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TO: Mayor Thomas J. Weisner
FROM: Bill Wiet, Chief Development Services Officer
DATE: September 4, 2014
SUBJECT:
To approve an expansion to the existing boundaries of the River Edge Redevelopment Zone known as the Aurora River Zone, following notice and public hearing.
PURPOSE:
The amendment to add territory to the Aurora River Edge Redevelopment Zone (River Edge Zone or RERZ) is being requested in order to provide the benefits of the RERZ to environmentally challenged industrial sites, vacant buildings of significance to the community and neighborhood in order to develop or redevelop those properties increasing the city's tax base and the repurposing of underutilized buildings and properties. The goal of the expansion is to create new jobs, stimulate the local economy, and to revitalize significant buildings, sites and neighborhoods. There are challenging sites and buildings lying just outside of the current zone, and to expand the zone generally south of the downtown along the Fox River to its southern municipal boundary captures these significant properties.
BACKGROUND:
On December 12, 2006, the City Council of the City of Aurora approved Ordinance O06-131 entitled "An Ordinance Establishing A River Edge Redevelopment Zone (RERZ) To Be Known As The "Aurora River Zone" .Aurora was the first municipality to be included as part of the state legislation enacting the River Edge Redevelopment Zone Act, Public Act 94-102. Other communities such as Elgin, Rockford and East St, Louis joined Aurora as a certified RERZ. In accordance with the Act, Aurora has successfully implemented projects that resulted in the redevelopment of challenged properties located in the Aurora River Zone. The clean up of environmentally challenged properties within the RERZ (for example, Kiddie Kar, RiverEdge Park Music Garden) shows that collaboration on challenged sites by the City of Aurora and , the various State agencies committed to these zones, provides positive results. Significant programs include (see attached flyer); environmental clean- up funding, historic tax credits, sales tax exemptions for building materials, investment tax credits, and job tax credits.
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DISCUSSION:
The RERZ expansion area meets the "environmentally impaired" eligibility criteria as defined by the River Edge Zone Act. The annexation area's immediate proximity to the environmentally distressed conditions of the existing RERZ as well as the presence of environmentally hazardous building materials (i.e. lead paint, asbestos, lead pipe) found in many of the older buildings throughout the expansion area, is evidence of the subject area's environmental deficiencies thus making the area eligible for inclusion into the City of Aurora River Edge Zone. Also, there are many sites in the RERZ expansion area located near the Fox River that are environmentally challenged (see attached map), and as shown by the successful environmental clean-up projects in the existing RERZ, the potential for redevelopment of these sites is at its greatest if it were included in the RERZ
Also, there are three buildings listed on the National Register of Historic Places that are also located outside the southern and eastern boundary of the current RERZ area: the St. Charles Hospital (built 1932), the Masonic Temple (built 1922), and the former Copley Hospital (original 1888 building with additions in 1916, 1933, 1947 and 1970) . The amendment to add territory is being sought because once these (and other) significant properties are incorporated within the Aurora RERZ, both will be eligible for not only the 20% Federal Tax Credit but also the 25% IL Tax Credit. Rehabilitation of older historic buildings would constitute a major undertaking that would be financially challenging if not for the owner's ability to claim the IL Tax Credit. For example, the former Copley Hospital, consisting of nine interconnected buildings totaling 350,000 square feet, offers a wealth of redevelopment possibilities including residential, offices, assisted living, specialized medical services and accompanying commercial. In addition to the historic preservation objective, the City hopes that large scale rehabilitation projects of this caliber and scope will return jobs to the area, create new business opportunities, and increase general economic growth in and around the downtown. The tax credit program associated with the RERZ expires in 2017, and it is hoped that this program can extend beyond that time. Developers have been attracted to downtown Aurora interested in utilizing historic tax credits for historic building renovations, and this trend will continue.
IMPACT STATEMENT:
The RERZ is currently being administered by the City's Department of Development Services, with assistance in the marketing of these programs being provided in part by the Seize the Future Development Foundation. There should be no negative impacts on other City departments and divisions as a result of the expansion of the RERZ.
