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TO: Mayor Richard C. Irvin
FROM: Trevor Dick, AICP, LEED AP, Director of Development Strategy and
Facilitation
DATE: August 5, 2020
SUBJECT:
An Ordinance Calling for a Public Hearing and a Joint Review Board Meeting to Consider the Designation of a Redevelopment Project Area and the Approval of a Redevelopment Plan and Project for the City of Aurora Fox Valley Mall Area Tax Increment Financing District.
PURPOSE:
The City is proceeding with the creation of an additional “micro” TIF District along the skirt of the City, along the Illinois State Route 59. The Ordinance would start the process of creating another TIF District, to be known as the “Fox Valley Mall Area Tax Increment Financing District.” The Ordinance sets dates for a Joint Review Board meeting and a public hearing, and calls for the notices to be given in connection with the meeting and public hearing during which the designation of a redevelopment project area and the approval of a redevelopment plan and project will be discussed.
BACKGROUND:
Like many similar malls, Fox Valley Mall has been challenged by changes in consumer behavior in recent decades. These challenges have created conditions which have inhibited private investment and have led to a general decline and economic underutilization of the area. Recognizing the need to take action, the City has focused recent planning efforts on the Route 59 Corridor in general, and the Fox Valley Mall area in particular, resulting in a call to reuse and revitalize the area.
Given economic factors that have impacted malls nationwide and in conformance with its recent Route 59 Corridor Study Comprehensive Plan (2019), the City has determined that the Fox Valley Mall area as a whole would not be redeveloped in a coordinated manner without the adoption of a Tax Increment Financing Redevelopment Plan.
The City has pursued the strategy of creating micro TIF Districts from significant areas and properties to support certain redevelopment opportunities that would otherwise not occur, but for the City's assistance with a new TIF District.
The creation of this TIF District will result in a highly-visible redevelopment of the Fox Valley Mall project.
DISCUSSION:
To establish a TIF district (“Redevelopment Project Area” or “RPA), Illinois municipalities must adopt several documents including
In order to create the TIF District, the City Council must first approve the Ordinance, which begins the process. Steps in the process of creating the TIF District include:
1. Adopting the Ordinance
2. Send notices of the Joint Review Board meeting
3. Send notices of the availability of the Eligibility Study and Redevelopment Plan and Project for the TIF District
4. Hold the Joint Review Board meeting
5. Publish and mail notices of the public hearing
6. Hold the public hearing
7. Approve the ordinances creating the TIF District
It is anticipated that the TIF District will be created in the fall of 2020
IMPACT STATEMENT :
The approval of the ordinance calling for a public hearing and a joint review board meeting to consider the designation of a redevelopment project area and the approval of a redevelopment plan and project for the City of Aurora Fox Valley Mall Area Tax Increment Financing District would support the redevelopment and, failure to create this District would mean needed financing for future development will not be created.
RECOMMENDATIONS:
City staff recommends the Ordinance be approved, so that the creation of the Fox Valley Mall Area TIF District moves forward.
ATTACHMENTS:
Exhibit A - Redevelopment Project Area Legal Description
Exhibit B - Notice of the Availability of the Eligibility Report and Redevelopment Plan and
Project relative to the proposed Aurora Fox Valley Mall Area Tax Increment Financing District
Exhibit C - Notice of Public Hearing and Joint Review Board Meeting to Consider the Designation of the Redevelopment Project Area for the Proposed Aurora Fox Valley Mall Area Tax Increment Financing District and the Approval of a Redevelopment Plan and Project in Relation thereto
Exhibit 1 - Common Boundaries, PINS, and Legal Description
Exhibit 2 - Street Location Map for the Aurora Fox Valley Mall Area Tax Increment Financing District
cc: Finance Committee:
Alderman Robert O’Connor, Chairperson
Alderman Edward J. Bugg, Vice Chairperson
Alderman Carl Franco
Alderwoman Scheketa Hart-Burns
Alderman Emmanuel Llamas
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance Calling for a Public Hearing and a Joint Review Board Meeting to Consider the Designation of a Redevelopment Project Area and the Approval of a Redevelopment Plan and Project for the City of Aurora Fox Valley Mall Area Tax Increment Financing District.
