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TO: Mayor Robert J. O’Connor
FROM: Bill Wiet, Chief Development Services Officer
DATE: March 8, 2017
SUBJECT:
To sell the City-owned property at 55 South Lake Street to Mr. Dan Sledz for the purpose of redevelopment of the building.
PURPOSE:
On October 5th 2016, the City of Aurora acquired the property located at 55 S. Lake Street in Aurora, IL (PIN #15-22-307-004) for $0 (Zero Dollars) via Judicial Deed. On January 25th 2017, the City of Aurora issued a Public Notice Accepting Offers for Sale of Properties (Attachment A). One of the properties issued was 55 S. Lake Street. Bids on this property were due no later than 3:00 pm February 15th 2017. The City of Aurora received two letters of intent for the property on time, as well as a third proposal three hours after the cutoff period.
Invest Aurora has reviewed the letters of intent outlining each bid, and recommends moving forward with a Purchase and Sale agreement between the City of Aurora and Mr. Dan Sledz for $10.00.
BACKGROUND:
Invest Aurora received two nearly identical proposals from neighboring property owners. Mr. Craig Wetter owns the property located at 71 S. Lake Street (PIN # 15-21-428-011), and Mr. Dan Sledz owns the properties located at 47 S. Lake Street (PIN #15-22-307-002) and 52 S. Lake Street (15-22-308-007).
The proposals were reviewed by David Hulseberg, President/CEO of Invest Aurora, and Bill Wiet, Chief Development Officer for the City of Aurora. As the proposals are nearly identical, the decision was made based on condition, use, and proposed improvements for each individual’s existing properties on the block. After evaluation, Invest Aurora selected Mr. Dan Sledz for the award of 55 S. Lake Street.
DISCUSSION:
Mr. Sledz will be granted a Contingency Period of 30 days to review all documents held by the City of Aurora and complete all due diligence on the property. In the event that Mr. Sledz is satisfied with all documents, he must deposit non-refundable earnest money in the amount of $1,000. The City of Aurora and Mr. Sledz will then have 21 days within which to establish a mutually convenient time and place for closing.
At closing, Mr. Sledz will provide the City of Aurora with a $100,000 Letter of Credit. This Letter of Credit will be released once all conditions outlined in the Development Agreement (Attachment B) have been satisfied. Mr. Sledz will have 180 days to complete these improvements from receipt of permit approvals.
In addition to the above conditions, Mr. Sledz has agreed to the following improvements to his property located at 47 S. Lake Street:
Removal of blue paint from two areas on the northeast corner walls - immediate
Removal of billboards from northeast corner walls - upon lease expiration in June of 2020
Replacement of boarded-up window on Downer Street facing façade
Removal of drapes and paper on interior of first floor windows
Replacement of lime green and pink paint, addition of awnings, general façade upgrades
Façade improvement per plans provided (Attachment C)
Any improvements must be made in accordance to the Fox Walk Overlay District Design Guidelines (Attachment D) and subject to review by the Design Review Committee.
Mr. Sledz has expressed an interest in funding the project through Invest Aurora’s John C. Dunham Revolving Loan Fund program.
IMPACT STATEMENT:
Once fully renovated this property will enhance the downtown and be placed back on the tax rolls.
RECOMMENDATIONS:
It is recommended that the redevelopment agreement 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 Approving Redevelopment Agreement between the City of Aurora and Mr. Dan Sledz for the Disposition of City-owned Property Located at 55 South 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 is interested in selling, and Dan Sledz is interested in acquiring the City-Owned property commonly known as 55 South Lake Street, Parcel Index Number 15-22-307-004, and
WHEREAS, a Redevelopment Agreement has been prepared for execution by both parties which relates to the acquisition, redevelopment and continued use of the property, and
WHEREAS, it is in the best interests of the City of Aurora and its residents to dispose of the property under the terms of the Redevelopment Agreement attached hereto and made a part thereof.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: That the Redevelopment Agreement, attached hereto and made a part thereof as Exhibit 1, between the City of Aurora and Mr. Dan Sledz is hereby approved.