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TO: The Honorable Mayor and City Council
FROM: The Law Department
DATE: November 2, 2018
SUBJECT:
An Ordinance approving a settlement agreement between the City of Aurora and G6 Hospitality Property, LLC for the acquisition of real property located at 2380 N Farnsworth Ave, commonly known as Motel 6.
PURPOSE:
To resolve the City's pending eminent domain litigation against the owners of the Motel 6 and acquire it for roadway construction and economic development purposes.
BACKGROUND:
Following negotiations with the owner of the motel, the City brought a condemnation action in 2016 seeking to acquire the property to facilitate the reconstruction and realignment of Corporate Boulevard. Approximately one year ago, the parties reengaged each other in settlement talks before reaching an agreement in principle earlier this spring. Counsel for the parties negotiated the particulars and the timing of the transaction during the summer with the final documents tendered to the City on November 1.
DISCUSSION:
The proposed settlement agreement contemplates the City's acquisition of the Motel for $3.4 million with the parties to close on the transaction on January 31, 2019. Motel 6 will continue to operate the motel until the sale closes. Motel 6 is responsible for insuring that the site will be free of all tenants and guests at the time of closing.
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 ________________
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An Ordinance authorizing the acquisition of certain real estate commonly known as 2380 North Farnsworth Ave through the settlement of a pending eminent domain action.
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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 Mayor and City Council of the City of Aurora, Kane, DuPage, Kendall and Will Counties, Illinois, adopted Ordinance No. 16-00169, dated February 23, 2016, 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 2380 North Farnsworth Avenue, Aurora, Illinois, with Permanent Index Numbers 15-02-426-015 and 15-427-002 (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 Farnsworth Avenue and Corporate Boulevard; and
WHEREAS, the Mayor, City staff and the City's 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. 16-00169, 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 7; 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 Agreement and Mutual Release of Claims (hereinafter the “Settlement Agreement”), a true and accurate copy of which is attached hereto as Exhibit A and made a part hereof:)
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
SECTION 1: That the above “Whereas” paragraphs 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 City's attorneys 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.