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TO: Mayor John Laesch
FROM: Chris Ragona, Director of Community Services
DATE: March 13, 2026
SUBJECT:
A resolution authorizing the award of a contract to Lite Construction in the amount of $1,887,900 with a contingency of $112,100 not to exceed $2,000,000 for renovations to the family shelter located at the campus of Mutual Ground via grant funds from the Department of Commerce and Economic Opportunity (DCEO).
PURPOSE:
The Illinois Department of Commerce and Economic Opportunity (DCEO) issued a notice of funding opportunity to fund construction, reconstruction, rehabilitation, or acquisition of property for Homeless Shelters (as defined by the U.S. Department of Housing and Urban Development (HUD) dedicated to the provision of stable, safe and adequate housing with a goal of increasing capacity to pre-COVID levels. Only units of local government in areas receiving direct entitlement CDBG funding from HUD were eligible to apply for the state of Illinois CDBG-CV Urban Shelter Program. The City of Aurora submitted two applications on behalf of Hesed House and Mutual Ground, with each application receiving approval.
BACKGROUND:
Mutual Ground has been providing critical services for victims of domestic violence, sexual violence and substance use for nearly 50 years in the City of Aurora. The need for domestic and sexual violence direct services has increased post-COVID. Clients are arriving at Mutual Ground with extremely complex situations which require additional counseling, advocacy and shelter. The emergency shelter is presently housed in a historic mansion built in 1853 that requires extensive updates, repairs and reconfigurations to be able to provide access shelter to more victims of domestic and sexual violence along with space to accommodate additional staff.
Upon completion of the project at Mutual Ground, there will be immediate benefit to those served. The table below outlines the number of persons staying at the shelter as well as the nights stayed. The number of clients staying at the shelter has reduced slightly, however the number of nights stayed has significantly increased. There are lots of factors that can contribute to this, but the lack of affordable housing is contributing to longer stays which fills the shelter to maximum capacity which reduces the number of families that can stay at the shelter.
|
Year |
Nights of Stay |
Adults |
Children |
|
Pre-Covid July 2019- June 2020 |
9,468 |
135 |
108 |
|
July 2023 - June 2024 |
8,604 |
162 |
133 |
|
July 2024 - June 2025 |
12,775 |
126 |
102 |
|
June 2025 - June 2026 |
12,951 |
132 |
106 |
DISCUSSION:
In consultation with Mutual Ground, city staff released a bid on July 22, 2026 on the City's Procurement website along with an ad in The Beacon newspaper, and distribution sent to hundreds of contractors in the surrounding area. The due date was August 19, 2026, with two bids received. After a review of the bids, Lite Construction was determined as the lowest most responsible bidder.
A copy of Lite Construction's submitted bid is attached as Exhibit A. A copy of the Verification of Good Standing is attached as Exhibit B. A copy of the summary of value engineering to reduce the scope of work and bid price is attached as Exhibit C. Lastly a copy of the contract between the City of Aurora and Lite Construction is attached as Exhibit D.
IMPACT STATEMENT:
This resolution will allow the City of Aurora to utilize funding from the Illinois Department of Commerce and Economic Opportunity for the CDBG-CV Urban Shelter Program to fund the rehabilitation of the Family Shelter at Mutual Ground.
The City will administer any awarded grant funds through the Community Reinvestment Division in the same manner as it administers CDBG entitlement funds.
If not approved, funds will be returned to the Department of Commerce and Economic Opportunity, and the shelter will not be rehabilitated.
The 2026 City Budget provides funds for this project in the following accounts:
Revenue - 101-1330-334.30-02 (project code DCEOMG)
Expense - 101-1330-463.50.08 (project code DCEOMG)
RECOMMENDATIONS:
Recommend to approve resolution authorizing the award of a contract to Lite Construction in the amount of $1,887,900 with a contingency of $112,100 not to exceed $2,000,000 for renovations to the family shelter located at the campus of Mutual Ground via grant funds from the Department of Commerce and Economic Opportunity (DCEO Mutual Ground and authorizes the City's Mayor, Chief Community Services Officer, Director of Community Services, or their designees to execute any agreements, contracts and other documents associated with these approvals, including but not limited to HUD's program administration requirements.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution authorizing the award of a contract to Lite Construction in the amount of $1,887,900 with a contingency of $112,100 not to exceed $2,000,000 for renovations to the family shelter located at the campus of Mutual Ground via grant funds from the Department of Commerce and Economic Opportunity.
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, the City of Aurora strives to support homeless Aurora residents by improving the quality of shelters, and
WHEREAS, the city was awarded a grant of $2,000,000 from the Illinois Department of Commerce and Economic Opportunity, and
WHEREAS, a responsible bid was received and publicly opened on August 19, 2026 attached hereto and incorporated as Exhibit E; and
WHEREAS, This project will benefit the City of Aurora by improving the family shelter of Mutual Ground to provide temporary housing and concurrent supportive services to homeless Aurora residents; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows:
1) The city is authorized to accept a $2,000,000 grant from the Illinois Department of Commerce and Economic Opportunity with no matching cost requirement according to grant agreement #20-301002 and able to increase the grant amount up to $2,000,000 without City Council approval if approved by the state for any unforeseen expenses.
2) Funds to support this project can be found in the following accounts:
Revenue - 101-1330-334.30-02 (project code DCEOMG)
Expense - 101-1330-463.50.08 (project code DCEOMG)
3) This contract can be increased up to a maximum of $2,000,000 to accommodate change orders approved by Mutual Ground, City of Aurora, and the State of Illinois DCEO Office, and
4) That the City Council authorizes the Mayor or his designees to execute the contract and authority to sign all other documents necessary to administer the program.
RECOMMENDATIONS:
Recommend to approve a resolution authorizing the award of a contract to Lite Construction in the amount of $1,887,900 with a contingency of $112,100 not to exceed $2,000,000 for renovations to the family shelter located at the campus of Mutual Ground via funds from the Department of Commerce and Economic Opportunity Ground and authorizes the City's Mayor, Chief Community Services Officer, Director of Community Services, or their designees to execute any agreements, contracts and other documents associated with these approvals, including but not limited to HUD's program administration requirements.