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TO: Mayor John Laesch and the City Council
FROM: Chris Minick, Chief Financial Officer/City Treasurer
DATE: May 11, 2025
SUBJECT:
Seeking a Resolution approving funding support payments to VNA in the amount $250,000 in 2025 and $250,000 during 2026 for a total disbursement of $500,000 in support of the recently constructed Bloomhaven campus.
PURPOSE:
To provide financial support for the VNA Health Clinic at the Bloomhaven campus.
BACKGROUND:
In conjunction with the redevelopment of the former Copley Hospital Campus, the developers were successful in leasing a significant portion of the development to VNA Health Care. VNA provides affordable healthcare services to residents of Aurora at several locations throughout the City and fills a need in the provision of quality, affordable health care regardless of insurance status or ability to pay.
In July of 2024, City officials met with officials of VNA Health Clinic regarding the construction of the VNA Health Clinic at the Bloomhaven campus. Due to the nature and extent of the medical services provided by VNA to the Aurora population in general and specifically to the neighborhood surrounding the development, the City pledged a $500,000 contribution in support of the clinic on the Bloomhaven campus. The initial terms of the agreement called for a $500,000 payment to be made within 30 days of the issuance of a Certificate of Occupancy for the project. The certificate of occupancy for the clinic was issued in April of 2025.
VNA has made an investment of $8 million in this project. VNA has represented that their financial planning for the project included the pledged support from the City. No City funds have been disbursed to date. The funding support request was not included in the 2025 budget, nor has the City Council approved the disbursement of the funds.
VNA has been willing to work on an adjusted arrangement. VNA and the City have tentatively agreed to finance the funding support via 2 disbursements, one in 2025 for $250,000 and the second installment of $250,000 would occur prior to June 30, 2026. Payment would be made from investment earnings. The funding source for the 2026 installment will be identified as a part of the 2026 budget process to occur later this year.
DISCUSSION:
The location at Bloomhaven was viewed as a very beneficial and appropriate site for the type of clinic envisioned by VNA. The City wished to support the financial well-being of the new development and to ensure medical and mental health services return to the site and serve the surrounding neighborhood population.
VNA has been a trusted and valuable partner in providing healthcare services to the citizens of Aurora, providing multiple locations and a wide range of services. VNA serves all individuals regardless of insurance status, providing necessary and exemplary healthcare services to everyone.
The location at Bloomhaven offers an array of services including primary care services, mental health counseling, immediate care, women's health, OBGYN, pregnancy care, and pediatrics. In addition, there are two other primary care centers and two school linked centers in Aurora.
The letter of commitment and the subsequent VNA formal letter of request are attached as are e-mails related to the topic and a proposed terms sheet incorporating the salient terms of the disbursement of the payments. The resolution would authorize the Mayor to execute a subsequent payment agreement between the City and VNA assuming compliance with the terms sheet as attached to the Legistar item.
IMPACT STATEMENT:
Approval of the contribution will defray the costs incurred, fulfill the funding pledge between the City and VNA and allow for the continued beneficial partnership between the City and VNA Health. The contribution has the added benefit of supporting a quality, affordable healthcare provider on the City's east side.
RECOMMENDATIONS:
Staff recommends approval of the Resolution approving funding support payments to VNA as pledged in the amount $500,000, with $250,000 to be disbursed in 2025 (within 45 days of City Council approval) and $250,000 to be disbursed prior to June 30, 2026.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution approving funding support payments to VNA in the amount of $250,000 in 2025 and $250,000 during 2026 for a total disbursement of $500,000 in support of the recently constructed Bloomhaven campus.
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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 former Copley Hospital has undergone a significant redevelopment consisting of various residential and commercial property uses, and
WHEREAS, the City has supported the redevelopment efforts of the former Copley campus through a variety of methods including with financial incentives, and
WHEREAS, VNA Health Care is a well-respected affordable health care provider, and
WHEREAS, the City and VNA have enjoyed a significant and beneficial partnership with VNA maintaining several sites and clinics through which it serves the citizens of Aurora, and
WHEREAS, VNA fills a gap in healthcare by providing quality healthcare services regardless of one's insurance status or ability to pay, and
WHEREAS, the populations served at the Bloomhaven campus will derive great benefit from having the VNA health clinic on site, and
WHEREAS, the City wishes to contribute to defray the costs of the clinic, and
WHEREAS, the City and VNA have agreed that the funding support will be funded in two installments of $250,000 each, one in 2025 and one prior to June 30, 2026, and
WHEREAS, the City has prepared a terms sheet attached hereto governing the terms of the disbursements, and
WHEREAS, the City and VNA wish to memorialize the terms of the payments in a written agreement to be drafted in accordance with the terms sheet and executed by the City and VNA; )
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: This Resolution authorizing the payment of funding support payments to VNA Health Care in the total amount of $500,000 to defray the costs of the clinic is hereby approved and that, upon final approval from the City's Law Department, the City's Mayor is hereby authorized to execute an agreement with VNA governing the payments in conformance with the terms sheet authorized herein.
Be it further resolved that upon Mayor's execution of above reference agreement, the Chief Financial Officer is directed to make the payments, authorized herein.