S-1377 - 09/24/2013 - PURCHASING - Ordinances Supporting Documents ITEM 9.A.1)
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AGENDA ITEM
Regular Board of Trustees Meeting
of
September 24, 2013
SUBJECT: FEMA Buyout of 615 22"d Street( Formerly 615 Hunter Drive)
FROM: Mike Hullihan P.E.,Village Engineer
BUDGET IMPACT: $250,000 has been programmed for this project in the Infrastructure Fund.
RECOMMENDED MOTION: I move that the Village Board authorize the purchase of the
property at 615 22"d Street (Formerly known as 615 Hunter Drive) at a cost not to exceed
$240,000.
Background:
615 22"d Street: The purchase of the property at 615 22"d Street has previously been discussed by the
Board. It has been periodically flooded by waters from Salt Creek for the last 30+years. The owner,
AED, has expressed an interest in participating in the Federal Emergency Management Agency's
(FEMA) land acquisition program. Under this program FEMA pays 75% of the costs involved in
purchasing a flood-prone property under the condition that the municipality converts the land to flood
plain and enacts a perpetual conservation easement. We have recently received approval from FEMA
for this grant. We expect the purchase to be finalized and execution of the work by the end of 2013.
The Village, as the sponsoring municipality, would be responsible for 25% of the expenses. The
expenses include:
• Preparation of the FEMA application
• Completion of a Phase I Environmental Assessment
• Appraisal fees
• Legal and closing costs
• Demolition costs
• Rough grading of the land after demolition
The land would have to be maintained by the Village as floodplain. The uses would be restricted to
uses such as parkland, parking (no impervious paving), and recreation facilities which don't impede
flood flows. It could be incorporated into future development plans for the area as a passive recreation
feature. While the Village may not sell the entity to any non-governmental entity, sale or swap of the
land with another municipality/agency is permissible. There is at least one Forest Preserve District site
which is a viable candidate for a land swap.
Current Status
Staff obtained an appraisal from the Real Valuation Group in the amount of $740,000. The owner's
representative, Bob Henderson has indicated that the $740,000 appraisal is acceptable. A reasonable
estimate for the cost of the entire project is now $ 901,055 (see attached project estimate). This
would equate to a Village share of $225,263. $250,000 has been programmed into the Infrastructure
Fund for 2013 for this purpose. Under the terms of the FEMA grant, any unexpended proceeds from
previous flood insurance claims are subtracted from the appraised value of the property prior to an
offer of purchase. As there are $500,000 in unexpended flood insurance payments, the purchase price
is $240,000.
Latest Information
During inspection of the site a grave marker was found in the vicinity of the building loading dock.
The marker has been investigated and there seems to be no actual gravesite, however in the interest of
caution,the Village Attorney has included language in the purchase agreement(see Sections 12 and 13
of the Purchase Agreement) calling for $50,000 to be held in escrow(see Exhibit C in Purchase
Agreement) until demolition and grading activities are complete. These activities should be complete
within 60 days of the closing date.
Recommendation:
That the Village proceeds with the purchase of the property at 615 22"d Street.
ORDINANCE 2013-PURCH-PRPTY-S-1377
AN ORDINANCE APPROVING THE PURCHASE OF 615 W. 22ND STREET
WHEREAS, Associated Equipment Distributors ("Seller's is the owner of 615 W. 22nd Street, Oak
Brook, Illinois ("Property"); and
WHEREAS, the Property is located in a Federal Emergency Management Agency ("FEMA")
floodplain and has been subject to numerous flooding incidents that have caused significant damage to
the Property; and
WHEREAS, previous attempts to mitigate flooding have not been successful; and
WHEREAS, in July of 2010, the Seller suffered damage to the Property that exceeded 50-percent
of the Property's appraised value; and
WHEREAS, FEMA, through the Illinois Emergency Management Agency ("IEMA"), administers a
flood mitigation grant program whereby FEMA provides grants to municipalities to purchase properties
within FEMA floodplains to turn those properties back into open space; and
WHEREAS, on May 3, 2013, IEMA awarded the Village a State-Local Hazard Mitigation Grant
("Grant") to purchase property within the FEMA floodplains; and
WHEREAS, the Village desires to use part of the Grant to purchase the Property and to turn it
into open space; and
WHEREAS, Section 11-76.1-1 of the Illinois Municipal Code provides the Village the authority to
purchase real property for public purposes; and
WHEREAS, Section 11-76.1-3 of the Illinois Code requires the Village to publish an ordinance
authorizing the purchase of real property at least twice in a newspaper within 30 days after the adoption
of the ordinance for the ordinance to be effective; and
WHEREAS, the Village President and Board of Trustees desire to acquire the Property for the
public purposes of (i) providing open space to the residents of the Village and (ii) reducing flood damage
in the Village; and
WHEREAS, the Seller has agreed to sell the Property to the Village for$240,000 pursuant to the
Real Estate Sales Contract ("Sales Contract") attached hereto as Attachment A; and
WHEREAS, the Village Board has determined that it will serve and be in the best interests of the
Village and its residents to enter into the Sales Contract and to acquire the Property;
NOW THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows:
Section 1: Recitals. The foregoing recitals are hereby incorporated into, and made a part
of, this Ordinance as the findings of the President and Board of Trustees of the Village of Oak Brook.
