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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer/City Treasurer
DATE: February 20, 2018
SUBJECT:
Business Improvement District (BID) and Tax Increment Finance District (TIF) Feasibility Studies - Yorkshire Plaza
PURPOSE:
To analyze the possibility of creating a Business Improvement District and a Tax Increment Finance District in the area commonly known as Yorkshire Plaza
BACKGROUND:
The City is in negotiations with a developer for the revitalization of the Yorkshire Plaza. As a part of this negotiation the City is examining development tools to provide incentives for the redevelopment of the Plaza. Kane McKenna has provided previous TIF District and other development tool analysis for the City in previous agreements throughout the City.
DISCUSSION:
Kane McKenna has consulted with the City of Aurora on a variety of economic development activities including the creation of TIF Districts. As a part of the development negotiations for Yorkshire Plaza, the City is reviewing a relatively new tool under Illinois Statute, the creation of a Business Improvement District or BID.
Unlike a TIF, a BID uses additional Sales Tax as the funding mechanism. The businesses within the BID may charge up to a 1.0% additional sales tax. Kane McKenna will provide an analysis for both the formation of a TIF and a BID at this site. This analysis is required under Illinois statute.
IMPACT STATEMENT:
Not applicable.
RECOMMENDATIONS:
That the City Council approve the attached resolution approving the attached consulting agreements. The first agreement for the Feasibility Study for a BID is for an expected not to exceed amount of $12,500. The second agreement for the Feasibility study for a TIF is for an expected not to exceed amount of $37,500 for a combined cost of Phase I and II of the TIF study. TIF and related consulting studies are budgeted in account 215-2502-415.32-80 in the amount of $15,000, and an additional amount of $35,000 will be transferred from 215-4010-417.71-01. Both accounts are in the Gaming Fund. Both agreements are attached.
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution authorizing consulting agreements with Kane, McKenna , and Associates, Inc. to perform feasibility studies for a Business Improvement District (BID) and a Tax Increment Finance District (TIF) related to the redevelopment of Yorkshire Plaza.
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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 City is in negotiations with a developer for the revitalization of the Yorkshire Plaza; and
WHEREAS, Kane, McKenna, and Associates, Inc. (Kane McKenna) has consulted with the City of Aurora on a variety of Economic Development activities including the creation of TIF Districts; and
WHEREAS, the City has funds available for this purpose;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the City Council approve the attached consulting agreements as for the purpose described herein with Kane McKenna to study the feasibility of the creation of a Business Improvement District at a cost not to exceed $12,500 and to study the feasibility of the creation of a Tax Increment Finance District at a cost not to exceed $37,500, to be paid from account 215-2502-415.32-80 in the Gaming Fund as budgeted.