TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer/City Treasurer
DATE: April 19, 2019
SUBJECT:title
Approval of a motion authorizing Tax Increment Finance District (TIF) Feasibility Studies - Broadway and Galena/UEP Aurora LLC, Benton River St./80 S. River LLC and Ogden and 75th Street/Town Center Associates LLC, using the services of Kane McKenna.
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PURPOSE:
To analyze the possibility of creating a Tax Increment Finance Districts (1)in the area of the corner of Broadway and Galena Blvd. (2) in the area around Benton and River St. and (3) in the area bounded by 75th St, Ogden Ave and the future Commons Drive
BACKGROUND:
The City has recently approved a three Redevelopment Agreements (RDA) with UEP Aurora LLC (the Terminal Building), 80 S. River LLC (80 S. River St.) and Town Center Associates LLC for the redevelopment of the area bounded by 75th St. Ogden Ave and the future Commons Dr. extension. As shown in each of the RDAs the creation of a TIF is necessary for the execution of the agreement. Kane McKenna has provided previous TIF District and other development tool analysis for the City in previous agreements throughout the City.
DISCUSSION:
Kane McKenna has provided TIF consulting work on all of the current active TIFs for the City. The firm provides timely responses, flexible scheduling and is an accepted expert in the field of TIF eligibility analyses throughout Illinois. As noted in the attached proposal Kane McKenna will provide complete advisory services and work closely with the City's outside counsel, Klein Thorpe and Jenkins on the total TIF approval process. These contracts will initially be charged to account 215-2502-415.32-80, but eventually can be reimbursed from the TIF funds once set up. A budget transfer from account 215-4010-417.7101 in the Gaming Fund for $105,500 will be used to fund these initial expense that were not originally budgeted in the 2019 Budget.
Each eligibility analysis is quoted separately from Kane McKenna and these are listed below:
* 75th St and Ogden Avenue Analysis - $37,500
* Broadway and Galena Blvd Analysis - $34,000
* Benton River Analysis - $34,000
Kane McKenna provides their hourly rates in each proposal (attached) and has come in under budget on the most recent analysis for TIF 9.
As a review, the initial development projects that require these TIFs represent a total estimated new development amount of over $40 million. Future development in these micro TIF areas will add to the total tax base in the City.
IMPACT STATEMENT:
These analyses will allow the City to move forward with three critical development projects improving the Downtown and improving a long vacant parcel on the east side of the City.
RECOMMENDATIONS:
We recommend approval of these agreements with Kane McKenna by motion of the City Council.
cc: Finance Committee
Chairman Robert J. O'Connor
Alderman Edward J. Bugg
Alderman Theodoris C. Mesiacos
Alderman Richard B. Mervine