19-0111 Dream Hall Bar ROW 0-0\ kt
RIGHT-OF-WAY ENCROACHMENT
LICENSE AGREEMENT
This Right-of-Way Encroachment License Agreement (hereinafter the "Agreement") is
made and entered into at Elgin, Illinois this Ik--"^ day of January, 2019, by and between the
City of Elgin, an Illinois municipal corporation (hereinafter the "City") and 51 Operations, LLC,
an Illinois limited liability company doing business as Dream Hall Bar (hereinafter the
"Licensee").
Recitals
WHEREAS, Licensee is the owner of a liquor license establishment known as Dream Hall
Bar, located at 51 S. Grove Avenue, Elgin, Illinois (hereinafter referred to as the "Licensee's
Premises"); and
WHEREAS, the City is the owner of a certain public right-of-way commonly known as
DuPage Court, Elgin,Illinois,which in part consists of a pedestrian walkway area located between
South Grove Avenue and South Spring Street (hereinafter referred to as "Pedestrian Walkway
Area"); and
WHEREAS, the Pedestrian Walkway Area is adjacent to Licensee's Premises at 51 S.
Grove Avenue, Elgin, Illinois; and
WHEREAS, Licensee desires to utilize a portion of the Pedestrian Walkway Area
immediately adjacent to Licensee's Premises for an exterior seating area, to consist of a number
of tables and chairs separated from the Pedestrian Walkway Area by a simple pole divider system.
The portion of the Pedestrian Walkway Area to be used by Licensee is depicted on Exhibit A,
prepared by Hrivnak Associates, Ltd., Sheet Al, Project No. 2017-45, which is attached hereto
'and incorporated into this Agreement by this reference (hereinafter the "Exterior Seating Area");
and
WHEREAS, the City has agreed to grant to Licensee a temporary and non-exclusive
personal privilege to use the Exterior Seating Area described above, all in accordance with and
subject to the terms, conditions and limitations of this Agreement.
NOW, THEREFORE, for and in consideration of the mutual covenants, and obligations
contained herein and other good and valuable consideration received by each party,the sufficiency
of which is hereby acknowledged, the parties agree as follows:
1. Incorporation of Recitals. The foregoing recitals are hereby incorporated into this
Agreement in their entirety.
2. Grant of License. The City hereby grants to Licensee a temporary and non-exclusive
personal privilege and permission to enter upon the Pedestrian Walkway Area and to
establish the Exterior Seating Area described above (hereinafter the "License"), subject,
however, to the terms, conditions and limitations of this Agreement. The License herein
granted shall be subject to all existing utility easements, if any, located within the
Pedestrian Walkway Area, or any other easements, conditions, covenants or restrictions of
record.
3. Term. This Agreement and the License granted to Licensee hereunder shall commence as
of the date of this Agreement and shall continue until terminated in accordance with the
terms of this Agreement.
4. Consideration. The consideration to be paid by Licensee to the City for the privilege
granted by this Agreement shall be Ten Dollars ($10.00), the receipt of which is hereby
acknowledged by the City.
5. No Interest in Land. Licensee understands, acknowledges and agrees that this Agreement
does not create an interest or estate in Licensee's favor in the Exterior Seating Area or the
Pedestrian Walkway Area. The City retains legal possession of the full boundaries of its
right-of-way and this Agreement merely grants to Licensee the personal privilege to use
the Exterior Seating Area described above throughout the term of this Agreement.
6. No Vested Right. Notwithstanding any expenditure of money, time and/or labor by
Licensee on or within the Exterior Seating Area, this Agreement shall in no event be
construed to create an assignment coupled with an interest or any vested rights in favor of
Licensee. Licensee shall expend any time, money or labor on or in the Exterior Seating
Area at Licensee's own risk and peril.