Section 2: Approval of Sales Contract. The Sales Contract by and between the Village and
Associated Equipment Distributors shall be, and is hereby, approved in substantially the form attached to
this Ordinance as Exhibit A.
Section 3: Publication. The Village Clerk shall be, and is hereby, directed to publish this
Ordinance at least twice within 30 days of passage of this Ordinance in one or more newspapers
Ordinance 2013-PURCH-PRPTY-S-1377
Purchase of 615 W.22nd Street
Page 2 of 2
published or circulated in the municipality in accordance with Section 11-76.1-3 of the Illinois Municipal
Code.
Section 4: Execution of Required Documentation. The Village Manager and the Village
Clerk shall be, and are hereby, authorized to execute the Sales Contract and all documentation related
thereto, and to take all action necessary for the acquisition of the Property by the Village as may be
required pursuant to the Sales Contract and applicable law, including the payment of the purchase price
set forth in the Sales Contract, and the payment of applicable reimbursement and closing costs, but only
upon receipt by the Village Clerk of at least one original copy of the Sales Contract executed by the
Seller. If the executed copy of the Sales Contract is not received by the Village Clerk within 30 days after
the effective date of this Ordinance, then this authority shall, at the option of the Village Board, be null
and void.
Section 5: Effective Date. This Ordinance shall be in full force and effect from and after its
passage by an affirmative vote of two-thirds of the elected corporate authorities holding office and
publication in the manner provided by law.
APPROVED THIS 24th day of September, 2013.
Gopal G. Lalmalani
Village President
PASSED THIS 24th day of September, 2013.
Ayes:
Nays:
Absent:
ATTEST:
Charlotte K. Pruss
Village Clerk
AN ORDINANCE APPROVING THEPPURCHASE OF
615 W.22ND'STREET
WHEREAS, Associated Equipment Distributors
("Setter")is The owner of 615 W.22nd Street,Oak Brook; l-
Iinois("Property");and
WHEREAS,the Property is located in a Federal Emer-
gency Management Agency("FEMAI,)floodplain and has
been su to numerous flooding incidents that have CERTIFICATE OF PUBLICATION
caused significant damage to the Property;and
WHEREAS,previous attempts to mitigate flooding have
not WHEREAS,successful;
WHRE Paddock Publications, Inc.
