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08-183 Resolution No. 08-183 RESOLUTION AUTHORIZING EXECUTION OF A FACADE IMPROVEMENT PROGRAM AGREEMENT WITH MAD MAGGIE'S (51 South Grove Avenue) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Olufemi Folarin,City Manager,and Diane Robertson,City Clerk,be and are hereby authorized and directed to execute a facade improvement program agreement on behalf of the City of Elgin with Mad Maggie's for the property commonly known as 51 South Grove Avenue, a copy of which is attached hereto and made a part hereof by reference. s/Robert Gilliam Robert Gilliam, Mayor Pro Tem Presented: August 13, 2008 Adopted: August 13, 2008 Omnibus Vote: Yeas: 5 Nays: 0 Attest: s/Diane Robertson Diane Robertson, City Clerk CITY OF ELGIN FACADE IMPROVEMENT PROGRAM AGREEMENT 51 S Grove Street THIS AGREEMENT is made and entered into this cif day of r LY , 2008,by and between the City of Elgin, Illinois, a municipal corporation (hereinafter referred to as "City"), monly known as 51 S Grove Street, Elgin, Illinois, and Sean Davis, the tenant of the property com (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 Area, 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 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. 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 of the facade improvements for the structure referred to at Section 16 herein shall be $105,820.00, 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$37,037.00,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 Sean Davis, 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/or specifications approved by the Proi ect Review Team pursuant to the provisions of Section 3 herein and prepared by Consultant (hereinafter referred to as "Plans"). 1 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 City's Project Review Team (hereinafter referred to as "Project Review Team") consisting of the City's Historic 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 pennitted 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 bylaw 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 maybe required bylaw, 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; (Z) 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. 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 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.Additionally,Owner shall refund to City, all money paid to Owner by City pursuant to this agreement upon thirty (30) days written demand. This provision shall not constitute a restriction on City to pursue any and all other rights to which it may be entitled by law. 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 2 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. Notwithstanding the aforementioned five (5) year period, the provisions of Sections 7 and 12 herein shall survive the termination of this agreement. 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.In the event the indemnification provisions of this Agreement are invoked so as to require legal defense of City, counsel for such defense shall be of City's choosing. The provisions of this section shall survive any termination and/or expiration of this agreement. Section 13. This Agreement shall not be construed to create a partnership,joint venture or employment relationship 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: Sean Davis 3 Address: 7102 Dove Way City: Cary, IL 60013 Telephone Number: 847-533-3040 Property Location: 51 S Grove Street Ownership Interest: Tenant Contact Person: Sean Davis 7102 Dove Way Cary, IL 60013 847-533-3040 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: a"`..^ By Olufe F'olarin an i Ci na Tenant ATTEST: Diane Robertson City Clerk 4 Attachment A Facade Improvement Program 51 S Grove Street Sean Davis August 1, 2008 Proposed scope of work for facade improvements Demolition 1. Remove existing glass storefront, awnings, and mosaic the bulkhead on first floor elevations. New Work 1. Install new storefront and storefront doors with clear insulated glass with bronze anodized aluminum frames. If existing bulkheads are too deteriorated to repair, new bulkheads may be constructed to match the original along base of storefront windows. 2. Masonry repairs including: a. Power-washing the whole building b. Replacing mosaic tile on bulkhead C. Removing loose/damaged brick lintels, repairing and replacing. d. Repair o,cracked/spalled limestones. e. Repoirt brick wall as required. 