ACCESSORIES
ROOF EDGING ED CO 78 LF. $28.00 1L.F. $2,184.00
INCLUDES BLOCKING,ALUMINUM ROOF EDGE
DIVISION 8-DOORS&WINDOWS
EXTERIOR DOORS ASSEMBLED COSTS
DOORS,FRAME AND HARDWARE INSTALLED
-OGLE 1 EA- $1,200.00 EA. $1,200.00
-PAIR 2 EA- $2,400.00 EA $4,800.00
EXTERIOR GLAZING
WINDOWS AT EXTERIOR 195 S.F. $50.00 S-F. $9,750.00
STOREFRONT AT EXTERK)R 500 S.F. 545.00 S.F. 522.500.00
Page 1
DIVISION 9-FINISHES
PAINTING
EXPOSED SURFACES 300 &V $1.53 S.F. 1459.00
DOORS AND FRAMES 1 EA. $35.00 EA $35.00
ACOUSTIC CEILING TILE
Z X V BASE ACOUSTIC TLE SYSTEM
w/EXPOSED GRID SUSPENSION
-LARGE ROOMS 500 S.F. $1.95 S.F. $975.00
misc.
EXTERIOR SIGNAGE 1,200 ADD $1.00 ADD $1,200.00
AWNINGS 90 LF. 134 L.F. $12,060.00
DEMO. 100 M.H. $70.00 M.H. 57,000.00
M,P 3 F.P. 0 S.F. $0.00 S.F. $0.00
ELEC. 175 S.F. $12.00 S.F. $2,100.00
GENERAL CONDITIONS
CONTINGENCY 0-1 $8,751.20
p p 1 $0.00
0 0 $0-00
CONTRACTORS OVERHEAD/PROFIT 0.1 $8,751.20
City of Elgin Fagade Improvement Program 35% $38,755.04
Page 2
5 City of Elgin Agenda Item No.
November 29, 2002
ALIVE DOWNTOWN
TO: Mayor and Members of the City Council
FROM: Olufemi Folarin, Interim City Manager
SUBJECT: Facade Project for 65 S. Grove Avenue
Owned by David Vargas
PURPOSE
The purpose of this memorandum is to provide the Mayor and
members of the City Council with information to consider the
first phase of a Facade Improvement project for the property
located at 65 S. Grove Avenue.
�w BACKGROUND
( Summary of project proposal
The properties at 65-69 S . Grove Avenue and 60 S . Spring Street
are located in downtown Elgin and were built at the turn of the
last century. The project involves a multi-phase/multi year plan
by Mr. Vargas to redevelop the existing buildings on the subject
property and construct a new structure on the city-owned vacant
site immediately south of his property. Presently, Mr. Vargas is
requesting approval of just the first phase of this project .
Phase 1 - Facade improvement of 65 S. Grove Avenue
Phase 1 proposes the rehabilitation of the existing facade at 65
S. Grove Avenue, addressing such items as restoring the
storefronts to their original configuration, masonry cleaning,
tuckpointing, window and door replacement, exterior lighting,
and canopy treatments.
The architect for the project, Mr. Greg Berna of Berna
Architects and Design, in contract with the City since April of
this year, has provided drawings, specifications, and an
estimated cost of the project, all of which will enable the
property owner to bid out the work.
Facade - 65-69 S. Grove Avenue - Phase 1
November 29, 2002
Page 2
The estimated cost for the Phase 1 proposed work is $105, 014 .40 .
The City' s participation at 35 percent would amount to
$36, 755.04 .
Future Phases - Fagade Improvements, Land Acquisition, and
Building Construction
The current request would obligate the City and Mr. Vargas to
proceed with just the fagade work as identified in Phase 1
above.
However, Mr. Vargas would like to express his intentions that he
plans on seeking additional City' s participation in this
project' s future phases. These would include a fagade component
as well as an economic development grant for the interior
renovations and the construction of a new building to allow an
expansion of his store onto the vacant city-owned parcel located
immediately to the south.
These future phases are proposed as follows :
• Improvements to the fagade of the building at 60 S. Spring
Street .
• Acquisition of the adjacent property at 67-69 S. Grove
Avenue, currently owned by the City of Elgin, and
construction of a new building to allow an expansion of the
current property owner' s business.
• Renovation of the interior of the existing buildings at 65
S. Grove Ave, and 60 S. Spring Street, to upgrade the
existing retail business on the first floor and residential
on the upper floor.
The total cost of the entire project as described above,
including the presently proposed Phase 1, is currently estimated
at $1, 060, 000 . 00 .
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
Development Review Team.
Facade - 65-69 S. Grove Avenue - Phase 1
November 29, 2002
Page 3
�M FINANCIAL IMPACT
Currently funds from the Center City Facade Improvement Program
account from which this project would have been funded are
depleted. However, there are funds available in the State and
National Street Facade program. The City does not anticipate any
more requests for funding under the State and National Street
program for this year. Therefore remaining funds could be used
towards projects in the Center City Facade program.
The total budget in the State & National Street Facade
Improvement Program funded under account number 275-0000-791.78-
99, Riverboat Rehabilitation Grant was originally $150, 000.
Currently a balance of $52, 542 . 96 remains in the account. The
total amount that will currently be allocated for the project' s
first phase at 65 S. Grove Avenue amounts to $36, 755.04 . A
budget transfer would be required from Riverboat Fund account
number 275-0000-791 . 78-99 project number 079813 to the Downtown
Redevelopment Fund account number 350-0000-795 .78-99, project
number 179553 to fund this project .
Any formal requests for additional city participation for future
phases of this project will be contingent on the availability of
funding at the time of such requests.
r r11��
LEGAL IMPACT
1i V An agreement between the City of Elgin and property owner at 65
S. Grove Avenue will be required for this Phase 1 proposal .
Formal requests for the city' s participation for future phases
will require additional and separate City Council approvals.
