cover
TO: The Honorable Mayor and City Council
FROM: Law Department
DATE: July 20, 2018
SUBJECT:
An Ordinance approving a settlement agreement between the City of Aurora and Fox Valley Hospitality, LLC and the acquisition of real property located at 2450 N Farnsworth Ave, commonly known as the Fox Valley Motel.
PURPOSE:
To resolve the City's pending eminent domain litigation against the Fox Valley Motel and acquire it for roadway construction and economic development purposes.
BACKGROUND:
After negotiations with the owner of the Fox Valley Motel failed, the City brought a condemnation action in 2016 seeking to acquire the property to facilitate the reconstruction and realignment of Corporate Boulevard. Earlier this year, the City amended its eminent domain action to allege economic development as an additional public purpose for the acquisition. Following the amendment, the parties re-engaged each other with the goal of working towards an amicable resolution and have reached a tentative agreement subject to Council approval.
DISCUSSION:
The proposed settlement agreement contemplates the City's acquisition of the Motel for $3.6 million with the parties to close on the transaction as soon as practicable. Following the closing, the Motel's former owner will continue to operate the facility as a holdover tenant until January 31, 2019. During the holdover period and for one year thereafter, Fox Valley Hospitality will insure the property with the City named as an additional insured and maintain a $100,000 escrow.
IMPACT STATEMENT:
Approval of this agreement will result in the City incurring the cost associated with the property's acquisition, but allow the City to further its goals to realign Corporate Blvd and redevelop the area consistent with the Tax Increment Redevelopment Plan for the West Farnsworth TIF District No, 7.
RECOMMENDATIONS:
That the City Council approve the settlement agreement and authorize the completion of the acquisition.
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance authorizing the acquisition of certain real estate commonly known as 2450 North Farnsworth Avenue through the settlement of a pending eminent domain action.
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, the Mayor and City Council of the City of Aurora, Kane, DuPage, Kendall and Will Counties, Illinois, adopted Ordinance No. 16-010, dated February 23, 2016, and Ordinance No. 18-0225, dated March 13, 2018, determining that it is necessary and in the public interest of the City of Aurora (hereinafter the “City”) to acquire fee simple title to certain real property commonly known as 2450 North Farnsworth Avenue, Aurora, Illinois, with Permanent Index Number 15-02-200-014 (hereinafter the “Subject Property”), and which lies entirely within the corporate limits of the City, and is needed by the City for the extension and realignment of Corporate Boulevard and for economic development purposes pursuant to 65 ILCS 5/11-74.4-1 et seq.; and
WHEREAS, the Mayor, City staff and the City Attorneys were directed and authorized to negotiate for and on behalf of the City with the owner or owners of the Subject Property for the purchase of fee simple title to the Subject Property by the City. The City was unable to agree with the owner or owners of the Subject Property as to the compensation to be paid for the Subject Property. Therefore, pursuant to Ordinance No. 16-010 and Ordinance No. 18-0225, the City authorized the initiation of an eminent domain proceeding to acquire fee simple title to the Subject Property in accordance with the applicable eminent domain laws of the State of Illinois; and
WHEREAS, pursuant to said authority, the City filed a complaint under the applicable eminent domain laws of the State of Illinois to acquire fee simple title to the Subject Property in the Circuit Court of Kane County, Case Number 16 ED 6; and
WHEREAS, after extensive settlement negotiations, the City and the owner have reached an agreement to resolve the pending eminent domain proceeding by fixing the amount of just compensation to be paid by the City for acquisition of fee simple title to the Subject Property, as provided in the Settlement, Mutual Release of Claims and Post Conveyance Possession Agreement (hereinafter the “Settlement Agreement”), a true and accurate copy of which is attached hereto as Exhibit A and made a part hereof; (enter additional text here.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
SECTION 1: That the above recitals are incorporated into Section 1 of this Ordinance as material terms and provisions.
SECTION 2: That the Mayor and City Council of the City of Aurora find that it is necessary and in the public interest of the City of Aurora to acquire fee simple title to the Subject Property under the terms and conditions set forth in the Settlement Agreement attached as Exhibit A.
SECTION 3: That the Mayor and City Clerk are directed and authorized to execute the Settlement Agreement, attached as Exhibit A, on behalf of the City. The Mayor, City Clerk and the Corporation Counsel or his designees are further directed and authorized to execute all documents and take all actions necessary and proper for the acquisition of fee simple title to the Subject Property pursuant to the terms and conditions of the Settlement Agreement.
SECTION 4: That this Ordinance shall be in full force and effect from and after its passage and approval.