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TO: Mayor Thomas J. Weisner
FROM: Bill Wiet, Chief Development Services Officer
DATE: October 6, 2016
SUBJECT:
To approve a Property Tax Abatement with Duke Realty for the installation of a traffic signal and related road improvements at State Route 59 and Duke Parkway in the Butterfield Corporate Park. The amount of the rebate is $400,000.
PURPOSE:
According to the memo from Invest Aurora (attached), Duke Realty has approached Invest Aurora with two separate but related projects involving over 1.3 million square feet of proposed tenant space, for a prospective tenant that will provide over 1,300 full time jobs. Due to a non-disclosure agreement Duke is unable to share the identity of the prospective tenant at this time. However, it would be necessary to install the improvements for the tenant.
BACKGROUND:
The signalized intersection is estimated to cost $3.6 Million. The attached memo also points out that the Illinois Department of Transportation (IDOT), School District 200 and the City of Warrenville, through their respective staff, have expressed interest in this project. Warrenville Corporate Boundaries are immediately east along Rt. 59 and could in the future share access at this intersection. An IDOT grant application has been submitted for $2 Million of the costs. The Invest Aurora Board has recommended the City of Aurora consider a $400,000 property tax rebate on the City-only portion of the taxes produced once this project is completed.
DISCUSSION:
The rebate would be structured over a three year period with 90% of the City's portion be abated in year one, 80% in year two and the remaining portion in year three, all equaling the full rebate amount. The City Attorney shall prepare the necessary and relevant tax abatement documents. Other permits and agreements in connection with the improvements will also be necessary prior to construction.
IMPACT STATEMENT:
Given this is action based upon future taxes generated from a proposed project, funds would not need to be identified in any current budget line item.
RECOMMENDATIONS:
It is recommended that the tax abatement with Duke Realty be approved.
cc: Alderman O’Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Mesiacos, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Approving a Property Tax Abatement with Duke Realty for Intersection Improvements at State Route 59 and Duke Parkway in the Butterfield Corporate Park, 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, Duke Realty has been working with a prospective tenant to occupy two buildings totaling over 1.3 Million square feet of space in the Butterfield Corporate Park, that will provide approximately 1,300 jobs, and
WHEREAS, in order to facilitate the development a signalized intersection and road improvements are necessary to be constructed at the intersection of State Route 59 and Duke Parkway, and
WHEREAS, the Invest Aurora Board of Directors has recommended that the City of Aurora enter into a property tax rebate with Duke Realty to assist in the funding of the intersection improvements in the amount of Four Hundred Thousand Dollars ($400,000) to be abated over a three year period, and
WHEREAS, it is in the best interests of the City of Aurora and Its residents to provide a tax abatement to Duke Realty to assist in the funding of the intersection improvements.)
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows:
1. That the property tax abatement to Duke Realty be approved in order to facilitate the prospective tenant.
2. That the amount of the abatement equal $400,000, with 90% of the City of Aurora portion of the property taxes to be abated in year one; 80% in year two; and the remainder in year three, to total $400,000.
3. That the abatement is conditioned upon all other permits and approvals necessary for the installation of the signalized intersection and road improvements, the construction of a building of approximately 950,000 square feet and occupancy of approximately 1.3 Million square feet of building space for the prospective tenant as described above.
4. That Alayne Weingartz, Corporation Counsel for the City of Aurora, or her designee, shall prepare for execution all necessary and relevant tax abatement documents.