cover
TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer/City Treasurer
DATE: September 3, 2019
SUBJECT:
Tax Increment Finance District (TIF) Feasibility Studies - Avalon Heights/Fox Valley Developers LLC and Fox Valley Mall/Centennial Properties, using the services of Kane McKenna and Associates.
PURPOSE:
To analyze the possibility of creating a Tax Increment Finance Districts (1)in the area commonly known as Old Copley Hospital, and (2) in the area commonly known as the Fox Valley Mall.
BACKGROUND:
The cleanup of the Old Copley Hospital (newly named the Avalon Heights)campus has been completed by Fox Valley Developers as detailed in the Redevelopment Agreement approved in 2018 by the City. This major accomplishment allows for the initiation of Phase II of this project, the renovation of this campus into a multi-use facility including senior living, commercial health services, and the completion of a training and administration facility for Aurora School District 131.
The continued success of the Fox Valley Mall is a critical component to economic stability for the Route 59 Corridor and the City of Aurora as a whole. The decline of these types of malls and the big box retailers contained within them is a well-documented issue throughout the United States. Centennial Real Estate, the owners of a large portion of the Mall have approached the City with potential redevelopment opportunities that will provide much needed investment and stability to the entire area.
In order to finance these projects, the City can consider the use of Tax Increment Financing for the sites. This will require an eligibility report for each district, which has been conducted by Kane McKenna and Associates for all previous City TIF districts.
DISCUSSION:
Kane McKenna has provided TIF consulting work on all of the current active TIFs for the City. The firm provides timely responses, flexible scheduling and is an accepted expert in the field of TIF eligibility analyses throughout Illinois. As noted in the attached proposal Kane McKenna will provide complete advisory services and work closely with the City's outside counsel, Klein Thorpe and Jenkins on the total TIF approval process. These contracts will initially be charged to account 215-2502-415.32-80, but eventually can be reimbursed from the TIF funds once set up. A budget transfer from account 215-4010-417.7101 in the Gaming Fund for $82,000 will be used to fund these initial expense that were not originally budgeted in the 2019 Budget.
Each eligibility analysis is quoted separately from Kane McKenna and these are listed below:
* Avalon Heights TIF - Not to Exceed $40,000
* Fox Valley Mall TIF - Not to Exceed $42,000
IMPACT STATEMENT:
The approval of these contracts is critical to the continued redevelopment of the City of Aurora. Without the TIF analyses provided from these contracts continued development might not occur, reducing the growth in the City's property tax base and the vitality of critical area on the near and far east side of the City.
RECOMMENDATIONS:
We recommend the approval of the attached to proposals from Kane McKenna.
cc: FinanceCommittee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Approving Consulting Agreements with Kane McKenna and Associates to conduct Tax Increment Financing Eligibility studies for the Avalon Heights and Fox Valley Mall Areas at a not to exceed cost of $82,000.
body
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, Continued economic development and redevelopment are critical to the continued financial and cultural health of the City of the City of Aurora and:
WHEREAS, Tax Increment Financing (TIF) is an economic development tool that has been successfully used by the City in the past and:
WHEREAS, an Eligibility Study is required under the Illinois TIF Act, and Kane McKenna is a recognized expert in the performance of such studies
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: That the Mayor is hereby authorized to enter into agreements with Kane Mckenna and Associates for the provision of Eligibility Studies for the Avalon Heights redevelopment area and the Fox Valley Mall redevelopment area as outlined in the attached proposals for a not to exceed amount of $80,000.