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TO: Mayor John Laesch/ Planning and Zoning Commission
FROM: David Dibo, Director of Economic Development
Priscilla Orozco, Management Assistant
DATE: October 14, 2026
SUBJECT:
A Resolution authorizing a second amendment to the construction and funding timeline of the approved redevelopment agreement (R24-185) and first amendment (R25-004) with 7 South LLC regarding the redevelopment of 7 South Broadway.
PURPOSE:
7 South LLC is requesting to update the existing RDA (approved by City Council on May 28, 2024) in order to update certain milestones within the agreement to maintain an up-to-date timeline and funding obligations in the RDA.
BACKGROUND:
Approximately 8 years ago, the City purchased the 3,200 square foot one-story building at 7 S. Broadway from Gary Brown who continued to maintain his art studio on site until 2024. Following the art studio's departure, the City entered into a redevelopment agreement with Frontier Development, LLC to repurpose the building into a restaurant with access to the area known as "Skinny Park" immediately to the south.
Frontier Development LLC later established a new legal entity, 7 South LLC. With City Council's approval on January 14, 2025 (R25-004: first amendment) assignment of the redevelopment agreement was assigned to 7 South LLC.
Under the current agreement:
- 7 South, LLC ("Developer") will be required to contribute with equity and/or third-party financing in the amount of $827,455. Frontier's obligations are guaranteed by Conrad Hurst and Curt Hurst.
- The City will provide a forgivable in the amount of $413,547.00.
- The City will provide a grant of $413,547.00.
- The City will sell the real property at 7 South Broadway to the Developer for $100,000.
DISCUSSION:
To date the city has disbursed $289,419.90 of the forgivable loan, leaving $537,674.10 remaining of funding, of which $124,127.10 is the forgivable loan and $413,547.00 is the city grant.
There is no impact to the City in permitting the City funding milestones. Staff recommends that the City consent to the Developer's request.
The Developer is also requesting a modification of the timeline for project completion set forth in the RDA.
The original timeline as approved per R24-185 provides the following schedule:
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- Due Diligence Period: April through the end of May 2024 |
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- Phase I Environmental Site Assessment commissioned: April 19, 2024 |
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- Phase I Environmental Site Assessment: May 7, 2024 |
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- Phase I Environmental Site Assessment Completion: May 15, 2024 |
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- Finance Committee: May 16, 2024 |
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- Committee of the Whole: May 21, 2024 |
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- City Council: May 28, 2024 |
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- Schematic Designs submittal by end of June 2024 |
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- Building Permits submittal targeted by the end of July 2024 |
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- Building Permits Approval targeted by the end of September 2024 |
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- Skinny Park redesign targeted between September 2024 and February 2025 |
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- Real Estate Closing targeted by end of October 2024 |
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- Construction Commencement no later than the end of November 2024 |
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- Project End of Construction targeted by the end of February 2025 |
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- Grand opening by the end of March 2025 |
The proposed revised timeline is as follows:
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- Due Diligence Period: April through the end of May 2024 |
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- Phase I Environmental Site Assessment commissioned: April 19, 2024 |
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- Phase I Environmental Site Assessment: May 7, 2024 |
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- Phase I Environmental Site Assessment Completion: May 15, 2024 |
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- Finance Committee: May 16, 2024 |
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- Committee of the Whole: May 21, 2024 |
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- City Council: May 28, 2024 |
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- Schematic Designs submittal by end of June 2024 (amended date and complete) |
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- Building Permits submittal targeted by the end of November 2024 (amended date and complete) |
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- Building Permits Approval targeted by the end of December 2024 |
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- Skinny Park redesign targeted between September 2024 and April 2025 (per City) (amended date and completed) |
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- Real Estate Closing targeted by end of May 2025 (amended date and completed) |
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- Construction Commencement May 2025 (amended date and completed) |
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- Project End of Construction March 2027 (amended date and pending completion) |
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- Grand opening April 2027 (amended date and pending completion) |
In accordance with the original redevelopment agreement, extensions were granted through November 1, 2026. The timeline extension of approximately 5 months in addition to the funding milestone adjustments is necessary to ensure completion of the redevelopment by March of 2027 and grand opening of Vicolo by April 2027.
IMPACT STATEMENT:
The redevelopment of 7 South Broadway is an integral part of the Downtown renaissance. Adjacent properties have also been going under redevelopment.
By authorizing the extension of the Redevelopment Agreement previously entered into between the City of Aurora and 7 South LLC, the developer will be able to complete construction and authorize the City to fund the remainder of qualified expenses to the project as deemed necessary per contractual obligations contained in the RDA.
RECOMMENDATIONS:
Staff recommends the approval of the resolution authorizing the extension of the timeline and funding milestones for the redevelopment of property located at 7 S Broadway approved with resolution R24-185, later amended with resolution R25-004
ATTACHMENTS:
Original RDA: R24-185
1st Amendment: R25-004
Proposed 2nd amendment
cc: Building, Zoning, and Economic Development Commission
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution authorizing a second amendment to the construction and funding timeline of the approved redevelopment agreement (R24-185) and first amendment (R25-004) with 7 South LLC regarding the redevelopment of 7 South Broadway.
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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 and Frontier Development LLC, an Illinois limited liability company, (the “Developer”) have entered into a certain Redevelopment Agreement (the “Agreement”), approved by Resolution No. R24-185), pursuant to which the Developer agreed to redevelop the property located at 7 S Broadway, Aurora, Illinois, and the City agreed to provide the Developer with certain incentives to redevelop said properties; and
WHEREAS, as part of the Agreement, the City agreed, to sell and transfer title of the City Property (as defined in the Agreement) to the Developer; and
WHEREAS, the terms of the Agreement required the Project to be completed by February, 2025 in order for the Developer to retain title of the City Property; and
WHEREAS, due to various factors, completion of the Project by February, 2025 is no longer feasible; and
WHEREAS, to facilitate completion of the Project, the City and Developer amended obligations under the Agreement 7 South LLC on January 14, 2025 by Resolution No. R25-004; and
WHEREAS, the City authorizes the amendment of the Agreement to incorporate a revised schedule for project completion as more fully set forth in Exhibit D and
WHEREAS, the City authorized the amendment of the funding milestones as set forth in the second amendment agreement.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Aurora, Illinois, as follows: that the revised schedule for project completion set forth in Exhibit D and funding milestones set forth in the second amendment shall be and hereby is approved and with the consent of all parties to the Agreement shall constitute an amendment to the Agreement.