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TO: Mayor Thomas J. Weisner
FROM: Bill Wiet, Chief Development Services Officer
DATE: May 5, 2016
SUBJECT:
To amend the current Redevelopment Agreement with Fox Island Apartments LLC, more specifically for the property at 77 South Stolp Avenue (Elks Club Building)
PURPOSE:
The current Redevelopment Agreement established a 15.5 month period for completion of the 29 market rate apartments as well as a first floor restaurant space. The initial period expires May 15, 2016 with an additional 3 month grace period (to August 15, 2016). The developer also has on deposit a $500,000 performance guarantee tied to the completion of the project.
BACKGROUND:
As further outlined in the attached memo from Invest Aurora and letter from Karademas Management, substantial progress has been made to the building but completion dates may be slightly longer than what is called for in the current Redevelopment Agreement.
DISCUSSION:
It has been requested by the developer, with recommendation from Invest Aurora that the completion date for the residential units be extended from May 15, 2016, to July 1, 2016, with a three month grace period beyond that date. Also, a modification to the refund of the performance guarantee is being recommended which releases separately the guarantee upon completion of the residential units ($317,500) and the restaurant ($182,500) with completion of the restaurant improvements by December 31, 2017, as more fully explained in the First Amendment.
IMPACT STATEMENT:
There will be no negative impact on the request the extension of the completion of improvements to both the residential units and restaurant space.
RECOMMENDATIONS:
It is recommended that the First Amendment to Redevelopment Agreement as indicated as Exhibit A be approved.
cc: Alderman O’Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Mesiacos, Alternate
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
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An Ordinance Approving First Amendment to Ordinance O14-097, an Ordinance Authorizing the Execution of a Redevelopment Agreement with Fox Island Apartments LLC for Properties Located at 7 South Stolp, 33-35 South Stolp, and 77 South Stolp Avenue
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City Council of the City of Aurora approved, by Ordinance O14-097, a Redevelopment Agreement with Fox Island Apartments LLC in regards to the acquisition and redevelopment of three properties commonly known as 7 South Stolp, 33-35 South Stolp, and 77 South Stolp Avenue; and
WHEREAS, substantial progress has been made to the rehabilitation of 77 South Stolp Avenue, however, the developer is requesting additional time in which to complete the project in accordance with the provisions contained in Ordinance O14-097; and
WHEREAS, it is in the best interests of the City of Aurora and its residents to enter into said First Amendment to Redevelopment Agreement.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
1. That the Mayor and City Council of the City of Aurora hereby find that it is in the best interests of the City of Aurora and its residents that the aforesaid "First Amendment to Redevelopment Agreement" with Fox Island Apartments LLC, be entered into by the City of Aurora, with said First Amendment to be substantially in the form attached hereto and made a part thereof as Exhibit A.
2. That the Mayor and City Clerk of the City of Aurora, Kane, Kendall, Will and DuPage Counties, Illinois, are hereby authorized to execute for and on behalf of the City of Aurora, the aforesaid First Amendment to Redevelopment Agreement.