03-17 Resolution No. 03-17
RESOLUTION
AUTHORIZING EXECUTION OF A SECOND AMENDED
FACADE IMPROVEMENT PROGRAM AGREEMENT
WITH THE BEN G. CORN TRUST
(53-63 Douglas 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 Second Amended Facade Improvement Program Agreement on
behalf of the City of Elgin with the Ben G. Corn Trust for the
property commonly known as 53-63 Douglas Avenue, a copy of which is
attached hereto and made a part hereof by reference .
s/ Ed Schock
Ed Schock, Mayor
Presented: January 22 , 2003
Adopted: January 22 , 2003
Vote : Yeas : 7 Nays : 0
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
NOV-21-02 THU 06: 15 PM CITY OF ELGIN/CITY MGR, FAX 110. 18479315610 P. 02
• r •
SECOND AMLNDED
FACADE IMPROVEMENT PROCRAM AGREEMENT
THIS AGREEMENT is made and entered into this 2k& day of
2002, by and between the City of Elgin, Illinois, a
nicipal corporation (hereinafter referred to as "City") , and Ben G
Corn Trust, dated May 1, 1995, the property owner, (hereinafter
referred to as "Owner") .
WHEREAS, City has establizhed a facade improvement program
(hereinafter referred to as "Program") for application within
certain areas of the corporate J.imits of city designated by city as
app>.opr_atle for such application '.hereinafter referred to as
"Rehabilitation Areas") ; and
WHEREAS, Program is admini ,terod 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 snt forth herein; and
4HEREAS, Owner owns at least 50% of subject commercial
bt.tilding (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; and
WHEREAS, the parties hereto have previously entered into a
F&(4ade Improvement Program Agreement, dated May 22, 2002 , and a
First Amended Fagade Improvement program Agreement dated
October 30, 2002 (such agreement as amended is hereinafter referred
to as the "Subject Agreement") ; and
WHEREAS, the parties hereto wash to further amend the Subject
Agree.mont by entering into this Second Amended Agreement to include
certain development assistance from the City to the Owner to
further assist the Owner in the redevelopment of Owner's property
and in particular to assist the Owner with the buildout of tenant
space as hereinafter described.
NOW, THEREFORE, in consideration of the mutual promises and
covenants contained herein, the ;sufficiency of which is hereby
acknowledged, the parties herel:o hereby agree as follows:
Sect i on_l,. The project work and casts therefor for the
structure referred to at Section 16 heroin shall be in two phases,
as set: forth in Attachment A hereto. Owner shall not be required
to uti.1i.7,e the contractors listed in Attachment A. City shall pay
Owner the sum of $38, 198 . 50 for Phase I , being 50% of the total
eligible costa, which is comprised of $26, 738 . 95 for facade
reimbursemerit, and $11,459. 55 ari an economic development incentive
grant ; and $29, 937.50 for Phase 11, being 35g of the total eligible
costs. The project shall be confin2d to approved improvemments made
to that part of the structure visible from any public right-of-way.
NO.V-21-02 THU 06, 16 PM CITY OF ELGIN!CITY MGR. FAX NO. 12479315610 P. 0-1
All pax-ties hereto agree that all payments frcm the City provided
for herein shall be made to Owne=r, who shall provide the City with
a full release upon receipt .
S,FCtiori.?,. Eligible costs shall inclu&-t labor, material and
equipment: costs, and such otter costs as may be reasonably
necessary for the execution aril ccripletion 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 Term pursuant to the provisions of
Etc,:t.ion 3 herein and prepared by Consultant (hereinafter referred
to as "Plan's") .
Scsrt.i. .1. No Work shall be undertaken or shall be considered
to cc,nstitute the basis for an Bdigible 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 Tear.. Such design shall
include,, but not be limited to, a date certain by which the work
s:fall he completed. In no evenLc shall such Work be completed more
than, one hundred eighty '1180) drys from the date of this Agreement,
without the written consent of the Project Review Team.
