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TO: Mayor Robert J. O’Connor
FROM: Bill Wiet, Chief Development Services Officer
DATE: January 17, 2017
SUBJECT:
To approve a supplemental grant not to exceed $36,000 to Save-A-Lot grocery store at 210 N. Lake Street for the installing of flooring within their retail sales area.
PURPOSE:
To cover the current cement flooring with a tile material that will provide a necessary aesthetic improvement to the already completed grocery store which has been a valued addition to the neighborhood.
BACKGROUND:
On February 11, 2014, the City of Aurora passed Resolution Number R14-015. This Resolution authorized the execution of a Development Agreement with 210 N Lake Street, LLC for the redevelopment of the property located at 212 N Lake Street and 221 Spruce Street. The redeveloped parcel has become a Save-A-Lot Foods, and received $600,000 in TIF 5 funding for a total investment of $2.6 Million.
The City of Aurora agreed to the allocation of $600,000 from TIF District #5 for the project. This amount is equivalent to 22.88% of total budgeted project costs.
DISCUSSION:
As with many redevelopment projects, the actual costs are higher than budgeted. Actual cost was over $2.7 Million. With the additional cost, the contribution from TIF District #5 falls to 21.92% of project costs. Were the City of Aurora to maintain the original budgeted percentage contribution to the redevelopment project, TIF contribution would amount to $626,224.68.
Due to project overages, the developer was not able to complete renovation on the supermarket’s floors. The projected cost of completing this work is estimated at $46,000. With these additional costs factored in, the contribution from TIF District #5 falls even lower, to 21.56% of project costs. Were the City of Aurora to maintain the original budgeted percentage contribution to the redevelopment project, TIF contribution would amount to $636,000. The additional grant amount of $36,000 is available in the Tax Increment Financing Account 235-1830-465.55-81
IMPACT STATEMENT:
This grant would be a positive for the completion of the Save-A-Lot project, which has had a positive impact on the Lake Street retail corridor.
RECOMMENDATIONS:
It is recommended that the TIF 5 grant amount not to exceed $36,000 for the installation of flooring at 210 N. Lake Street be approved.
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 Authorizing a Supplemental Grant to 210 N. Lake Street, LLC for Save-A-Lot Store Located at 210 N. Lake Street Aurora Illinois.
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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 approved per Resolution R14-015, a Resolution Authorizing the Execution of a Development Agreement with 210 N. Lake Street, LLC for 212 N. Lake Street and 221 Spruce Street, which provided $600,000 in Tax Increment Financing assistance for the construction of a Save-A-Lot Grocery Store at 210 N. Lake Street; and
WHEREAS, the store has been in operation, and 210 N. Lake Street, LLC (Developer) has complied with all conditions and obligations per Resolution R14-015; and
WHEREAS, due to project overages, the developer was not able to complete all renovations to the grocery store, more specifically the flooring, and has been in discussions with the City of Aurora and Invest Aurora on a supplemental grant that would assist in the completion of the flooring, while also maintaining a total public financing ratio of approximately 22 percent of the $2.8 Million project, and
WHEREAS, it is in the best interests of the City of Aurora and its residents that a supplemental grant be provided to 210 N. Lake Street for the installation of flooring at the Save-A-Lot grocery store at 210 N. Lake Street, with a maximum grant amount of thirty six thousand dollars ($36,000.00), to be paid out as a reimbursement of actual documented costs after completion of the project and a final inspection performed by the Chief Development Services Officer or his designee, and
WHEREAS, funds are available for this supplemental grant in Account Number 235-1830-465.55-81 (TIF 5 Save-A-Lot
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows:
1. That the resolution authorizing a supplemental grant to 210 N. Lake Street LLC for improvements to the Save-A-Lot Store at 210 N. Lake Street be approved.
2. That the grant amount shall not exceed $36,000.00, with Developer being solely responsible for any amount over said $36,000.00.
3. That the grant shall be limited to the installation of flooring materials (materials and labor) and Developer shall provide to the Development Services Department the cost proposal prior to commencing work.
4. The amount of the grant shall be paid as a reimbursement to 210 N. Lake Street LLC, after submission of a paid-in-full receipt and final inspection of work by the Chief Development Services Officer or his designee.