R-1233 - 02/12/2013 - FEMA - Resolutions Supporting DocumentsITEM 9.A.1)
AGENDA ITEM
Regular Board of Trustees Meeting
of
February 12, 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 Village Manager to
execute a grant confirmation to the Illinois Emergency Management Agency (IEMA) for
purchase of the property at 615 22 "d Street (formerly 615 Hunter Drive).
Background:
615 Hunter Drive: The property at this address is an office building owned by Associated Equipment
Distributors (AED). It has been periodically flooded by waters from Salt Creek for the last 30+ years.
Attempts to protect against flooding through construction of a berm to the maximum height allowed by
DuPage County/Village regulations have been unsuccessful. During the high water event of July 2010
the building suffered damage greater than 50% of its appraised $1,000,000 value. 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 executed 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.
Prior to the last Board discussion of this item, the Village had received an appraisal of the property
from Gibbons & Sidhu in the amount of $1,410,000. At the direction of the Board, Staff obtained a
second 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. (See attached
email) 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. This expenditure may be partially offset by
$40,000 from the stormwater management `fee in lieu of' fund. Currently the Village is holding
$40,000 which must be spent on for stormwater management purposes by November of 2013.
Recommendation:
That the Village Manager be directed to execute the attached grant agreement.
Page 1 of 1
From: Robert K. Henderson [rhenderson @aednet.org]
Sent: Thursday, February 07, 2013 1:57 PM
To: Michael Hullihan
Subject: AED Building/615 W. 22nd Street
Mike,
Per our conversation, The Associated Equipment Distributors (building owner) is favorable to proceeding with
the sale of the property to the Village of Oak Brook per the recent RVG Appraisal at: $740,000.00.
Bob
Bob Henderson
Executive Vice President & COO
Associated Equipment Distributors
630 468 5116
file: / /C:\Documents and Settings\kvonachen \Local SettingsUemporary Internet Files \Conte... 2/712013
RESOLUTION 2013 - FEMA- GR- AG -EX -R -1233
A RESOLUTION APPROVING A GRANT AGREEMENT
BY AND BETWEEN THE VILLAGE AND THE ILLINOIS EMERGENCY MANAGEMENT AGENCY TO
ENABLE THE PURCHASE OF THE PROPERTY AT 615 22nd STREET
WHEREAS, over the past 30 years, the property located at 615 22nd Street ( "Property ") has
regularly suffered severe flooding from Salt Creek; and
WHEREAS, certain flooding events have caused damage to the Property in excess of 50- percent
of the Property's appraised value; and
WHEREAS, remedial measures, such as the construction of a berm, have failed to protect the
Property from flooding; and
WHEREAS, the Federal Emergency Management Agency ( "Agency's administers a program
through which FEMA provides grants to municipalities to enable municipalities to purchase properties that
suffer from severe flooding in order to convert those properties into flood plains ( "Grant's; and
WHEREAS, the Village of Oak Brook ( "Village") applied for a Grant to purchase the Property;
and
WHEREAS, the Grant will cover 75 percent of the purchase price of the Property; and
WHEREAS, the Illinois Emergency Management Agency ( "IEMA") administers Grants in Illinois
for FEMA; and
WHEREAS, in order to receive the Grant to purchase the Property, the Village must enter into an
agreement with IEMA to govern the use of the Grant funds and to ensure that the Village properly funds
its portion of the purchase of the Property, which agreement is attached hereto as Exhibit A
("Agreement"), and
WHEREAS, the President and Board of Trustees, being fully advised in the premises, have
determined that it is in the best interests of the Village and its residents to approve the Agreement;
NOW THEREFORE, BE IT RESOLVED 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 incorporated into, and made a part of, this
Resolution as the findings of the Village President and Board of Trustees.
Section 2: Approval of the Agreement. The President and Board of Trustees hereby
approve the Agreement by and between the Village and IEMA in a final form acceptable to the Village
Manager and the Village Attorney.
Section 3: Authorization and Execution of the Agreement. The Village President and Village
Clerk shall be, and hereby are, authorized to execute the final Agreement on behalf of the Village after
review and approval of the final form of the Agreement by the Village Manager and the Village Attorney.
Section 4: Effective Date. This Resolution shall be in full force and effect upon passage and
approval in the manner provided by law.
[SIGNATURE PAGE FOLLOWS]
Ayes:
Resolution 2013 - FEMA- GR- AG -EX -R -1233
Grant Agmt. with FEMA for Purchase of 615 Hunter
Page 2 of 3
APPROVED THIS 12th day of February, 2013
Gopal G. Lalmalani
Village President
PASSED THIS 12th day of February, 2013
ATTEST:
Charlotte K. Pruss
Village Clerk
EXHIBIT A
#11277089_vl