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TO: Mayor Richard C. Irvin
FROM: Trevor Dick, Director of Development Strategy and Facilitation
DATE: January 10, 2020
SUBJECT:
An Ordinance Adopting the City of Aurora's 75th Street and Ogden Avenue Tax Increment Financing District.
PURPOSE:
The final steps in approving the 75th Street and Ogden Avenue Tax Increment Financing District includes the adoption of the TIF enabling ordinance. The attached ordinance and attachments thereto include this information.
BACKGROUND:
The creation of a TIF District for the 75th Street and Ogden Avenue area is part of an existing RDA between the City of Aurora and a private developer for a highly-visible redevelopment on a long vacant property currently called Cedarwood which will be a senior housing development. The creation of the TIF District will support development of the property and the construction of an extension of Commons Road and its associated infrastructure.
DISCUSSION:
The project will provide much needed senior housing to the area, significantly increase the value of the vacant land at 75th Street and Ogden Avenue, improve the flow of traffic in that area through the extension of Commons Drive, and ultimately provide additional revenue for all of the affected taxing districts without any added service demands (e.g. no new students, minimal park district recreational needs).
IMPACT STATEMENT :
Failure to pass this TIF District will result in the rescinding of the Cedarwood Development Agreement.
RECOMMENDATIONS:
Staff recommends the Finance Committee Approve this Ordinance to be forwarded on to the Committee of the Whole at the January 21, 2020 meeting.
ATTACHMENTS:
Property Research Sheet
Finding of Facts
Planning Council Report
Land Use Petition
Other file items
cc: Finance Committee
Chair/Alderman Robert J. O'Connor
Alderman/Vice Chair Edward Bugg
Alderwoman Scheketa Hart-Burns
Alderman Carl Franco
Alderman Emmanuel Llamas
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance Adopting the City of Aurora's 75th Street and Ogden Avenue Tax Increment Financing District.
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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, pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1, et seq. (“TIF Act”), the City of Aurora (“City”) authorized a study in regard to designating a redevelopment project area for the City's 75th Street Ogden Avenue Tax Increment Financing District (“TIF District”); and
WHEREAS, on September 10, 2019, the City announced the availability of the redevelopment plan and project for the TIF District (“TIF Plan”), with said TIF Plan containing an eligibility report for the TIF District addressing the tax increment financing eligibility of the area proposed for designation as the redevelopment project area for said TIF District (“Redevelopment Project Area”); and
WHEREAS, a public hearing was held on December 10, 2019, in regard to the TIF Plan; and
WHEREAS, the Mayor and City Council of the City desire to adopt tax increment financing pursuant to the TIF Act; and
WHEREAS, the Mayor and City Council of the City have approved the TIF Plan and designated the Redevelopment Project Area pursuant to the provisions of the TIF Act, and have otherwise complied with all other conditions precedent required by the TIF Act;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
SECTION 1: That tax increment financing is hereby adopted with respect to the TIF District, with the TIF Plan in relation thereto having been approved and adopted pursuant to an Ordinance adopted by the Mayor and City Council of the City on January __, 2020, and the Redevelopment Project Area in relation thereto, described and depicted in EXHIBIT A-1 and EXHIBIT A-2 attached hereto and made a part hereof, having been approved, adopted and so designated pursuant to an Ordinance adopted by the Mayor and City Council of the City on January __, 2020, with the initial equalized assessed valuation for said TIF District being the 2018 equalized assessed valuation of the Redevelopment Project Area.
SECTION 2: That the ad valorem taxes arising from the levies upon taxable real property in the Redevelopment Project Area by taxing districts, and tax rates determined in the manner provided in Section 5/11-74.4-9 of the TIF Act (65 ILCS 5/11-74.4-9), each year after the effective date of this Ordinance until redevelopment project costs and all municipal obligations financing redevelopment project costs have been paid, shall be divided as follows:
A. That portion of taxes levied upon each taxable lot, block, tract or parcel of real property which is attributable to the lower of the current equalized assessed value or the initial equalized assessed value (2018 equalized assessed valuation) of each such taxable lot, block, tract or parcel of real property in the Redevelopment Project Area shall be allocated to, and when collected shall be paid by the Kane County Collector to, the respective affected taxing districts in the manner required by law in the absence of the adoption of tax increment allocation financing; and
B. That portion, if any, of such taxes which is attributable to the increase in the current equalized assessed valuation of each lot, block, tract or parcel of real property in the Redevelopment Project Area over and above the initial equalized assessed valuation (2018 equalized assessed valuation) of each lot, block, tract or parcel of real property in the Redevelopment Project Area shall be allocated to, and when collected shall be paid by the Kane County Collector to, the City Treasurer who shall deposit said funds in a special fund called “The Special 75th Street Ogden Avenue Tax Increment Financing District Tax Increment Allocation Fund” of the City for the development and implementation of the TIF Plan.
SECTION 3: That the City shall obtain and utilize incremental taxes from the Redevelopment Project Area for the payment of redevelopment project costs and all City obligations financing redevelopment project costs in accordance with the provisions of the TIF Act and the TIF Plan.
SECTION 4: That this Ordinance shall be in full force and effect from and after its adoption, approval and publication in pamphlet form as provided by law.
SECTION 5: That if any section, paragraph, clause or provision of this Ordinance shall be held invalid, the invalidity thereof shall not affect any of the other provisions of this Ordinance.
SECTION 6: That all ordinances or parts of ordinances in conflict herewith are, to the extent of such conflict, hereby repealed.
ADOPTED this ___ day of January, 2020, pursuant to a roll call vote as follows:
AYES:____________________________________________________
NAYS:____________________________________________________
ABSENT:__________________________________________________
APPROVED by me this ___ day of January, 2020.
____________________________________
Richard Irvin, City Mayor
(SEAL)
ATTEST:
________________________________
Jennifer Stallings, City Clerk