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TO: Mayor Richard C. Irvin
FROM: Trevor Dick, AICP, LEED AP, Director of Development Strategy and
Facilitation
DATE: September 16, 2019
SUBJECT:
An Ordinance Calling for a Public Hearing and a Joint Review Board Meeting to Consider the Designation of a Redevelopment Project Area and the Approval of a Redevelopment Plan and Project for the City of Aurora (75th Street Ogden Avenue Tax Increment Financing District).
PURPOSE:
The Ordinance would start the process of creating a Tax Increment Financing (TIF) District on the east side of the City, to be known as the "75th Street Ogden Avenue TIF District." The Ordinance sets dates for a Joint Review Board meeting and a public hearing, and calls for the notices to be given in connection with the meeting and public hearing.
BACKGROUND:
Redevelopment of the City's blighted or long vacant properties is a high priority. The area designated in this proposed TIF has been vacant for decades. As is the case for all property in areas that have not previously been developed, the City requires infrastructure to be built at the developer's cost. The requirement for the property to provide for the construction/extension of Commons Drive has created a burden on the property that has prevented development to date. In order to bridge this financing gap and boost the economic development of the property, the creation of this TIF will allow for the developer to fund the extension of Commons Drive through tax increment property taxes.
DISCUSSION:
The City approved a Redevelopment Agreement with Cedarwood Development, Inc. calling for the redevelopment of property in the area of 75th Street and Ogden Avenue, with a 87 bed assisted living facility (Phase I) followed by the construction of a 144 unit independent living complex. It is estimated that the design and construction of the Commons Drive extension will be $7.1 million. Based on the value of Phase I and Phase II of this development, staff estimates that the tax increment produced from this total development will be approximately $1.0 million. This will provide sufficient funding for the complete construction of the road, a required coverage ratio if the City elects to do revenue bonds instead of General Obligation Bonds and further revenues for future development or distribution of funds to taxing bodies.
The Redevelopment Agreement calls for the City to provide financial incentives to the redevelopment project, including:
- Commence the design and engineering plans for the Commons Drive extension and the improvements to a retention pond and other utility infrastructures.
- Manage and direct all steps regarding the construction of the Commons Drive Extension and the improvements to the Retention Pond.
- Contribute available incremental taxes from the TIF District toward the maintenance of the Retention Pond for a period of ten (10) years after the City’s improvements have been substantially completed.
- Install sanitary sewer, water, and storm sewer lines in rights of way adjacent to the Property.
- Install ‘tee(s)’ or ‘wye(s)’ in locations agreed upon.
- TIF Redevelopment Plan and the TIF District and to approve tax increment financing for the purpose of implementing the TIF Redevelopment Plan for the TIF District
In order to create the 75th Street Ogden Avenue TIF District, the City Council must first approve the Ordinance calling for the JRB meeting and Public Hearing, which begins the process. Key steps in the process of creating the TIF District include:
1. Introducing and Adopting the Ordinance
2. Sending notices of the Joint Review Board meeting and the availability of the Eligibility Study and Redevelopment Plan and Project for the TIF District
4. Holding the Joint Review Board meeting
5. Publishing and mailing notices of the public hearing
6. Holding the public hearing
7. Approving the ordinances creating the TIF District
It is anticipated that the TIF District will be created in early 2020
IMPACT STATEMENT :
The Designation of a Redevelopment Project Area and the Approval of a Redevelopment Plan and Project for the City of Aurora (75th Street Ogden Avenue Tax Increment Financing District) would support the Route 59 Corridor, aligned with the Route 59 Corridor Study - Comprehensive Plan (O19-006). A key transportation recommendation in that Study is to connect the existing roadway gap of Commons Road between Ogden Avenue and 75th Street. .
RECOMMENDATIONS:
City staff recommends the Ordinance be adopted, so that the creation of the 75th Street Ogden Avenue TIF District can move forward
ATTACHMENTS:
EXHIBIT A - Redevelopment Project Area Legal Description
EXHIBIT B - Notice of the Availability of the Eligibility Report
EXHIBIT C - Notice of Public Hearing and Joint Review Board Meeting
Legal Description of the Proposed TIF
EXHIBIT 1 - Common Boundaries-PINs
EXHIBIT 2 - Street Location Maps
cc: Alderman Robert O’Connor, Chairperson
Alderman Edward J. Bugg, Vice Chairperson
Alderman Carl Franco
Alderman Scheketa Hart-Burns
Alderman Emmanuel Llamas
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance Calling for a Public Hearing and a Joint Review Board Meeting to Consider the Designation of a Redevelopment Project Area and the Approval of a Redevelopment Plan and Project for the 75th Street Ogden Avenue Tax Increment Financing District.
