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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer/City Treasurer
DATE: March 6, 2019
SUBJECT:
An Ordinance Approving the City of Aurora Downtown Tax Increment Financing District 9 (Stolp Avenue - Downtown Area) Redevelopment Project Area, Redevelopment Plan and Project.
PURPOSE:
The final steps in approving the Tax Increment Financing District (TIF ) 9 includes the approval of the Redevelopment Plan and Project Area. The attached ordinance and attachments thereto include this information.
BACKGROUND:
The creation of TIF 9 is an integral part of the ACCA/Paramount and more recently the Keystone development agreements. This TIF, as noted in the attached area map is bordered by the Fox River, Stolp Ave, Galena, and Downer Place.
In the past several meetings the City Council has approved the carve out of the properties identified in TIF 9 from the present TIF 1 property listing. This change will be noted in property tax records and any incremental property tax value represented by those properties carved out from TIF 1 will be available to all taxing bodies. These properties will then be again frozen at the new level when TIF 9 is created..
DISCUSSION:
Upon the creation of TIF 9, the City will accumulate funding from the two developments noted above. TIF 9 is critical to the success of the Keystone project and tax increment received from this development will be shared on an 80% developer and 20% City basis for at least the first 13 years of the TIF. Depending on the performance of the development, this sharing formula could be changed to 70% developer and 30% City.
It is anticipated that the City will provide a distribution of the 20% Tax Increment listed above to all taxing bodies on an annual basis to give some measure of tax relief/revenues while the TIF is still open.
IMPACT STATEMENT:
Failure to pass this TIF 9 Redevelopment Plan and Project Area will result in the rescinding of the Keystone Development Agreement.
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RECOMMENDATIONS:
Staff recommends the Finance Committee Approve this Ordinance to be forwarded on to the Committee of the Whole at the March 19, 2019 meeting."
cc: Finance Committee
Chair/Alderman Robert J. O'Connor
Alderman Theodoris Mesiacos
Alderman Edward Bugg
Alderman Richard Mervine
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance Approving the City of Aurora Downtown Tax Increment Financing District 9 (Stolp Avenue - Downtown Area) Redevelopment Project Area, Redevelopment Plan and Project.
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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 Mayor and City Council of the City of Aurora (“City”) desire to implement tax increment financing pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1, et seq. (“TIF Act”) for the City’s Downtown Tax Increment Financing District 9 (Stolp Avenue - Downtown Area) (“TIF District”) redevelopment plan and project (“TIF Plan”), and designate the tax increment redevelopment project area (“Redevelopment Project Area”) relative to the TIF District; and
WHEREAS, the City authorized a study in regard to the designation of the Redevelopment Project Area for the TIF District and the adoption of the TIF Plan in relation thereto; and
WHEREAS, on October 23, 2018, the City announced the availability of the TIF Plan, with said TIF Plan containing an eligibility report for the TIF District addressing the tax increment financing eligibility of the Redevelopment Project Area (“Eligibility Report”); and
WHEREAS, a public hearing was held on February 12, 2019, in regard to the TIF Plan; and
WHEREAS, the Mayor and City Council of the City desire to implement tax increment financing pursuant to the TIF Act for the TIF Plan within the municipal boundaries of the City and within the Redevelopment Project Area described and depicted in EXHIBIT A-1 and EXHIBIT A-2, both being attached hereto and made part hereof; and
WHEREAS, the City has complied with the specific notice, Joint Review Board meeting and public hearing requirements provided for in the TIF Act as a prerequisite to approving the TIF Plan in relation to the TIF District, in that the City has taken the following actions:
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ACTION |
DATE TAKEN |
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1. |
Approved, by Motion, the preparation of the Eligibility Report and TIF Plan |
April 25, 2017 |
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2. |
Published the TIF Interested Parties Registry notice in the newspaper (Daily Herald) |
October 22, 2018 |
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3. |
Announced the availability of the Eligibility Report and the TIF Plan, at a City Council meeting |
October 23, 2018 |
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4. |
Approved Ordinance calling for a Joint Review Board meeting and a Public Hearing relative to the proposed approval of the Redevelopment Project Area and the TIF Plan in relation thereto |
November 27, 2018 |
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5. |
Mailed a copy of the Eligibility Report and the TIF Plan, a notice of the Joint Review Board meeting and the Public Hearing, and the Ordinance setting the date of the Joint Review Board meeting and the Public Hearing, to all taxing districts and the Illinois Department of Commerce and Economic Opportunity (by certified mail, return receipt requested) |
November 29, 2018 |
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6. |
Mailed notices relative to the availability of the Eligibility Report and TIF Plan to all residential addresses within 750 feet of the boundaries of the Redevelopment Project Area, to all parties who were registered on the City’s TIF Interested Parties Registry, and a courtesy mailing to all taxpayers of record and residential addresses within the Redevelopment Project Area (by First Class U.S. Mail) |
November 29, 2018 |
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7. |