3. Awnings: a. Install 10 new awnings over each window on the second floor, 14' wide x 4' high x 3' projection, 12"box, color burgundy. Per approved plans, permit#93347, dated 7.29.08. b. Install 1 new awning over the three sides of the storefront, 148' wide x 7' high x 4' projection, 12" box, color burgundy. Per approved plans, permit#93347, dated 7.29.08. 4. Signage: a. One internally illuminated horizontal sign over entrance on Dupage Ct above first floor awning. Per approved plans, permit#92507, dated 7.22.08. b. One internally illuminated horizontal sign over entrance on Grove Street above first floor awning. Per approved plans,permit#92507, dated 7.22.08. C. One internally illuminated vertical sign on northwest corner of building above first floor awning. Per approved plans, pen-nit #92507, dated 7.22.08. 5. Lighting: a. Install (8) accent sconces for down lighting above second floor windows but centered between each one per drawings dated April 10, 2008. 5 Mad Maggie's 51 S Grove Street Facade Improvement Pro ram - eligible costs Contractor Cost Contractor Cost 1 Estimate 2 Estimate Scope of work Olympic Awnin Thatcher $29,900.00 Si ns $34,158.68 Olympic New si n Si nX $13,280.00 Si ns $36,288.13 Cardinal Mirror and Star-Tech Windows/Doors Glass $37,000.00 Glass $39,569.18 Greg's Masonry Brick Clean in /Tuck ointin Masonr $25,640.00 Works LLC $40,780.00 Total low bid $105,820.00 $150.,795.99 Total eligible costs: $105,820 (based on lower bids City's participation: 35% Total Facade Improvement Grant $37,037.00 allocation: 6 July 17, 2008 TO: Mayor and Members of the City Council FROM: Olufemi Folarin, City Manager Jennifer Fritz-Williams: Historic Preservation Specialist SUBJECT: Mad Maggie's Facade Improvement Grant Application, 51 South Grove Street PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider a facade improvement project for Mad Maggie's located at 51 South Grove Street. RECOMMENDATION It is recommended that the City Council approve the facade improvement project proposed for Mad Maggie's located at 51 South Grove Street to be funded in the amount of$37,037. BACKGROUND The property at 51 South Grove Street is located in downtown Elgin and was built in the 1940s as part of the commercial development of Elgin's center city. The building occupies a corner location facing South Grove Street and DuPage Court. The business owner, Mr. Sean Davis, is requesting funding from the Facade Improvement Program to complete exterior improvements on the building's storefront. The business owner proposes to clean, repoint, and replace the masonry and ceramic tiles as required, replace storefront windows and doors, and install awnings and new signage. The total eligible cost of the project amounts to $105,820. At 35%, the City's participation on the project would be $37,037. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED Downtown Neighborhood Association Mad Maggie's Facade Improvement Grant Application July 17, 2008 Page 2 FINANCIAL IMPACT The proposed facade improvement grant to Mad Maggie's would total $37,037. There are no longer sufficient funds available in the 2008 Downtown Business Facade Improvement Program, Riverboat Fund account number 275-0000-791.78-99 and it is being suggested that Central Area Tax Increment Financing (TIF) Fund be utilized to fund this TIF eligible expense. Therefore, it is recommended that a budget transfer be made in the amount of$37,500 from the Central Area TIF Fund account number 262-0000-791.92-32, project 262005 "CBD Right of Way Improvements" to project number 80001A, "Mad Maggies Facade Improvement" in account 262-0000-791.78-99 "Rehab Loans/Grants". LEGALIMPACT If funding is approved, an agreement between the City of Elgin and the business owner of Mad Maggie's at 51 South Grove Street would be required. ALTERNATIVES 1. The City Council may choose to approve the facade improvement project proposed for 51 South Grove Street to be funded in an amount of$37,037. 2. The City Council may choose to reject the request to fund the facade improvement project. Respectfully Submitted for Council consideration. JFW Attachments Mad Maggie's Facade Improvement Grant Application July 17, 2008 Page 3 Mad Ma ie's 51 S Grove Street Facade Improvement Program -eligible costs Contractor Cost Contractor Cost 1 Estimate 2 Estimate Scope of work Olympic Awnin Thatcher $29,900.00 Si ns $34,158.68 Olympic New si n Si nX $13,280.00 Si ns $36,288.13 Cardinal Mirror and Star-Tech Windows/Doors Glass $37,000.00 Glass $39,569.18 Greg's Masonry Brick Clean in /Tuckpointin Masonr $25,640.00 Works LLC $40,780.00 Total low bid $105,820.00 $150,795.99 Total eligible costs: $105,820(based on lower bids City's participation: 35% Total Facade Improvement Grant $37,037.00 allocation: