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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 59 South LaSalle Street to Model 51, LLC for the purpose of redevelopment of the building for commercial and residential space.
PURPOSE:
In 2012 the City of Aurora acquired the property located at 59 S. LaSalle Street in Aurora, IL (PIN #15-22-382-003) for the amount of $85,000. 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 59 S. LaSalle Street. Bids on this property were due no later than February 15th 2017. The City of Aurora received two letters of intent for the property.
BACKGROUND:
Invest Aurora received two nearly identical proposals. As the proposals are nearly identical, Invest Aurora prioritized its decision based on ownership and/or prospective ownership of additional properties on the block. After evaluation, Invest Aurora selected Model 51, LLC. for the award of 59 S. LaSalle Street.
DISCUSSION:
Model 51, LLC. will be granted a Contingency Period of 90 days to review all documents held by the City of Aurora and complete all due diligence on the property. In the event that Model 51, LLC. is satisfied with all documents, they must deposit non-refundable Earnest Money in the amount of $1,000. The City of Aurora and Model 51, LLC. will then have 21 days within which to establish a mutually convenient time and place for closing.
At closing, Model 51, LLC. 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. Model 51, LLC. will have 180 to complete the scope of work from receipt of permit approvals.
In addition to the above conditions, the award of 59 S. LaSalle Street is contingent upon finalization of a multi-property acquisition on LaSalle Street. Model 51, LLC. must also receive title of ownership on the properties located at 83 S. LaSalle Street (PIN #15-22-382-013) and 81 S. LaSalle Street (PIN’s #15-22-382-012; 15-22-382-009). Additionally, Model 51, LLC. has agreed to the following improvements to the property located at 59 S. LaSalle Street:
Façade improvement of similar style to 57 S. LaSalle Street (adjacent property)
Installation of HVAC system (no exterior A/C unit on front façade)
Interior renovation to include first-floor commercial space and 2 one-bedroom apartments on the second floor
Any improvements must be made in accordance to the Fox Walk Overlay District Design Guidelines (Attachment C) and subject to review by the Design Review Committee. Model 51, LLC. has expressed an interest in funding the project through Invest Aurora’s John C. Dunham Revolving Loan Fund program. Additionally, the redevelopment project will be eligible for a Finish Line Grant.
Invest Aurora recommends the City of Aurora enter into a Purchase and Sale agreement with Model 51 LLC. for the amount of $10.00.
IMPACT STATEMENT:
Disposing of the property allows for redevelopment of the site and also places the property on the tax rolls.
RECOMMENDATIONS:
It is recommended that the acquisition of the City-owned property at 59 South LaSalle Street by Model 51, LLC 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 Model 51, L.L.C. For the Disposition of City Owned Property Located at 59 South LaSalle 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 Model 51 L.L.C. is interested in acquiring the City-Owned property commonly known as 59 South LaSalle Street, Parcel Index Number 15-22-382-003, 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 Model 51, L.L.C. is hereby approved.