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TO: Mayor Thomas J. Weisner
FROM: Bill Wiet, Chief Development Services Officer
DATE: July 1, 2016
SUBJECT:
To consider a development agreement that would give the City ownership of the former West Aurora School Administration Center at 80 South River Street. Also, the West Aurora School District (SD 129) will be acquiring Dreyer's former clinic at 1870 West Galena Boulevard. A property tax rebate will be provided to Dreyer from real estate property taxes (City share only) collected from their tax paying properties at 1221 North Highland Avenue and the soon to be open new facility at 2285 Sequoia Drive. This would allow SD 129 to acquire the former clinic at a reduced price. An announcement by the School District of their intentions was made public November of 2015.
PURPOSE:
This action would allow the 80 South River property to be actively marketed by the City, which ultimately could place this building back on the tax rolls. Properties similar to this on the Fox River have garnered a lot of developer interest and the City is confident that this property could have a user in the not too distant future. This action also fulfills SD 129's vision for an early learning center at the former clinic site.
BACKGROUND:
The disposition of Dreyer's Galena Boulevard building came up pursuant to a variation request for their new facility on Sequoia Drive. Dryer had indicated that they would be vacating the Galena site, and the City had concerns about the future of the building in its vacant state. An agreement was reached with Dreyer that would have them begin to market the building, and also insure that if there were no buyers, Dreyer would demolish the building, with a $500,000 letter of credit to the city to guarantee this happens.
DISCUSSION:
SD 129 will be purchasing the former clinic for $600,000, which is below the fair market value of the property. The City will be providing Dreyer Clinic, Inc. with a $150,000 property tax rebate in order to help bridge this gap, and in exchange the City will receive the 80 South River Street property. The attached Agreement, once executed by all parties, will provide for all components necessary to make this work. There will be no upfront outlay by the City and the $150,000 contribution, rather it will be by a rebate once property taxes for the Highland and Sequoia properties are paid.
IMPACT STATEMENT:
This action will have a positive impact in that two potentially vacant buildings, one in the downtown and one on the far west side, would be repurposed and have an economic spin off effect in their respective geographic areas. There may be customary maintenance expenses on the River Street property by the City until it is redeveloped.
RECOMMENDATIONS:
It is recommended that the proposed resolution be adopted.
cc: Alderman O’Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Mesiacos, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Authorizing the Execution of a Development Agreement between the City of Aurora, West Aurora School District No. 129, and Dryer Clinic, Inc.
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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 Corporate Authorities of the City of Aurora, Kane, DuPage, Kendall and Will Counties, Illinois have considered a Development Agreement ("Agreement"), between the City of Aurora, West Aurora School District 129, and Dreyer Clinic, Inc. for the acquisition and disposition of certain properties within the City of Aurora, a true and correct copy of the Agreement being attached hereto and made a part thereof as EXHIBIT "A"; and
WHEREAS, the City Council has determined that it is in the best interest of the residents of the City of Aurora that this Agreement, involving the rebating of City property taxes for certain properties indicated in said Agreement, be entered into.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows:
Section 1: The Preambles hereto are made a part thereof as fully as if completely repeated at length herein.
Section 2: That the Mayor and City Council hereby find that it is in the best interest of the City of Aurora and its residents that the aforesaid Agreement between The City of Aurora, West Aurora School District No. 129, and Dreyer Clinic, Inc. be entered into by the City of Aurora, with said Agreement to be substantially in the form attached and made a part thereof as EXHIBIT "A".
Section 3 That the Mayor and City Clerk are hereby authorized to execute for and on the behalf of the City of Aurora, the aforesaid Agreement.