G16-18 Ordinance No. G16-18
AN ORDINANCE
ESTABLISHING A FIRE SPRINKLER ASSISTANCE FOR
RESIDENTIAL CONVERSIONS GRANT PROGRAM
WHEREAS,the city council of the City of Elgin has adopted Ordinance Nos. S6-99,S1-02,
S2-02, S3-02 and S4-02 proposing, approving and creating the Elgin Central Area Tax Increment
Financing Redevelopment Plan and Project(the"ECA TIF District")pursuant to the Tax Increment
Allocation Redevelopment Act at 65 ILCS 5/11-74.4-1, et seq.); and
WHEREAS,the ECA TIF District was established on April 10,2002 and will continue for 23
years thereafter; and
WHEREAS,the upper floors of certain downtown buildings which are located in the ECA
TIF District are not being converted into residential dwelling units at the desired rate partly because
of building code requirements requiring the installation of fire sprinklers; and
WHEREAS, city staff and the Downtown Neighborhood Association have recommended
using TIF funds to cover a portion of the material and installation costs for fire sprinklers as an
incentive for property owners to add residential dwelling units in the downtown; and
WHEREAS,the city council of the City of Elgin has determined, and hereby finds,that the
proposed fire sprinkler assistance for residential conversions grant program will provide an incentive
for property owners to add residential dwelling units in the downtown,which will in return improve
the economic viability of those properties, promote greater utilization of currently vacant or
underutilized buildings, and help enrich the downtown by providing more potential customers to
revenue generating non-residential establishments; and
WHEREAS,the creation of additional residential dwelling units downtown will result in an
increase in the city's tax revenues,and will result in renovation and restoration of existing buildings
in the downtown; and
WHEREAS,the creation of additional dwelling units downtown is currently hindered by the
economic viability thereof including certain building code requirements regarding fire sprinklers and
would not occur in the absence of limited development assistance from the city as provided in the
proposed fire sprinkler assistance for residential conversions grant program; and
WHEREAS, in order to incent and facilitate the creation of additional residential dwelling
units in the ECA TIF District and in the downtown which will further the goals and objectives of the
ECA TIF District plan and project the city council has determined that it is necessary and desirable to
adopt the proposed fire sprinkler assistance for residential conversions grant program; and
WHEREAS, the City of Elgin is a home rule unit authorized to exercise any power and
perform any function pertaining to its government and affairs; and
WHEREAS,the fire sprinkler assistance for residential conversions grant program which will
result in furthering and achieving the goals and objectives of the Elgin Central Area Tax Increment
Financing Redevelopment Plan and Project,are matters within the government and affairs of the city;
and
WHEREAS, the fire sprinkler assistance for residential conversions grant program will
strengthen the commercial sector of the downtown and the city; and
WHEREAS, the fire sprinkler assistance for residential conversions grant program will
enhance the tax base of the city; and
WHEREAS,the fire sprinkler assistance for residential conversions grant program is in the
best interest of the city.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ELGIN, ILLINOIS:
Section 1. The city council of the City of Elgin hereby approves and establishes the fire
sprinkler assistance for residential conversions grant program pursuant to the attached program
document entitled "Fire Sprinkler Assistance for Residential Conversions Grant Program" dated
March 13, 2018, incorporated herein by this reference.
Section 2. That this ordinance shall be in full force and effect upon its passage and
publication in the manner provided by law. --7
04
ay
David J. Ka, ain, or
Presented: March 21, 2018
Passed: March 21, 2018
Omnibus Vote: Yeas: 9 Nays: 0
Recorded: March 21, 2018
Published: March 23, 2018
Attest. -'�
5ti
imberly Dewis, City lerk
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March 13, 2018
Downtown Elginlik
downtown
Fire Sprinkler Assistance for neighborhood E LG I N
ASSOCIATION OF ELGIN THEcmriNn-esueuRBs
Residential Conversions
Grant Program
The City of Elgin has implemented a Fire Sprinkler Assistance for Residential Conversions Grant Program
for eligible buildings within the downtown.This program is intended to provide an incentive for property
owners to add residential dwelling units downtown, which in turn will improve the economic viability of
those properties, promote greater utilization of currently vacant or underutilized buildings, and help
enrich the downtown by providing more potential customers to revenue-generating nonresidential
establishments, such as retail shops and restaurants. This program is intended to complement other
public and private initiatives that encourage the residential use of the upper floors of buildings in the
downtown.
Eligible Area
The eligible area for this program are properties in the project area depicted in Exhibit A attached hereto,
which can commonly be described as the traditional downtown area plus several buildings fronting State
Street on the west side of the Fox River in the area of Highland Avenue.
