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TO: Mayor Richard C. Irvin
FROM: Alex Minnella, Senior Planner
DATE: February 24, 2023
SUBJECT:
An Ordinance Calling for a Public Hearing and a Joint Review Board Meeting to Consider the Designation of a Redevelopment Project Area and the Approval of a Redevelopment Plan and Project for the City of Aurora (River Vine Tax Increment Financing District).
PURPOSE:
The Ordinance follows the announcement of the availability of the Eligibility Study and Report, and the Redevelopment Plan and Project for the proposed River Vine TIF District; and would start the process of creating a TIF District for the River Vine site addressed 309 N River Street, to be known as the " River Vine." The Ordinance sets dates for a Joint Review Board meeting and a public hearing and calls for the notices to be given in connection with the meeting and public hearing.
BACKGROUND:
The subject parcels are located within the City’s Downtown Fringe area, generally bordered on the south by Cedar Street (as extended east to the Fox River), on the east by the shores along the Fox River, on the north by a certain park land owned by the Fox Valley Park District, and on the west by River Street. Currently, parts of the proposed TIF District is located within the City’s existing TIF # 5. The area location along the Fox River has been identified by the Downtown Master Plan as a focal point part of the “heart of Downtown” and is part of an area desired as a “vibrant designation with mixed use development, family friendly activities and nightlife entertainment”.
Constructing a new multi-family residential development on the banks of the Fox River in Downtown Aurora, particularly near the Aurora Transportation Center, has been a consistent recommendation of numerous City long-range planning documents for decades. Combined with the recommendations of the Downtown Housing Study (2019), the growing demand for rental housing, the redevelopment of long vacant historic buildings in the Downtown, and the recent completion of the new Pedestrian and Bicycle Bridge, the time for implementing the City’s vision is here.
An RDA with Windfall Group to construct a new apartment building and various amenities has been approved in 2022.
To establish a TIF district (“Redevelopment Project Area” or “RPA), Illinois municipalities must adopt several documents, including a Redevelopment Plan and an Eligibility Report, hold a Public Hearing and a Joint Review Board Meeting.
DISCUSSION:
The creation of a TIF district requires several steps. The first public step is the announcement of the availability of the Eligibility Study and Report, and the Redevelopment Plan and Project for the proposed River Vine TIF District. This document is attached. It is important to note that the actual announcement is done by the full City Council at its March 14, 2023 meeting. Further steps associated with the creation of the TIF will include the provision of mailed notices, public notices, a Joint Review Board meeting and a public hearing. The City’s Corporation Counsel has engaged Elrod Friedman LLP to serve as the City's Special Counsel to support this TIF formation process.
The Redevelopment Agreement calls for the City to provide financial incentives to the redevelopment project paid out of the creation of a new TIF District.
In order to create the TIF District, the City Council must first approve the Ordinance, which begins the process. Steps in the process of creating the TIF District include:
1. Adopting the Ordinance
2. Send notices of the Joint Review Board meeting
3. Send notices of the availability of the Eligibility Study and Redevelopment Plan and Project for the TIF District
4. Hold the Joint Review Board meeting
5. Publish and mail notices of the public hearing
6. Hold the public hearing
7. Approve the ordinances creating the TIF District
It is anticipated that the TIF District will be created in June 2023.
IMPACT STATEMENT:
Making this announcement will begin the formation process of the proposed River Vine TIF District. Failure to make this announcement will mean that this TIF District will not be created and needed financing for future development will not be created.
RECOMMENDATIONS:
Staff recommends the Committee forward this item to the City Council for formal announcement on March 14, 2023.
cc: Finance Committee
Alderman Carl Franco, Chairperson
Alderman Sherman Jenkins, Vice Chairperson
Alderman Edward Bugg
Alderwoman Scheketa Hart-Burns
Alderwoman Shweta Baid
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance Calling for a Public Hearing and a Joint Review Board Meeting to Consider the Designation of a Redevelopment Project Area and the Approval of a Redevelopment Plan and Project for the City of Aurora River Vine Tax Increment Financing District.
