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08-291 ■ Resolution No. 08-291 RESOLUTION AUTHORIZING EXECUTION OF AN ELGIN GREASE TRAP INCENTIVE 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 an Elgin Grease Trap Incentive Program Agreement on behalf of the City of Elgin with Mad Maggies,Inc.,for the property located at 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 Center City ELGIN GREASE TRAP INCENTIVE PROGRAM AGREEMENT THIS AGREEMENT is made and entered into this p3A4- day of pde."_43,,A__, 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 an Elgin Grease Trap Incentive Program (hereinafter referred to as "Program" ) for applicants within the Center City of City and Non-Center City applicants with buildings that discharge into a combined sewer or into a separate sewer which connects into a combined sewer overflow area; and WHEREAS, Program is administered and funded by the City for purposes of providing a rebate on the purchase and installation of 1, 000 gallon grease traps as required by the Fox River Water Reclamation District; and WHEREAS, pursuant to the Program, City has undertaken to share the cost of the purchase and installation of a 1, 000 gallon grease trap with Tenant, pursuant to the criteria of the Program and as set forth herein; and WHEREAS, the Tenant operates a business open to the public which provides food service as its primary function and for the Center City portion of the program, is located in the identified target area; 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 Tenant shall install a grease trap and all necessary and required appurtenances thereto at the property commonly known as the Mad Maggie' s, located at 51 South Grove Avenue, Elgin, Illinois pursuant to the requirements of the Fox River Water Reclamation District and in accordance with all other applicable code and legal requirements (such installation of the grease trap is hereinafter referred to as the "Work" ) . For the Center City portion of the Grease Trap Incentive Program fifty percent (5096) of the cost of the work (including installation) shall be reimbursed up to a maximum amount of $7, 500 . Such rebate shall be provided upon reasonable proof acceptable to City in City' s sole discretion that a grease trap conforming to the City' s required specifications was permitted, purchased, installed and inspected. Payments from the City as provided for herein shall be made to Tenant. Tenant shall provide the City with a full release and receipt upon receipt of the payment provided for herein. Section 2 . "Eligible costs" shall include labor, material and equipment costs directly and solely related to the Work. Section 3 . No Work shall be undertaken or shall be considered to constitute the basis for an Eligible Cost until the Proposal for such Work has been submitted to and approved in writing by the City' s Director of Economic Development and Business Services . Such proposals shall include, but not be limited to, a date certain by which the Work shall be completed. All Work relating to the grease trap installation shall be completed within 180 days from the date of the Agreement, unless Tenant obtains written consent from the City. Section 4 . The City shall be permitted access to the subject property 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 City, 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 City 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 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 or in the contractor statement, whichever 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. In the event of any such written notice of 2 breach and termination, Tenant shall refund any and all funds paid to Tenant by City within thirty (30) days . Any such determination of Tenant' s failure to complete the Work in accordance with the terms of this agreement shall be in City' s sole discretion. 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 without prior written approval from the City' s Director of Economic Development in his/her 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 exterior 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 the subject property 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 multi-year lease at the location for which the work is proposed. 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 work which is to be made to the subject property. 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 8 of this Agreement . Each "Tenant" signatory hereto hereby warrants and represents that there are no other entities having a tenancy or other interest in the subject property, which have not executed this Agreement . Section 12 . Each Tenant and Tenant 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 in connection with Tenant' s or Tenant' s agents, employees and assigns' negligent performance of any of the terms of this Agreement . The provisions of this section shall survive any termination and/or expiration of this agreement . 