Sect-,i,,jn 4 . The Project Review Team shall be permitted access
to Structure to periodically review the progress of the work. Such
review shall riot be in lieu of any other inspections which may
otherwise be required by law or by City. Any and all portions of
tt-e Work which do not, In the sole dxscre-ion of the Project Review
Team, conform to the Plana 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 rion-conforming porticna .
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 re`lecting the total coot of the Work and each
portion thereof., including, but not limited to, the cost of labor
(whether provided by any contractor or subcontractor) , rniterials
and equipment; (2) copies of all bids, contracts and invoices
submitted, executed or incurred pursuant to the Work; and (3)
reascnable proof_ of payment of all costs incurred pursuant to the
Work. All work shall be completed within a reasonable time as
detonnined by City in City' s sole discretic;n. City may provide
partial payments upon the completion of discrete items of work in
each phase in City' s sole d:i..scretion as determined by City' s
historic preservation specialist upon such terms as City's historic_
preservation specialist may require.
Sect...nn 5 . City shall pay to Owner the sum provided for at
32�gr p—a }ie,rein within thirty (30) days of Owner's compliance with
2
-NOV-21-02 THU 06: 17 FIB CITY OF ELGIN/CITY 111GR, FAX N0, 164793,,5610 P, 04
the provisions of e;t can 5 hel7ein. in no event shall the amount
raid to owner exceed the amount specified in this Agreement or in
the contractor statement .
sec:t: on 7 . In the. event Owner fails to complete the Work in
accordance with the terms of this Agreement, or otherwise breaches
the L°erms 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 . Gpcn completion of the Work, an-3 for a period of
five (5) years thereafter, owner shall properly maintain the Work
in its finished form, without alteration or change thereto, and
small Ilbi enter into any agreement, or take any other steps to
alter-, change or remove such work, or to create or undertake any
other ttiork which may constitute a dc,viation from the Plans, without
prior written approval from tho 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
; aje.^.t premises :which is unrelated to the facade improvement
provided for in this Agreement .
section IQ. This AgreemeRt shall be binding upon City and its
suc�ces.scrs, and upon owner, Owner's successors and assigns for a
period c;f 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.
SPCtjon 11 . if owner does not own the underlying property for
which work is beina 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 thiss program and tc 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 49 to be made to the Structure. Said owner(s) of the
property for which improvementg 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 rSPCtion 6 of this Agreement . Each
"Owner" signature hereto hereby warrants and represents that there
are no other ent.itie.s having ran owrier9hip interest- in the
Structure, which have not executed this Agreement .
Section 12. Owner hereby holds harmless and indemnifies City
frorr; and against any and all causes of acl:ion, suito, claims for
damages, and any and all other liability, which may arise out of or
.NOV-21-02 THU 0617 FM CITY OF ELGIN/CITY MGR. FI AX NO. 18479315610 P. 05
in connection with owner's or Owner's agents, employees and assigns'
negligent. performance of any of the terms of this Agreement. To
tiiE; fullest extent permitted by law, owner agrees to indemnify,
defend and hold harmless the Ci t-y, its officers, employees, boards
and commissions from and against any and all claims, suits,
judgments, costs, attorney' s fecas, damages or other relief arising
out of or resulting from or through or alleged to arise out of any
reckless or negligent acts or omissions of Owner, owner' s employees
or agents in the performance of this agreement . in the event of any
action against the City, its officers, employees, agents, boards or
comrnis;3i.ons covered by the foregoir_g duty to indemnify, defend and
hold hafrnless, such action shall be defended by legal counsel of
the City' s choosing.
S�c:tion 1.1. This Agreement not bo construed to create a
partnership, joint venture, employment or other agency relationship
of any kind between the parties hereto.
Section 1.4 . This Agreement shall be subject to and governed
by the laws of the State of Illinois. The parties hereto hereby
algree that venue for any and all actions which may be brought by
each and either of them to enforce the provis=ions of this Agreement
shall be in the Circuit Coltzt of Kane County, 711inois .
Sect 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 other-wise unenforceable for any reason,
the remainder of this Agreement shall remain in full force and
effect .
sec_C_io'l 1.6..
