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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer/City Treasurer
DATE: March 7, 2019
SUBJECT:
An Ordinance designating the City of Aurora Downtown Tax Increment Financing District 9 (Stolp Avenue - Downtown Area) Redevelopment Project Area.
PURPOSE:
The final steps in approving the Tax Increment Financing District (TIF ) 9 includes the designation of the redevelopment Plan and Project Area. The attached ordinance and attachments thereto include this.
BACKGROUND:
The creation of TIF 9 is an integral part of the ACCA/Paramount and more recently the Keystone development agreements. This TIF, as noted in the attached area map is bordered by the Fox River, Stolp Ave, Galena, and Downer Place.
In the past several meetings the City Council has approved the carve out of the properties identified in TIF 9 from the present TIF 1 property listing. This change will be noted in property tax records and any incremental property tax value represented by those properties carved out from TIF 1 will be available to all taxing bodies. These properties will then be again frozen at the new level when TIF 9 is created.
DISCUSSION:
Upon the creation of TIF 9, the City will accumulate funding from the two developments noted above. TIF 9 is critical to the success of the Keystone project and tax increment received from this development will be shared on an 80% developer and 20% City basis for at least the first 13 years of the TIF. Depending on the performance of the development, this sharing formula could be changed to 70% developer and 30% City.
It is anticipated that the City will provide a distribution of the 20% Tax Increment listed above to all taxing bodies on an annual basis to give some measure of tax relief/revenues while the TIF is still open.
IMPACT STATEMENT:
Failure to pass this TIF 9 Redevelopment Plan and Project Area will result in the rescinding of the Keystone Development Agreement.
RECOMMENDATIONS:
Staff recommends the Finance Committee Approve this Ordinance to be forwarded on to the Committee of the Whole at the March 19, 2019 meeting.
cc: Finance Committee
Chair/Alderman Robert J. O'Connor
Alderman Theodoris Mesiacos
Alderman Edward Bugg
Alderman Richard Mervine
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance Designating the City of Aurora Downtown Tax Increment Financing District 9 (Stolp Avenue - Downtown Area) Redevelolpment Project Area.
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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, pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1, et seq. (“TIF Act”), the City of Aurora (“City”) authorized a study in regard to designating a redevelopment project area for the City’s Downtown Tax Increment Financing District 9 (Stolp Avenue - Downtown Area) (“TIF District”);
WHEREAS, on October 23, 2018, the City announced the availability of the redevelopment plan and project for the TIF District (“TIF Plan”), with said TIF Plan containing an eligibility report for the TIF District addressing the tax increment financing eligibility of the area proposed for designation as the redevelopment project area for said TIF District (“Redevelopment Project Area”);
WHEREAS, if required your last whereas statement should reference the section of code that allows your action (i.e. pursuant to Aurora Code Section 2-335(a)(3) the desired product is provided by only one source in this situation; and
WHEREAS, a public hearing was held on February 12, 2019, in regard to the TIF Plan; and
WHEREAS, the Mayor and City Council of the City have heretofore adopted and approved the TIF Plan, and it is now necessary and desirable to designate the area referred to therein as the Redevelopment Project Area;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
SECTION 1: That the area described and depicted in EXHIBIT A-1 and EXHIBIT A-2 attached hereto, and made a part thereof, is hereby designated as the Redevelopment Project Area for the City’s Downtown Tax Increment Financing District 9 (Stolp Avenue - Downtown Area) pursuant to Section 5/11-74.4-4 of the TIF Act (65 ILCS 5/11-74.4-4).
SECTION 2: That this Ordinance shall be in full force and effect from and after its adoption, approval and publication in pamphlet form as provided by law.
SECTION 3: That if any section, paragraph, clause or provision of this Ordinance shall be held invalid, the invalidity thereof shall not affect any of the other provisions of this Ordinance.
SECTION 4: That all ordinances or parts of ordinances in conflict herewith are, to the extent of such conflict, hereby repealed.
ADOPTED this ___ day of ___________, 2019, pursuant to a roll call vote as follows:
AYES:____________________________________________________
NAYS:____________________________________________________
ABSENT:__________________________________________________
APPROVED by me this ___ day of ___________, 2019.
____________________________________
Richard Irvin, City Mayor
(SEAL)
ATTEST:
________________________________
Wendy McCambridge, City Clerk