Eligible Improvements
Costs associated with the installation of a new fire sprinkler system in connection with the creation of
residential upper floor dwelling unit(s) in existing buildings, or with code-required improvements or
upgrades to an existing fire sprinkler system in connection with the creation of residential upper floor
dwelling unit(s) in existing buildings, are eligible expenses under this grant.Costs associated with drywall,
paint, and other interior repairs associated with installing or concealing a fire sprinkler system are not
eligible expenses under this grant.City will waive permit and plan review fees associated with the sprinkler
installation as well as any associated tap fees.
Downtown Elgin ��t h
Sprinkler Assistance for downtown
Fire �--�--�
neighborhood E LG I N
Residential Conversions THE CITY,NSUBURBS
Grant Program
Program
The program shall involve the reimbursement of expenses incurred by an owner for the construction of
an approved fire sprinkler system by the city.The city shall not pay funds to an approved applicant before
the completion of the construction and installation of the fire sprinkler system and the associated
residential upper floor dwelling unit(s) are completed and the issuance of a certificate of occupancy by
the city for the new residential upper floor dwelling unit(s) being created.
1. The city agrees to reimburse the owner for the equipment and installation cost of an approved
fire sprinkler system in an amount not to exceed $4 per square foot of protected building floor area.
2. The fire sprinkler system shall be designed in conformance with the then currently adopted
editions of the International Building Code, International Fire Code, and NFPA 13.
3. To be eligible to participate in this program, an applicant must meet all of the following
requirements:
a. Own an existing building within the program area shown on Exhibit A.
b. Owe no outstanding property taxes or fees and have no judgements or liens on the property.
c. Complete the attachcdan application in a form required by the city and submit a plan and
project timeline for approval. Plans shall be sealed by a licensed, qualified fire sprinkler
professional. Plans shall include a code-compliant and otherwise properly designed fire
sprinkler system and two cost estimates. Plans shall also include code compliant plans for the
creation of residential upper story dwelling unit(s) associated with the fire sprinkler system.
4. The city reserves the right to approve or not approve applications on the basis of the location of
the project and public benefit and beneficial economic impact of the proposed improvements to the
downtown as determined by the city council in its sole discretion. If more applications are received than
current funding levels will allow,the city also reserves the right to prioritize the applications on the basis
of the location of the project and the public benefit and beneficial economic impact of the proposed
improvements to the downtown as determined by the city council in its sole discretion.
5. Retroactive applications submitted when a project was completed in a previous calendar year will
not be funded under this grant program.
6. After the applicant has received at least two bids for the approved work,the city will approve the
contractor. The applicant shall provide the city with the contract, contract amount, and the anticipated
date of construction. Copies of all bids and proposals shall be submitted to the city.
7. Required building permits for all of the proposed work including the fire sprinkler system and the
associated residential upper story dwelling unit(s) must be obtained before the work begins.
21 Page
Downtown Elgin
downtowno
Fire Sprinkler Assistance for neighborhood E LG I N
Residential Conversions ASSOCIATION OF ELGIN THE CITY IN THE SUBURBS
Grant Program
8. The applicant shall sign a program agreement in a form approved by the Corporation Counsel
that, among other things, requires all improvements for all of the proposed work including the fire
sprinkler system and the associated residential upper story dwelling unit(s) to be completed within 180
days of the date of the agreement, unless otherwise authorized by the city. A copy of the signed contract
for work to be performed shall be made a part of the agreement. Extensions may be granted by the
Director of Community Development Department upon the showing of active and continued construction.
9. Any existing violations of the Elgin Municipal Code shall be corrected, and the property and
structure must otherwise be in compliance with all applicable codes and ordinances, prior to
reimbursement.
10. Upon completion of the project, copies of all invoices must be submitted to the Community
Development Department along with the contractor's waivers of lien. City staff will inspect the work for
compliance with city codes and conformance with the design plans approved for this project.
11. Prior to receiving payout, and only after all requirements listed above are satisfied, a check will
be issued from the city to the applicant. Payment will be issued only upon completion and approval of all
work items as originally approved and the issuance of a certificate of occupancy by the city for the new
residential upper floor dwelling unit(s) being created.
12. The provisions of this Fire Sprinkler Assistance for Residential Conversions Grant Program are
intended to provide guidelines for considering applications from property owners that are seeking to
participate in the Fire Sprinkler Assistance for Residential Conversions Grant Program. The city council of
the City of Elgin, in its sole and exclusive discretion, shall determine whether to provide any of the grants
contemplated in this program after duly considering the costs incurred by the City of Elgin for providing
the grants and after considering the relative gain derived by the public from those grants. 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 any vested rights in any person or organization to obtain approval
of a program application, a program agreement or any grant or funding thereunder.
31 ' .
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