cover
TO: The Honorable Mayor and City Council
FROM: The Law Department
DATE: August 7, 2018
SUBJECT:
An Ordinance authorizing the Corporation Counsel or his designee to petition the Fox Metro Water Reclamation District for the annexation of the City-owned real property formerly known as the Fox Valley Golf Course.
PURPOSE:
To allow DRH Cambridge Homes, Inc. (DRH), the contract-purchaser of the property to obtain the remaining governmental approvals necessary to complete its contingency period and close the sale.
BACKGROUND:
In March of 2017, the City Council authorized the sale of the former Fox Valley Golf Course to DRH for $5.3 million. The sales contract provided for a time period prior to closing during which DRH would pursue all governmental approvals necessary to develop the property. The City is contractually obligated to provide reasonable assistance to DRH during this process.
The former golf course is located in the Village of North Aurora and does not receive sanitary service from the Village or the City of Aurora, and operated on a septic system during the time it served as a golf course. Because the septic system is insufficient to support its contemplated redevelopment, the property must annex into the Fox Metro (Fox Metro) Water Reclamation District to receive sanitary sewer service.
The Sanitary District Act of 1917, which governs Fox Metro's operations, specifically requires that a property's owner must petition the District for annexation. As closing has not occurred, and will not occur all until government approvals are in place, the City, rather than DRH, must initiate the petition for annexation into Fox Metro.
On July 25, 2018, DRH approached the City's outside counsel and requested the commencement of an annexation petition in time for the monthly Fox Metro Board Meeting on August 15, 2018. Upon review of the request, the City's attorneys concluded that though the Council previously authorized the then-Corporation Counsel to complete the sale of the property on its behalf, it did not clearly authorize the Corporation Council to initiate an annexation proceeding as part of the sale - despite annexation being contemplated as necessary to completing the sale.
Due to the timing of DRH's request and the "fifth" week in July, the earliest the City Council can authorize an annexation petition in the ordinary course of business is its August 28, 2018 meeting that would further delay annexation until Fox Metro's September meeting. In order to expedite the process, Fox Metro agreed to schedule approval of an annexation petition on August 15, 2018, based on an unsigned draft, contingent on its approval by the City Council on August 14, 2018.
DISCUSSION:
Annexation into Fox Metro is necessary for DRH to obtain the governmental approvals that are a contractual pre-condition to closing. DRH is responsible for and will pay the full cost associated with the annexation. The City's initiation of the petition instead of DRH is a formality required by the wording of the Sanitary District Act, but logical as the City still owns the property. Arguably, the Council already intended this result when it initially authorized Corporation Counsel to complete the sale, but to the extent that it can clarify the authority, it should.
IMPACT STATEMENT:
Approval of this Ordinance on August 14 potentially avoids an additional month's delay in closing the sale which has been pending since March 2017.
RECOMMENDATIONS:
That the City Council authorize the consideration of this Ordinance as "New Business" and proceed with approval on August 14
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance authorizing and directing the Corporation Counsel to petition the Fox Metro Water Reclamation District for the annexation of the real property formerly known as the Fox Valley Golf Course.
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 owns certain real property located at 2500 N River Road in the Village of North Aurora formerly known as the Fox Valley Golf Course; and
WHEREAS, the City has previously approved a contract for the sale of the former Fox Valley Golf Course to DRH Cambridge Homes, Inc. (DRH); and
WHEREAS, the contract contemplates the City's cooperation with and reasonable assistance to DRH in obtaining governmental approvals as a pre-condition to closing the sale; and
WHEREAS, the former Fox Valley Golf Course does not currently receive municipal sanitary sewer service and that such service is required for DRH's governmental approvals; and
WHEREAS, DRH desires that the former golf course be annexed by the Fox Metro Water Reclamation District (District) to provide for sanitary sewer service to the property; and
WHEREAS, the Sanitary District Act requires the owner of real property to petition the District for annexation; and
WHEREAS, DRH is responsible for paying to the District all fees required for annexation;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows: that the Corporation Counsel shall be and hereby is authorized and directed to execute the attached petition for annexation, attached to and incorporated herein as Exhibit A and directed to forthwith deliver the same to the District.