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TO: Mayor John Laesch
FROM: David Dibo, Economic Development Director
Danielle Tufano, Downtown Economic Development
DATE: October 14, 2025
SUBJECT:
Approval of a resolution authorizing the expenditure of special service area tax funds not to exceed $50,000 and the provision of city staff support for the purpose of organizing an independent non-for-profit organization to provide special services within Special Service Area One.
PURPOSE:
To establish a non-for-profit organization to provide special services within the Special Service Area One. While the city is facilitating the reconstitution of this entity in order to facilitate its formation, it will operate independently from the city.
BACKGROUND:
For most of the existence of SSA One, the City contracted with Aurora Downtown, an Illinois not-for-profit corporation comprised of owners and representatives of commercial properties within SSA One, to provide special services within the district. On September 12, 2025, Aurora Downtown was dissolved by the Illinois Secretary of State, leaving no entity authorized to administer or oversee these services or a mechanism for its reformation. The Mayor's Office organized a series of listening tours this past summer to have downtown real estate owners and businesses opine on a direction going forward. Establishing an independent successful entity was favored (as opposed to being part of the city's committees or becoming part of another economic development entity). The staff then solicited a group of volunteers from those in attendance to oversee this process of re-establishing a representative entity.
DISCUSSION:
The group of volunteers requires legal assistance to form the new organization including but not limited to determining voting membership, board composition and selection, preparing governing documents, and applying for federal and or state tax-exempt status. Other items such as extending the existing boundaries of the SSA will also be considered once this new governing entity is established and operating. Another conclusion of the listening tours was to have this entity work in concert with the city's Sustainability Development and Business opportunity department, specifically the downtown manager to advance the vibrancy, attractiveness, and offering within the downtown.
IMPACT STATEMENT:
Having a strong independent entity representing the interests of businesses and property owners coupled with a working partnership with the city will encourage transparency, communication, and the joint sharing of information that will make the sum greater than its individual parts.
RECOMMENDATIONS:
Staff recommends approval of this resolution.
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution authorizing the expenditure of special service area tax funds in a total aggregate amount not to exceed $50,000 and the provision of staff support for the purposes of organizing an independent not-for-profit organization to render special services within Special Service Area One.
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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 Special Service Area Tax Law, 35 ILCS 200/27-5 et seq. (the “SSA Law”), authorizes the City to establish special service areas and to levy taxes therein to provide special governmental services in addition to those services provided generally throughout the City; and
WHEREAS, pursuant to the SSA Law, the City has established a special service area encompassing commercial properties generally located within the downtown business district, designated as Special Service Area Number One (“SSA One”); and
WHEREAS, for most of the existence of SSA One the City contracted with Aurora Downtown, an Illinois not-for-profit corporation comprised of owners and representatives of commercial properties within SSA One, to render special services in SSA One; and
WHEREAS, on September 12, 2025, Aurora Downtown, having previously wound down its operations, was dissolved by the Illinois Secretary of State; and
WHEREAS, the City Council finds it in the best interests of the City and SSA One to facilitate the establishment of a successor, fully autonomous, and legally distinct Illinois not-for-profit organization (the “Successor Organization”) to render special services on behalf of the City within SSA One; and
WHEREAS, the City Council recognizes that the formation of an independent organization, including, but not limited to, determining voting membership, board composition and selection, preparing governing documents, and applying for federal and or state tax-exempt status, poses administrative burdens that may deter otherwise qualified volunteers from timely organizing the Successor Organization; and
WHEREAS, the City Council further finds that a limited expenditure of SSA One tax revenues to cover ordinary and necessary start-up costs, including, but not limited to filing fees, professional services reasonably required to prepare bylaws, policies, and applications, will directly enable the continued provision of special services in SSA One and is reasonably related to the purpose for which the SSA One levy was imposed; and
WHEREAS, the City intends that all expenditures authorized by this Resolution shall be restricted to uses that benefit SSA One, consistent with the SSA Law and the City’s establishing ordinances;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows:
Section 1. Authorization of Expenditure.
The expenditure of SSA One tax funds in a total aggregate amount not to exceed Fifty Thousand Dollars ($50,000) is hereby authorized to pay ordinary and necessary start-up expenses associated with organizing the Successor Organization, including filing fees and professional services (legal, accounting, and organizational consulting) reasonably required for formation, governance, and applications for tax-exempt status. Expenditures shall be made directly from the City to vendors, paid solely from the proceeds of special service area taxes collected within SSA One, and shall be expended solely for activities that benefit SSA One. Funds authorized by this Resolution shall not be used for any operating expenses incurred by the Successor Organization nor shall they be paid directly to the Successor Organization for any purpose.
Section 2. Selection and Payment of Professional Services.
Any accountants, attorneys, or other professional consultants engaged by the City to assist in formation shall be selected in accordance with the City’s procurement policies based on qualifications, merit, and competence. Payment shall be made upon submission of itemized statements reviewed and approved by the Mayor’s Office of Economic Development, the Finance Department, and the Law Department.
Section 3. City Staff Support.
City personnel are authorized to render reasonable administrative assistance necessary to carry out this Resolution, including communicating the City’s minimum expectations for transparency, fiscal controls, legal compliance, inclusive membership practices, and a plan to secure non-City funding over time.
Section 4. City Representation; Conflicts.
City officers or employees may serve as incorporators or directors of the Successor Organization solely to represent the City’s interests and to ensure satisfaction of the public purposes described herein; Any City representative shall comply with all applicable ethics and conflict-of-interest laws and ordinances as well as the Successor Organization’s conflict-of-interest policy.
Section 5. Reporting.
The Mayor’s Office shall provide a status report to the City Council within sixty (60) days of the approval of this Resolution and every thirty (30) days thereafter on the progress of the establishment of the Successor Organization until said Successor Organization conducts its first election of directors in accordance with its governing documents.