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TO: Mayor Thomas J. Weisner
FROM: Bill Wiet, Chief Development Services Officer
DATE: May 2, 2016
SUBJECT:
To request approval of the Third Amendment to Seize the Future Development Foundation (STFDF) Finish Line Downtown Grant Program. This Third Amendment amends the Finish Line Grant Boundary to include an expanded portion of Tax Increment Financing (TIF) District No. 3 (west of the Fox River), pursuant to Resolution R14-152, amended.
PURPOSE:
In 2013 the City of Aurora and Seize the Future Development Foundation created a public private partnership in which STFDF will perform all the economic development functions for the City. Resolution R13-182 provided the framework for the partnership, including the funding of the expanded organization. STFDF is also tasked with developing incentive programs for the purpose of commercial revitalization throughout the City of Aurora.
BACKGROUND:
The goal of the Finish Line Grant Program is to create a streamlined, simple and quick process to aid in economic development downtown. Whereas most of downtown falls within Tax Increment Financing District (TIF) #1, a portion of TIF 3 (River City) was included in the program. The program provides $500,000 from the two TIF Districts listed above for implementing the program. The program originally provided up to 20% of the total project costs to any one project in an incentive amount not to exceed $75,000.
A First Amendment to the Finish Line Grant Program was approved by the City Council in May of 2015 to modify the percentage of reimbursement for eligible projects based upon the total project costs. This First Amendment created a sliding scale system for determining the percentage of reimbursement.
A Second Amendment was approved by the City Council in September of 2015. The Second Amendment created the Downtown Restaurant Forgivable Loan Program, which allows a forgivable loan for one-third (1/3) of costs up to a maximum of $100,000 for costs associated with the renovation of storefront or office space for use as a sit down restaurant.
The Second Amendment also created the Sanitary Relocation Grant. The Sanitary Relocation Grant allows a reimbursement of one-half (1/2) of costs associated with relocating existing sanitary lines and grease interceptors from Pinney St to W New York St. The Sanitary Relocation Grant Program is only be offered to buildings located on the north side of W New York Street, west of the Fox River and east of N River Street.
DISCUSSION:
This Third Amendment to the Finish Line Grant Program will expand the Finish Line Grant Boundary to include a greater portion of Tax Increment Financing (TIF) District No. 3, more specifically, all of TIF No. 3 west of the Fox River. The new Finish Line Grant Boundary will encompass all of Tax Increment Financing (TIF) #1 and Tax Increment Financing (TIF) #3 west of the Fox River.
The expanded Finish Line Grant Boundary will include the buildings of 302 S River Street, 301 S River Street, 261 S River Street, 227 S River Street, 110 Cross Street, 244 S River Street, 232 S River Street, 226 S River Street, 218 S River Street, 214 S River Street, 212 S River Street, 160 S River Street, 140 S River Street, 101 S River Street, 137 S River Street, 149 S River Street, 173 S River Street, and 115 Cross Street.
IMPACT STATEMENT:
The Third Amendment to the Finish Line Grant Program will better assist in the rehabilitation of buildings to the south of downtown in Tax Increment Financing (TIF) # 3, thereby increasing the tax base, bringing more residents into the downtown, and providing the necessary foot traffic to help patronize existing downtown businesses.
RECOMMENDATIONS:
Staff recommends approval of the Third Amendment to the Finish Line Grant to expand the Finish Line Grant Boundary.
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 the Third Amendment to Resolution R14-152 Amending the Finish Line Grant Program Boundary to Include an Expanded Portion of Tax Increment Financing (TIF) District No. 3
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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 Aurora City Council approved an agreement with Seize the Future Development Foundation (STFDF) via Resolution R14-152 to provide economic development assistance in the downtown under the Finish Line Grant Program; and
WHEREAS, the Aurora City Council approved an amendment to the agreement with Seize the Future Development Foundation (STFDF) via Resolution R15-133 to modify the reimbursement percentages of eligible projects; and
WHEREAS, STFDF is proposing modifications to the Finish Line Grant Program to expand the Finish Line Grant Boundary to include an expanded portion of Tax Increment Financing District (TIF) # 3 attached hereto and incorporated herein as Exhibit "A" ; and
WHEREAS, The City Council of the City of Aurora finds that it in the best interest of the City and its residents to approve said Third Amendment.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows:
1. That the expansion of the Finish Line Grant Boundary indicated on Exhibit "A" be approved;
2. That all other provisions, terms and conditions of the Finish Line Grant Program contained in Resolution R14-152 and Resolution R15-133 remain in effect.