04-159 Resolution No. 04-159
RESOLUTION
AUTHORIZING EXECUTION OF A FOURTH 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
David M.Dorgan,City Manager,and Dolonna Mecum,City Clerk,be and are hereby authorized and
directed to execute a Fourth 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: June 23, 2004
Adopted: June 23, 2004
Omnibus Vote: Yeas: 6 Nays: 0
Attest:
s/Dolonna Mecum
Dolonna Mecum, City Clerk
FOURTH AMXNDFD
FACADE IMPROVEMENT PROGRAM AGREEMENT
THIS AGREEMENT is made and entered into this .�`fTU day of
j v
/%.1 C- , 2004, by and between the City of Elgin, Illinois, a
municipal 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 established a facade improvement program
(hereinafter ref erxed 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, Owner owns at least 50t 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; and
WHEREAS, the parties hereto have previously entered into a Facade
Improvement Program Agreement, dated May 28, 2002, and a First Amended
Facade Improvement Program Agreement, dated October 30, 2002, a Second
Amended Facade Improvement Program Agreement, dated January 28, 2003,
and a Third Amended Facade Improvement Program Agreement, dated August
29, 2003 , (hereinafter referred to as the "Subject Facade Improvement
Program Agreement") ; and
WHEREAS, the parties hereto wish to further amend the Subject
Facade Improvement Program Agreement to reflect revised costs and scope
of work.
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 Project work and costs thereof for the structure
referred to at Section 16 herein shall be in four phases, as set forth
in Attachment A hereto. Owner shall not be required to utilize the
contractors listed in Attachment A. The City has paid the Owner the sum
of $26, 738 . 95 for facade reimbursement for Phase I, $29, 837. 50 for
facade reimbursement for Phase II and $15, 774 . 90 for facade
reimbursement for Phase III, being 35% of the total eligible costs for
such three phases. The City shall pay the Owner the sum of $41, 696 . 90
for facade improvements for Phase IV being 35t of the total eligible
costs of $119, 134 for Phase IV facade improvements. The Project shall
be confined to approved improvements made to that part of the stractuxe
visible from any public right of way. All parties hereto agree that
all payments from the City provided for herein shall be made to the
Owner, 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
Wo-ck 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
118o) 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 shad be completed
within a reasonable time as determined by City in City' s sole
discretion. City may provide partial payments upon the completion of
discrete items of work in each phase in City' s sole discretion as
determined by City' s Urban Design & Preservation Specialist upon such
terms as required.
Section 5 . 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
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Owner exceed the amount specified in this Agreement or in the
contractor statement.
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. To the
3
fullest extent permitted by law, owner agrees to indemnify, defend and
hold harmless the City, its officers, employees, boards and commissions
from and against any and all claims, suits, 3udgments, costs,
attorney's fees, 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 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, employment or other agency relationship of
any kind 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: Ben G. Corn Trust, Dated May 1, 1995
Address: 1155 Summit Street
City; Elgin, IL 60120
Telephone Number: (847) 888-3414
Property Location: 53-63 Douglas Avenue
Ownership Interest: Property owner
Contact Person(s) : Bruce Corn, Diane Stredde
Section 17 . The parties further recognize and agree that the
subject structure is a prominent structure in the downtown area and
that the subject structure retains many original ornate and intricate
architectural features which require specialized labor and substantial
renovations. The original cost estimate for the restoration of the
fapade of the subject structure was in the amount of $391, 500 . The
parties further recognize that an appropriate restoration of the
subject structure is difficult and burdensome on the Owner
notwithstanding the reimbursement pursuant to the City' s fagade
improvement program. In recognition of these unique circumstances and
conditions regarding the subject structure the City has agreed to
provide the additional economic development assistance to the Owner as
set forth in this Section to be used by the Owner for costs associated
with the redevelopment of the subject structure referred to in
Section 16 herein. In addition to the facade improvement program
assistance to be provided by the City to the Owner pursuant to this
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Agreement, and in order to further assist the Owner with the
redevelopment of Owner' s property at 53-63 Douglas Avenue, the City
agrees to provide the Owner with the development assistance as follows:
(1) In connection with the Owner' s renovation and build-out of
the Quizno' s lease space on the subject property the City shall pay the
Owner a development incentive in the total amount of $19, 839.60. Such
payment by the City to Owner shall be made upon completion of the work
for the Quizno's build-out, upon final inspection and written approval
by the Project Review Team and such other final inspections or
approvals as may be required by law, and upon Owner submitting to the
City reasonable proof of payment of all costs incurred for the Quizno' s
build-out and upon Quizno's occupying and commencing operations at the
property. The Owner hereby acknowledges that the payment of such total
amount of $13,839 .60 has previously been made by the City to the Owner.
(2) The City agrees to provide an additional development
incentive to the Owner in the total amount of $11, 168.11 to be utilized
by the Owner far eligible costs for the fagade improvement Work at the
subject structure through Phase III of the Fagade Improvement Program
Project. The Owner hereby acknowledges that the payment of such total
amount of $11, 168. 11 has previously been made by the City to the Owner.