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 of Aurora (“City”) is considering the designation of a redevelopment project area and the approval of a redevelopment plan and project within the corporate limits of the City, to be called the “River Vine Tax Increment Financing District” (“River Vine TIF District”), pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1, et seq. (“TIF Act”); and
WHEREAS, on August 10, 2021, the City Council of the City authorized Kane, McKenna & Associates, Inc., now known as Ryan, to prepare an eligibility study and report, and a redevelopment plan and project for the River Vine TIF District; and
WHEREAS, on February 15, 2023, the City published the Tax Increment Financing (“TIF”) Interested Parties Registry Notice, as required by Section 11-74.4-5(a) of the TIF Act, in the Beacon News; and
WHEREAS, on February 28, 2023, the City announced the availability of the redevelopment plan and project for the proposed River Vine TIF District (“TIF Plan”), with the TIF Plan containing an eligibility report for the proposed River Vine TIF District (“Eligibility Report”) addressing the tax increment financing eligibility of the area proposed for the redevelopment project area (“Redevelopment Project Area”), with said Redevelopment Project Area being legally described on Exhibit A attached hereto and made part hereof; and
WHEREAS, pursuant to the provisions of Section 11-74.4-5(c) of the TIF Act, prior to the adoption of the ordinance designating the Redevelopment Project Area and approving the TIF Plan for the proposed River Vine TIF District, the City must fix a time and place for a public hearing; and
WHEREAS, pursuant to the provisions of Section 11-74.4-5(b) of the TIF Act, prior to the adoption of the ordinance designating the Redevelopment Project Area and approving the TIF Plan for the proposed River Vine TIF District, the City must convene a meeting of the Joint Review Board (“JRB”) to consider the proposal; and
WHEREAS, it is the desire of the City Council of the City to conduct such public hearing and to convene said meeting of the JRB;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
SECTION 1: That, pursuant to the provisions of the TIF Act, the City Council hereby designates the date of Tuesday, May 9, 2023, at 6:00 p.m. at the Aurora City Hall, Council Chambers, 44 East Downer Place, Aurora, Illinois 60507, for the purpose of conducting a public hearing to hear from any interested persons, taxpayers or affected taxing districts regarding the Redevelopment Project Area and the TIF Plan for the proposed River Vine TIF District.
SECTION 2: That copies of the Eligibility Report and the TIF Plan for the proposed River Vine TIF District have been on file in the office of the City Clerk, and have been available for public inspection during regular City business hours, since February 28, 2023.
SECTION 3: That at the public hearing, any interested person, taxpayer or affected taxing district may file with the City Clerk written comments and/or objections to, and may be heard orally with respect to, any issues embodied in the notice of public hearing attached hereto.
SECTION 4: That the JRB for the proposed River Vine TIF District shall meet on Thursday, April 6, 2023, at 1:30 p.m. at Aurora Regional Fire Museum, 53 North Broadway, Aurora, Illinois 60505. The JRB shall review the public record, planning documents, Eligibility Report, Redevelopment Project Area and the TIF Plan for the proposed River Vine TIF District. The JRB shall make an advisory recommendation to the City within thirty (30) days after the convening of the JRB. A written report shall be issued by the JRB. The failure of the JRB to submit its report on a timely basis shall not be cause to delay the public hearing or any other step in the process of designating the Redevelopment Project Area and approving the TIF Plan for the proposed River Vine TIF District. In the event the JRB does not file a report, it shall be presumed that the JRB has approved the matters before it. Pursuant to the provisions of Section 11-74.4-5(b) of the TIF Act, the JRB shall consist of one (1) public member and one (1) representative from each of the following taxing districts: Kane County, Aurora Township, West Aurora School District 129, Waubonsee Community College District 516, Fox Valley Park District, Aurora Public Library District, and the City of Aurora.
SECTION 5: That the City of Aurora's representative on the JRB is hereby confirmed as the City’s Chief Financial Officer, Christopher Minick, or his designee.
SECTION 6: That a notice setting forth the availability of the Eligibility Report and the TIF Plan for the proposed River Vine TIF District, and how to obtain a copy thereof, shall be sent by mail to all residential addresses within seven hundred fifty feet (750’) of the boundaries of the proposed River Vine TIF District, to the extent set forth in Section 11-74.4-5(a) of the TIF Act, and to all persons who have registered on the City’s TIF Interested Parties Registry, within a reasonable time after the adoption of this Ordinance, as required by Section 11-74.4-5(a) of the TIF Act, with said notice being substantially in the form attached hereto as Exhibit B and made part hereof.
SECTION 7: That a notice of the public hearing and the JRB meeting shall be sent by certified mail, return receipt requested, and a notice of the public hearing shall be given by publication, certified mail, return receipt requested, and by first class U.S. Mail, all as required by Sections 11-74.4-5(b) and 11-74.4-6(a), (b) and (c) of the TIF Act, with said notices being substantially in the form attached hereto as Exhibit C and made part hereof.
SECTION 8: That this Ordinance shall be in full force and effect from and after its adoption and approval as provided by law.