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TO: Mayor Richard C. Irvin
FROM: Trevor Dick, FAICP, LEED AP, Assistant Director in the Mayor’s Office of
Economic Development
DATE: August 3, 2023
SUBJECT:
An Ordinance Making Minor Amendments to the Redevelopment Plan and Project for the City of Aurora Proposed River Vine Tax Increment Financing District.
PURPOSE:
This Amendment proposes the reduction of the terms of the proposed River Vine Tax Increment District from 23 years to 20 years.
BACKGROUND:
The creation of this TIF District is required by an existing RDA approved by the City Council in Resolution R22-223 on July 26, 2022, between the City of Aurora and a private developer for the highly visible redevelopment on the west bank of the Fox River of the long vacant parking lot at 309 North River Street.
As part of the cooperative and transparent process of creating a TIF District, City staff met with the associated public school district administration, which for this property is West Aurora School District #129, to discuss the proposed TIF District and the specific RDA. School District #129 asked if the TIF could be reduced from the allowable 23- year term to a 20-year term. Once City staff determined that the project approved in the RDA could meet its funding needs with a 20-year term, staff agreed to the lesser term. Previous Legistar memoranda have also come before Council that calls for this proposed term to be 20 years.
DISCUSSION:
Reducing the term of the River Vine TIF District will not impede the redevelopment of the Westbank project. It also shows the City’s cooperation and willingness to work with our other taxing districts.
The changes, depicted in the attached Exhibit B include the following:
- page 26, line 17 of the River Vine TIF Redevelopment Plan, third paragraph of the "Sources of Funds to Pay Redevelopment Project Costs": " 2021 tax year for the RPA" is changed to read " 2022 tax year for the RPA".
- page 26, line 30 of the River Vine TIF Redevelopment Plan, sixth paragraph of the "Sources of Funds to Pay Redevelopment Project Costs": " Any and all obligations issued by the City pursuant to this Plan and the Act shall be retired not more than twenty-three (23) years" is changed to read " Any and all obligations issued by the City pursuant to this Plan and the Act shall be retired not more than twenty (20) years.
- page 26, line 32 of the River Vine TIF Redevelopment Plan, sixth paragraph of the "Sources of Funds to Pay Redevelopment Project Costs": "the collection of incremental property tax revenues from the completion of the twenty-third year" is changed to read "the collection of incremental property tax revenues from the completion of the twentieth year"
- page 26, line 33 of the River Vine TIF Redevelopment Plan, sixth paragraph of the "Sources of Funds to Pay Redevelopment Project Costs": " with taxes collected in the twenty-fourth year..." is changed to read " with taxes collected in the twenty-first year..."
- page 26, line 35 of the River Vine TIF Redevelopment Plan, sixth paragraph of the "Sources of Funds to Pay Redevelopment Project Costs": " may not be later than twenty (20) years from their respective date of issuance" is changed to read " may not be later than twenty (20) years from their respective date of issuance or termination of the TIF District, whichever is sooner"
IMPACT STATEMENT:
Approval of the ordinance will reduce the life span of the proposed River Vine TIF District from 23 years to 20 years.
RECOMMENDATIONS:
Staff recommends approval of the ordinance Making Minor Amendments to the Redevelopment Plan and Project for the City of Aurora Proposed River Vine Tax Increment Financing District.
cc: Finance Committee:
Alderman Carl Franco, Chairperson
Alderman Edward J. Bugg, Vice Chairperson
Alderwoman Shweta Baid
Alderman-At-Large Ron Woerman
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance Making Minor Amendments to the Redevelopment Plan and Project for the City of Aurora Proposed River Vine Tax Increment Financing District.
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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, WHEREAS, the City of Aurora (“City”) is a home rule municipality organized under the laws of the State of Illinois; and
WHEREAS, the Illinois Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1 et seq. (“Act”), allows the City to assist in the financing of certain improvements in areas in the City which meet the Act’s requirements; and
WHEREAS, the City, pursuant to ordinance O2023-017 on March 14, 2023, proposed establishment of the City’s River Vine Tax Increment Financing District (“TIF District”) for the redevelopment project area legally described in EXHIBIT A attached hereto and made part hereof, and proposed approval of a redevelopment project and plan for the TIF District (“Redevelopment Plan”); and
WHEREAS, on April 6, 2023, the Joint Review Board for the TIF District met and unanimously recommended that the City establish the TIF District and approve the Redevelopment Plan; and
WHEREAS, on August 8, 2023, the City held a public hearing on the proposed establishment of the TIF District, and the City anticipates establishing the TIF District in the coming weeks; and
WHEREAS, pursuant to Section 5(a) of the Act, amendments to the TIF District and the Redevelopment Plan which do not (1) add additional parcels of property to the proposed redevelopment project area, (2) substantially affect the general land uses proposed in the redevelopment plan, (3) substantially change the nature of or extend the life of the redevelopment project, or (4) increase the number of inhabited residential units to be displaced from the redevelopment project area, as measured from the time of creation of the redevelopment project area, to a total of more than ten, may be made without need for further hearing, provided the City gives certain notices of any such amendments within ten days following the adoption of the ordinance providing for any such amendments; and
WHEREAS, the City desires to make the minor amendments to the Redevelopment Plan for the TIF District set forth in EXHIBIT B attached hereto and made a part hereof (collectively the “Minor Amendments”), including reducing the term of the TIF District from twenty-three (23) years to twenty (20) years; and
WHEREAS, the Minor Amendments do not adversely impact the eligibility factors under consideration by the City with respect to the potential establishment of the TIF District as a tax increment financing district under the Act;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
SECTION 1: That the recitals above are incorporated into Section 1 of this Ordinance.
SECTION 2: That the Redevelopment Plan is hereby amended by making the Minor Amendments.
SECTION 3: That pursuant to Section 5(a) of the Act, within ten days of adoption of this Ordinance, this Ordinance will be published in the Aurora Beacon, or another appropriate newspaper, and a copy of this Ordinance will be sent by certified mail, return receipt requested, to each taxing district that is affected by the TIF District, and by First Class U.S. Mail to each person and entity registered on the City’s TIF Interested Parties Registry.
SECTION 4: This Ordinance will be in full force and effect from and after its adoption and approval as provided by law.