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TO: Mayor Robert J. O’Connor
FROM: Bill Wiet, Chief Development Services Officer
DATE: April 20, 2017
SUBJECT:
To sell the City-owned property at 62 South Broadway to ELEMY, LLC for the purpose of redevelopment of the building for commercial and residential space.
PURPOSE:
On February 27th 2017, the City of Aurora acquired the property located at 62 S. Broadway in Aurora, IL (PIN #15-22-381-005) for the amount of $0 (Zero Dollars) via Judicial Deed. The City desires to dispose of the property, have it redeveloped, and have it placed back on the tax rolls.
BACKGROUND:
On January 25th 2017, the City of Aurora issued a Public Notice Accepting Offers for Sale of Properties (Attachment A). One of the properties issued was 62 S. Broadway. Bids on this property were due no later than February 15th 2017. The City of Aurora received two letters of intent for the property. Invest Aurora has reviewed the letters of intent outlining each bid, and recommends moving forward with a Purchase and Sale agreement between the City of Aurora and ELEMY, LLC. The sale will be made for $1,000.00.
DISCUSSION:
ELEMY, LLC. will be granted a Contingency Period of 30 days to review all documents held by the City of Aurora and complete all due diligence on the property. In the event that ELEMY, LLC. is satisfied with all documents, they must deposit non-refundable Earnest Money in the amount of $1,000. The City of Aurora and ELEMY, LLC. will then establish a mutually convenient time and place for closing before December 31st, 2017. The $1,000 Earnest Money will be credited towards the building acquisition price.
At closing, ELEMY, LLC. will provide the City of Aurora with a $125,000 Letter of Credit. This Letter of Credit will be released once all conditions outlined in the Development Agreement (Attachment B) have been satisfied. ELEMY, LLC. will have 180 days to complete the scope of work from receipt of permit approvals. Prior to sighting the Development Agreement, ELEMY, LLC. must provide the following to Invest Aurora:
1. Site plan
2. Project timeline
3. Rough schematics for 62 S. Broadway residential units
In addition to the above conditions, the award of 62 S. Broadway (PIN #15-22-381-005) is contingent upon finalization of the following improvements to the property located at 62 S. Broadway:
1. Interior renovation to the redevelopment of the property as a first-floor commercial space with the second floor being used as office, fitness use, or three one bedroom apartments and the third floor being used for three one bedroom apartments
2. Repair and service of building’s elevator
3. Rebuild staircase
4. Relocation of the water, sewer, and electric utilities for the adjacent property to the north (PIN# 15-22-381-006) from the basement of 62 S. Broadway
5. Construct a parking lot on the adjacent property (PIN# 15-22-381-006)
Any improvements must be made in accordance to the Fox Walk Overlay District Design Guidelines (Attachment C) and subject to review by the Design Review Committee.
IMPACT STATEMENT:
Disposing of the property allows for redevelopment of the site and also places the property on the tax rolls
RECOMMENDATIONS:
Invest Aurora recommends the City of Aurora enter into a Purchase and Sale agreement with ELEMY, LLC. for the amount of $1,000.00.
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 Redevelopment Agreement between the City of Aurora and ELEMY L.L.C. For the Disposition of City Owned Property Located at 62 South Broadway, 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 is interested in selling, and ELEMY L.L.C. is interested in acquiring the City-Owned property commonly known as 62 South Broadway, Parcel Index Number 15-22-381-005, and
WHEREAS, a Redevelopment Agreement has been prepared for execution by both parties which relates to the acquisition, redevelopment and continued use of the property, and
WHEREAS, it is in the best interests of the City of Aurora and its residents to dispose of the property under the terms of the Redevelopment Agreement attached hereto and made a part thereof.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: That the Redevelopment Agreement, attached hereto and made a part thereof as Attachment B, between the City of Aurora and ELEMY, L.L.C. is hereby approved.