3 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. Venue for the resolution of any disputers or the enforcement of any rights arising out of or in connection with 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 . Tenant' s Name: Sean Davis Address : 7102 Dove Way City: Cary State : IL Zip Code: 60013 Telephone Number: (847) 533-3040 Property Location: 51 South Grove Ave. Tenantship Interest : Tenant Contact Person: Sean Davis Tenant' s Name : Tadeusz Kuriata Address : 5081 N. Elston Ave. City: Chicago: IL Zip Code: 60630 Telephone Number: Property Location: 51 S . Grove Avenue Tenantship Interest : Tenant' s Name : Address : City: State : Zip Code: Telephone Number: Property Location: Tenantship Interest: Section 17 . The City of Elgin Grease Trap Incentive Program Guidelines dated June 6, 2000, as such guidelines may be amended from time to time by the City, are hereby incorporated into this Agreement . Section 18 . This agreement is the sole 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 . This agreement may not be modified or amended other than by the express written agreement of the parties hereto. 4 Sectionl9 . 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 . TENAN �� CITY •F ELGIN t - By: eklit 't s Sean Davis Olufein, City Manager TENANT ATTEST: Diane Robertso City Clerk Tadeusz Kuriata 6 s i CITY OF ELGIN ELGIN GREASE TRAP INCENTIVE PROGRAM I INTRODUCTION II TARGET AREA III TYPE OF ASSISTANCE IV ELIGIBILITY OF APPLICANTS V ELIGIBLE IMPROVEMENTS VI INELIGIBLE IMPROVEMENTS VII DOCUMENTATION REQUIRED VIII APPLICATION PROCESS IX NATURE AND EFFECT OF PROGRAM GUIDELINES X APPLICATION FORM I INTRODUCTION The City of Elgin is committed to the revitalization of its Center City and older neighborhoods through the implementation of the Riverfront/Center City Master Plan,a blueprint for redevelopment of Elgin's center core area. A vital component of this effort is a private-public partnership to accomplish redevelopment goals. The Elgin Grease Trap Incentive Program is designed to assist individuals seeking to establish a food service business in the City's center core area or to revitalize restaurant facilities in older neighborhoods. Owners of businesses within the target area that are served by combined sewers are eligible to apply for a rebate equal to fifty percent (50%) of the cost to purchase and install a 1,000 gallon grease trap, as required by the Fox River Water Reclamation District.The Non-Center portion of the program offers business owners with a building that discharges into a combined sewer or into a separate sewer which connects into a combined sewer overflow area, a rebate equal to thirty-three percent(33%) of the cost of to purchase and install a 1,000-gallon grease trap, as required by the Fox River Water Reclamation District. II TARGET AREA-CENTER CITY PROGRAM A map showing the target area for the Center City portion of the Grease Crap Incentive Program is enclosed. The building for which assistance through the Center City portion of the Grease Trap Incentive Program is sought must be located in the target area. III TYPE AND AMOUNT OF ASSISTANCE Center City portion of the Grease Trap Incentive Program: fifty percent(50% of the grease trap, including installation, shall be reimbursed, up to a maximum of$7,500 per project.Non-Center City portion of the Grease Trap Incentive Program: thirty-three percent(33%) of the cost of the grease trap, including installation, shall be reimbursed, up to a maximum amount of$5,000 per project. Such rebate shall be provided upon reasonable proof that a grease trap conforming to the City's required specifications was permitted,purchased, installed, and inspected. IV ELIGIBILITY OF APPLICANTS 1. Applicants must operate a business open to the public which provides food services as its primary function and for the Center City portion of the program must be located in the target area described herein. 2. If applicant is a tenant of property in which the grease trap is to serve, applicant must provide: a. Proof of a multi-year lease on the space to be served by the grease trap; and b. Written landlord approval of plans to install grease trap. 3. The applicant's business must discharge into a combined sewer or into a separate sewer or which connects into a combined sewer overflow area thereby being required by the Fox River Water Reclamation District to install a grease trap. 4. The applicant's business must be required by the Fox River Water Reclamation District (FRWRD)to install a 1,000 gallon grease trap. A business which is required by FRWRD to increase the size of the grease trap due to changes in operations is also eligible. A copy of the permit issued by FRWRD for grease trap installation must be submitted. 5. Applicant's business must have and furnish a sales tax I.D. number and such other pertinent information that would reasonably assist in assuring the applicant's business viability as may be required by the City. 6. If the applicant is a new business, financial records and business plan must be provided. If the applicant is an existing business, the applicant shall provide copies of its federal and state tax returns for the previous five years. 7. Each applicant shall provide copies of a minimum of two bids solicited for work related to the grease trap. V ELIGIBLE IMPROVEMENTS The following work items are eligible for the grease trap incentive: 1. Purchase of grease trap. 2. Installation of grease trap. VI INELIGIBLE IMPROVEMENTS Work related to the removal or regular maintenance of a grease trap is not eligible. VII DOCUMENTATION REQUIRED Prior to requesting the rebate, an applicant must: 1. Provide copies of invoices for purchase and installation of the grease trap and proof of payment. 