7. Limited Scope of License. The License granted to Licensee is limited in scope to the
following use or uses:
Installation, maintenance and use for food and beverage service of an
outdoor dining area with table and chairs and a simple pole divider system
as depicted in Exhibit A, attached hereto and incorporated into this
Agreement by reference, hereinafter referred to alternatively as the Exterior
Seating Area or License Area. Serving and seating hours shall be limited
to Monday through Sunday, 11:00 a.m. to 12:00 a.m. The area shall be
closed to patrons at all other times. No amplified music shall be played
outdoors, and no sound amplification devices shall be placed or utilized in
the Exterior Seating Area. Notwithstanding the foregoing, Licensee may
use televisions in the Exterior Seating Area, subject to compliance with the
City's noise ordinance and the provisions and restrictions in Licensee's
Class 0 liquor license. All tables and chairs and any other equipment
associated with the outdoor dining area shall be completely removed by the
Licensee at its costs at the earlier of November 1 each year or the first
snowfall each year and may be reinstalled and opened on May 1. Licensee
shall also remove the tables and chairs and simple pole divider system, and
all other improvements within the License Area, at such other times as may
be required by the City, in the City's sole discretion. Licensee is responsible
at its costs for removal of all trash inside and around the perimeter of the
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License Area at the close of business each day. Licensee shall not have the
right to expand the Exterior Seating Area or alter or change Licensee's use
of the Exterior Seating Area without the City's prior written consent.
8. Non-Transferability of License. The License granted to Licensee by this Agreement is a
mere personal privilege granted by the City to Licensee, and is neither transferable nor
assignable by Licensee without the City's prior written consent.
9. Termination. This Agreement and the License herein granted to Licensee may be
terminated by either party for any reason or no reason upon giving thirty (30) days written
notice. In addition, this Agreement may be terminated by the City upon five (5) days
written notice to Licensee of a breach of any term or condition of this Agreement. In
addition, this Agreement shall automatically terminate in the event of the non-renewal,
surrender or revocation of the Licensee's liquor license for the adjacent Licensee's
Premises.
a. Recording of Notice of Termination. Upon termination of this Agreement the City may
cause to be recorded with the County Recorder of Kane County, Illinois, a written
Notice of Termination.
b. No Compensation to Owner. In the event of termination of this Agreement, Licensee
shall not be entitled to receive a refund of any portion of the consideration paid for this
Agreement, nor shall Licensee be entitled to any compensation or reimbursement for
any license fees, costs or expenses incurred or in any way arising from this Agreement
or relating to the construction, installation, maintenance and/or removal of
improvements from the Exterior Seating Area, nor any monetary damages of any kind
whatsoever.
10. Permanent Removal of Encroachments Upon Termination. At such time as this Agreement
and the License herein granted to Licensee is terminated, Licensee shall, at the option of
the City, remove, at Licensee's sole cost and expense, any and all encroachments or
improvements owned or maintained by Licensee in the Pedestrian Walkway Area. Any
other provision of this Agreement to the contrary notwithstanding, Licensee shall
immediately remove,at its sole cost and expense, any such encroachments in the event that
the City determines that such removal is necessary or convenient for the installation,repair
or replacement of any utilities or other public improvements in the Pedestrian Walkway
Area, or in the event that the City determines that any such encroachments interfere with
pedestrian or vehicular traffic, public utilities, or constitute a safety hazard. Any
replacement or repair of such encroachments shall be at the sole cost and expense of the
Licensee. If the Licensee fails to exercise its duties under this paragraph, the City shall
have the right to remove the encroachment g or improvements and restore the Pedestrian
Walkway Area, the full and complete cost of which shall be borne by Licensee. Licensee
covenants and agrees to reimburse the City its full cost and expense for any such removal
and/or restoration upon thirty (30) days written demand for such reimbursement.
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11. Insurance. Licensee shall maintain at all times during the term of this Agreement, at
Licensee's sole cost, a policy or policies of comprehensive general liability coverage on an
occurrence basis from an insurance company licensed with the State of Illinois or other
insurer approved by Licensee with at least$1,000,000.00 single limit coverage on all risks.