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 City of Aurora (“City”) is considering the designation of a redevelopment project area and the approval of a redevelopment plan and project within the corporate limits of the City, to be called the 75th Street Ogden Avenue Tax Increment Financing District (“75th Street Ogden Avenue TIF District”), pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1, et seq. (“TIF Act”)
WHEREAS, on May 14, 2019, the City Council of the City approved a motion authorizing Kane, McKenna & Associates, Inc. to prepare an eligibility study and report, and a redevelopment plan and project relative to the 75th Street Ogden Avenue TIF District; and
WHEREAS, on September 9, 2019, the City published the Tax Increment Financing (TIF) Interested Parties Registry Notice, as required by Section 11-74.4-5(a) of the TIF Act, in the Daily Herald; and
WHEREAS, on September 10, 2019, the City announced the availability of the redevelopment plan and project for the proposed 75th Street Ogden Avenue TIF District (“TIF Plan”), with said TIF Plan containing an eligibility report for the proposed 75th Street Ogden Avenue TIF District (“Eligibility Report”) addressing the tax increment financing eligibility of the area proposed for the redevelopment project area (“Redevelopment Project Area”), with said Redevelopment Project Area being legally described on Exhibit A attached hereto and made part hereof, and with the findings of the TIF Plan and Eligibility Report; and
WHEREAS, pursuant to the provisions of Section 11-74.4-5(c) of the TIF Act, prior to the adoption of the ordinance designating the Redevelopment Project Area and approving the TIF Plan for the proposed 75th Street Ogden Avenue TIF District, the City must fix a time and place for a public hearing; and
WHEREAS, pursuant to the provisions of Section 11-74.4-5(b) of the TIF Act, prior to the adoption of the ordinance designating the Redevelopment Project Area and approving the TIF Plan for the proposed 75th Street Ogden Avenue TIF District, the City must convene a meeting of the Joint Review Board (“JRB”) to consider the proposal; and
WHEREAS, it is the desire of the City Council of the City to conduct such public hearing and to convene said meeting of the JRB;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
SECTION 1: That, pursuant to the provisions of the TIF Act, the City Council hereby designates the date of Tuesday, December 10, 2019, at 6:00 p.m. at the Aurora City Hall, Council Chambers, 44 East Downer Place, Aurora, Illinois 60507, for the purpose of conducting a public hearing to hear from any interested persons, taxpayers or affected taxing districts regarding the Redevelopment Project Area and the TIF Plan for the proposed 75th Street Ogden Avenue TIF District.
SECTION 2: That copies of the Eligibility Report and the TIF Plan for the proposed 75th Street Ogden Avenue TIF District have been on file in the office of the City Clerk, and have been available for public inspection during regular City business hours, since September 11, 2019.
SECTION 3: That at the public hearing, any interested person, taxpayer or affected taxing district may file with the City Clerk written comments and/or objections to, and may be heard orally with respect to, any issues embodied in the notice of public hearing attached hereto.
SECTION 4: That the JRB for the proposed 75th Street and Ogden Avenue TIF District shall meet on Wednesday, October 30, 2019, at 9:00 a.m. at 5 South Broadway, Conference Room, Aurora, Illinois 60507. The JRB shall review the public record, planning documents, Eligibility Report, Redevelopment Project Area and the TIF Plan for the proposed 75th Street Ogden Avenue TIF District. The JRB shall make an advisory recommendation to the City within thirty (30) days after the convening of the JRB. A written report shall be issued by the JRB. The failure of the JRB to submit its report on a timely basis shall not be cause to delay the public hearing or any other step in the process of designating the Redevelopment Project Area and approving the TIF Plan for the proposed 75th Street Ogden Avenue TIF District. In the event the JRB does not file a report, it shall be presumed that the JRB has approved the matters before it. Pursuant to the provisions of Section 11-74.4-5(b) of the TIF Act, the JRB shall consist of one (1) public member and one (1) representative from each of the following taxing districts: DuPage County, College of DuPage Community College No. 502, Naperville Township, Fox Valley Park District, Indian Prairie School District #204, and the City of Aurora.
SECTION 5: That the City of Aurora's representative on the JRB is hereby confirmed as the City’s Chief Financial Officer, Martin Lyons, or his or her designee.
SECTION 6: That a notice setting forth the availability of the Eligibility Report and the TIF Plan for the proposed 75th Street Ogden Avenue TIF District, and how to obtain a copy thereof, shall be sent by mail to all residential addresses within seven hundred fifty (750) feet of the boundaries of the proposed 75th Street Ogden Avenue TIF District and to all persons who have registered on the City’s TIF Interested Parties Registry, within a reasonable time after the adoption of this Ordinance, as required by Section 11-74.4-5(a) of the TIF Act, with said notice being substantially in the form attached hereto as Exhibit B and made part hereof.
SECTION 7: That a notice of the public hearing and the JRB meeting shall be sent by certified mail, return receipt requested, and a notice of the public hearing shall be given by publication, certified mail, return receipt requested, and by first class U.S. Mail, all as required by Sections 11-74.4-5(b) and 11-74.4-6(a), (b) and (c) of the TIF Act, with said notices being substantially in the form attached hereto as Exhibit C and made part hereof.
SECTION 8: That this Ordinance shall be in full force and effect from and after its adoption and approval as provided by law.