2. Provide a copy of waiver of lien relative to installation of grease trap. The waiver of lien gives proof that the work has been performed, the services paid for and r:rnoval of any further obligation to the contractor. 3. Proof that the grease trap has been inspected and approved by the City of Elgin and FRWRD. An occupancy or re-occupancy permit issued by the City of Elgin will satisfy this requirement. VIII APPLICATION PROCESS 1. Applications must be completed and submitted to the Director, New Century Partnership for Elgin or other person designated by the City to administer the program. 2. Applications shall be reviewed for completeness by City staff. 3. Applications and requests for funding shall be submitted to the City Council of the City of Elgin for consideration. IX NATURE AND EFFECT OF PROGRAM GUIDELINES The provisions of these program guidelines are intended to provide guidelines for considering applications from businesses that are guidelines for considering applications from businesses that are seeking to participate in the Grease Trap Incentive Program. The City Council of the City of Elgin, in its sole and exclusive discretion, shall determine whether to provide any of the incentives contemplated in this program after duly considering the costs incurred by the City of Elgin for providing the incentives and after considering the relative gain derived by the public from those incentives. The City Council of the City of Elgin further expressly reserves the right and option to decide at any time whether or not to provide continued or additional funding for this program. The creation or existence of this program shall not be construed to create or provide and vested rights in any person or organization to obtain approval of a program application, a program agreement or any incentive, grant, rebates or funding thereunder. Revised June 6,2000 CITY OF ELGIN GREASE TRAP INCENTIVE PROGRAM Application Form The City of Elgin will provide a rebate of fifty percent(50%) of the cost of purchase and installation of a grease trap required of businesses in those areas of the Center City served by combination sewers. Submit completed applications to: Ray Moller,Director of Economic Development and Business Services, City of Elgin, 150 Dexter Court,Elgin, IL 60120. The rebate will be provided upon approval of expenditure by the Elgin City Council and upon the City receiving proof that the grease trap has been installed. For areas outside the Center City,please call for information (847) 931-6749. A. APPLICANT INFORMATION Name: t\ASA 'cp 7 Mailing Address: N._ 5-6 vC,jo_ Ai..'-e Telephone: (daytime) (evening) Is applicant the owner of the property at which the grease trap is to be located? Yes No If applicant is not same as property owner,provide such person's name, mailing address and telephone number at which he/she can be reached. Name: t)iv1 (ID t& Address: Telephone: ( (.,) ) 3/ 3 o'S S T If applicant is not property owner, please indicate term of lease (number of years) for occupying space to house business. I v year(s). Please attach a copy of lease. B. PROPERTY AND BUSINESS INFORMATION Address of property to be served by grease trap: 51 . 5Gk) -2....„,c Name of business to be served by grease trap: McIA Mck cc, CAS Provide brief description of the nature of the business and the type of food service to be offered: Is this a new business? Yes No If a new business,provide a copy of business plan, showing income sources and cash flow for at least two years. If an existing business, provide a copy of federal and state income tax return for past five years. NOTE: All personal and business financial information will be kept confidential. C. GREASE TRAP REQUIREMENTS State size of grease trap being required to serve the business: (OuO --gallon. Attach correspondence from the Fox River Water Reclamation District that specifies the grease trap size required. ESTIMATED cost of grease trap (purchase and installation): .$ 0)0.0'0 Attach a minimum of two cost proposals for purchase and installation. D. PROPERTY OWNER'S ACKNOWLEDGEMENT(if applicant is not property owner) As owner of the property located at 51. S C , in Elgin, Illinois, I acknowledge that the applicant is seeking assistance under the City of Elgin Grease Trap Incentive Program and is a tenant of the above-stated property. Further, I have given permission for the applicant to have installed a grease trap, in compliance with applicable regulations of the City of Elgin and the Fox River Water Reclamation D strict,to serve the business at the property identified above. i „NI of Name of Owner % Signature milmov E. ASSURANCES I hereby assure that all information provided within this application for assistance under the City of Elgin Grease Trap Incentive Program is true and accurate. If any information provided herein is found not to be true and accurate/I acknowledge that the City of Elgin may choose not to give this application further consideration. Name of Applicant: Signature OFFICE USE ONLY: Application received: (date) Application received by: (name) I Iiiii ---] \\ / r = '' '�`- PARK ST it � AY° ,,,, „ . V Mr I: -'4,,; 0--,.0• \\ li- �\ Z IliD.11N41." J 0 t$ °,:�pR• • �°'7 �Z'?