cover
TO: Mayor Richard C. Irvin
FROM: Martin Lyons, Chief Financial Officer/City Treasurer
David Dibo, Director, Mayor's Office of Economic Development
DATE: June 5, 2018
SUBJECT:
Ordinance proposing the extension of the tax levy for an additional eight (8) years of Special Service Area One (1) Aurora Downtown
PURPOSE:
It has been determined by the City Council of the City of Aurora that it is in the public interest that the authority to levy taxes for said Special Service Area Number One (1) be extended for an additional eight (8) years; and
That said Area is compact and contiguous and constitutes a principal commercial and business area of the City; and
That said Area is principally zoned for commercial and residential purposes and will benefit specially from the municipal services to be provided and that the proposed municipal services are unique and in addition to municipal services provided to the City of Aurora as a whole and it is, therefore, in the best interest of said Area and the City of Aurora as a whole that special taxes be levied against said Area for the services to be provided..
BACKGROUND:
That the purpose of City of Aurora Special Service Area Number One is to provide special municipal services for said Area (Downtown) to achieve the following goals:
GOAL 1: Create, fund and staff a downtown management and development organization, which will be an Illinois not-for-profit corporation.
GOAL 2: Assist business and property owners to enhance and maintain a safe, secure, clean and hospitable business environment.
GOAL 3: Attract anchors and other complementary businesses to downtown.
GOAL 4: Plan, coordinate and monitor capital improvement projects for downtown.
GOAL 5: Identify and work with business and property owners to encourage business growth and property improvements.
GOAL 6: Design and implement a unified marketing plan.
GOAL 7: Create programs to facilitate the funding of projects important to downtown.
GOAL 8: Such other programs and purposes as are related with and/or incidental to the previous goals..
DISCUSSION:
That the City of Aurora contracts with "Aurora Downtown" is hereby authorized from time to time for the purpose of achieving the goals herein above delineated.
IMPACT STATEMENT:
Tax levy will expire with the tax levy of tax year 2017 and it is in the best interest of Said Area and the City of Aurora as a whole that the special taxes levied on said Area be extended for an additional eight (8) years so that the special services provided to said Area as set forth in Ordinance No. O94-93 can continue to be provided in said area..
RECOMMENDATIONS:
I recommend this item be placed on Finance Committee Agenda for Tuesday, June 12, 2018 for City Council approval.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance proposing the extension of the tax levy for an additional eight (8) years of Special Service Area One (1) (Aurora Downtown) in the City of Aurora and providing for a public hearing and other procedure in connection.
PUBLIC HEARING and consideration of related Ordinance.
body
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, (special service areas are established pursuant to subsection (1) of Section 6 of Article VII of the Illinois Constitution of 1970, and the Special Service Area Tax Law (35 ILCS 200/27-5 et seq) and the Property Tax Code (35 ILCS 200/1-1 et seq); and
WHEREAS, by City of Aurora Ordinance No. O94-93 passed September 6, 1994 Special Service Area No. One (1) was established; and
WHEREAS, the boundaries of said Special Area are set forth in attached map Exhibit “A-1”, the legal description of which territory is attached hereto as Exhibit “A”; and
WHEREAS, by said Ordinance No. O94-93 a special annual tax was authorized to be levied upon the equalized assessed value of the property in said Area in an amount not to exceed one percent (1%) of said value, the levy of which tax was limited for a period of eight (8) consecutive years commencing with and subsequent to the date of said Ordinances; and
WHEREAS, by Ordinance No. O02-92 passed August 27, 2002 the authority to levy said taxes was extended for an additional eight (8) years; and
WHEREAS, by Ordinance O10-051 passed August 24, 2010 the authority to levy said taxes was extended again for an additional eight (8) years; and
WHEREAS, said tax levy will expire with the tax levy of tax year 2017 and it is the best interest of Said Area and the City of Aurora as a whole that the special taxes levied on said Area be extended for an additional eight (8) years so that the special services provided to said Area as set forth in Ordinance No. O94-93 can continue to be provided in said area.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
SECTION ONE:
(a) That it is determined by the City Council of the City of Aurora that it is in the public interest that the authority to levy taxes for said Special Service Area Number One (1) be extended for an additional eight (8) years; and
(b) That said Area is compact and contiguous and constitutes a principal commercial and business area of the City; and
(c) That said Area is principally zoned for commercial and residential purposes and will benefit specially from the municipal services to be provided and that the proposed municipal services are unique and in addition to municipal services provided to the City of Aurora as a whole and it is, therefore, in the best interest of said Area and the City of Aurora as a whole that special taxes be levied against said Area for the services to be provided.
