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TO: Mayor Irvin and the Aldermen
FROM: David Dibo
DATE: April 5, 2019
SUBJECT:
A proposed intergovernmental agreement with School District 131 regarding the relocation of the District's administrative offices to the former Copley Hospital site.
PURPOSE:
To provide assistance to the District in the relocation of its administrative offices to the former Copley Hospital site.
BACKGROUND:
Last year, the City Council approved a settlement agreement and a redevelopment agreement to reverse decades of blight at the former Copley Hospital in Ward 4. The redevelopment of the site contemplated mixed uses of the large facility which is located adjacent to Bardwell Elementary School on the south side of Seminary Ave. Given its size and proximity to the elementary school, the site was attractive to District 131 as a new location for its headquarters. Similarly, relocation of the district's headquarters to the Old Copley neighborhood will bring increased activity to the area and facilitate its redevelopment. District 131 was unable to accomplish the renovation and relocation without financial assistance, District and City staff negotiated an intergovernmental agreement that provides that the City will contribute $1.5 million in total aggregate value to the District's relocation efforts over the course of the next twenty (20) years, including vacating and closing Seminary Avenue between Bardwell Elementary and the former Copley facility.
Council approved a resolution enabling the City to assist in the redevelopment of the former Copley hospital predicated in certain parameters being completed- most notably the complete remediation of the entire Copley campus, much of which has been completed. Further assistance was contemplated once users emerged, thought to occur well after initial remediation was complete the emergence of the District 131 relocation accelerated this second phase of project assistance.
After many months of discussions it was determined that the additional funding mechanism described herein would be sufficient enough to move this forward. The spreading out of the payments over 20 years and having two thirds of it “kind” mitigates the financial impact to the City while still filling the gap between developer and user. Securing a prominent first user adds much credence to the envisioned socially conscience redevelopment plan and helps set the financial outlook for the remainder of the project
IMPACT STATEMENT:
The City's obligations under the proposed IGA are conditioned upon the District entering into a lease with the owner of the former Copley Hospital complex by the end of the year and providing at least $1 million in funding toward the renovation of its new offices by July 1, 2020. In all, the District is agreeing to spend not less than $7 million over the next 6 years to relocate to the former Copley Hospital.
The City's $1.5 million investment in the project includes a total $500,000 in cash payments made in $25,000 increments over the next twenty (20) years. The City may contribute the remainder through a combination of non-monetary labor, services, grants or other in-kind assistance to the District. It will substantially fulfill this obligation though its closure and landscaping of Seminary Ave and donation of the former right-of-way to the District.
RECOMMENDATIONS:
That the council approve the resolution and authorize the mayor to execute the intergovernmental agreement.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Authorizing the Mayor to Execute an Intergovernmental Agreement with the Board of Education of East Aurora School District No. 131, Kane County, Illinois regarding the relocation of the District's Administrative Offices.
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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 and the Board of Education of East Aurora School District No. 131, Kane County, Illinois (District) have negotiated an intergovernmental agreement to facilitate the relocation of the District's administrative offices to the former Copley Hospital site; and
WHEREAS, such relocation is in the best interests in the City and the District;
WHEREAS, the intergovernmental cooperation contemplated by the intergovernmental agreement is authorized by the constitution and laws of the State of Illinois and is in the best interests of the City, the District, and the public;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the Intergovernmental Agreement attached to this Resolution as Exhibit A shall be and hereby is approved; and further
BE IT RESOLVED, that the Mayor is authorized and directed to execute said Intergovernmental Agreement on behalf of the City; and further
BE IT RESOLVED, that the officers and employees of the City shall be and hereby are vested with all authority necessary to carry out the purposes of the Intergovernmental Agreement and the obligations of the City thereunder.