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TO: Mayor Thomas J. Weisner
FROM: Jeff McLaughlin, Neighborhood Redevelopment Manager
DATE: June 18, 2014
SUBJECT:
Ordinance to Authorize the Disposition of a Property Located at 83 North Avenue - Neighborhood Stabilization Program (NSP).
PURPOSE:
This staff report is offered as a companion an Annual Action Plan Substantial Amendment (2014-#3) and an Agreement Amendment with Boreas LLC that will offer a disposition strategy for the sole remaining NSP property held by the City of Aurora- 83 North Avenue (PIN#15-27-105-001)("Property"). This specific report requests approval for an Ordinance to allow for the disposition of the Property that will be guided under an Amendment to a previously approved Development Agreement with Boreas LLC for the Aurora Impact Initiative. The Amendment with Boreas LLC will be discussed in a subsequent staff report.
BACKGROUND:
In 2008 the City of Aurora was awarded $3,086,586 under the American Recovery and Reinvestment Act (ARRA) for the NSP Program which caused the purchase, rehabilitation, and reuse of vacant/abandoned/foreclosed homes. Through direct home purchases, and through contractual partnerships, the City funded the completion of 14 homes under the NSP program. The sole remaining parcel is the Property, which has a disposition that has been hamstrung by high renovation costs tied to the historic nature of the Property.
DISCUSSION:
The Property will be sold for a di minimus, or no value, pursuant to NSP regulations, to Boreas LLC who as a developer will make substantial renovations and modernizations to the Property for the purposes of a long term reuse as workforce housing available to income eligible renters.
IMPACT STATEMENT:
Disposition of this Property will allow for the creation of workforce housing in Aurora, and will also allow the City to effectively end the homebuyer portion of the NSP program.
RECOMMENDATIONS:
Approve an Ordinance that authorizes a purchase contract with Joseph Corporation for the real property known as 83 North Avenue in Aurora.
cc: Alderman Saville, Chairman
Alderman Donnell
Alderman Irvin
Alderman Hart-Burns, Alternate
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
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An Ordinance to Authorize the Disposition of a Property Located at 83 North Avenue - Neighborhood Stabilization Program (NSP)
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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 was awarded funds for the NSP Program under the American Recover and Reinvestment Act (ARRA) which could be used to purchase and rehabilitate vacant/dilapidated/foreclosed homes for reuse as workforce housing:
WHEREAS, the City of Aurora, through its Division of Neighborhood Redevelopment purchased the property at 83 North Avenue, Aurora, Illinois in accordance with the objectives of the Neighborhood Stabilization Program (NSP), and
WHEREAS, the City of Aurora is interested in selling, and Boreas LLC is interested in purchasing, real estate known as 83 North Avenue, with a PIN of 15-27-105-001, in accordance with the attached real estate contract for a de minimis value as authorized by NSP regulations and that Boreas is a for-profit developer as defined by the NSP eligibility guidelines and program restrictions;
WHEREAS, in exchange for selling said real estate for a de minimis value, Boreas LLC will substantially renovate and rent the property to income eligible homebuyers pursuant to NSP regulations and guidelines; and )
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows: that the attached Real Estate Contract (Attachment "A") for the sale of the property located at 83 North Avenue, Aurora, Illinois is hereby approved as authorized by NSP regulations, and Attorney Gregory T. Smith is hereby authorized to act on the City's behalf to complete the sale of this property and Jeff McLaughlin, Manager of the Neighborhood Redevelopment Division, is authorized to sign all necessary documents for the sale of said property on behalf of the City of Aurora.
PASSED AND APPROVED on ______________.
AYES ____ NAYS ____ NOT VOTING ____ ABSENT ____
ATTEST:
____________________________ __________________________
City Clerk Mayor
Attachment "A" Sales Contract