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TO: Mayor Richard C. Irvin
FROM: John Curley, Chief Development Officer
David Dibo, Executive Director, Mayor’s Office of Economic Development
DATE: August 23, 2018
SUBJECT:
A Resolution Approving the Reauthorization of Funds to Seize the Future Development Foundation (dba Invest Aurora) for Downtown building rehabilitation projects Known as the Finish Line Grant Program
PURPOSE:
The Purpose of this request is to reauthorize for 1 additional year Tax Increment Financing District Funds to the Finish Line Grant Program, which terminated June 1, 2018. The request also reauthorizes $450,000 in Finish Line Grant Funds; $375,000 in TIF District #1, and $75,000 in TIF District #3. With the reauthorization, modifications have also been made to the program guidelines to take into consideration the recent adoption of the new Downtown Master Plan as well as exception criteria for projects worthy of consideration under the Master Plan Implementation Matrix
BACKGROUND:
The Finish Line Grant Program, like the loan and grant programs of the past, has been a success in rehabilitating the downtown’s older building stock and occupying, in some cases, buildings that have sat vacant for years. The program has filled funding gaps that but for the use of Finish Line Grant Funds projects may not have been undertaken. To date $1,451,581 of Finish Line Grant Funds have been spent or committed on 59 Downtown projects competed or in the construction phase. These funds have in part leveraged $14,820,998 in investment in the downtown. The attached spreadsheet and documents highlight those projects that have used Finish Line Grant Funds.
DISCUSSION:
The adoption of the new Master Plan for Downtown Aurora has brought a renewed excitement to development in the downtown. Some projects, of larger scope and scale, still need an infusion of financial incentives above what the Finish Line Grant can provide, wholly or in part, and will still require separate development agreements between the developer and City. But included in Section 9 (Implementation) of the new Master Plan is an Implementation Matrix that further outlines the community’s vision for the downtown and defines guiding principals for its implementation. This Matrix can be used by the Invest Aurora Grant Committee in its assessment of a project, and can provide guidance as to how a project is prioritized. For projects that fall within the funding limits of the Finish Line Grant, it is recommended that it continue to be administered by Invest Aurora, which has already created a streamlined, simple and quick process. If approved, Invest Aurora can begin the application intake process during the next few months of 2018, and approve projects knowing funding will be available in 2019. While Invest Aurora requested $425,000, in funding from TIF 1, City Staff recommend a reduction to $375,000 in order to maintain a positive fund balance in TIF 1.TIF 1 currently has very little in reserves as of the end of 2018. Because of this, Invest Aurora and grantees will be notified as to the availability of funds during the year, with some funds not being available until the second property tax distribution in 2019.
IMPACT STATEMENT:
The approval of the reauthorization of the Finish Line Grant Program will enable the further implementation of the Master Plan for Downtown, provide meaningful assistance to help bridge necessary funding gaps, and make occupied or vacant buildings code compliant for current or future users in the downtown.
RECOMMENDATIONS:
It is recommended the City Council approve the reauthorization of the Finish Line Grant Program for one additional year starting January 1, 2019, with funding by an allocation of $450,000 to be provided by TIF 1 ($375,000) and 3 ($75,000) Funds. This allocation is subject to available funding based on the property tax distribution cycle in 2019.
cc: Alderman Robert J. O'Connor, Chairman
Alderman Edward J. Bugg, Member
Alderman Theordoros "Ted" Mesiacos, Member
Alderman Richard "Rick" Mervine, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Approving the Reauthorization of Funds to Seize the Future Development Foundation for Downtown Building Rehabilitation Projects Known as the Finish Line Grant Program.
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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, pursuant to Resolutions R13-182 and R16-205 which both approved and extended the partnership between the City of Aurora and Seize the Future Development Foundation (STFDF) to provide economic development services to the City of Aurora; and
WHEREAS, the City of Aurora, pursuant to Resolution R14-152, approved a new downtown building rehabilitation grant program known as the Finish Line Grant Program, to be administered by Seize the Future Development Foundation (dba Invest Aurora); and
WHEREAS, the Finish Line Grant Program terminated on June 1, 2018, and it has been recommended to extend the Finish Line Grant Program and its funding through to December 31, 2019; and
WHEREAS, funding for the project will be from a commitment of $375,000 in Tax Increment Financing District Number 1, and $75,000 in Tax Increment Financing District Number 3, beginning in the City of Aurora Fiscal Year 2019
WHEREAS, funding for the Finish Line Grant Program in fiscal year 2019 will be subject to available funds based on the 2019 property tax distribution cycle.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows:
Section One: Incorporation of Recitals
The recitals set forth above are incorporated into this Section as if fully set forth herein.
Section Two: The request to reauthorize the Seize the Future Development Foundation Finish Line Grant Program for City of Aurora Fiscal Years 2019 and 2020, in the annual amounts of $375,000 in Tax Increment Financing District Number 1, and $75,000 in Tax Increment Financing District Number 3, is hereby approved, all in accordance with the program guidelines and map attached hereto and made a part thereof as Exhibit A.
Section Three: The grant shall be conditioned upon the following:
1. STFDF provide quarterly reports to the Mayor and City Council during the term of this program.
2. That any use of Tax Increment Financing (TIF) funding shall be in compliance with the TIF Act.
3. STFDF shall provide documentation as deemed necessary by the City’s Chief Financial Officer annual Tax Increment Financing reporting purposes.
4. Funds shall be available based on the 2019 property tax distribution cycle to the respective TIF.
Section Four: This Resolution shall be in full force and effect after its passage, approval and publication in accordance with applicable law.