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TO: Mayor Richard C. Irvin
FROM: Alex Alexandrou, Chief Management Officer
Christopher Minick, Chief Financial Officer
DATE: October 10,2024
SUBJECT:
Resolution to Approve the Establishment of a Transformation Fund for the Aurora Business Community and Authorizing the deposit of $5,000,000 with Invest Aurora for its funding.
PURPOSE:
Several organizations have historically concentrated on economic development efforts and the City has provided financial support for various initiatives. There has been some overlap in the in the efforts undertaken as time has gone along. In an effort to improve the economic development process, several organizations have approved consolidation into a unified organization to allow for more efficient and effective use of funding provided. The City wishes to provide funding for the efforts of the consolidated organization, including a Transformation Fund to allow for various enhancements to the business climate within the City of Aurora.
BACKGROUND:
In June of 2024, the City approved a Development Agreement with C1 Chicago, LLC which required a reimbursement of $16,000,000 for City investment in infrastructure improvements in the area proximate to I-88 and Eola Rd that occurred in the early 2000's. The City received the funds as specified in the Development Agreement in mid-July of 2024.
We are proposing to utilize the funds to enhance economic development efforts throughout the City. To that end, the funds are to be utilized in support of the following initiatives:
$9 million for an economic development initiative fund for the Mayor's Office of Economic Development. This funding is intended to be utilized for investments in economic development projects that will ultimately be paid back to the fund. To date funds have been utilized for property acquisition along the north side of Bilter Road as approved in July of 2024.
$1 million to be added to the Historic Preservation Program (to be approved via the 2025 Budget process)
$1 million to be added to the Façade Improvement Program (to be approved via the 2025 budget process)
$5 million to fund a Transformation Fund to be applied to business and economic development throughout the City. The Transformation Fund will be managed by Invest Aurora initially and be part of the efforts of the new consolidated economic development entity in the City as described below.
Four entities have voted to consolidate into one economic development entity: Invest Aurora, The Aurora Regional Chamber of Commerce, Aurora Downtown and the Quad County African American Chamber of Commerce. The legal structure for the consolidation will be in place in the fourth quarter of 2024, with the public launch of the new entity scheduled for the first quarter of 2025. The goal of the organization is to coordinate and maximize the impact of economic development programs and to stabilize the operations of the individual organizations. The pertinent documents and required filings to create the new entity are being developed. It is intended that the President/CEO of Invest Aurora, Kelly O'Brien, will be installed as the President/CEO of the new organization. She will coordinate and have responsibility for its day-to-day operations.
The City wishes to financially support the establishment and the efforts of the new entity. One of the key initiatives of the new organization will be the creation and administration of a Transformation Fund to undertake and finance various business and economic development programs. One of the first tasks to be taken on will be the development of a strategic plan.
The strategic plan will formally define and enumerate the goals for the organization. It is anticipated that the goals could include initiatives related to small minority and women owned businesses, workforce development, innovation and entrepreneurship, promotion of the overall City vision for economic development, enhancing communication between the municipality and the private sector, promotion of Aurora's downtown, marketing and advertising, and business attraction and retention.
The overall programs initiated and undertaken would be finalized by the new organization after development of the strategic plan. The new organization will be governed by an approximately 50-member of Board of Directors consisting of the boards of the individual consolidating organizations. Additionally, there will be a 13-member Executive Committee who will further guide policy and strategic direction. 5 of the Executive Committee members would be appointed by the Mayor (with the advice and consent of the City Council) and the remaining 8 members would be representatives of the consolidating organizations: Invest Aurora, The Aurora Regional Chamber of Commerce, Aurora Downtown and the Quad County African American Chamber of Commerce, with 2 members coming from each of the 4 consolidating organizations.
It is anticipated that the Transformation Fund would be self-sustaining with revenue streams and private sector funding. The City would require semi-annual presentations of programs, initiatives, and results.
DISCUSSION:
Initial funding for the Transformation Fund is available from the $16 million proceeds of the Development Agreement with Cyrus 1,but would require a budget amendment. The City would require semi-annual presentations of programs, initiatives, and results as a requirement of the funding provided.
IMPACT STATEMENT:
Approval of the resolution will allow for the establishment of the new consolidated organization and the development and implementation of its strategic plan. This plan can then be put into action with specific programs and initiatives meeting the goals of the Transformation Fund. The business climate within the City of Aurora will be significantly enhanced in numerous areas such as attraction and retention, marketing, entrepreneurship opportunities, and communication.
If this measure is not approved, economic development activities will continue in a fragmented and inefficient manner. The City will not maximize the efforts and resources of the individual organizations and the opportunity to improve the City's overall business climate will be lost. Economic development opportunities and the resultant additional revenues and resources will be lost due to the lack of aligned and coordinated efforts.
RECOMMENDATIONS:
A motion to approve a Resolution Approving the Establishment of a Transformation Fund for the Aurora Business Community and Authorizing the Deposit of $5,000,000 with Invest Aurora for its funding.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Approving the Establishment of a Transformation Fund for the Aurora Business Community and Authorizing the Deposit of $3,000,000 with Invest Aurora for its funding
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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, Several organizations have historically concentrated on economic development efforts and the City has provided financial support for various initiatives; and
WHEREAS, There has been some overlap in the in economic development efforts undertaken; and
WHEREAS, In an effort to improve the economic development process, several organizations have approved consolidation into a unified organization to allow for more efficient and effective use of funding provided; and
WHEREAS, The City wishes to fund the efforts of the consolidated organization, including formation of a Transformation Fund to allow for various enhancements to the business climate within the City of Aurora; and
WHEREAS, Invest Aurora will be administering the Transformation Fund under the umbrella of the consolidated organization; and
WHEREAS, The City has funds available to provide to Invest Aurora from the proceeds of infrastructure reimbursements received from Cyrus 1 in July of 2024; and
WHEREAS, the Transformation Fund will provide numerous enhancements and improvements to economic development and the overall business climate in the City of Aurora;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the Establishment of a Transformation Fund for the Aurora Business Community is hereby approved. Be it further resolved that the Deposit of $3,000,000 with Invest Aurora for funding of the Transition Fund is also hereby approved.