RECOMMENDATIONS:
It is recommended that the proposed expansion area of the Aurora River Zone be approved. The submittal of the attached application shall be submitted after a public hearing is conducted on the expansion (at September 23 City Council). Upon review and approval by the State Department of Commerce and Economic Opportunity, the City Council then can approve the Ordinance."
cc: Alderman Saville, Chairman
Alderman Donnell
Alderman Irvin
Alderman Hart-Burns, Alternate
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance Amending Ordinance O06-131 Approving An Expansion To The River Edge Redevelopment Zone Known As The "Aurora River Zone" In The City Of Aurora Following Notice and Public Hearing In Connection Therewith
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 Illinois General Assembly on July 12, 2006 enacted the River Edge Redevelopment Zone Act, Public Act 94-1021 (hereinafter "the Act"); and
WHEREAS, the Illinois General Assembly in the Act found and declared that municipalities adjacent to or surrounding river areas often lack critical tools to safely revive and redevelop environmentally challenged properties, and that many of these environmentally challenged properties were former industrial areas that now, subject to appropriate environmental remediation, would be ideal for other economically productive uses and the redevelopment of which will stimulate economic revitalization and create jobs in Illinois; and
WHEREAS, on December 12, 2006, the City Council of the City of Aurora approved Ordinance O06-131 entitled "An Ordinance Establishing A River Edge Redevelopment Zone To Be Known As The "Aurora River Zone" In The City Of Aurora, Illinois" in accordance with the Act, and has successfully implemented projects that resulted in the redevelopment of challenged properties located in the Aurora River Zone; and
WHEREAS, the Act allows for the expansion of the River Edge Redevelopment Zone through an application to the State of Illinois Department of Commerce and Economic Opportunity, and after adoption of an Ordinance amending Ordinance O06-131 following notice and public hearing in connection therewith; and
WHEREAS, the City of Aurora is considering the addition of certain property within its corporate limits to the Aurora River Zone, such property is described further in Section Four; and
WHEREAS, the RERZ expansion area meets the "environmentally impaired" eligibility criteria as defined by the River Edge Zone Act with the annexation area's immediate proximity to the environmentally distressed conditions of the existing RERZ, which has had successful environmental clean-up projects; and
WHEREAS, one million square feet of vacant building space is in the proposed expansion area alone, with many of the buildings in this area being between fifty and one hundred years old, and many of these buildings suffer from functional obsolescence in regards to the demands of industrial users today; and
WHEREAS, aurora's industrial and manufacturing history left a legacy of brownfield properties and environmentally challenged sites along the Fox River and its surrounding areas, with a stigma associated with these properties that has been an impediment to development and an eyesore to the community; and
WHEREAS, due to Aurora's inability to expand through land annexation and is essentially "land-locked," the reuse of underutilized riverfront property and nearby vacant buildings is a necessary reality, while cleaning up brownfield and environmentally challenged sites in the Zone and adaptively reusing older buildings will mitigate human exposure to environmental contamination and will create space for new business development and planned open space; and
WHEREAS, the benefits of redeveloping brownfield sites in the Zone include bringing jobs back, new business opportunities in untapped markets, increasing economic growth, and utilizing sites with existing infrastructure; and
WHEREAS, the adaptive reuse and rehabilitation of older, vacant structures will create new jobs and business opportunities, will beautify historic but run-down buildings, and finally, will boost community pride and sentiment by way of promoting the city's past; and
WHEREAS, the amendment to add territory to the Aurora River Edge Redevelopment Zone is also being requested in order to create new opportunities for property owners, investors, and developers to use the Illinois Historic Preservation Tax Credit Program (IL Tax Credit), in which the IL Tax Credit can be used to rehabilitate and repurpose older buildings certified as historic; and
WHEREAS, prior to the adoption of said ordinance expanding the Aurora River Zone the Act required a public hearing be held within the Aurora River Zone, for the purpose of public input and comment on the proposed expansion of the zone.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
Section One: Findings.
The preambles to this Ordinance are declared to be the findings of the Mayor and the City Council.
Section Two: Public Meetings for Expansion of RERZ
The Ordinance Amending Ordinance O06-131 Approving an Expansion to the River Edge Redevelopment Zone Known as the "Aurora River Zone", was first introduced to the City Council Planning and Development Committee on the 11th day of September, 2014. Said Ordinance was then presented to the full City Council at their Committee-of-the-Whole meeting on the 16th of September, 2014. The matter was then moved to the full City Council meeting for public hearing.
Section Three: Call for Public Hearing.
