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TO: Mayor Richard C. Irvin
FROM: Richard J. Veenstra, Corporation Counsel
DATE: March 9, 2018
SUBJECT:
The pending eminent domain action against the Fox Valley Inn
PURPOSE:
To permit the Corporation Counsel to properly amend the City's existing complaint against the Fox Valley Inn to specify that redevelopment is an additional public purpose to support its action.
BACKGROUND:
In 2016, the City Council authorized staff to acquire the property located at 2450 N Farnsworth Ave through eminent domain or otherwise. After the City and the property owner were unable to agree to terms for the sale of the property, the City filed an eminent domain action in the Circuit Court of Kane County.
DISCUSSION:
The Ordinance approved by the City in 2016 and the complaint the City filed against the Fox Valley Inn did not specifically authorize economic development as one of the public purposes for the proposed acquisition. Though redevelopment in the area was a consideration in the Council's decision process, the sole purpose for the acquisition as articulated in the previous Ordinance was to allow for the extension and realignment of Farnsworth Ave. This Ordinance codifies the significant redevelopment purpose for the acquisition that was present at the time but not set forth specifically in the 2016 Ordinance.
IMPACT STATEMENT:
This Ordinance will provide the requisite factual basis necessary to support an amendment to the City's existing eminent domain complaint.
RECOMMENDATIONS:
That the City Council approve this Ordinance.
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
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An Ordinance Providing for the Acquisition of Certain Real Estate Commonly Known as 2450 North Farnsworth Avenue, Through Eminent Domain or Otherwise.
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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 Mayor and City Council of the City of Aurora have heretofore determined through the adoption of Ordinance No. 016-010, dated February 23, 2016 that it is necessary and in the public interest of the City of Aurora (hereinafter referred to as “City”) to acquire fee simple title for certain real property commonly known as 2450 North Farnsworth Avenue, Aurora, Illinois, with Permanent Index Number 15-02-200-014, and which is legally described on Exhibit A attached hereto and hereby made a part hereof (hereinafter referred to as “Subject Property”), and which lies entirely within the corporate limits of the City, and is necessary, required, and needed by the City as a portion of the extension and realignment of Farnsworth Avenue; and
WHEREAS, the City Council previously authorized empowered, and directed various City Officers to negotiate for and on behalf of the City with the owner or owners of the Subject Property for the purchase of fee simple title in the Subject Property by the City, pursuant to Ordinance No. 016-010; and
WHEREAS, such City Officers were unable to agree with the owner or owners of the Subject Property as to the compensation to be paid for the Subject Property; and
WHEREAS, the City then was empowered to and initiated an eminent domain proceeding to acquire the fee simple title to the Subject Property in accordance with the applicable eminent domain laws of the State of Illinois; and
WHEREAS, pursuant to said authority, the City filed a complaint under the applicable eminent domain laws of the State of Illinois against the Subject Property in the Circuit Court of Kane County, Case Number 16 ED 6; and
WHEREAS, the City and Kane, McKenna and Associates, Inc. prepared a Tax Increment Redevelopment Plan for West Farnsworth TIF District No. 7 (“Plan”), attached hereto as Exhibit B and made a part hereof. That pursuant to 65 ILCS 5/11-74.4-1 et seq., the City approved and adopted Ordinance No. 011-059 on November 22, 2011, approving the Plan and creating a Redevelopment Project Area (“RPA”), which includes the Subject Property; and
WHEREAS, pursuant to Section 11-74.4-5 of the Tax Increment Allocation Redevelopment Act ("TIF Act"), the Mayor and City Council of the City by ordinance called a public hearing relative to the Plan and designation of the RPA on November 8, 2011; and
WHEREAS, the City convened a Joint Review Board as required by law and that by resolution the Joint Review Board recommended that the City approve the Plan and designation of the RPA; and
WHEREAS, the City found that there existed conditions causing the RPA to be designated as an RPA under the Act and to be classified as a conservation area and as a blighted vacant area, as defined in Section 11-74.4-3 of the TIF Act; and
WHEREAS, the Subject Property is located within the RPA as shown on Exhibit B; and
WHEREAS, the City, through legislative actions required by the TIF Act, made findings that the RPA has not been subject to growth and development through investment by private enterprise, that in order to promote and protect the health, safety and welfare of the public, certain conditions that have adversely affected redevelopment within the RPA need to be addressed, and that redevelopment of such areas must be undertaken, that in order to alleviate the adverse conditions it is necessary to encourage private investment and enhance the tax base of the taxing districts in such areas by the development or redevelopment of certain areas, that public/private partnerships are determined to be necessary in order to achieve developmental goals, that without the development focus and resources provided for under the TIF Act, growth and redevelopment would not be reasonably expected to be achieved and that the use of incremental tax revenues derived from the tax rates of various taxing districts in the RPA for the payment of redevelopment project costs is of benefit to the taxing districts and the public; and
WHEREAS, the Plan provides that existing improvements located within the RPA may have to be reconfigured or prepared to accommodate new uses or expansion plans; and
WHEREAS, the Plan also provides that properties in the RPA may be acquired and assembled into an appropriate redevelopment site; and
WHEREAS, the City has undertaken land assembly efforts to acquire certain properties within the RPA in furtherance of the Plan; and
WHEREAS, the City has acquired, parcels of property located at 2502 N. Farnsworth Ave, Permanent Index Number and 15-02-20-0011 2501 Church Rd, Permanent Index Number 15-02-20-0011, in furtherance of the redevelopment of the RPA, pursuant to the Plan; and
WHEREAS, acquisition of the Subject Property will further the RPA’s objective of acquiring and assembling land into a suitable redevelopment site; and
WHEREAS, the Subject Property is located in an area that is currently designated as a blighted and conservation area under the TIF Act; and
WHEREAS, the required blighting factors existed in the RPA so designated at the time of the designation; and
WHEREAS, the stable economic and physical development of the RPA is endangered by the presence of these blighting factors and acquisition of the Subject Property is necessary for the elimination of blight; and
WHEREAS, the City Council finds that the acquisition of the Subject Property for the development of a project consistent with the land uses set forth in the Plan and consistent with the goals and objectives of the Plan is a necessary public purpose; and
WHEREAS, the City Council further finds that the redevelopment of the Subject Property is in furtherance of the elimination of said blighting factors is a public purpose and that the exercise of eminent domain authority as to the Subject Property is necessary to accomplish that public purpose; and
WHEREAS, an enforceable written agreement, deed restriction, or similar encumbrance will be executed and recorded against the Subject Property to assure that the project and use of the Subject Property remain consistent with those land uses, goals and purposes for a period of at least 40 years.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows: that the recitals shall be and hereby are incorporated into this Ordinance and made a part hereof; and further
BE IT ORDAINED, that the Corporation Counsel or his designees are hereby authorized and empowered to amend the complaint in eminent domain proceeding 16 ED 6 and to acquire the Subject Property for the purpose of redevelopment pursuant to 65 ILCS 5/11-74.4-4(c) and 735 ILCS 30/5-5-5; and further
BE IT ORDAINED, that the City Clerk of the City of Aurora be and is directed hereby to publish this Ordinance in pamphlet form; and further
BE IT ORDAINED, that this Ordinance shall be in full force and effect from and after its passage, approval, and publication.
ADOPTED this ____ day of March, 2018 pursuant to a roll call vote as follows: