TO: Mayor Richard C. Irvin
FROM: Alex Minnella, Senior Planner
DATE: May 15, 2023
SUBJECT:title
Announcement of the Availability of the Eligibility Study and Report, and the Redevelopment Plan and Project for the Proposed Cross Street TIF District.
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PURPOSE:
In compliance with the TIF Act, this agenda item shall serve as the City’s announcement of its intent to establish a Cross Street Tax Increment Finance (TIF) District. This announcement provides for a review period of the Redevelopment Project and Plan and Eligibility Report for the proposed Cross Street TIF District.
BACKGROUND:
The subject parcels are located immediately adjacent to the City’s Downtown Fringe within the Current TIF #3., The proposed TIF District is east of Middle Avenue, north of Company 251, west of S. River Street, and south of Cross Street.
The area location described above has been underutilized and blighted for decades. Within the boundary of the proposed Cross Street TIF is 110 Cross; a long vacant industrial/warehouse building purchased approximately four years ago by JH Real Estate.
Constructing a new multi-family residential development near downtown, has been a consistent recommendation of numerous City long-range planning documents for decades. Combined with the recommendations of the Downtown Housing Study (2019), the growing demand for rental housing, the redevelopment of long vacant buildings, the time for implementing the City’s vision is here.
On March 4, 2023, a redevelopment agreement was approved between the developer, JH Real Estate Partners LLC, and the City of Aurora (resolution R2023-076, Legistar #23-0190). Per the RDA the City will create a TIF with 70% of the benefit going to the developer.
To establish a TIF District (“Redevelopment Project Area” or “RPA), Illinois municipalities must adopt several documents including a Redevelopment Plan and an Eligibility Report.
DISCUSSION:
The creation of a TIF district requires several steps. The first public step is the announcement of the availability of the Eligibility Study and Report, and the Redevelopment Plan and Project for the proposed Cross Street TIF District. This document is attached. It is important to note that the actual announcement is done by the full City Council at its May 23, 2023, meeting. Further steps associated with the creation of the TIF will include the provision of mailed notices, public notices, a Joint Review Board meeting, and a public hearing. The City’s Corporation Counsel has engaged Klein Thorpe and Jenkins to serve as the City's Special Counsel to support this TIF formation process.
Attachment 1 is the Certificate of Publication of the Announcement.
Attachment 2 is the Redevelopment Plan for the Cross Street TIF District which includes the qualification report and provides a summary of the proposed TIF including the TIF border, budget, legal description, and potential development plans.
IMPACT STATEMENT:
Making this announcement will begin the formal process of the proposed Cross Street TIF District. Failure to make this announcement will mean that this TIF District will not be created and needed financing for future development will not be created.
RECOMMENDATIONS:
Staff recommends the City Council formally announce the Availability of the Eligibility Study and Report, and the Redevelopment Plan and Project on May 23, 2023.
cc: City Council