EREAS,in July of f 2 20t0,the Seller suffered damageTo
the Property that exceeded SO-percent of the Property's ap-
Praised value-and D&Hemld
WHEREAS 9EMA,through the Illinois Emergency Man-
agement Agency("fEMA"), administers a flood mitiga-
tion grant program whereby FEMA,provides grnnis to mu-
nicipalities to purchase properties within FEMA
floodplams To turn those properties back into open space;
and
WHEREAS,on May 3 2013,IEMA awarded the Village a Corporation organized and existing under and by virtue of the laws of
State-Local Hazard Niitigation Grant ("Grant") to Pur-
chase property within the FEMA floodpiains;and the State of Illinois DOES HEREBY CERTIFY that it is the publisher
WHEREAS,the Village desires to use part of the Grant to
Purchase the Property and To turn if into open and
WHEREAS,Section 11-76.1-1 of the Illinois of the DAILY HERALD.That said DAILY HERALD is a secular
iis Mun Municipal Code
Provides the Village the authority to purchase real prop-
erty for public purposes;'and newspaper and has been circulated daily in the Village(s)of
WHEREAS,section h 11-76.1-3 or in the Illinois code requires Addison,Bensenville,Bloomingdale Carol Stream Glendale Hei is
the Pillage to publish an ordinance authorizing the pur-
chase of real property at least twice in a newspaper within
30 days after the adoption of the ordinance for the ordi-
nance to be effective;and y Glen Ellyn,Itasca,Keeneyyille,Lisle Lombard Medinah Naperville
WHEREAS,the Village President and Board Trustees Oak Brook, Oakbrook Terrace, Roselle Villa Park Warrenville
desire to acquire the Property for The public purposes of(i)
providing ifl d damage in the Villlage of the Village and('i) West Chicago,Wheaton,Winfield,Wood Dale Aurora
WHEREAS,the Seller has agreed to sell the Property to
the Village for$240,000 pursuant to the Real Estate Sales
Contract ("Sales Contract") attached hereto as Attach-
ment A•and
WHEREAS,the Village,Board has determined that it will
serve and be in the best interests ofrthe Village and its resi-
dents to enter into the Sales Contract and to acquire the
Property; ..
DENT AND BOARD OF RUSTEEES ODF THEHVILLAGE
OF OAK BROOK,DU PAGE AND COOK COUNTIES,IL-
L I NO IS as follows:
Section 1:Recitals.The foregoing recitals are hereby in-
corpoed into an made a part of,this Ordinance as the
findings of the(resident and Board of Trustees of the Vil-
lage of Oak�qBpropo�k�.
,:Aaa f Sale Contra The Sales Contract
by an a weep the r age an soci-alted Equipment Dis-
tributors shall be,and is hereby,approved in substantially
the form attached to this Ordinance as Exhibit A.
Section3•Pub 1 ation.The Village Clerk shall be,and is
here dv ireefea co publish this Ordinance at least twice
within 30 days of passage of this Ordinance in one or more
newspapers published or circulated in the municipality in
accordance with Section 11-76.1-3 of the Illinois Municipal
Code.
Section4;Execution of`R wired Documentation. The
h age uth 4z an e I age le s a ,and are County(ies)of DUPage
hereby,authorized to execute the Sales Contract-The Vile
lage Manager and the Village Clerk shall be, and are
hereby,authorized to execute all other documentation re-
lated Thereto,and to fake all action necessary for fiheacqut- and State of Illinois� continuously for more than one year prior to the
shah of The Property the village as may be required
pursuant to the Sales Contract and applicable law,includ- date of the first publication of the notice hereinafter referred to and is of
ing the payment of the purchase price set forth in the Sales
Contract,and the Payment of applicable reimbursement general circulation throughout said Village(s), County(ies) and State.
and closing costs,but only upon receipt by the Village Clerk
of at least one origtnal copy of the Sales Contract executed
by the Setter.If the executed copy of the Sales Contract is
not received by the Ordinance clerk within 30 days after me ef-
fective date of this Ordinance then this authority shall,at �'
foLecti n of the Village Board,be nun and Vold.l if Act to revise the law in relation to notices" as amended in 1992
Section S:Effective Data.This Ordinance shall be in full
force of a w ram an after its passage by an affirms Illinois Compiled Statutes, Chapter 7150,Act 5,Section 1 and 5.That a
live vote of two-thirds of the elected corporate authorities
holding office and publication in the manner provided by
APPROVED THIS 24th day of5epember,2013. notice of which the annexed printed slip is a true copy,was published
c pal G.lL.aimalani Village President September 27, 28,2013 in said DAILY HERALD.
PASSE D THIS 24th day of September,2013:
Ayes:Trustees Adler,Boar,Manzo,May,Worn',vUSuf
Nays:None IN WITNESS WHEREOF,the undersigned,the said PADDOCK
Absent:None
ATTEST: PUBLICATIONS,Inc.,has caused this certificate to be signed by,this
Charlotte K.Pruss,Village Clerk
Published in Daily Herold September 278.28,2013(4353866) authorized agent,at Arlington Heights,Illinois.
PADDOCK PUBLICATIONS,INC.
DAILY HERALD NEWSPAPERS
BY
Authorized Agent
Control#4353866