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TO: Mayor Richard C. Irvin
FROM: Alex Minnella, Senior Planner
DATE: February 8, 2024
SUBJECT:
A Resolution Authorizing the Execution of a Property Purchase and Sales Contract for 61-65 E. Downer Place, Aurora, Illinois.
PURPOSE:
To acquire the subject property in order to facilitate the securing of tenants who will be additive to a dynamic Downtown experience. The property will be included in the City's upcoming RFQ that seeks redevelopment ideas, concepts, and plans for many of the City holdings in the Broadway corridor.
BACKGROUND:
The City is facilitating the goals of the Downtown Master Plan including the support of arts, cultural space, social gathering, hospitality, and diverse businesses that distinguish Aurora as its own destination separate from other Fox Valley communities.
The space has been vacant since Johno's vacated about ten years ago. The market has not recognized the opportunity in this relatively large building (almost 9,000 square feet); its continued vacancy and dereliction has a negative impact on Downtown and quality of life.
The p.i.n. numbers are 15-22-380-003 and 15-22-380-004.
DISCUSSION:
The property needs substantial renovation which has been an impediment to its redevelopment. The current owners have had the property for about six years and have not been able to renovate or lease the still boarded-up and vacant property.
The property will be purchased for $260,000 or about $30/SF or the approximate value as indicated by a third-party appraisal, when taking into consideration closing costs, which is the responsibility of the seller. Valbridge, the national appraisal firm, conducted the valuation.
IMPACT STATEMENT:
Purchasing the property that the market has not recognized its value/potential will give the City an opportunity to "prime" the market in the same manner that was done with Craft Urban, now housed in a building not dissimilar form the conditions of 61-65 E. Downer Place.
RECOMMENDATIONS:
That the attached Resolution and Purchasing contract be approved
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Authorizing the Execution of a Property Purchase and Sales Contract for 61-65 E. Downer Place, 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, pursuant to the authority granted to it under the Illinois Constitution, the laws of the State of Illinois, and the common law, the City has the authority to acquire the real property, and appurtenances attached thereto, commonly known as 61-65 E. Downer Place, Aurora, Illinois, having Permanent Index Numbers 15-22-380-003 and 15-22-380-004 (“Subject Property”), as legally described in Exhibit A, attached hereto and made a part hereof, and to execute the Property Purchase and Sales Contract (“Contract”) relative to the Subject Property, said Contract being attached hereto as Exhibit B and made a part hereof; and
WHEREAS, the owner of the Subject Property (“Seller”) desires to sell the Subject Property to the City; and
WHEREAS, the Corporate Authorities and Seller of the Subject Property have agreed to a purchase price for the Subject Property; and
WHEREAS, the Corporate Authorities have determined that the purchase of the Subject Property by the City is for a reasonable price and in the best interests of the City.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows:
SECTION 1: That the Preambles set forth above shall be and are hereby incorporated in Section 1 herein, as if restated herein.
SECTION 2: That the Mayor and City Clerk are hereby authorized to sign and execute the Contract for the purchase of the Subject Property, substantially in the form attached as Exhibit B. Any minor amendments to the Contract made hereinafter shall be subject to approval of the Mayor without further action of the City Council.
SECTION 3: That the Mayor, City Clerk, City Treasurer and Corporation Counsel are further authorized to execute any and all additional documents necessary to complete the purchase of the Subject Property following approval of this Resolution.
SECTION 4: This Resolution shall take effect from and after its adoption and approval as required by law.