On the 23rd day of September, 2014, the Mayor and City Council did conduct a public hearing at 6:00 PM at Aurora City Hall, 44 East Downer Place, Aurora Illinois, which location is within the proposed Aurora River Zone, with respect to the proposed expansion of said Aurora River Zone, which zone is described in Section Four below, in accordance with the requirements of the Act. Notice of said public hearing was published on the 18th day of September, 2014 in the Aurora Beacon News, a Sun Times Media Publication and a newspaper of general circulation in the City of Aurora, and in accordance with Illinois Compiled Statute requirements for publication, as well as meeting requirements for conformance under Section 5.1 of the Act. After allowing for public input, the public hearing was closed and the Ordinance was moved for consideration to a date certain being the 28th day of September, 2014.
Section Four: Boundaries of Proposed Expansion Area.
The boundaries of the proposed River Edge Redevelopment Zone expansion area, as published with the Notice of said Public Hearing, is within the following territory described as follows:
Beginning at the intersection of Lincoln Avenue and N Root Street, which is contiguous to the current Aurora River Zone Boundary, thence south on N Root Street to the intersection of Liberty Street, thence west on Liberty Street to the intersection of N 4th Street, thence south of N 4th Street to the intersection of Spring Street, thence east along Spring Street to the intersection of N Anderson Street, thence south on N Anderson Street to the intersection of Galena Blvd, thence west along Galena Blvd, including parcels on both sides of street, to the intersection of S Root Street, thence south on S Root Street, including parcels on both sides of street, to the intersection of Downer Place, thence continuing south on S Root Street to the intersection of E Benton Street, thence west on E Benton Street to the intersection of 5th Street, thence south on 5th Street to the intersection of Avon Street, thence west on Avon Street to the intersection of S 4th Street, thence south on S 4th Street, including parcels on both sides of street, to one parcel south of the intersection of Maple Avenue, thence directly west from said parcel approximately 200 feet to public alley, thence north on public alley to the intersection of Marion Avenue, thence west on Marion Avenue to the intersection of S Lincoln Avenue, thence south on S Lincoln Avenue to the intersection of Logan Street, thence south on Logan Street to the intersection of Simms Street, thence west on Simms Street to the intersection of S Lincoln Avenue, thence north on S Lincoln Avenue to the intersection of Hazel Avenue, thence west on Hazel Avenue to the intersection of S Broadway (State Route 25) thence south on S Broadway to the Aurora city limits at the intersection of Ashland Avenue, thence west along Ashland Avenue to the intersection of River Street, thence north on River Street to the intersection of Rathbone Avenue, including the parcel located at the SW corner of River Street and Rathbone Avenue, thence west along Rathbone Avenue to intersection of Sard Avenue, thence south on Sard Avenue to parcel line approximately 750 feet south of Sard Avenue, then west along parcel line to BNSF RR tracks, thence north along BNSF RR tracks to the intersection of Rathbone Avenue, thence west along Rathbone Avenue to BNSF RR spur line at S Lake Street, then north along RR spur line, including parcels abutting RR spur line, to the intersection of Rathbone Avenue, thence west on Rathbone Avenue to the intersection of S Elmwood Drive, thence north on S Elmwood Drive, including parcels on both sides of street, to the intersection of Ridgeway Avenue, thence east on Ridgeway Avenue to the RR spur line, thence north on RR spur line to the intersection of Kensington Place, then east on Kensington Place to the intersection of Franklin Avenue, thence south from said intersection approximately 250' to parcel line, thence east along said parcel line to the intersection of Highland Avenue, thence east across Highland Avenue to current Aurora River Zone Boundary, all located in the City of Aurora, Kane County, Illinois.
Section Five: That this ordinance shall be in full force and effect, and shall be controlling immediately upon its passage and approval.
Section Six: That all ordinances or parts of ordinances thereof in conflict herewith are hereby repealed to the extent of any such conflict.
Section Seven: That any Section or provision of this ordinance that is construed to be invalid or void shall not affect the remaining Sections or provisions which shall remain in full force and effect thereafter.
PASSED AND APPROVED on .
AYES NAYES NOT VOTING ABSENT
ATTEST:
City Clerk Mayor
Attachments: Application; Expansion Maps; O06-131; Current RERZ; RERZ Flyer