(d) Further, that City contracts with “Aurora Downtown” are hereby authorized from time to time for the purpose of achieving the goals herein below delineated.
SECTION TWO:
That the purpose of City of Aurora Special Service Area Number One is to provide special municipal services for said Area (Downtown) to achieve the following goals:
GOAL 1: Create, fund and staff a downtown management and development organization, which will be an Illinois not-for-profit corporation.
GOAL 2: Assist business and property owners to enhance and maintain a safe, secure, clean and hospitable business environment.
GOAL 3: Attract anchors and other complementary businesses to downtown.
GOAL 4: Plan, coordinate and monitor capital improvement projects for downtown.
GOAL 5: Identify and work with business and property owners to encourage business growth and property improvements.
GOAL 6: Design and implement a unified marketing plan.
GOAL 7: Create programs to facilitate the funding of projects important to downtown.
GOAL 8: Such other programs and purposes as are related with and/or incidental to the previous goals.
These goals are in addition to the services provided by the City generally.
SECTION THREE:
That a public hearing shall be held on the 26th day of June, 2018, at 6:00 p.m. in the City Council Chambers of City Hall, 44 East Downer Place, Aurora, Illinois to consider extension of the tax levy for an additional eight (8) years of Special Service Area Number One of the City of Aurora, in the territory described in the Notice of Hearing hereinafter set forth. At the hearing, there will be considered the extension of the levy of annual taxes not to exceed an annual rate of one percent (1%) of the equalized assessed value of the property in said Area in addition to all other municipal taxes, said tax to be levied for an additional period of eight (8) consecutive years commencing from and after the date of the Ordinance extending the tax levy in said Area. Said taxes shall be in addition to all other taxes provided by law and shall be levied pursuant to the provisions of the Property Tax Code.
Notice of the hearing shall be published at least once not less than fifteen (15) days prior to the public hearing in a newspaper in general circulation in the City of Aurora. In addition, notice by mailing shall be given by depositing said Notice in the U.S. Mail addressed to the person or persons in whose name the general taxes for the last preceding year were paid on each lot, block, tract or parcel of land lying within the Special Service Area. Said Notice shall be mailed not less than ten (10) days prior to the time set for the public hearing. In the event taxes for the last preceding year were not paid, the Notice shall be sent to the person last listed on the tax rolls prior to that year as the owner of said property. The Notice shall be substantially the following form:
NOTICE OF HEARING
CITY OF AURORA
SPECIAL SERVICE AREA NUMBER ONE
NOTICE IS HEREBY GIVEN that on June 26, 2018, at 6:00 p.m., in the Council Chambers of the City Hall, 44 East Downer Place, Aurora, Illinois, a hearing will be held by the City Council of the City of Aurora to consider the extension of the tax levy for an additional eight (8) years of Special Service Area Number One consisting of the following described territory:
SEE EXHIBIT “A”
The approximate street location is as follows:
All of that territory in and adjacent to the City’s central business district which is Bounded on the East from a point of the intersection of the Northerly line of Spring Street and the center line of the Railroad Right of Way Southerly to the center line of East New York Street, on the Center line of Lincoln Avenue from the Center line of East New York Street to a point of the intersection with the center line of Clark Street; Bounded on the North from Center line of Lincoln Avenue extending Westerly along the Center line of East New York Street to a point with the intersection with the Railroad Right of Way, and from a point which is the intersection of the Northerly line of Spring Street and the Center line of the Railroad Right of Way, then extending Westerly along the Northerly line of Spring Street and extended Westerly along said Northerly line of Spring Street to a point on the Center line of the Fox River; From a point on the Center line of the Fox River along the Center line of Cedar Street extended Easterly from the intersection of the Center line of Cedar Street and River Street, and from the point of the intersection of the Center line of Spruce Street and the Center line of River Street Westerly along said Center line to a point in the Center line of Spruce Street that is 133.67 feet West of the intersection of Spruce Street with the intersection of the Westerly line of Lake Street to include all properties on the West side of Lake Street and South of Spruce Street.
Bounded on the West by the properties generally on the West side of Lake Street from the Center line of Spruce Street South to the properties on the South Side of Benton Street and Bounded on the South on the Center line of Clark Street from the Center line of Lincoln Avenue along the Center line of Clark Street extended West across the Fox River (including Island No. 138); and by the properties on the South side of Benton Street West of the Fox River in the City of Aurora, Kane County, Illinois.
