04-306 Resolution No. 04-306
RESOLUTION
AUTHORIZING EXECUTION OF A FIRST AMENDED FACADE IMPROVEMENT
PROGRAM AGREEMENT WITH CRAIG BAKSTAD
(213 E. Chicago Street)
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 First Amended Facade Improvement Program Agreement on behalf of the City
of Elgin with Craig Bakstad for the property commonly known as 213 E. Chicago Street,a copy of
which is attached hereto and made a part hereof by reference.
s/Ed Schock
Ed Schock, Mayor
Presented: November 17, 2004
Adopted: November 17, 2004
Omnibus Vote: Yeas: 6 Nays: 0
Attest:
s/Dolonna Mecum
Dolonna Mecum, City Clerk
CITY OF Elgin
FIRST AMENDED
FACADE IMPROVEMENT PROGRAM AGREEMENT
213 E. CHICAGO STREET
THIS AGREEMENT is made and entered into this day of
mIOU�/►t L�61L 2004, by and between the City of Elgin, Illinois, a
municipal corporation (hereinafter referred to as "City") , and
Craig Bakstad, 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 500 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.
WHEREAS, the parties hereto have previously entered into a
Fagade Improvement Program Agreement, dated January 21, 2003
(hereinafter referred to as "Original Agreement") ; and
WHEREAS, the parties hereto wish to amend the Original
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 total approved project costs for facade
improvements for the structure referred to at Section 15 herein
shall be $149, 299. 72, as set forth in Attachment A attached hereto
(such total approved project costs for facade improvements are
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f
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 $52, 254 . 88, being 350 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 Craig Bakstad, 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 "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
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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, 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 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
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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 . This Agreement shall not be construed to create a
partnership, joint venture or employment relationship between the
parties hereto.
Section 13. 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 14 . 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 15 .
Owner' s Name: Craig Bakstad
Address: 219 N. Fifth Street
City: West Dundee, Illinois 60118
Telephone Number: 847-488-1400
Property Location: 213 East Chicago Street
Ownership Interest : property owner
Contact Person: Craig Bakstad, property owner
Section 16. This agreement shall amend and supersede the
Original 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:
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B � BY' -----------Y�
David Dorgan Craig Bakstad
City Manager Property Owner
ATTEST:
h,4��
Dolonna Mecum, City Clerk
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Attachment A
Item Total cost City participation
Original agreement $110, 123 . 97 $38, 543. 37
Change Order #1 $39, 175 . 75 $13, 711. 51
Total $149,299.72 $52,254 .88
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September 17, 2004
TO: Mayor and Members of the City Council
ALIVE DOWNTOWN
FROM: David Dorgan, City Manager
Sarosh Saher, Urban Design &Preservation Specialist
SUBJECT: Change Order#1 - Facade Project for 213 E. Chicago Street
PURPOSE
The purpose of this memorandum is to provide the Mayor and members of the City Council with
information to consider a change order to the Facade Improvement project for the property
located at 213 E. Chicago Street.
RECOMMENDATION
It is recommended that the City Council approve Change Order #1 to allow for additional work
on the facade along with additional architectural services in the amount of $17,711.51 for the
property at 213 E Chicago Street.
BACKGROUND
In November 2002, a Facade Improvement project was approved to restore the front and rear
facade of the property at 213 E. Chicago Street, owned by Mr. Craig Bakstad. The building is
located in downtown Elgin. The property was eligible for funding under the Center City Facade
Improvement Program which offers property owners a grant of 35% of the cost of exterior
facade improvements up to a maximum of$100,000.00, with high impact projects eligible for up
to $150,000.
The scope of work approved in 2002 included restoring the storefronts to their original
configuration, masonry cleaning, tuckpointing, window and door replacement, exterior lighting,
and canopy treatments. Work was also approved for the rear facade of the property, visible from
the public alley, which included reconstruction of the rear deck and stairs and the attached
vehicle shelter. The total cost of the project amounted to $110,123.97, with the City's
participation at 35% amounting to $38,543.37.
The City had also obtained the services of Greg Berna of Berna Architects and Design of Elgin
to develop the drawings and specifications, along with a cost estimate for the project which
would enable the property owners to bid out and obtain the minimum two required bids for the
work. As part of the program, architectural services were paid for by the City($6,985.00).
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Facade—213 E Chicago Street—Change Order#1
September 17, 2004
Page 2
Work is currently under way on the project. The front fagade restoration has been completed,
but for minor detailing, painting and the cornice restoration. The rear fagade restoration is
currently under way. The change order being requested is to accommodate for the change in the
material being proposed for the rear deck in steel, along with carpentry and electrical work.
The total additional cost for completion of the project is estimated at $39,175.75, with the City's
participation level at 35% estimated to be $13,711.51. The cost of additional architectural
services requested is $4,000.00, which is fully reimbursed by the Facade Improvement Program.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
Downtown Neighborhood Association, (DNA).
FINANCIAL IMPACT
The proposed change order will amount to $17,711.51. The 2004 budget for the Downtown
Facade Improvement Program is funded through account numbers 275-0000-791.78-99
Riverboat Fund, budgeted at $75,000 with a current balance of$53,648, and 276-0000-791.78-
99 Riverboat Lease Fund, budgeted at $100,000 with a current balance of$40,724. The change
order will be charged to 276-0000-791.78-99 Riverboat Lease Fund, Project No. 079818. If the
change order is approved, the City's total participation on this project will amount to
$63,239.90.
LEGAL IMPACT
The existing agreements between the City of Elgin and property owner at 213 E Chicago Street,
along with the architect, Berna Architects and Design will need to be amended.
ALTERNATIVES
1. Approve Change Order #1 to allow for additional work on the fagade along with
additional architectural services in the amount of $17,711.51 for the property at 213 E
Chicago Street.
2. Reject the requested Change Order#l.
Respectfully Submitted for Council consideration.
SBS/sr
Attachments