TO: Mayor Thomas J. Weisner
FROM: Bill Wiet, Chief Development Officer
DATE: January 7, 2014
SUBJECT: title
Resolution Authorizing the Execution of a Development Agreement with 210 N. Lake Street, LLC for 212 N. Lake Street and 221 Spruce Street (210 N. Lake Street, LLC - AU22/1-13.026-AG - SP - Ward 6)
body
PURPOSE:
Attached is a resolution authorizing the execution of a development agreement for 210 N. Lake Street, LLC., for the construction of a Save-A-Lot grocery store. Pursuant to the Agreement 210 N. Lake Street, LLC will receive a total of $600,000.00. Funding for the reimbursement will come from Tax Increment Financing District No 5. The initial reimbursement will be in the amount of $300,000.00 upon issuance of the certificate of occupancy for the opening of the Save-A-Lot grocery store, and then $75,000.00 annually for the next 4 years on the anniversary date of the certificate of occupancy.
BACKGROUND:
The property at 212 N. Lake Street, built in 1956, is a one story building directly at the northwest corner of Lake Street and Spruce Street and housed the former Walgreens Drugs which closed approximately five years ago due to the opening of other locations nearby.
The property at 221 Spruce Street, built in 1966, is a one story building directly at the northeast corner of Wilder Street and Spruce Street. This office building has been vacant for several years.
DISCUSSION:
Project: 210 N. Lake Street, LLC plans to acquire both the 212 N. Lake Street and 221 Spruce Street properties.
The existing commercial building, located at 212 N. Lake Street, will be renovated along with the construction of a 2,975 square foot addition to the west side of the building for a Save-A-Lot grocery store. The renovation will include upgrades to the electrical and plumbing systems as well as upgrades to the building which consist of adding additional windows along the Lake Street façade, adding a new awning over the entrance area, tuck pointing, roofing repairs, and new signage.
The existing office building, located at 221 Spruce Street, will be demolished to allow for the expansion of the existing parking lot. Landscaping will be implemented around the perimeter of the parking lot and within the parking islands.
Total valuation of the project, including acquisition, demolition, construction, contingencies and soft costs is estimated at $2,600,000. TIF assistance is expected to support 23% of the total project costs.
Evaluation: The redevelopment of the property will have a positive impact on the neighborhhod and the grocery store will provide a service that is lacking in the area for the surrounding neighborhood.
IMPACT STATEMENT:
The development made possible through the approval of this agreement will have a positive impact on the economic health of the City of Aurora including but not limited to the following:
· The redevelopment of the property is expected to result in increased employment in and near the downtown;
· The redevelopment of this property will enhance the tax base of the City of Aurora.
· The redevelopment of this property will add to the overall vitality of Aurora.
RECOMMENDATIONS:
Staff recommends approval of the resolution authorizing the execution of a redevelopment agreement with 210 N. Lake Street, LLC in an amount not to exceed $600,000.00
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Peters, Alternate