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TO: Mayor John Laesch
FROM: Danielle Tufano, Downtown Economic Development
DATE: May 12, 2026
SUBJECT:
Approval of a resolution authorizing the disbursement of Special Service Area One funds not to exceed $300,000 to the Aurora Downtown District (ADD), as the successor organization for Aurora Downtown, for the provision of special services within Special Service Area One.
PURPOSE:
To fully fund ADD’s operations for the 2026 calendar year. The funding will support marketing initiatives, event programming, operational and administrative expenses, legal fees, and other program-related costs necessary to provide special services within Special Service Area One (SSA1). Approval of this funding will allow the organization to operate independently from the City while continuing to support downtown economic development and related services.
BACKGROUND:
Special Service Area One (SSA1) has historically funded the nonprofit organization "Aurora Downtown" to provide marketing, event coordination, economic development support, and other special services within the downtown district. Following the dissolution of Aurora Downtown in early 2025, portions of these responsibilities were temporarily assumed by The Aurora Alliance and now City staff to ensure continuity of downtown services, programming, and marketing efforts while community stakeholders evaluated the future organizational structure for downtown management. Through a series of public town hall and stakeholder listening sessions, downtown businesses, property owners, and community members expressed strong support for establishing a new independent nonprofit organization with enhanced transparency, accountability, and governance measures. As a result, the "Aurora Downtown District" (ADD) was formed as the successor organization to continue providing substantially the same services previously administered by Aurora Downtown.
The timing of this transition aligns with the City’s ongoing efforts to evaluate the future of SSA1, which is scheduled to expire in 2026, including consideration of an extension and potential boundary expansion. Because the existing SSA1 ordinance specifically references Aurora Downtown as the eligible recipient organization, City Council approval is required to authorize the disbursement of SSA1 funds to the Aurora Downtown District without pursuing an interim ordinance amendment while the broader SSA1 review process is underway. Approval of this resolution will allow SSA1-funded services to continue uninterrupted under the new successor organization.
DISCUSSION:
Special Service Area One (SSA1) Fund is a dedicated fund that is separate and distinct from the City of Aurora’s General Fund and has no impact on the City’s operational budget or taxpayer-supported corporate funds. SSA1 revenues are generated through a special tax levied on properties located within the SSA1 district and are held by the City for the sole purpose of funding special services and programs that directly benefit the downtown area. The City’s role is to administer and oversee the appropriate use of these funds in accordance with the SSA1 ordinance and applicable regulations.
As the successor organization to Aurora Downtown, the Aurora Downtown District (ADD) will be required to provide annual accountability documentation to the City, including an annual operating budget, year-end financial statements, and a public project proposal outlining anticipated programs and services. ADD representatives will also meet regularly with the Mayor and/or the Mayor’s designee to review the annual Program of Work and proposed projects, and will provide annual presentations to the City Council regarding downtown initiatives, events, opportunities, and organizational activities.
The City previously approved and will have expended approximately $50,000 in SSA1 funds for downtown-related services and start-up assistance for the new Aurora Downtown District (ADD), including the advance authorized through Resolution R25-340 in October 2025. ADD is now requesting up to an additional $300,000 in SSA1 funding to support operations for the remainder of calendar year 2026, including marketing initiatives, event programming, operational and administrative expenses, legal services, one-time organizational start-up costs, and a large downtown event associated with the World Cup. Together, these expenditures total approximately $350,000 in SSA1-related funding for 2026. Because the current SSA1 budget for 2026 is $299,000, staff anticipates returning to City Council later this year with a proposed budget amendment of approximately $51,000 to align the budget with projected expenditures. These costs would be funded entirely through existing SSA1 fund balances, which currently exceed $700,000, and would not impact the City’s General Fund.
The SSA1 Revenue account number is 266-1009-341.50-99.
The SSA1 Expenditure account number is 266-1009-465.50-45.
IMPACT STATEMENT:
Approval of this resolution will support the continued growth, vitality, and economic development of Downtown Aurora by ensuring the uninterrupted delivery of marketing, events, beautification initiatives, business support services, and community programming within Special Service Area One. Authorizing the disbursement of SSA1 funds to the Aurora Downtown District (ADD) will allow the organization to operate fully and independently as the designated successor organization for downtown services, while maintaining appropriate oversight and accountability measures through the City.
Providing ADD with direct access to SSA1 funding will enhance the organization’s ability to efficiently plan and implement programs, respond to community and business needs, and coordinate initiatives that promote Downtown Aurora as a vibrant destination for residents, visitors, businesses, and property owners. Continued investment through SSA1 will strengthen downtown partnerships, support local economic activity, and position the downtown district for long-term sustainability and success.
RECOMMENDATIONS:
Staff recommends approval of this resolution.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution authorizing the expenditure of special service area tax funds in a total aggregate amount not to exceed $300,000 to the Aurora Downtown District (ADD), as the successor organization for Aurora Downtown, for the provision of special services within Special Service Area One.
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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 Special Service Area Tax Law, 35 ILCS 200/27-5 et seq. (the “SSA Law”), authorizes the City to establish special service areas and to levy taxes therein to provide special governmental services in addition to those services provided generally throughout the City; and
WHEREAS, pursuant to the SSA Law, the City has established a special service area encompassing commercial properties generally located within the downtown business district, designated as Special Service Area Number One (“SSA One”); and
WHEREAS, for most of the existence of SSA One the City contracted with Aurora Downtown, an Illinois not-for-profit corporation comprised of owners and representatives of commercial properties within SSA One, to render special services in SSA One; and
WHEREAS, on September 12, 2025, Aurora Downtown, having previously wound down its operations, was dissolved by the Illinois Secretary of State; and
WHEREAS, on February 11, 2026, the Aurora Downtown District was officially incorporated as a 501(c)4 with the Illinois Secretary of State; and
WHEREAS, the City Council recognizes that the formation of an independent organization, including, but not limited to, determining voting membership, board composition and selection, preparing governing documents, and applying for federal and or state tax-exempt status, poses administrative burdens that may deter otherwise qualified volunteers from timely organizing the Successor Organization; and
WHEREAS, the City Council further finds and determines that the expenditure of SSA One tax revenues for the payment of ordinary and necessary operational expenses of the successor organization to Aurora Downtown, known as the Aurora Downtown District, for the remainder of calendar year 2026, including, but not limited to, marketing and promotional activities, event planning and coordination, legal fees, professional services, administrative expenses, and other operational costs, is necessary to ensure the continued provision of special services within SSA One and bears a reasonable relationship to the purposes for which the SSA One tax levy was imposed; and
WHEREAS, the City intends that all expenditures authorized by this Resolution shall be restricted to uses that benefit SSA One, consistent with the SSA Law and the City’s establishing ordinances;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: the approval authorizing the expenditure of special service area tax funds in a total aggregate amount not to exceed $300,000 and the provision of staff support for the purposes of organizing an independent not-for-profit organization to render special services within Special Service Area One, and hereby authorizes the Mayor or his designee to sign said agreements.