% :i DMSION ST y.Pj~4., V . °� '�romm :g . ' ' r v E HIGH AVP . ,,,::,:"-s..6=, _ _s-s_ is e q e3 4, s \ (5, 1-0i,',a rt ECM T \ � \ Pere ..« . FULTON ST c9j - ----___ N\ , 4L. ' ■ \ P ` ig- L City of Elgin 1I Grease Tr ap Incentive Program-Target et Area \\\t ;I Borden L tray pa6te Court 1 .I Tatget Area - Mood Building im o 100 2:0 Felt fit \ \ /\ \ =Center ® \ 1 E • , 1 pll November 26, 2008 N 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 17711U, 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. LEGAL IMPACT 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 CITY OF ELGIN GREASE TRAP INCENTIVE PROGRAM Application Form The City of Elgin will provide a rebate of fifty percent(50%)of the cost of purchase and installation of a grease trap required of businesses in those areas of the Center City served by combination sewers. Submit completed applications to: Ray Moller,Director of Economic Development and Business Services, City of Elgin, 150 Dexter Court,Elgin,IL 60120.The rebate will be provided upon approval of expenditure by the Elgin City Council and upon the City receiving proof that the grease trap has been installed. For areas outside the Center City,please call for information(847)931-6749. A. APPLICANT INFORMATION Name: ( ttk.485" Mailing Address: '(- S-6 t-.,o- -tJ-Pi Telephone: (daytime) (evening) Is applicant the owner of the property at which the grease trap is to be located? Yes No 4/ If applicant is not same as property owner, provide such person's name, mailing address and telephone number at which he/she can be reached. Name: 4c)tin (.(,IA Address: Telephone: ( 636 ) ?j/3 O S S' If applicant is not property owner, please indicate term of lease (number of years) for occupying space to house business. 1 year(s). Please attach a copy of lease. B. PROPERTY AND BUSINESS INFORMATION Address of property to be served by grease trap: 51- Scoff-N. C Name of business to be served by grease trap: }V c,A vi q5 C-S Provide brief description of the nature of the business and the type of food service to be offered: „ ■k * --e)i,i A.. Is this a new business? - Yes No If a new business,provide a copy of business plan, showing income sources and cash flow for at least two years. If an existing business,provide a copy of federal and state income tax return for past five years. NOTE: All personal and business financial information will be kept confidential. C. GREASE TRAP REQUIREMENTS State size of grease trap being required to serve the business: (1)1)0 --gallon. Attach correspondence from the Fox River Water Reclamation District that specifies the grease trap size required. ESTIMATED cost of grease trap(purchase and installation): .$ � 000-ca7 Attach a minimum of two cost proposals for purchase and installation. D. PROPERTY OWNER'S ACKNOWLEDGEMENT(if applicant is not property owner) As owner of the property located at 5/. 5 v j. - , in Elgin, Illinois,I acknowledge that the applicant is seeking assistance under the City of Elgin Grease Trap Incentive Program and is a tenant of the above-stated property. Further, I have given permission for the applicant to have installed a grease trap, in compliance with applicable regulations of the City of Elgin and the Fox River Water Reclamation D strict,to serve the business at the property identified above. -p Name of Owner ignature E.ASSURANCES I hereby assure that all information provided within this application for assistance under the City of Elgin Grease Trap Incentive Program is true and accurate. If any information provided herein is found not to be true and accurate/I acknowledge that the City of Elgin may choose not to give this WITMAR CONSTRUCTION, INC. 433 South Greenwood Avenue, Park Ridge, Illinois 60068 (773) 706-4585 September 15, 2008 MAD MAGGI"S RESTAURANTR and BAR 51 South Grove St. Elgin Illinois 60120 - WITMAR CONSTRUCTION INC, proposes to furnish all labor and material for grease separator at 51 S.Grove St. in Elgin Illinois as follows: Demolish cinder blos wall at east side of the vault all debris take out from the basement to the dumpster pour new concrete floor with floor drain, install two 500 gallons grease separator will be connect together with schedule 40 PVC pipe and connect to the maine sewer line,all work will be done accoedance civil enginering drawing and by Fox River Water Reclamation District. Labor and material $16, 450,00 // AQ "` IIJlrJ do A: ; • ,seph Witkowski Orr MARKS CONSTRUCTION INC. 7218 W. Wrightwood Ave. Elmwood Park Illinois 60707 Ph. (773)410-1680 September 12, 2008 MAD MAGGIS RESTAURANTE & BAR 51 South Grove St. Elgin Illinois 60120 Att. .Ted. Marks Construction proposes to furnish all labor and material for grease separator for resturante at 51 S. Grove St. in Blgin Illinois, demolish wall at east side of the vault clean all debris to the legal dump side,por new concrete floor with floor drin, install new grease separator will be two 500 gallons tank all tank will be connect together with Sch.40 PVC pipe and connect to maine sewer line, All work will be done accordance cirril enginering drawing and by City cod. All construction cost including all labor amd material will be $16870, 00 )44414h /111/41"°.41 Marks Construction • Mad Maggie's final Payment calculations tile 