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TO: Mayor Richard C. Irvinl
FROM: Kelly O'Brien, President/CEO Invest Aurora
David Dibo, Director of Economic Development
DATE: August 13, 2024
SUBJECT:
Amendment to the Finish Line Grant Program ("FLG Program") as set forth in that certain Resolution No.[R24-0188] passed on May 28, 2024.
PURPOSE:
To broaden and clarify the eligibility requirements for the Finish Line Grant Program (FLG) to enable it to more efficiently fulfill its purpose to support local business, foster economic growth, and to enhance the quality of life in the City.
BACKGROUND:
Established in 2015, the FLG Program has historically helped to enhance the economic vitality of Aurora. Originally administered through Seize the Future Development Foundation d/b/a Invest Aurora (“Invest Aurora”), the FLG Program was transferred to the Mayor’s Office of Economic Development in 2022. Pursuant to the May of 2024 Resolution, administration of the FLG Program was transferred back to Invest Aurora.
Invest Aurora immediately started working on implementing the FLG Program. Upon further review and implementation of the criteria and restrictions originally placed on the FLG Program and correspondence with prospective applicants, Invest Aurora determined certain restrictions set forth in the guidelines of the FLG Program limited the applicability of the grant as compared to earlier years of the program. Invest Aurora decided it was in the best interest of the FLG Program to approach the City Council with this resolution to propose an amended set of guidelines for the administration of the FLG Program..
DISCUSSION:
To more effectively fulfill the intent of the FLG Program, Invest Aurora proposes the FLG Program be administered in accordance with the guidelines set forth on Attachment A (attached hereto). Below is a list of the key revisions these new guidelines would make to the FLG Program:
•While the program will continue to be weighted toward retail and restaurant businesses that generate sales tax or food and beverage tax, we also want the ability to apply to remain open to other potential users who demonstrate other economic benefit to the City. Small businesses often require equipment that is critical to their business function, but is not a permanent improvement to the building. This change eliminates provisions that limit grant awards to only “portions of the project that will remain permanent to the property” to allow for other possibilities subject to approval by the grant review committee.
•To keep pace with increases in prevailing wages, we have increased the percentage of match on labor costs. Grants would now cover 20% (same as previous) of eligible material and equipment costs but will allow an increased amount of 30% of eligible labor costs.
•Clarifies what equipment would be an Eligible Expense under the FLG Program.
•To remain consistent with City of Aurora and Department of Labor Prevailing Wage policies, this clarifies all laborers paid as part of a Project must be paid at “Prevailing Wage” levels.
•Increases the minimum allowable Project from $5,000 to $10,000
•Applications would now be accepted on a rolling basis until funds allocated for the program have been exhausted.
IMPACT STATEMENT:
Approval of this Resolution will allow for Invest Aurora to administer the FLG Program in a manner that more effectively supports local businesses, fosters economic growth, and improves the quality of life in the City.
RECOMMENDATIONS:
That the Council approve this Resolution.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution authorizing revisions to the Finish Line Grant Program administered by Invest Aurora.
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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 Seize the Future Development Foundation, an Illinois not-for-profit corporation, doing business as Invest Aurora (“Invest Aurora”), and the City entered into an agreement for economic development activities and services approved via Resolution 13-182 on June 25, 2013, which agreement was amended pursuant to amendments approved via Resolution 16-205 on June 14, 2016 and Resolution R22-135 on May 10, 2022; and
WHEREAS, pursuant to that certain Resolution No. R24-0188 passed on May 28, 2024 (the “Prior FLG Resolution”), the City Council of the City approved the transfer of (i) the administration of the Finish Line Grant Program and the awarding of grants thereunder, and (ii) certain funds for the Finish Line Grant Program, to Invest Aurora; and
WHEREAS, the Prior FLG Resolution provides that Invest Aurora administer the Finish Line Grant Program in accordance with certain program guidelines attached as Attachment A thereto; and
WHEREAS, the City and Invest Aurora desire that Invest Aurora administer the Finish Line Grant Program in accordance with new program guidelines as set forth on Attachment A attached hereto;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that Invest Aurora shall be and hereby is authorized to administer the Finish Line Grant Program in general accordance with the program guidelines attached hereto as Attachment A; and further
BE IT RESOLVED that Invest Aurora shall be and hereby is authorized to adopt such supplemental rules and policies as are reasonably necessary to administer the program consistent with the provisions of this Resolution and R24-0188; and further
BE IT RESOLVED, that to the extent the provisions of this Resolution and the attachments thereto conflict with the provisions of R24-0188, the conflicting provisions of R24-0188 shall be and hereby are repealed.