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08-290 t Resolution No. 08-290 RESOLUTION AUTHORIZING EXECUTION OF A FIRST AMENDED FACADE IMPROVEMENT PROGRAM AGREEMENT WITH MAD MAGGIES' INC. (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 First Amended Facade Improvement Program Agreement on behalf of the City of Elgin with Mad Maggies, Inc. 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/Ed Schock Ed Schock, Mayor Presented: December 3, 2008 Adopted: December 3, 2008 Vote: Yeas: 6 Nays: 0 Attest: s/Diane Robertson Diane Robertson, City Clerk CITY OF Elgin FACADE IMPROVEMENT PROGRAM FIRST AMENDMENT AGREEMENT 51 South Grove Avenue THIS AGREEMENT is made and entered into this 1J/a-- day of p , 2008, by and between the City of Elgin, Illinois, a municipal corporation (hereinafter referred to as "City" ) , and Mad Maggie' s, Inc . , an Illinois corporation, (hereinafter referred to as "Tenant" ) . 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, Tenant owns at least 50% of subject commercial building (s) , or is the tenant of commercial building (s) located within one of these Rehabilitation Areas, with tenant having provided the tenant' 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 August 4, 2008 (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 mutually acknowledged, the parties hereto hereby agree that the Original Agreement shall be amended and superseded in its entirety to read as follows : Section 1 . The total approved project costs for facade improvements for the structure referred to at Section 15 herein shall be $130, 052 . 90, as set forth in Attachment A attached hereto 1 and made a part hereof (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 Tenant a sum not to exceed $45, 518 . 52 , 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 Mad Maggie' s, Inc . , 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, Tenant 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 2 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. Section 6 . City shall pay to Tenant the sum provided for at Section 1 herein within thirty (30) days of tenant' s compliance with the provisions of Section 5 herein. In no event shall the amount paid to Tenant exceed the amount specified in this Agreement, which ever is less . Section 7 . In the event Tenant 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 Tenant, 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, Tenant 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 Tenant 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 Tenant, Tenant' s successors and assigns for a period of five (5) years from and after the date of completion and approval of the Work. Tenant shall provide subsequent Tenant (s) of Structure with a copy of this Agreement . This Agreement shall run with the land underlying Structure . Section 11 . If Tenant does not own the underlying property for which Work is being done, Tenant warrants and represents to City that Tenant has a lease at the location for which the Work is proposed for a term of at least six (6) years . Tenant further warrants and represents that he has received authorization from all tenants of the property for which Work is to be done to accept funds under this program and to undertake the Work. Further, such tenant (s) of the property for which Work is to be done hereby acknowledges that he is aware of this Agreement and authorized the 3 Work which is to be made to the Structure . Said tenant (s) of the property for which improvements are to be made further acknowledge that, as tenant 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 "Tenant" signature hereto hereby warrants and represents that there are no other entities having a tenantship 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 . Tenant' s Name : Mad Maggie' s Inc . Sean Davis Address : 7102 Dove Way City: Cary, Illinois 60013 Telephone Number: 847-533-3040 Property Location: 51 S . Grove Avenue Property Interest : property tenancy Contact Person: Sean Davie & Tadeusz Kuriata, property tenants Section 16 . This agreement shall amend and supersede the Original Agreement between the parties hereto in all respects . Section 17 . This Agreement is the only agreement between the parties hereto regarding the subject matter hereof . There are no other agreements, either oral or implied, between the parties hereto regarding the subject matter hereof . 4 Section 18 . Notwithstanding any other provision of this Agreement it is expressly agreed and understood that in connection with the performance of this Agreement that the Tenant shall comply with all applicable Federal, State, City and other requirements of law, including, but not limited to, any applicable requirements regarding prevailing wages, minimum wage, workplace safety and legal status of employees . Without limiting the foregoing, Tenant hereby certifies, represents and warrants to the City that all Tenant ' s employees and/or agents who will be providing products and/or services with respect to this Agreement shall be legal residents of the United States . IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first appearing above . As to CITY OF ELGIN As to TENANT: BY.9femiF �...� By Olua'rin Sean visCit Property Tenant ATTEST: By: Tadeusz Kuriata Property Tenant Diane Robertson, Nity Clerk 5 Mad Maggie's final Payment calculations the cost installation Awnings $26,255.00 $469.23 $765.00 Sign $13,685.00 $325.49 $3,000.00 building renovation $20,000.00 $10,084.00 glass $39,569.18 misc. Capping windows, gutters $3,400.00 sign stucco $12,500.00 Tile (installation+cost) $14,643.72 $10,878.72 $3,765.00 total $130,052.90 eligible grant(35%) $45,518.52 amount allocated by agreement $37,037.00 balance $8,481.51 November 26, 2008 TO: Mayor and Members of the City Council ALIVE DOWNTOWN FROM: Olufemi Folarin, City Manager Raymond H. Moller, Director of Economic Development SUBJECT: Mad Maggie's Development Assistance PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider an application by Mad Maggie's to participate in the Grease Trap Program and to amend their participation in the Facade Program. RECOMMENDATION It is recommended that the City Council authorize participation by Mad Maggie's in the Grease Trap Program in the amount of$7,500 and an amendment of their Facade Program participation in the amount of$8,481.51. BACKGROUND Mad Maggie's has been operating as a restaurant/entertainment venue for approximately three months. The process of opening the business involved extensive improvements to both the interior and exterior of 51 South Grove Avenue. The start up of the business has involved an investment of approximately$700,000 by the ownership. The restaurant ownership was required to install a grease trap. Two quotes were received, with the low quote totaling $16,450. Grease Trap Program Guidelines authorize City participation of up to 50% of project costs with a not to exceed value of$7,500. The City's participation in the grease trap assistance for Mad Maggie's would be capped at $7,500. Ownership has also expressed an interest in applying for the Center City Business Loan Program. The nature of their financing would allow them to participate in the program. In August of 2008, the City Council approved the participation of Mad Maggie's in the Facade Program. Eligible facade expenses were estimated to cost $105,820. The restaurant received a grant in the amount of$37,037. The ultimate cost of the facade improvements was $130,052.90. Thus restaurant ownership is eligible to receive an additional $8,481.51 in facade assistance. Mad Maggie's Development Assistance November 26, 2008 Page 2 COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None FINANCIAL IMPACT The cost of the proposed assistance for Mad Maggie's totals $15,981.51. There is $727,460 budgeted in the Riverboat Fund, account number 276-0000-791.80-27 project number 17711 U, Economic Development Incentives. Currently, $195,832 is available to fund expenses related to the project. Following the approval of the budget transfer, $179,850.49 will be available for other projects. LEGALIMPACT An amendment to the previously approved Facade Agreement is required as well as a Grease Trap Program Agreement. ALTERNATIVES 1. The City Council may choose to approve the participation by Mad Maggie's in the Grease Trap Program and an amendment to the Facade Improvement Program. 2. The City Council may choose not to approve the participation by Mad Maggie's in the Grease Trap Program and an amendment to the Facade Improvement Program. Respectfully submitted for Council consideration. RH Attachment a City of Elgin Memorandum Date: December 8, 2008 To: Ray Moller, Economic Development and Business Services Director From: Jennifer Quinton, Deputy City Clerk Subject: Resolution No. 08-290, Regarding a first amended fagade improvement agreement with Mad Maggies' Inc. located at 51 S. Grove Avenue Enclosed please find the above referenced agreement. Please distribute to the appropriate parties and if needed, retain a copy for your records. If you have any questions please feel free to contact our office 847-931-5660 and we will do our best to assist you. Thank you.