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TO: Mayor Richard C. Irvin
FROM: Bill Wiet, Chief Development Services Officer
DATE: October 16, 2017
SUBJECT:
To approve a commercial lease with the Fox Valley Music Foundation for the City-owned building at 19-21 South Broadway.
PURPOSE:
The purpose of the request is to fill a currently vacant building acquired by the City of Aurora in 2015 for future redevelopment purposes. The Fox Valley Music Foundation (FVMF) has found the size of the building's first floor a fitting location for a music venue, retail facility, museum, office and studio. The FVMF has also recognized the art and cultural synergy within the block and wishes to expand upon that synergy with the location they have chosen.
BACKGROUND:
The Fox Valley Music Foundation (FVMF) is a State of Illinois nonprofit corporation whose mission is to preserve, promote and protect the wonderful music of the Fox Valley area of Illinois while providing music education to people of all ages and from all walks of life. Accomplishments in its first 21 years have included the annual Blues on the Fox Festival, Blues week in Aurora, Blues on Water Street (Batavia), Blues and Roots on Water Street (Batavia), the Leland Bluebird Sessions record release concert at Copley Theater, workshops, history projects, and several other endeavors. The Board of Directors of the Foundation have more than 75 years of collective experience in furthering the mission of the corporation. The FVMF has yet to find a home, and have indicated that the art and roots of Blues in the Fox Valley are here in Aurora, and desire to make Aurora their home.
DISCUSSION:
Subject to approval of a redevelopment agreement, lease payments will be in the form of payment in lieu of property taxes that were being paid prior to the City acquiring the property. During the first year of the lease the Foundation will pay the equivalent taxes of both East Aurora School District 131 as well as Special Service Area #1 (Aurora Downtown). That collective total is $1,360. From the second year of the lease and beyond, the Foundation will pay the entire property tax bill prior to it going tax exempt. That total is $7,860, and the total 2015 property tax bill for this property (two parcel numbers), is included as an attachment. It shall be noted that the majority of the rent will be going back to the TIF #1 fund, thereby assisting in bringing funding back into the TIF account. As mentioned earlier, this lease is dependent on a TIF grant that will include funding for only the building itself and will include interior demolition, partial parapet removal (by the City), plumbing and electric repairs, HVAC and alarm systems, among other items to make the building safe, sanitary and secure. Tenant improvements, being funded by the FVMF, include flooring, minor carpentry, retail racks, shelving, tables, chairs, a stage and sound systems. Building demolition estimates are in the $400,000 range (including remediation), so it was determined that while some value is being added to the building, it amounts to less than half the demo amount and can then re-purpose this building until such time the redevelopment of the entire block takes place.
IMPACT STATEMENT:
This request if approved will have a positive impact on the downtown and community. There is a need for a greater variety of art and cultural attractions in the downtown, and the Fox Valley Music Foundation can help in that effort with the location of their home in the downtown. They can begin a fundraising effort to help their mission, and can be another focal point that compliments a renaissance of arts and entertainment in the community.
RECOMMENDATIONS:
It is recommended that the commercial lease between the City of Aurora and the Fox Valley Music Foundation for the city-owned property at 19-21 South Broadway be approved.
cc: Alderman O’Connor, Chairman
Alderman Mesiacos
Alderman Bugg
Alderman Mervine, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing the Execution of a Commercial Lease Agreement for City Owned Property Located at 19-21 South Broadway to the Fox Valley Music Foundation
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 is interested in leasing their city-owned vacant building at 19-21 South Broadway to the Fox Valley Music Foundation, a State of Illinois nonprofit corporation whose mission is to preserve, promote and protect the wonderful music of the Fox Valley area of Illinois while providing music education to people of all ages and from all walks of life; and
WHEREAS, it is in the best interests of the City or Aurora and its residents that the Commercial Lease agreement between the City of Aurora and Fox Valley Music Foundation, the provisions of which are contained in said Commercial Lease Agreement attached hereto as Exhibit A, be approved; and
WHEREAS, to further stimulate redevelopment of the downtown by occupying a vacant building, and to promote the continued efforts of attracting art and cultural organizations to the downtown, the City will be offering the Fox Valley Music Foundation a Tax Increment Financing (TIF) Grant for interior demolition and other improvements to the building, of which without the grant approval from the City of Aurora this Commercial Lease Agreement can be cancelled by the Lessee
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: That the Commercial Lease Agreement between the City of Aurora and the Fox Valley Music Foundation be approved as further provided in Exhibit A attached hereto and made a part thereof, and with the provision that if a future Redevelopment Agreement for the improvements to the building is not approved and executed by both parties, that this Commercial lease Agreement can be cancelled by the Fox valley Music Foundation.