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 E 'aniro.11 „x. 1111 G November 26, 2008 • N 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 17711U, 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. LEGAL IMPACT 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 CITY OF ELGIN GREASE TRAP INCENTIVE PROGRAM Application Form The City of Elgin will provide a rebate of fifty percent(50%)of the cost of purchase and installation of a grease trap required of businesses in those areas of the Center City served by combination sewers. Submit completed applications to: Ray Moller, Director of Economic Development and Business Services, City of Elgin, 150 Dexter Court,Elgin,IL 60120.The rebate will be provided upon approval of expenditure by the Elgin City Council and upon the City receiving proof that the grease trap has been installed.For areas outside the Center City,please call for information(847)931-6749. A. APPLICANT INFORMATION Name: f(\ & i\tkr.66 Mailing Address: 5(_ S-6 Covo- V-fi Telephone: (daytime) (evening) Is applicant the owner of the property at which the grease trap is to be located? Yes No If applicant is not same as property owner, provide such person's name, mailing address and telephone number at which he/she can be reached. Name: �dw, K— Address: Telephone: ( 6 ) -5/3 O S 5 If applicant is not property owner,please indicate term of lease (number of years) for occupying space to house business. id year(s). Please attach a copy of lease. B. PROPERTY AND BUSINESS INFORMATION Address of property to be served by grease trap: 51., $cFk Name of business to be served by grease trap: im c A mA Cis Provide brief description of the nature of the business and the type of food service to be offered: Is this a new business? t Yes No If a new business,provide a copy of business plan, showing income sources and cash flow for at least two years. If an existing business,provide a copy of federal and state income tax return for past five years. NOTE: All personal and business financial information will be kept confidential. C. GREASE TRAP REQUIREMENTS State size of grease trap being required to serve the business: pa --gallon. Attach correspondence from the Fox River Water Reclamation District that specifies the grease trap size required. ESTIMATED cost of grease trap(purchase and installation): .$ � (SCI Attach a minimum of two cost proposals for purchase and installation. D. PROPERTY OWNER'S ACKNOWLEDGEMENT(if applicant is not property owner) As owner of the property located at 5/ 5 , in Elgin, Illinois,I acknowledge that the applicant is seeking assistance under the City of Elgin Grease Trap Incentive Program and is a tenant of the above-stated property. Further, I have given permission for the applicant to have installed a grease trap, in compliance with applicable regulations of the City of Elgin and the Fox River Water Reclamation D strict,to serve the business at the property identified above. __mar40„,„„. Name of Owner ignature E.ASSURANCES I hereby assure that all information provided within this application for assistance under the City of Elgin Grease Trap Incentive Program is true and accurate. If any information provided herein is found not to be true and accurate/I acknowledge that the City of Elgin may choose not to give this WITMAR CONSTRUCTION, INC. 433 South Greenwood Avenue, Park Ridge, Illinois 60068 (773) 706-4585 September 15, 2008 MAD MAGGI°S RESTAURANTR and BAR 51 South Grove St. Elgin Illinois 60120 WITMAR CONSTRUCTION INC, proposes to furnish all labor and material for grease separator at 51 S.Grove St. in Elgin Illinois as follows: Demolish cinder blos wall at east side of the vault all debris take out from the basement to the dumpster pour new concrete floor with floor drain, install two 500 gallons grease separator will be connect together with schedule 40 PVC pipe and connect to the maine sewer line,all work will be done accoedance civil enginering drawing and by Fox River Water Reclamation District. Labor and material $16, 450, 00 // _.rte "OP" 0 Sl 4 seph Witkowski • . MARKS CONSTRUCTION INC. 7218 W. Wrightwood Ave. Elmwood Park Illinois 60707 Ph. (773)410-1680 September 12, 2008 MAD MAGGIS RESTAURANTE & BAR 51 South Grove St. Elgin Illinois 60120 Att. .Ted. Marks Construction proposes to furnish all labor and material for grease separator for resturante at 51 S. Grove St. in Elgin Illinois, demolish wall at east side of the vault clean all debris to the legal dump side,por new concrete floor with floor drin, install new grease separator will be two 500 gallons tank all tank will be connect together with Sch.40 PVC pipe and connect to maine sewer line. All work will bee done accordance vigil enginering drawing and by City cod. All construction cost including all labor amd material will be $16870, 00 /44044; A1141-f%1 Marks Construction • Mad Maggie's final Payment calculations tile cost installation Awnings $26,255.00 $469.23 $765.00 Sign $13,685.00 $325.9 $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 Memorandum �r 4 City of Elgin Date: December 8, 2008 To: Ray Moller, Economic Development and Business Services Director From: Jennifer Quinton, Deputy City Clerk Subject: Resolution No. 08-291, Regarding an Elgin Grease Trap 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.