These would include new or modified agreements, land appraisals,
Requests for Proposals for the sale of city-owned land due to
the location in the TIF District, and real estate contracts.
ALTERNATIVES
1 . Approve the Phase 1 facade improvement project proposed for
65 S. Grove Avenue, to be funded from the State and
National Street program account in an amount of $36, 755. 04 .
Direct staff to work with Mr. Vargas should he choose to
Facade - 65-69 S. Grove Avenue - Phase 1
November 29, 2002
Page 4
formally bring forward future phases of the project as
identified above.
2 . Reject the proposal to complete Phase I of the project at
65 S. Grove Avenue
RECOMMENDATION
It is recommended that the City Council approve the Phase 1
facade improvement project proposed for 65 S. Grove Avenue, to
be funded from the State and National Street program account in
an amount of $36, 755 .04 . It is also recommended that staff work
with Mr. Vargas should he choose to formally bring forward
future phases of the project as identified above.
Respectfully submitted,
Olufemi Folarin
Interim City Manager
SBS/sr
Attachments
PROJ No. DATE: 11114/02
2107 BERNA ARCHITECTS AND DESIGN
Mr David Vargas
60-65 S GROVE AVE ONLY
FADE PROGRAM CITY OF ELGIN
E-4sting Binding 2 3 3 ONLY
FACADE EXTERIOR REMODEL ESTIMATE(Grove SL)
PROJECT COST ESTIMATE
DMSION 2-SITE WORK
SITE ELECTRICAL
EXTERIOR LIGHTING 1 EA $200.00 EA. $200.00
LOW INTENSrrY,LOW EE I
DMSION 2A-SUBSTRUCTURE
DISPOSAL DUMPSTERS OFFSrrE 2 EA. $500.00 JEAL $1 000.00
DIVISION 3-CONCRETE
CONCRETE
6-ACCESSIBLE PAD FOR FRONT STEP 100 S.F. $4.75 S.F. $475.00
REINFORCED CONCRETE
DMSION 4-MASONRY
TUCK PT. 700 S.F. $7.50 IS.F. 1 $5,250.00
CLEAN BRICKWORK 1 1,500 S.F. $3.00 IS.F. 1 $4,500.00
NEW MASONRY 68 S.F. $18.00 IS.F. $1,224.00
DMSION 5-METALS
METAL CORNICE REPAIR 10 L.F. $460 ILY $4,600.00
DIVISION 6-WOOD&PLASTIC
ROUGH CARPENTRY
TEMPORARY PROTECTION 1,000 ADD $1.00 ADD $1,000.00
MISC.WOOD BLOCKING 1,000 ADD $1.00 ADD $1,000.00
DMSK)N 7-THERMAL&MOISTURE PROTECTION
CAULK AND SEALANTS
INTERIOR CAULK 1,000 ADD $1.00 ADD $1,000.00
EXTERIOR CAULK 1,000 ADD $1.00 ADD $1,000.00
ROOFING
BUILT UP ROOF SYSTEM 200 S.F. $10.00 S.F. $2,000.00
MECH.FASTENED w/FLASHING 8
ACCESSORIES
ROOF EDGING ASSEMBLED CO 78 L.F. $28.00 IL.F. $2,184.00
INCLUDES BLOCKING,ALUMINUM ROOF EDGE
DISK)N 8-DOORS&WINDOWS
EXTERIOR DOORS ASSEMBLED COSTS
DOORS,FRAME AND HARDWARE INSTALLED
SINGLE 1 EA. $1,200.00 EA $1,200.00
-PAIR 2 EA. $2,400.00 EA. $4,800.00
EXTERIOR GLAZING
WINDOWS AT EXTERIOR 195 S.F. 1 $50.00 IS.F. 1 9,750.00
STOREFRONT AT EXTERIOR 500 S.F. 1 $45.00 IS.F. 1 $22,500.00
Page 1
DMSION 9-FINISHES
PAINTING
EXPOSED SURFACES 300 S.F. $1.53 S.F. $459.00
DOORS AND FRAMES 1 EA. $35.00 EA. $35.00
ACOUSTIC CEILING TILE
Z X 4'BASE ACOUSTIC TILE SYSTEM
w/EXPOSED GRID SUSPENSION
-LARGE ROOMS 500 S.F. $1.95 S.F. $975.00
MISC.
EXTERIOR SIGNAGE 1,200 ADD $1.00 ADD $1,200.00
AWNINGS 90 L.F. 134 L.F. $12,060.00
DEMO. 100 M.H. $70.00 M H. $7,000.00
M,P&F.P. 0 S.F. $0.00 S.F. $0.00
ELEC. 175 S.F. $12.00 S.F. 52,100.00
GENERAL CONDITIONS
CONTINGENCY 0.1 58.751.20
0 0 1 $0.00
0 0 50.00
CONTRACTORS OVERHEAD/PROFIT 0.1 $8,751.20
City of Elgin Fagade Improvement Program 35% 536,755.04
Page 2
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C.O.W. MEMO APPROVAL/ROUTING SLIP
Name : Sarosh Saher
Department : Planning
Date : November 20 , 2002
FAX # : 931-6075 Ext : 5910
Department Head Appro l :
Reminders :
• Date the memo for the Friday before the COW
meeting at which it is to be considered.
• Select the Strategic Goal logo and insert it
fr the
front page of the memo. Find in "City Wide
Shared"
Drive, under "City 2002 Goal Logos" folder.
• Type the initials of the Author and Typist
at the bottom of the last page .
G:\City Wide Shared\cowmemo\cowmemo.02\COW Memo
Approval Routing Slip.wpd