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TO: Members of the Aurora City Council
FROM: Alayne Weingartz, Corporation Council
DATE: February 19, 2016
SUBJECT:
An Ordinance Authorizing the Acquisition of Certain Real Estate Commonly Known as 2450 North Farnsworth Avenue, Through Eminent Domain or Otherwise.
RECOMMENDATION:
The realignment of Corporate Boulevard is recommended to support increased traffic levels from the Chicago Premium Outlet expansion. This roads
project will be accomplished through condemnation and purchase of properties utilizing TIF funds.
BACKGROUND:
In the Fall of 2015, Chicago Premium Outlets completed expansion plans for 290,000 square feet of new retail, 50 stores in all. This expansion will cause a significant increase in local traffic, placing a strain on the existing infrastructure. At present, the location of Corporate Boulevard, a main connection to the Farnsworth artery, is unaligned with Premium Outlet Boulevard. Without a traffic signal, this misalignment causes a significant public safety risk. Realigning Corporate Boulevard with Premium Outlet Boulevard would allow a more neutral traffic flow while improving public safety by utilizing existing traffic signals. At present, two properties block this expansion and realignment: Aurora Fox Valley Inn, located at 2450 North Farnsworth, and Motel 6, located at 2380 North Farnsworth. An independent consulting firm was contracted to conduct an assessment, and found the market value of these properties to be $3 million each.
The realignment of Corporate Boulevard to alleviate traffic flow represents a public safety need for the City. The City of Aurora has the statutory authority to condemn property for public purposes. The Seize the Future Development Foundation (STFDF) has recommended that the City proceed with condemnation proceedings in accordance with the Illinois Eminent Domain Act, and recommends the City make a good faith offer to purchase for a combined total of $5.8 million. STFDF also recommends that the City seek quick-take rights from the state legislature to expedite this process. The City has worked with V3 consulting engineers to conduct a preliminary engineering survey, with estimates of the road construction costs at approximately $1.8 million. This roads project falls within the Tax Increment Financing (TIF) #7, which maintains currently a balance of approximately $9 million, which should cover the costs of acquisition for the two properties, as well as demolition and final road construction costs. Finally, STFDF has recommended that the City consider options for selling portions of the land not directly affected by the realignment/expansion of Corporate Boulevard. In this manner, the properties may be redeveloped to recuperate some of the costs associated with this roads project, which recuperated funds can be deposited back into TIF #7 to be used for future capital improvement projects..
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance Authorizing the Acquisition of Certain Real Estate Commonly Known as 2450 North Farnsworth Avenue, Through Eminent Domain or Otherwise.
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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 Council desires to acquire through eminent domain or otherwise the property hereinbelow described for the purpose of the extension and realignment of Farnsworth Avenue.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
Section One: That the Mayor and City Council of the City of Aurora finds that it is necessary and in the public interest of the City of Aurora (hereinafter referred to as “City”) to acquire fee simple title for certain real property commonly known as 2450 North Farnsworth Avenue, Aurora, Illinois, with permanent index number 15-02-200-014, and which is legally described on Exhibit A attached hereto and hereby made a part hereof (hereinafter referred to as “Subject Property”), which lies entirely within the corporate limits of the City, and is necessary, required, and needed by the City as a portion of the extension and realignment of Farnsworth Avenue, to be developed in accordance with the City’s plans for extension and/or realignment of Farnsworth Avenue near the Subject Property.
Section Two: That Mayor and the City’s attorneys be and are authorized, empowered, and directed hereby to negotiate for and on behalf of the City with the owner or owners of the Subject Property for the purchase of fee simple title in the Subject Property by the City.
Section Three: That in the event the Mayor and/or City’s attorneys are unable to come to agreement with the owner or owners of the Subject Property as to the compensation to be paid therefor, then fee simple title in the Subject Property shall be acquired by the City through an eminent domain proceeding and, accordingly, the City’s attorneys, Klein, Thorpe & Jenkins, Ltd., are authorized, empowered, and directed hereby to institute such proceeding in any court of competent jurisdiction to acquire fee simple title in the Subject Property for the City in accordance with the applicable eminent domain laws of the State of Illinois.
Section Four: That this Ordinance shall be in full force and effect from and after its passage and approval.