(3) The City agrees to provide an additional development
incentive to the Owner in the total amount of $12, 700.35 to be utilized.
by the Owner for eligible costs for the fagade improvement work at the
slab3ect structure through Phase IV of the facade improvement program
project. The City shall pay to the Owner the sum provided for in this
paragraph according to the provisions of Section 6 of this Agreement. "
Section 18 . This Agreement shall amend and supersede the
previous Subject Facade Improvement Program Agreement between the
parties hereto in all respects .
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement on the date first appearing above.
As to CITY OF ELGIN: As to OWNER:
By: By:
David M. Dor an Ben G. Corn Trust,
City Manager Dated May 1, 3995
Trustee/Property Owner
ATTEST:
Dolonna Mecum, Ci y Clerk
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Attachment A—Page 1
Work Item Contractor#1 Contractor#2 Contractor#3 Contractor#4
Phase i
t►mended
Removal of Asset Recovery 12,593.00 Amexican 18,250.00
Exterior Contracting, Demolition
Aluminum LLC Co oration
New window Pella Windows 37,168.71 David Wayne 46,300.00 Woodland 63,804.00 Seigle's 72,125.00
installation. and doors(sloes Carpenter Windows and -
not include contractors(does doors
installation) riot meet material
Specification)
Total 76 97.00
City's Participation:
50%as originally agreed upon:$38,198.50
Phase II
ro sed
Cinder block Applewood 4,650.00 Maninger 4,715.00 Walter 18,000.00
removal Construction Cnzebieniak,
Building
Maintenance Inc.
gxteriUr Seyller's 36,800.00 Applewood 43,090.00 Walter 47,370.00
masonry Tuckpointing and Construction Grzebieniak,
cleaning& Masonry (cleaning)and Building
tuckpointing Maninger Maintenance Inc.
(tuc ointin
Cornice and Albert J.Wagner 43,800.00
Say repair &Soti,Sheet
metal contractors
total 85.250-00
City's Participation:
Option 1 at 35%:29,837.50(recommended by stag)
tion 2 at 50%:42,625.00
Attachment A—Page 2
53-63 Douglas Avenue
Pbase III 2Q03 Facadem rovewent Project
Work item Contractor#1 Contractor#2 Contractor#3
North elevation Seyiler's 10,400.00 Walter Grxebieniak 19,500.00
Masonry cleaning and tuckpointing Tuckpointing and Buyilding
Masonry Maintenance,Inc.
Masoriry Change order Seyller's 1,762.29
Tuckpointing and
Masonry
South window replacment Seylier's 645.00
Tuckpointing and
Maso
Total 12 807.29 19,500-00
Entrance framing,and storefront Ian Lamp Standard 14,344.00 Hargrave Builders 15,200.00
rehabilitation 1~stimate r
Glass for starefrorrt Joe's li Glass 10,400.00 Gate ,Inc. 16,150,00
Handicap Access for storefront Tee Jay Svc.Co. 3,655.00 Schindler 4,657,00
Electronics
Exterior li htin Sunshdue-Lighting 3,145.10 Li t lions 4,104,04
Total 31,544.10 40 111.04
Temporary work(Boards for Home Depot 315.44
storefront
Paintin t� em)or boajrds Pittsburgh aint 204.30
Total 719.74
Grand Total 45 071.13 5961104
City's Participation
35%of total ro'ect cast:$15,774.90
Attachment A—Page 3
53-65 Dough Avenue
Phase IV 2004 —Facade loprovemoult Proecc#
Wort kew Colttrr#1 Contra r 1#2
A.1 -Exterior Painting on tbit front and north wades— Ai t-a n 24,200.00 TOS Painting and 211984.00
ba windows,cornices and wood feattires/ttim P*nting,Inc 140ffw Service
A.2 -Rzhabilitation of remaining t storefronts Hargrave 43,300-00 i Lame,Inc. 41,420.00
Builders
A.3-�ornpletion of existing storefrom ttanmorn area Hatrgrave 23,000 L p,1nc. 21,260.00
with pmma mwt brim, fixtures and s*MW(RMIaval of Builders
ten4xftv boards
A.TOW extetlor wor 90 7Up
Total cost of exterior project under'cousidemdon-$94,669.00
Ci 's partici _$0%of total ie cost--Sa2 -50
S.1 -freak out of coAs carried out to the interior S feet Lamp.Inc. 34,465.00
of building due to extcsior rttadifications aromd
windows(eligible cost)-
(this work not included in original Project estimate,
eligible OWY for 35%rcimbutsetrternt
B,Totsd(inteder work) 4u1y one 34,465.00
conUuctor bid
available and
submitted
Total cost of projects consideration-$34,465.00
Ci 's partici lion—35%of tom ell Ie cos#--S12,Q62.7S
City participation
A. EXLfior work reinmlpwsable at 5001* $42,334.50
�Grt eri or work reimbursable at 35% $120�27 d total S