03-317 Resolution No. 03-317
RESOLUTION
AUTHORIZING EXECUTION OF A TERMINATION AGREEMENT OF THE
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 David M. Dorgan, City Manager, and Dolonna Mecum,
City Clerk, be and are hereby authorized and directed to execute a
Termination Agreement on behalf of the City of Elgin of the Fagade
Improvement Program Agreement with David Vargas for the property
located at 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: November 19, 2003
Adopted: November 19, 2003
Omnibus Vote : Yeas : 6 Nays : 0
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
TERMINATION AGREEMENT
THIS TERMINATION AGREEMENT made and entered into this %[*day of
/VA1/4`^L1 Ele , 2003, by and between the City of Elgin, an Illinois,
municipal corporation, (hereinafter referred to as the "City") and
David Vargas (hereinafter referred to as "Owner") .
WHEREAS, t: CtZ?��/6,63_31, - have previously entered into a
Facade Improvem( dated the 19th day of December,
2002, for the pi 04 C Q as 65 South Grove Avenue, Elgin,
Illinois (herei: the "Subject Facade Improvement
Program Agreeme:
WHEREAS, i ted and the City has agreed to
terminate the S,__ cent Program Agreement pursuant to
the terms and conditions of this Termination Agreement .
NOW, THEREFORE, for and in consideration of the mutual covenants
and promises contained herein, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows :
1 . That the Subject Facade Improvement Program Agreement be and
is hereby terminated.
2 . That it is agreed and understood that the City has no
further obligations pursuant to the Subject Facade Improvement Program
Agreement including, but not limited to, any obligations regarding the
payment of monies to the Owner or any other person or entity and the
Owner hereby waives, releases, indemnifies and holds harmless the City
from and against any and all causes of action, suits, claims, damages
and any other liability or relief arising out of or in connection with
the Subject Facade Improvement Program Agreement or the termination of
the Subject Facade Improvement Program Agreement . In the event of any
action covered by the foregoing duty to indemnify and hold harmless
such action shall be defended by legal counsel of the City' s choosing.
IN WITNESS WHEREOF the parties hereto have entered into and executed
this Termination Agreement on the date and year first written above.
CITY OF ELGIN OWNER��
l'
By G� By
David Dorgan D a a
City Manager Property owner
Attest :
By:
Dolonna Mecum,
City Clerk
Agenda Item No. Z
City of Elgin
A'1' to (to
October 31, 2003
s
TO: Mayor and Members of the City Council
ALIVE DOWNTOWN
FROM: David Dorgan, City Manager �1V !ice
Sarosh Saher, Urban Design &/ Preservation Specialist
SUBJECT: Termination of Facade Project Agreement at 65 S. Grove
Avenue
PURPOSE
The purpose of this memorandum is to provide the Mayor and
members of the City Council with information to consider
terminating an agreement between the property owner and the City
of Elgin to complete the first phase of a Facade Improvement
project for the property located at 65 S . Grove Avenue.
BACKGROUND
In November 2002, the Elgin City Council approved a request to
fund Phase 1 of a fagade project at 65 S. Grove Avenue, owned by
Mr. David Vargas . Work involved the rehabilitation of the
existing fagade, addressing such items as restoring the
storefronts to their original configuration, masonry cleaning,
tuckpointing, window and door replacement, exterior lighting,
and canopy treatments .
The estimated cost for the Phase 1 proposed project was
$105, 014 . 40, with the City' s participation at 35 percent
amounting to $36, 755 . 04 .
The property owner has indicated that he is unable to complete
the work at this time and wishes to terminate the agreement with
the City. No work has been carried out to the property at this
time, and no payments have been made by the City of Elgin on the
project.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
Downtown Neighborhood Association (DNA)
Facade - Termination of Agreement: 65 S. Grove Avenue - Phase 1
October 31, 2003
Page 2
FINANCIAL IMPACT
The original budget for this project was $47, 760 . To date,
$8, 000 has been spent on architectural fees with Berna
Architects and Design. Purchase Order 147174 that encumbered the
amount of $36, 755. 04 to Mr. Vargas will be cancelled. The
Downtown Redevelopment Fund, account number 350-0000-795. 78-99,
project number 179553 will be credited, and the funds returned
to the account .
w^��
LEGAL IMPACT
V\v*VA termination agreement between the City of Elgin and property
owner at 65 S . Grove Avenue will be required.
ALTERNATIVES
1 . Approve the request to terminate the agreement between the
City of Elgin and the property owner, Mr. David Vargas, for
Phase 1 of the fagade improvement project proposed for 65
S. Grove Avenue, and return the unused funds to Account No.
350-0000-795. 78-99 .
2 . Reject the request to terminate the agreement .
RECOMMNDATION
It is recommended that the City Council approve the request to
terminate the agreement between the City of Elgin and the
property owner, Mr. David Vargas, for Phase 1 of the fagade
improvement project proposed for 65 S . Grove Avenue, and return
the unused funds to Account No. 350-0000-795 . 78-99 .
Respectfully submitted for Council consideration.
SBS/sr
Attachments
CITY OF ELGIN
FACADE IMPROVEMENT PROGRAM AGREEMENT
65 S . GROVE AVENUE
THIS AGREEMENT is made and entered into this 1?7-0 day of
OECC— gM 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 buildings) 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
B BY
By: David Var
Olufemi Fol g
Interim City na e Property Owner
ATTEST:
- prltl�/
Dolonna Mecum, City Clerk
4
DATE: 1111402
PRO,!No.