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 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 (“City”) is considering the designation of a redevelopment project area and the approval of a redevelopment plan and project within the corporate limits of the City, to be called the “Fox Valley Mall Area Tax Increment Financing District” (“Fox Valley Mall Area TIF District”), pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1, et seq. (“TIF Act”); and
WHEREAS, on September 24, 2019, the City Council of the City approved a motion authorizing Kane, McKenna & Associates, Inc. to prepare an eligibility study and report, and a redevelopment plan and project relative to the Fox Valley Mall Area TIF District; and
WHEREAS, on July 29, 2020, the City published the Tax Increment Financing (TIF) Interested Parties Registry Notice, as required by Section 11-74.4-5(a) of the TIF Act, in the Beacon News; and
WHEREAS, on August 11, 2020, the City announced the availability of the redevelopment plan and project for the proposed Fox Valley Mall Area TIF District (“TIF Plan”), with said TIF Plan containing an eligibility report for the proposed Fox Valley Mall Area TIF District (“Eligibility Report”) addressing the tax increment financing eligibility of the area proposed for the redevelopment project area (“Redevelopment Project Area”), with said Redevelopment Project Area being legally described on Exhibit A attached hereto and made part hereof; and
WHEREAS, pursuant to the provisions of Section 11-74.4-5(c) of the TIF Act, prior to the adoption of the ordinance designating the Redevelopment Project Area and approving the TIF Plan for the proposed Fox Valley Mall Area TIF District, the City must fix a time and place for a public hearing; and
WHEREAS, pursuant to the provisions of Section 11-74.4-5(b) of the TIF Act, prior to the adoption of the ordinance designating the Redevelopment Project Area and approving the TIF Plan for the proposed Fox Valley Mall Area TIF District, the City must convene a meeting of the Joint Review Board (“JRB”) to consider the proposal; and
WHEREAS, it is the desire of the City Council of the City to conduct such public hearing and to convene said meeting of the JRB;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
SECTION 1: That, pursuant to the provisions of the TIF Act, the City Council hereby designates the date of Tuesday, October 27, 2020, at 5:00 p.m. at the Aurora City Hall, Council Chambers, 44 East Downer Place, Aurora, Illinois 60507, for the purpose of conducting a public hearing to hear from any interested persons, taxpayers or affected taxing districts regarding the Redevelopment Project Area and the TIF Plan for the proposed Fox Valley Mall Area TIF District.
SECTION 2: That copies of the Eligibility Report and the TIF Plan for the proposed Fox Valley Mall Area TIF District have been on file in the office of the City Clerk, and have been available for public inspection during regular City business hours, since July 30, 2020.
SECTION 3: That at the public hearing, any interested person, taxpayer or affected taxing district may file with the City Clerk written comments and/or objections to, and may be heard orally with respect to, any issues embodied in the notice of public hearing attached hereto.
SECTION 4: That the JRB for the proposed Fox Valley Mall Area TIF District shall meet on Monday, September 21, 2020, at 10:00 a.m. at City Hall, 44 East Downer Place, 5th Floor, Conference Rooms 5A and 5B, Aurora, Illinois 60507. The JRB shall review the public record, planning documents, Eligibility Report, Redevelopment Project Area and the TIF Plan for the proposed Fox Valley Mall Area TIF District. The JRB shall make an advisory recommendation to the City within thirty (30) days after the convening of the JRB. A written report shall be issued by the JRB. The failure of the JRB to submit its report on a timely basis shall not be cause to delay the public hearing or any other step in the process of designating the Redevelopment Project Area and approving the TIF Plan for the proposed Fox Valley Mall Area TIF District. In the event the JRB does not file a report, it shall be presumed that the JRB has approved the matters before it. Pursuant to the provisions of Section 11-74.4-5(b) of the TIF Act, the JRB shall consist of one (1) public member and one (1) representative from each of the following taxing districts: DuPage County, Indian Prairie School District No. 204, College of DuPage, Naperville Township, Fox Valley Park District and the City of Aurora.
SECTION 5: That the City of Aurora's representative on the JRB is hereby confirmed as the City’s Chief Financial Officer, Martin Lyons, or his designee.
SECTION 6: That a notice setting forth the availability of the Eligibility Report and the TIF Plan for the proposed Fox Valley Mall Area TIF District, and how to obtain a copy thereof, shall be sent by mail to all residential addresses within seven hundred fifty feet (750’) of the boundaries of the proposed Fox Valley Mall Area TIF District, to the extent set forth in Section 11-74.4-5(a) of the TIF Act, and to all persons who have registered on the City’s TIF Interested Parties Registry, within a reasonable time after the adoption of this Ordinance, as required by Section 11-74.4-5(a) of the TIF Act, with said notice being substantially in the form attached hereto as Exhibit B and made part hereof.
SECTION 7: That a notice of the public hearing and the JRB meeting shall be sent by certified mail, return receipt requested, and a notice of the public hearing shall be given by publication, certified mail, return receipt requested, and by first class U.S. Mail, all as required by Sections 11-74.4-5(b) and 11-74.4-6(a), (b) and (c) of the TIF Act, with said notices being substantially in the form attached hereto as Exhibit C and made part hereof.
SECTION 8: That this Ordinance shall be in full force and effect from and after its adoption and approval as provided by law.