TO: Mayor Richard C. Irvin
FROM: David Dibo, Director of Economic Development
DATE: August 23, 2021
SUBJECT:title
Summary of Anticipated Amendment and Modification of Previously Approved Redevelopment Agreements.
body
PURPOSE:
The purpose of this summary is to provide information about anticipated staff proposals forthcoming to the City Council to modify, amend, or add financial incentives for certain high impact businesses and developments that have been directly impacted by the Covid virus. These are for RDAs currently in place that the City has supported or new RDAs for other key businesses/projects. Staff will bring forth actionable documentation as terms are fully correct and vetted and negotiated over the next several weeks and will not wait for all recommendations to be in place before seeking individual approvals. Future proposed resolutions if approved will assure that certain businesses and entrepreneurs that have previously invested in the City are completed or supported so that they remain or become revenue producing commercial anchors that will in turn attract other businesses spurring a cycle of measurable economic progress that builds on pre-Covid momentum and successes.
BACKGROUND:
While the City was able to assist a number of smaller businesses through previously approved initiatives including STABLE and CERF programs and other efforts, circumstances such as size of project, stage of development, eligibility requirements or other factors contributed to the forthcoming recommendations that will be brought forward individually or in small clusters to City Council.
Staff was anticipating that some or a majority of these needs would be covered by the recently enacted Coronavirus State and Local Fiscal Recovery Funds federal legislation and some of this is a select possibility but the specified and evolving parameters on these funds appear too narrow to meet most of these needs. Work is however underway to utilize these newly obtained Federal funds to offset eligible expenses within the City’s General Fund and use a portion of these “saved” dollars for these economic development projects. There are other grants and sources that are being evaluated.
DISCUSSION:
The ramifications, impact and process undertaken for economic relief for Covid epidemic continues to evolve and be evaluated. What is clear is that while certain categories of businesses have been universally impacted, broad programs however well-intentioned may or may not meet the compelling needs of deserving businesses. Countless businesses have either gone out of business, abandoned expansion plans, or curtailed plans. In evaluating the requests that will be brought before Council we will make a definitive case as to why these funds are necessary.
We will be discussing restaurants, new developments some of which were barely off the ground when the pandemic hit or in early construction vulnerable to time delays, massive cost increases, supply chain disruptions and labor shortages that have become widely known. We will empirically demonstrate the financial impacts of these trends on businesses that the City has recognized as strong components to Aurora’s full economic recovery. What has made this exercise particularly challenging and critical is that in many cases the projects under review were not healthy ongoing concerns, but pioneering projects meant to re-create and reimagine a long neglected or particularly impacted sector. In this sense, Council will be asked to evaluate less of a “return to health" and more a reaffirmation of an original micro and/or macro intent for the city’s economic future.
CURRENT RDAs NEEDING AMENDMENT
1. Urban Equity
The Terminal Building
The Keystone Building
2. Craft Urban - 41 South Stolp
3. Altiro - 1 S Stolp Avenue
NEW AGREEMENTS NEEDING APPROVAL
4. The Venue - 21 S Broadway Avenue
5.Salerno’s (The PIAZZA) - 85 Executive Drive
6.Mora - 43 E Galena Boulevard
7.Stolp Island Social - 5 E Galena Boulevard
IMPACT STATEMENT:
The impacts of these decisions will be long lasting. It will affect job creation and retention, tax base, sales and food and beverage revenue. It will also impact the overall perception of the City to assure that projects that are off the ground and on the way to completion are in fact finished- with the sponsors in a position not only to succeed but to invest more in the City and motivate other businesses to duplicate these successes in their own ways.
RECOMMENDATIONS:
There is no specific resolution to be approved at this time. This item was to present context for the incentives defined earlier in this memorandum.
cc: Finance Committee