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TO: Mayor Thomas J. Weisner
FROM: Bill Wiet, Chief Development Services Officer
DATE: July 14, 2016
SUBJECT:
To ratify the executed Settlement Agreement between the City of Aurora and Hobbs Property LLC, and to formally accept ownership of the property at 2-4 North River Street, known as the Hobbs Building.
PURPOSE:
The purpose of the acquisition of the property was to perform emergency weatherization repairs, and allow for the building to be marketed for future development in the downtown.
BACKGROUND:
The property has sat vacant for decades, and had continued to deteriorate. The City of Aurora had taken an active enforcement case with the property owners, who had recently acknowledged they would not be providing any additional funding for the repairs being sought. Therefore discussion ensued on the City receiving the property free of any liens or encumbrances.
DISCUSSION:
The City has received ownership of the property by its execution of a Settlement and Mutual Release Agreement on June 21, 2016. This enabled the City to perform the emergency weatherization repairs, and begin the process to seek interested parties for the redevelopment of the building. Funds for the emergency repairs have already been authorized, and the work has been performed. The current action being sought would allow the City to formally accept the property from Hobbs Property LLC.
IMPACT STATEMENT:
By receiving the building and expending the funds necessary for repairing the building, the City has avoided additional lane closures on River Street (for safety purposes) and can now market the property.
RECOMMENDATIONS:
It is recommended that the Ordinance be approved.
cc: Alderman O’Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Mesiacos, Alternate
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
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An Ordinance Ratifying and Authorizing the Acceptance of Real Estate Commonly Known as 2-4 North River 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, Hobbs Property, LLC, an Illinois limited Liability Company (Grantor), had agreed to convey, and the City of Aurora had agreed to accept, the property at 2-4 North River Street, PIN No. 15-22-301-003; and
WHEREAS, a Settlement and Mutual Release Agreement was executed by the Grantor and the City of Aurora on June 21, 2016, which in part conveyed the property to the City of Aurora so that emergency building repairs could be undertaken by the City, and
WHEREAS, it remains in the best interest of the City of Aurora and its residents to ratify the Settlement and Mutual Release Agreement, and authorize the acceptance of the property.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows: that the attached Settlement and Mutual Release Agreement entered into by both Hobbs Property LLC and the City of Aurora on June 21, 2016, as indicated on Exhibit A attached hereto and made a part thereof, is hereby ratified, and that the acceptance of property commonly known as 2-4 North River Street is approved.