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TO: Mayor Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer/City Treasurer
DATE: March 7, 2019
SUBJECT:
An Ordinance Adopting Tax Increment Financing for the City of Aurora Downtown Tax Imcrement Financing District 9 (Stolp Avenue - Downtown Area).
PURPOSE:
The final steps in approving the Tax Increment Financing District (TIF ) 9 includes the approval of the TIF enabling ordinance. The attached ordinance and attachments thereto include this information.
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 adopting Tax Increment Financing for the City of Aurora Downtown Tax Increment Financing District 9 (Stolp Avenue - Downtown 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”); and
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”); 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 desire to adopt tax increment financing pursuant to the TIF Act; and
WHEREAS, the Mayor and City Council of the City have approved the TIF Plan and designated the Redevelopment Project Area pursuant to the provisions of the TIF Act, and have otherwise complied with all other conditions precedent required by the TIF Act;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
SECTION 1: That tax increment financing is hereby adopted with respect to the TIF District, with the TIF Plan in relation thereto having been approved and adopted pursuant to an Ordinance adopted by the Mayor and City Council of the City on March 26, 2019, and the Redevelopment Project Area in relation thereto, described and depicted in EXHIBIT A-1 and EXHIBIT A-2 attached hereto and made a part hereof, having been approved, adopted and so designated pursuant to an Ordinance adopted by the Mayor and City Council of the City on March 26, 2019, with the initial equalized assessed valuation for said TIF District being the 2018 equalized assessed valuation of the Redevelopment Project Area.
SECTION 2: That the ad valorem taxes arising from the levies upon taxable real property in the Redevelopment Project Area by taxing districts, and tax rates determined in the manner provided in Section 5/11-74.4-9 of the TIF Act (65 ILCS 5/11-74.4-9), each year after the effective date of this Ordinance until redevelopment project costs and all municipal obligations financing redevelopment project costs have been paid, shall be divided as follows:
A. That portion of taxes levied upon each taxable lot, block, tract or parcel of real property which is attributable to the lower of the current equalized assessed value or the initial equalized assessed value (2018 equalized assessed valuation) of each such taxable lot, block, tract or parcel of real property in the Redevelopment Project Area shall be allocated to, and when collected shall be paid by the Kane County Collector to, the respective affected taxing districts in the manner required by law in the absence of the adoption of tax increment allocation financing; and
B. That portion, if any, of such taxes which is attributable to the increase in the current equalized assessed valuation of each lot, block, tract or parcel of real property in the Redevelopment Project Area over and above the initial equalized assessed valuation (2018 equalized assessed valuation) of each lot, block, tract or parcel of real property in the Redevelopment Project Area shall be allocated to, and when collected shall be paid by the Kane County Collector to, the City Treasurer who shall deposit said funds in a special fund called “The Special Downtown Tax Increment Financing District 9 (Stolp Avenue - Downtown Area) Tax Increment Allocation Fund” of the City for the development and implementation of the TIF Plan.
SECTION 3: That the City shall obtain and utilize incremental taxes from the Redevelopment Project Area for the payment of redevelopment project costs and all City obligations financing redevelopment project costs in accordance with the provisions of the TIF Act and the TIF Plan.
SECTION 4: 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 5: 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 6: 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