Held the Joint Review Board meeting |
December 17, 2018 |
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8. |
Published notice of the Public Hearing in the newspaper (Beacon News) twice |
January 24, 2019 January 31, 2019 |
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9. |
Mailed notices of the Public Hearing to each taxpayer of record (by certified mail, return receipt requested) within the Redevelopment Project Area and to each person on the City’s TIF Interested Parties Registry (by First Class U.S. Mail) |
January 22, 2019 |
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10. |
Held a Public Hearing |
February 12, 2019 |
; and
WHEREAS, on December 17, 2018, the Joint Review Board, relative to the TIF District, recommended the approval of the Redevelopment Project Area and approval of the TIF Plan in relation thereto; and
WHEREAS, pursuant to the TIF Act, the City has waited at least fourteen (14) days, but not more than ninety (90) days, from the Public Hearing date to take action on this Ordinance approving the TIF Plan; and
WHEREAS, the TIF Plan sets forth the conditions in the Redevelopment Project Area qualifying the Redevelopment Project Area as a “conservation area,” and the Mayor and City Council of the City have reviewed testimony concerning said conditions presented at the Public Hearing and are generally informed of the conditions causing the Redevelopment Project Area to qualify as a “conservation area,” as said term is defined in Section 5/11-74.4-3 of the TIF Act (65 ILCS 5/11-74.4-3); and
WHEREAS, the Mayor and City Council have reviewed the conditions pertaining to the lack of private investment in the Redevelopment Project Area to determine whether private development would take place in the Redevelopment Project Area as a whole without the adoption of the TIF Plan; and
WHEREAS, it is the intent of the Mayor and City Council of the City to utilize the tax increment from all sources authorized by law; with such revenues to be exclusively utilized for the development of the TIF Plan within the Redevelopment Project Area (except as provided in 65 ILCS 5/11-74.4-4(q), as incorporated into the TIF Plan budget of estimated redevelopment project costs); and
WHEREAS, the Redevelopment Project Area would not reasonably be redeveloped without the use of such incremental revenues; and
WHEREAS, the Mayor and City Council have reviewed the conditions pertaining to real property in the Redevelopment Project Area to determine whether contiguous parcels of real property and improvements thereon in the Redevelopment Project Area would be substantially benefited by the TIF Plan improvements;
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NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
SECTION 1: That the Mayor and City Council hereby make the following findings:
A. The area constituting the Redevelopment Project Area is described and depicted as set forth in the attached EXHIBIT A-1 and EXHIBIT A-2;
B. There exist conditions which cause the area proposed to be designated as the Redevelopment Project Area to be classified as a “conservation area,” as such term is defined in Section 5/11-74.4-3 of the TIF Act (65 ILCS 5/11-74.4-3);
C. The Redevelopment Project Area on the whole has not been subject to growth and redevelopment through investment by private enterprise and would not be reasonably anticipated to be redeveloped without the adoption of the TIF Plan;
D. The Redevelopment Project Area would not reasonably be redeveloped without the tax increment derived from real property tax incremental revenues, and the increment from such revenues will be exclusively utilized for the redevelopment as outlined in the TIF Plan within the Redevelopment Project Area (except as provided in 65 ILCS 5/11-74.4-4(q), as incorporated into the TIF Plan budget of estimated redevelopment project costs);
E. The TIF Plan conforms to the City's Comprehensive Plan for the development of the City as a whole;
F. The parcels of real property in the Redevelopment Project Area are contiguous and only those contiguous parcels of real property and improvements thereon which will be substantially benefited by the TIF Plan are included in the Redevelopment Project Area;
G. The estimated date for final completion of the TIF Plan is December 31st of the year in which the payment to the City Treasurer is made with respect to ad valorem taxes levied in the twenty-third (23rd) calendar year after the year in which the ordinance approving the Redevelopment Project Area is adopted, which, as to the TIF District, is December 31, 2043; and
H. The estimated date for retirement of obligations incurred to finance TIF Plan costs is not later than December 31st of the year in which the payment to the City Treasurer is made with respect to ad valorem taxes levied in the twenty-third (23rd) calendar year after the year in which the ordinance approving the Redevelopment Project Area is adopted, which, as to the TIF District, is December 31, 2043.
SECTION 2: That the TIF Plan is hereby adopted and approved. A copy of said TIF Plan is attached hereto as EXHIBIT B and made a part hereof.
SECTION 3: That this Ordinance shall be in full force and effect from and after its adoption, approval and publication in pamphlet form as provided by law.
SECTION 4: That if any section, paragraph, clause or provision of this Ordinance shall be held invalid, the invalidity thereof shall not affect any of the other provisions of this Ordinance.
SECTION 5: That all ordinances or parts of ordinances in conflict herewith are, to the extent of such conflict, hereby repealed.
ADOPTED this ___ day of ___________, 2019, pursuant to a roll call vote as follows:
AYES:____________________________________________________
NAYS:____________________________________________________
ABSENT:__________________________________________________
APPROVED by me this ___ day of ___________, 2019.
____________________________________
Richard Irvin, City Mayor
(SEAL)
ATTEST:
________________________________
Wendy McCambridge, City Clerk