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TO: Mayor Irvin and the City Council
FROM: Ken Schroth, City Engineer
Rick Veenstra, Corporation Counsel
DATE: September 23, 2019
SUBJECT:
The proposed sale of City property located along Mettel Rd. south of the Ronald Reagan Memorial Tollway to the Illinois State Toll Highway Authority (Tollway).
PURPOSE:
To obtain the Council's approval of the attached ordinance and contract for the sale of real estate with the Illinois Tollway to sell approximately 25.135 acres of City-owned property to the Tollway for $6,020,000.00. The Tollway intends to relocate its maintenance facility near the Naperville Rd./Freedom Dr. exit in Naperville to the new site.
BACKGROUND:
In 1997, the City purchased property along Mettel Rd., South of I-88 and east of Aurora Ave. for eventual use as a public works facility. Over the years, the Public Works Department determined that the site's location on the City's north side was not as well suited for that purposes as more centrally-located site. Last year, the City acquired property between New York St. and Liberty St. near the Kane County/DuPage County Line with the intention of using the new site for its public works facility. This allowed the City to re-enter discussions with the Tollway which had previously approached the City to acquire the property.
DISCUSSION:
Following amicable negotiations with the Tollway, the parties agreed to a purchase price of $6,020,000.00, which was consistent with the staff's expectation as to the value of the property. The parties have agreed that the City will retain subsurface (below ground) property mineral rights on the property which will allow the City, or its contractor, to mine the property below the surface - preserving a potentially lucrative revenue stream for the City.
IMPACT STATEMENT:
Approval of this ordinance and the underlying contract will allow the parties to proceed with the contemplated sale.
RECOMMENDATIONS:
That the Council approve the ordinance.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
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An Ordinance authorizing the execution of a contract for the sale of approximately 25.135 aces of real property located south of Mettel Rd. and east of Aurora Ave in the City of Aurora to the Illinois State Toll Highway Authority in the amount of six million, twenty thousand dollars ($6,020,000.00) and authorizing the City's officers and employees to complete the contemplated transaction.
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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 owns approximately 25.135 acres of real property located south of Mettel Rd., approximately 1,700' east of Aurora Ave in the City of Aurora; and
WHEREAS, the Illinois State Toll Highway Authority ("Authority") has offered to purchase said property; and
WHEREAS, the City and the Authority have negotiated a contract for the sale of said property ("Contract"), a copy of which is attached to and made a part of this Ordinance as if fully set forth herein;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows: that the Mayor shall be and hereby is authorized to execute the attached Contract with the Authority for the sale of the real property described, in the amount, and under substantially the same terms and conditions therein contained, subject to final review and approval by the Corporation Counsel or City Engineer; and further
BE IT ORDAINED, that the Corporation Counsel, personally or through his assistants or special counsel, is authorized and directed to take all actions required to complete the transaction contemplated by the Contract as soon as is practicable.