Owner's Name : Ben 0. Corn Trust, Hated May 1 , 1995
Address; 103 N Jane Drive
City: Elgin, IL 60123
Telephone Nutjwer: (847) 888-3414
Property Location: 53-63 Douglas Avenue
Ownership Intorest : Property owner
Contact. Person; Bruce Corn, Diane Stredde
SeCt�. n_ 17 . In addition to the Far
ade Irnprovement Program
assistance to be provided by the City to the Owner pursuant to this
Agreement, and in order to further assist the owner with the
redevelopment of Owner' s property at 53-63 Douglas Avenue, the C_ty
also agrees to provide the Owner with the development assistance
described in this paragraph, in the event that Owner completes the
Quizno' s buildout on the property in accordance with the summary
thereof as set forth in Attachmorit B hereto, the City agrees to pay
to the Owner a development incentive in the amount of $8, 380 . 05 .
Such payment by the City to the owner shall be made upon completion
of the work for the Quizno's huildout, upon final inspection and
written approval by the project review team and such other final
inspections and approvals as wAy be required by law, upon Owner
4
NOV-21-02 THU 06; 13 PM CITY OF ELGIN/01TY MGR. FAY. 140. 18479315610 P. 06
sulr.�it::irrg try thr, City rc-asonablc: proof Of payiiieirt of all costs
incurxed for the Quizrno' s buildout and upon Quizrno' s occupying and
commencing operZtions at the property.
S cation_ 1�, This agreement shall amend and supersede the
Subject Agreement between the parties hereto in all respects .
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement on the date first appearing abolre.
As _o CITY OF ELGIN: As to 01wN :R
Ry _ . '^ Berr G. Corn -Trtrst, -
Olu emi lari.n
Interim C tiger Dated May 1 , 1995
Trustee/property Owner
ATTEST:
ki iia h]zcum, City Cleric
F:\l.^gal Drpt\AcCeement\F;�cad:Lmpro�Fneat4rogrrra `;3-u'3 Douglas Corn 2ad Amelldm.er.:.d-c
5
Al;acbmcnt A .o
s
0
N
Work Item � Contractor'"I Contractor 92 Contractor 93 Contractor t3
CD
Phase 1 i CO
(amended)-'
Removal of i Asset Recovery 12,593-00 I American 1"a,250:0U
Exterior Contracting, ` Demolition
Aluminum j LLC Co oration
1`Iew,nindow Pella Windows 37,163.71 David Wayne 46,300.00 Woodland 63,804.00 Seigle's 72,125.00 i C7
installation. and dons(sloes Carpenter Winda%vs and j --3
{
not include contractors(does duors I o
installation) not meet material -n
s ification) M
Total 76, .00
City's Participation: - z
50%as originally agrced anon:$38,199-50
--3
--c
3
Phase Il
ro osec!} ,
Cinder block Applewood 4,650.00 -Manineer 4,715.00 Walier 13,000m !
remosal Construction Grzebieniak, l -n
BuiIdins ) x
s , Maintenance Inc. _
1 Exterior Seyller's 30,800.00 Applewnod 43,090.00 Walter 47,370.00
tuasenry Tuckpointing and Construction Grzebicniak, _.
s cicaning& Masomy (cleaning)and Building
tuckpointing. Maninger Maim, Inc. `
s <.0
(tuc 4,ointin,)
E °D
l Cornice and Albert 3.Wagner 43,300.00 °
Bay repair &Son,Sheet
metal contractors
total SS,Z50.00
City's Participation: l
Option I at 35°., 29,837.50(rccomrae ded by staff)
Option 2 at 50%:42,625.00 �
o
{( J
F
NOV-21-02 THU 06, 19 FM CITY OF ELGIN/CITY MGR. FAX NO, 164179315610 F, 08
i
CORN / QUIZNO'S BCJ LDOUT COSTS
TASKS CONTRACTOR AMOUNT
_
1, Dry wall &.Kit.chc;n App1mood Coyisiructioil 8,6Ci0.00
CciJin
Jun we"cr/C'arpcnTev S 2,500.00
3. F1VAC Ellin Shect NIctal 510,000,00
4. F'.lcctrical KE?CO ColWructioll $ 5,145.00
5. cw-pentry Gamastic carpentry S10,300.00
6. Plumbing Joc 13ero 5.19,022.06
TOTAL $ 55,867.00
15% S 8,380.05
At t achmcnt 1i
City of Elgin Agenda Item No.