Such policy or policies shall provide that the coverage afforded thereunder shall not be
canceled, terminated or materially changed until at least thirty (30)days written notice has
been given to the City. Licensee shall name the City as co-insured and shall furnish the
City with duplicate policies or certificates evidencing insurance in force as required herein
prior to utilizing the Exterior Seating Area. Evidence of payment of premiums shall be
delivered to the City at least thirty (30) days prior to the expiration dates of each existing
insurance policy. This insurance shall apply as primary insurance with respect to any other
insurance or self-insurance programs afforded to the City. There shall be no endorsement
or modification of this insurance to make it excess over other available insurance;
alternatively, if the insurance states that it is excess or prorated, it shall be endorsed to be
primary with respect to the City.
12. Construction and Maintenance. Licensee agrees that the improvements described herein
shall be erected and maintained at all times in a safe, neat, sightly and good physical
condition and in accordance with all requirements of the Elgin Municipal Code, 1976, as
amended. During the term of this Agreement, Licensee shall, at Licensee's sole cost and
expense, maintain the Exterior Seating Area and any improvements thereon in good
condition and in compliance with any applicable requirements of law. The City shall be
the sole judge of the quality of the construction and maintenance and, upon written notice
of the City stating in general terms how and in what manner maintenance is required,
Licensee shall be required to perform such maintenance. If Licensee fails to do so, then
the City shall have the right to perform such maintenance, the full and complete cost of
which shall be borne by Licensee. Licensee covenants and agrees to reimburse the City its
full cost and expense for any such maintenance.
13. Compliance with Law. Licensee shall adhere to and comply with all ordinances, laws,rules
and regulations that may pertain to or apply to the Exterior Seating Area and the Licensee's
use thereof. Licensee agrees and warrants that it has procured or shall procure any licenses,
permits or like permission required by law, if any, to conduct or engage in the use of the
Exterior Seating Area described herein, that Licensee will procure all additional licenses,
permits or like permission hereinafter required by law during the term of this Agreement,
and that Licensee will keep the same in full force and effect during the term of this
Agreement at its own cost and expense. Licensee shall perform under this Agreement in
accordance with all applicable legal requirements.
14. Indemnification. To the fullest extent permitted by law, Licensee agrees to indemnify,
defend and save the City, its officers,agents, servants,employees,boards and commissions
harmless from and against:
a. Damage to Licensee's Property. Any and all claims, loss or damage (including
reasonable attorney's fees) to the Licensee's encroaching improvements or any
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property belonging to or rented by Licensee, its officers,servants,agents or employees,
which may be stolen, destroyed, or in any way damaged, by any cause whatsoever.
b. Damage to Others. Any claims, suits,judgments, costs, attorney's fees, loss, liability,
damage or other relief, including but not limited to Workers' Compensation claims, to
any person or property in any way resulting from or arising out of the existence of this
Agreement and/or the existence, maintenance, use or location of Licensee's
encroaching improvements within the Pedestrian Walkway Area. In the event of any
action against the City,its officers,agents,servants,employees,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.
c. Mechanic's Lien. Any loss, liability, claim or suit arising from the foreclosure, or
attempted foreclosure, of a mechanic's or materialmen's lien for goods delivered to
Licensee or work performed by or for Licensee upon or at the Exterior Seating Area or
Licensee's property. Such indemnification shall include the City's reasonable
attorney's fees incurred in connection with any such loss, claim or suit.
The provisions of this paragraph shall survive any termination and/or expiration of this
Agreement.
15. Breach and Limitation on Damages. If either party violates or breaches any term of this
Agreement, such violation or breach shall be deemed to constitute a default, and the other
party shall have the right to seek such administrative, contractual or legal remedies as may
be suitable for such violation or breach; provided, however, that in no event shall the City
be liable to Licensee for monetary damages of any kind relating to or arising from any
breach of this Agreement, and that no action of any kind shall be commenced by Licensee
against the City for monetary damages. In the event any legal action is brought by the City
for the enforcement of any of the obligations of Licensee related to or arising from this
Agreement and the City is the prevailing party in such action, the City shall be entitled to
recover from Licensee reasonable interest and attorney's fees.
