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TO: Mayor Richard C. Irvin
FROM: Bill Wiet
DATE: November 21, 2017
SUBJECT:
To enter a lease agreement with a tenant, through assignment from Invest Aurora, for the property at 13 S Broadway (PIN #15-22-336-007). Aurora Botanicals, the leasee, intends to open a retail shop selling garden plants and decorations, gourmet food baskets, and candy.
PURPOSE:
It is the City's goal to lease city-owned properties, which is the case here. This deal is an opportunity to fill a vacant building with a viable business. The leasee has agreed to use the space as a retail shop selling garden plants and decorations, gourmet food baskets, and candy.
BACKGROUND:
The City has planned to take the lead in the redevelopment of this block. While most of the City-owned properties are occupied, an effort is underway to lease or occupy the remaining properties. It is anticipated that the future redevelopment may be for municipal purposes, commercial, offices, open space, parking, or a combination thereof. In the meantime, it is in the best interest of the City to lease City-owned properties.
DISCUSSION:
: Invest Aurora took the lead in finding the perspective tenant and negotiating the lease agreement. This City-owned property is currently vacant. Aurora Botanicals intends to open a retail shop selling garden plants and decorations, gourmet food baskets, and candy. The term is five years with 2 five-year extensions. Rent is $10 per month plus $175 annually in lieu of SSA tax and the annual property tax. The City of Aurora will be responsible for structural maintenance and repairs. The tenant is responsible for routine maintenance and utilities, and the creation of a partition between the first and second floors of the building. (See Lease Agreement Exhibit A).
IMPACT STATEMENT:
The City of Aurora will a fill a currently empty storefront with a viable business.
RECOMMENDATIONS:
That the attached Real Estate Contract for the purchase of property located at 13 South Broadway be approved by assignment from Invest Aurora, as well as the building lease agreement.
cc: Alderman O’Connor, Chairman
Alderman Mesiacos
Alderman Bugg
Alderman Mervine, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Authorizing Lease Agreement of City Owned Real Estate Located at 13 South Broadway Street, 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, The City of Aurora, lessor, and Aurora Botanicals, as leasee, is interested in entering a lease agreement for the property located at 13 South Broadway, consisting of parcel number 15-22-336-007 ; and
WHEREAS, it is in the best interests of the City of Aurora and its residents to complete the lease agreement of the property described above; and
WHEREAS, , Aurora Botanicals is interested in leasing the property at 13 South Broadway Street and paying rent therefore, all as set forth in the attached Building Lease document; and
WHEREAS, it is in the best interest of the City of Aurora and its residents to lease the property at 13 South Broadway to Aurora Botanicals for a price of is TEN DOLLARS per month plus $175 annually in lieu of SSA tax and the annual property tax; and
WHEREAS, The City of Aurora will be responsible for structural maintenance and repairs. The tenant is responsible for routine maintenance and utilities, and the creation of a partition between the first and second floors of the building; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: That the attached Commercial Lease Agreement for the leasing of property located at 13 South Broadway be approved and that Richard Veenstra, Corporation Counsel, or his designee are hereby authorized to act on the City's behalf to complete the purchase of this property.
BE IT FURTHER RESOLVED that the Building Lease Agreements attached hereto and incorporated herein as if fully set forth are hereby approved