D
0 .
t
January 3 , 2003
TO: Mayor and Members of the City Council
ALIVE DOWNTOWN
FROM: Olufemi Folarin, Interim City Manager
SUBJECT: Facade Improvement Program Agreement
53-63 Douglas Avenue
PURPOSE
The purpose of this memorandum is to provide the Mayor and
members of the City Council with information on a second
amendment for the Facade Improvement Program for 53-63 Douglas
Avenue .
BACKGROUND
F On May 22 , 2002 , the City of Elgin entered into a Facade
Improvement Program agreement with the Ben G. Corn Trust for
property located at 53-63 Douglas Avenue . Funding assistance
totaled $25, 250 and was broken down into two categories : Facade
Improvement at 35% ($17, 675 . 00) and Economic Development
Assistance at 15% ($7, 575 . 00) .
On October 23 , 2002, the City Council authorized a first
amendment to the Facade Improvement Program agreement with the
Ben G. Corn Trust . The amended agreement adjusted the 35%
assistance level from $17, 675 . 00 to $26 , 738 . 95 and the 15%
Economic Development assistance from $7, 575 . 00 to $11, 459 . 55 .
Total for Phase I costs (demolition and window replacement)
equaled $38, 198 . 50 .
City assistance for a second phase of the building renovation
was also requested. Phase II work involved the removal of
cinder blocks in the west elevation window openings, cleaning
and tuckpointing, and the repair of decorative metal molding on
the cornice and bay windows; costs totaled $85, 250 . 00 . At the
35% reimbursement level , the applicant would be entitled to
$29, 837 . 50 in facade assistance funds for Phase II . The
Fagade Improvement Program 53-63 Douglas
January 3, 2003
Page 2
applicant was operating under the impression that the project
would continue to receive assistance at a 50% level and that
therefore, Phase II renovations would be eligible for assistance
in the amount of $42, 625 . 00 . Actual funding for Phase II was
approved at the 35% level, or $29, 837 . 50 . However, staff was
directed to investigate alternatives for bridging the resulting
gap of $12, 787 . 50 . Staff met with representatives of the Corn
family and determined that the building owners will be required
to spend $55, 867 . 00 in order to provide the required "vanilla
box" for Quizno' s. Quizno' s will then provide for the final
build out for the restaurant . Staff is suggesting that 15%, or
$8, 380 . 05, of this cost to the Corn family could be provided by
the City as an additional incentive for the project .
The Ben G. Corn Trust has reviewed the alternative and has
agreed to the terms of the second amended Fagade Improvement
Program agreement .
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None .
t INANCIAL IMPACT
The total incentive amount would consist of $8, 380 . 05 . Expenses
related to the Fagade Improvement Incentive Program would be
funded through account number 276-0000-791 . 80-27, Economic
Development Incentives, project number 079817 . Sufficient funds
are budgeted ($110, 000 . 00) in the 2003 Budget to cover the cost
of this grant if it is awarded. To date, $10, 555 .43 has been
encumbered leaving a balance of $99, 444 . 57 available for this
project .
LEGAL IMPACT
An agreement will be required.
ALTERNATIVES
1 . Fund the Quizno' s build out at 15% of the cost at a total
of $8, 380 . 05 .
Fagade Improvement Program 53-63 Douglas
January 3, 2003
Page 3
2 . Fund the Quizno' s build out at 23% of the cost at a total
of $12, 849 .41 .
3 . Do not provide additional funding for the project .
RECOMMENDATION
It is recommended that the City Council approve the second
amendment Facade Improvement Program agreement with the Ben G.
Corn Trust in the amount of $8, 380 . 05 .
Respectfully submitted,
Olufemi Fo grin
Interim Ci er
RM:cm