An accurate map of said territory is on file in the Office of the City Clerk and available for public inspection, and is attached hereto as Exhibit “A-1”. An accurate legal description of said area is attached hereto as Exhibit “A”.
All interested persons, including all persons owning taxable real property located within the area, affected by the extension of the tax levy for an additional eight (8) years of Special Service Area Number One will be given an opportunity to be heard regarding the extension of the levy of taxes for an additional eight (8) years affecting said Area and said persons may object to the extension of the levy of taxes for an additional eight (8) years.
The purpose of Aurora Special Service Area Number One in general is to provide for services to achieve the below designated goals in said Area in addition to the services provided and/or maintained by the City generally:
GOAL 1: CREATE, FUND AND STAFF A DOWNTOWN MANAGEMENT AND DEVELOPMENT ORGANIZATION, WHICH WILL BE AN ILLINOIS NOT-FOR-PROFIT CORPORATION.
GOAL 2: ASSIST BUSINESS AND PROPERTY OWNERS TO ENHANCE AND MAINTAIN A SAFE, SECURE, CLEAN AND HOSPITABLE BUSINESS ENVIRONMENT.
GOAL 3: ATTRACT ANCHORS AND OTHER COMPLEMENTARY BUSINESSES TO DOWNTOWN.
GOAL 4: PLAN, COORDINATE AND MONITOR CAPITAL IMPROVEMENT PROJECTS FOR DOWNTOWN.
GOAL 5: IDENTIFY AND WORK WITH BUSINESS AND PROPERTY OWNERS TO ENCOURAGE BUSINESS GROWTH AND PROPERTY IMPROVEMENTS.
GOAL 6: DESIGN AND IMPLEMENT A UNIFIED MARKETING PLAN.
GOAL 7: CREATE PROGRAMS TO FACILITATE THE FUNDING OF PROJECTS IMPORTANT TO DOWNTOWN.
GOAL 8: SUCH OTHER PROGRAMS AND PURPOSES AS ARE RELATED WITH AND/OR INCIDENTAL TO THE PREVIOUS GOALS.
At the hearing, all persons affected will be given an opportunity to be heard. At the hearing, there will be considered the extension of the tax levy of an annual tax of not to exceed an annual rate of one percent (1%) of the equalized assessed value of the property in said Area, said taxes to be levied for an additional period of eight (8) consecutive years commencing from the date of and pursuant to the Ordinance authorizing said extension of the tax levy. Said taxes shall be in addition to all other taxes provided by law and shall be levied pursuant to the provisions of the Property Tax Code. The hearing may be adjourned by the City Council to another date without further notice other than a motion to be entered upon the minutes of its meeting fixing the time and place of its adjournment.
However, any person or entity owning one or more parcels within the proposed Area whose total annual tax liability for said tax hereunder exceeds $15,000.00 shall be entitled to receive a rebate from the City in the amount of such excess, provided such person or entity shall annually apply for such excess rebate not later than the due date of the second property tax installment, with payment of the rebate to be within thirty (30) days thereafter. Such specified limiting amount of $15,000.00 shall be annually adjusted in accordance with the Revised Consumer Price Index for Urban Wage Earners for Chicago issued by the Bureau of Labor Statistics of the U. S. Department of Labor, to be adjusted on each January 1st commencing January 1, 1995 with the year 1995 to be the base year for purposes of determining said adjustments.
Additionally, the maximum annual levies for Special Service Area Numbers 15 and 16 shall each be hereafter limited to a maximum rate of two percent (2%) from the commencement of the levies hereunder, for the duration of this Area or the respective established Areas, whichever earlier terminates.
If a petition signed by at least fifty-one percent (51%) of the electors residing within the proposed Area and by at least fifty-one percent (51%) of the owners of record of the land included within the boundaries of the proposed Area is filed with the City Clerk within sixty (60) days following the final adjournment of the public hearing, objecting to the extension of the tax levy or imposition of a tax for the provision of special services to the proposed Area, no such additional taxes may be levied or imposed.
EXHIBITS
SSA ONE TIMELINE EXTENSION
EXHIBIT "A' - SSA ONE LEGAL DESCRIPTION AURORA DOWNTOWN
EXHIBIT "A-1" SITE MAP
EXHIBIT "B" LEGAL NOTICE OF HEARING
EXHIBIT "C" AFFIDAVIT OF SERVICE OF NOTICE
EXHIBIT "D" SSA ONE DETAIL MAP DOWNTOWN