21D7 BERNA ARCMECTS AND DESIGN
Mr David Vargas
6045 S GROVE AVE ONLY
FACADE PROGRAM CITY OF ELGIN
Eds"BLA&V 2&3 ONLY
FACADE EXTERIOR REMODEL ESTIMATE(Grow SO
PROJECT COST ESTIMATE
DIVISION 2-SITE WORK
WM ELECTRICAL
R LIGHTING 1 EA $200.00 ILPL 5200.00
LOW INTENSITY.LOW LEVEL
DIVISION 2A-SUBSTRUCTURE
DISPOSAL DUMPSTERS OFFSfTE 2 EA 5500.00 EA S1 000.00
DNr"3-CONCRETE
CONCRETE
6-ACCESSIBLE PAD FOR FRONT STEP 100 S.F. $4.75 S.F. 5475.00
REINFORCED CONCRETE
DIVISION 4-MASONRY
LICK 700 S.F. $7.50 S.F.
�$4 .00 LEAN BRI CK WORK 1,500 S.F. 13.00 S.F. .00 NEW MASONRY 68 S.F. $18.00 S.F. .DO
DMSION 5-METALS
AL CORNICE REPAIR 10 L.F. $460-11-1 54.600.00
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 D $I,ODO.00
DIVISION 7-THERMAL&MOISTURE PROTECTION
CAULK AND SEALANTS
INTERIOR C $
AULK 1,000 ADD 1.00 D 000.00
EXTERIOR CAULK 1,000 ADD $1.00 $$11,000.00
ROOFING
BUILT UP ROOF SYSTEM 200 S.F. $10.00 S.F. $2,000.00
MECH.FASTENED w!FLASHING&
ACCESSORIES
ROOF EDGING LED CO 78 LF. $28.00 L.F. $2,184.00
INCLUDES BLOCKING,ALUMINUM ROOF EDGE
DWISION 8-DOORS s WINDOWS
EXTERIOR DOORS ASSEMBLED COSTS
DOORS,FRAME AND HARDWARE INSTALLED
-SINGLE 1 EA $1,200.00 FA -$1,200,00
-PAIN 2 EA $2,400.00 EA $4,800.00
EXTEMOR GLAZING
WS AT EXTERIOR 195 S.F. 550.00 IS.F. $9,750.00
STOREFRONT AT EXTERIOR 500 S.F. 545.00 S.F. $22,500.00
Page 1
DWOM 9-FlNISHEs
PAKnNG
EXPOSED SURFACES 300 S.F. $1.53 S_F. $$35.00
DOORSANDFRAMES 1 EA
$35.00 EA 135.00
CELNG TILE
X 4'BASEACOUSTK;TEE SYSTEM
d EXPOSED GRID SUSPENSION
-LARGE ROOMS 500 S.F. 11.95 S.F. 5975.00
MISC.
EKTERIOR SIGNAGE 1200 ADD $1.00 i1 .00
AWNINGS 90 LF. 134 LF. $12,060.00
DEMO. 100 M H. $70.00 M H. $7,000-00
P b F.P. 0 S.F. 10.00 S.F. 10.00
ESC 175 S.F. 11200 S.F. $2.100.00
GENERAL CONDITIONS
ENCY 0.1 $8.751.20
ONTNiG
0 0 1 $0.00
0 0 1 $0•00
CONTR/4CTORS OVERHEAD/PROFIT 0.1 56,751.20
City of Elgin FaWe Improvement Program 35% $38,755.04
Page 2
PURCHASE ORDER PAGE: 1
CITY OF ELGIN P.O.NO.: 147174
150 DEXTER COURT NOTICE FREIGHT, POSTAGE OR EXPRESS DATE: 12/18/
ELGIN,ILLINOIS 60120-5555 CHARGES MUST BE PREPAID ON ALL CITY
PHONE 847/931-5605 OF ELGIN PURCHASES
FAX 847/931-6075
RECEIVING HOURS 8:00 A.M.—3:00 P.M
WEEKDAYS
MATERIAL RECEIVED IN GOOD ONDITION
Signal" _l Re od joer
TO:VARGAS, DAVID SHIPTO: City of Elgin
60 SOUTH SPRING STREET ATTN: PLANNING DEPARTMENT
E 150 DEXTER COURT
ELGIN, IL 60120
ELGIN, IL 60120-5555
19507
tiRMS .-
12/17/02 NET
GAIL A. COHEN SALLY RASMUSSEN
mum-
u aq
350-0000-795. 78-9 179553 140679 12/13/OZ
EXTENDED
LINE QUANTITY Uom ITEM • AND • • • COST
• 1. 0000 36755. 04
1 36755. EA SERVICES MISCELLANEOUS OTHER
0 SOUTH SPRING STREET STATE
TREET FACADE IMPROV
ENT PROGRAM.
SUB-TOTAL 36755. 04
TOTAL 36755. 04
CITY OF ELGIN'S ILLINOIS TAX EXEMPTION IDENTIFICATION NUMBER IS E9996-0771-04
CITY OF ELGIN'S FEDERAL EMPLOYER IDENTIFICATION NUMBER IS 36-6005862
APPROVED
RECEIVING COPY