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TO: Mayor Thomas J. Weisner
FROM: Bill Wiet, Chief Development Services Officer
DATE: May 5, 2016
SUBJECT:
A Resolution Approving the the First Amendment to Development Agreement with Jimi Allen Photography Inc., for 56-58-60 South LaSalle Street.
PURPOSE:
To request approval of a grant in the amount of $82,000 from the City of Aurora and a separate grant from Invest Aurora for $75,000 from the Finish Line Program.
BACKGROUND:
The project consists of transforming a vacant 16,900 square foot building built in 1907, which once housed automobile dealerships and manufacturing, into an updated business incubator/"accelerator."
The first floor will house small businesses, paying fees for access to resources, advisors, opportunities and to each other. On the second floor, Bureau Gravity will have their offices along with strategic partners. The third floor is event and production space for those incubation opportunities mentioned above, plus concerts, talks and other events with community value.
This project came before the Finance Committee and was recommended for approval in September of 2013 (Item# 13-00625). The Development agreement at that time contained an incentive amount of $457,000 of TIF assistance (not to exceed 33% of the project's total actual costs). That Agreement was ultimately tabled at the C.O.W. level and was eventually replaced by a Development Agreement approved in February of 2014 whereby the City funded a large portion ($300,000) of an emergency Facade repair (Resolution No. 14-048). This work was completed in 2015 and construction is well underway for the projected $2.3 million buildout (total includes the completed facade work).
Bureau Gravity has secured a $1.77 million loan for the project, which included a small amount of working capital (approx. $189,000). Cost overruns and this project's unique need for a large amount of technology costs for the space that will host multiple smaller/growing/incubating companies have put Bureau Gravity in the position of needing to dip into the working capital to complete this project (targeted to be completed by the end of this summer). The originally contemplated incentive amount of $457,000 will allow the Gravity Building project to purchase the needed technology and complete the project with enough working capital preserved for a successful launch in their new space.
DISCUSSION:
The City's $82,000 grant in the attached Agreement combined with a $75,000 finish line grant to complete the project will bring the City's total participation in this project up to the originally contemplated $457,000 incentive amount. This represents 19.75% of the total $2.31 million project.
IMPACT STATEMENT:
This Resolution, if approved, will have a positive impact on the redevelopment of downtown, specifically of LaSalle Street.
RECOMMENDATIONS:
The Board of Director of Invest Aurora reviewed this request and unanimously approved recommending that this grant be approved for a Finish Line of $75,000 and a City grant award of $82,000.
cc: Alderman O’Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Mesiacos, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Approving First Amendment to Development Agreement with Jimi Allen Photography Inc., for 56-58-60 South LaSalle Street
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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 of Aurora and Jimi Allen Photography Inc., entered into a Redevelopment Agreement pursuant to Resolution R14-048, passed and approved by the City Council of the City of Aurora on February 25, 2014; and
WHEREAS, the original Development Agreement contemplated an amount of Four Hundred Fifty-Seven Thousand ($457,000.00) dollars which was later replaced with an Emergency Façade Assistance Grant in the amount of Three Hundred Thousand ($300,000.00) dollars; and
WHEREAS, the City of Aurora and Jimi Allen Photography Inc. desire to amend the original Development Agreement to add the remaining One Hundred Fifty-Seven Thousand ($157,000.00) dollars of improvements; and
WHEREAS, the City has determined that it is in the best interest of the City of Aurora and its citizens to approve this First Amendment to Development Agreement to facilitate the redevelopment of this property and overall project; and
WHEREAS, funding for the funds committed by this First Amendment to Development Agreement will be available in Account Number 215-1830-465.55-78 (Major Project Development), in combination with an Invest Aurora Finish Line Grant.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: That the First Amendment to Development Agreement, attached hereto and made a part hereof as Exhibit "A", with Jimi Allen Photography Inc., for 56-58-60 South LaSalle Street is hereby approved, and the Mayor and City Clerk are hereby authorized to execute the necessary paperwork to execute same.