16. Notices. Any notice required or permitted under this Agreement shall be in writing and
shall be sufficient if personally delivered or mailed by certified mail, return receipt
requested, addressed as follows:
To the City: To the Licensee:
City of Elgin Kevin Echevarria
Attention: City Manager Dream Hall Bar
150 Dexter Court 51 S. Grove Street
Elgin, Illinois 60120-5555 Elgin, IL 60120
With a copy to:
City of Elgin
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Attention: Corporation Counsel
150 Dexter Court
Elgin, Illinois 60120-5555
Notices mailed in accordance with the provisions of this paragraph shall be deemed to have
been given on the third business day following mailing. Notices personally delivered shall
be deemed to have been given upon delivery.
17. No Joint Venture or Partnership. This Agreement shall not be construed so as to create a
joint venture, partnership, employment, or other agency relationship between the parties
hereto.
18. No Personal Liability. No official, director, officer, agent or employee of the City shall be
charged personally or held contractually liable under any term or provision of this
Agreement, or because of their execution, approval or attempted execution of this
Agreement.
19. Joint and Collective Work Product. This Agreement is and shall be deemed and construed
to be a joint and collective work product of the City and Licensee, and as such, this
Agreement shall not be construed against any other party as the otherwise purported drafter
of the same by any court of competent jurisdiction in order to resolve any inconsistency,
ambiguity, vagueness or conflict, if any, in the terms or provisions contained herein.
20. Severability. The terms of this Agreement shall be severable. In the event 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.
21. Governing Law. This Agreement shall be subject to and governed by the laws of the State
of Illinois. Venue for the resolution of any disputes or for the enforcement of any rights
arising out of or in connection with this Agreement shall be in the Circuit Court for the
Sixteenth Judicial Circuit, Kane County, Illinois.
22. References in Agreement. All references in this Agreement to the singular shall include
the plural where applicable, and all reference to the masculine shall include the feminine
and vice versa. If either reference shall be declared invalid, such decision shall not affect
the validity of any remaining portion that shall remain in full force and effect.
23. Multiple Counterparts and Execution. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. The signature of any party on a copy of this
Agreement transmitted by fax machine or email shall be considered as an original signature
and shall have the same legal effect as an original signature and any such faxed or emailed
copy of this Agreement shall be considered to have the same binding legal effect as an
original document.
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. .
24. Paragraph Headings. Paragraph headings are inserted for convenience only and in no way
limit or define the interpretation to be placed upon this Agreement.
25. Binding Agreement on Parties. This Agreement shall be binding on the parties hereto and
their respective successors and permitted assigns.
26. Assignment. This Agreement and the obligations herein may not be assigned without the
express written consent of each of the parties hereto. The License granted herein is
personal to Licensee. Any attempt to assign this License will automatically terminate the
license privileges granted to Licensee hereunder.
27. Entire Agreement. This Agreement and its exhibits constitute the entire agreement and
understanding between the parties and supersedes any prior agreement or understanding
relating to the subject matter of this Agreement.
28. Modification. This Agreement may be changed, modified or amended only by a duly-
authorized written instrument executed by the parties hereto. Each party agrees that no
representations or warranties shall be binding upon the other party unless expressed in
writing herein or in a duly-authorized and executed amendment hereof.
29. Authority of the City. This Agreement is authorized pursuant to section 13.04.130 of the
Elgin Municipal Code, 1976 as amended.
IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be
executed by its duly authorized representative as of the day and year first above written.
51 OPERATIONS, LLi CITY OF ELGIN
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By: .,40:4. A ---- By: '
Kin Echevarria Richard G. Kozal, City Manager
Its
Attest:
Apli,
A
Kimberly Dewis, City Cl. rk
FALegal Dept\Agreement1 License Agr-ROW-Dream Hall Bar-Outdoor Seating Area-51 S Grove docx
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ATTACHMENT A
Depiction of Exterior Seating Area, Prepared by Hrivnak Associates, Ltd., Dated
September 29, 2017