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TO: Mayor Richard C. Irvin
FROM: Bill Wiet, Chief Development Services Officer
DATE: October 16, 2017
SUBJECT:
To approve a Redevelopment Agreement with the Fox Valley Music Foundation (FVMF) for the City-owned building at 19-21 South Broadway which provides a TIF grant of $110,000 (requested change to $125,000 per Finance Committee discussions)to the Foundation for interior demolition and some building improvements. Along with the Redevelopment Agreement, if approved, are approvals for the City of Aurora to begin separately environmental remediation ($50,000) and exterior parapet work ($15,000) on the building.
PURPOSE:
The purpose of this agreement is to request a Tax Increment Financing Grant from 2018 TIF District 1 funds to fill a currently vacant building acquired by the City of Aurora in 2015 for future redevelopment purposes. The 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 FVMF has been interested in this building for the past two years. But the City has also been strategically acquiring properties in this block of Broadway for redevelopment purposes. It is the desire of the City to one day demolish these properties. The demolition estimate for the 19-21 South Broadway building is $400,000. Knowing this and the possible time frame for when it might occur, the FVMF and the City have been careful not to add too much value to the building. Many of the functions are to the benefit of future demolition (abatement, interior demo, etc.), and/or can be considered portable (if there is some useful life to the equipment) and non-permanent.
DISCUSSION:
The TIF grant amount to the FVMF is $110,000 (with a 10% contingency) (requested change to $125,000 per Finance Committee discussions). As indicated in the Redevelopment Agreement, the TIF grant 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, to create a "white envelope". Tenant improvements, being funded by the FVMF, include flooring, minor carpentry, retail display racks, shelving, tables, chairs, a stage and sound systems. Again many of these tenant items are non-permanent so if the City encourages the FVMF to relocate, many of these items can accompany them, with the hopes it will be again in downtown Aurora.
$125,000 has been recommended in the 2018 TIF 1 Budget to cover the costs of the work for the FVMF. However, the approving resolution also includes permission to allow the Superintendent of Central Services to utilize the City's co-op contractor FH Paschen (Naperville JOC cooperative program) to perform both the environmental remediation ($40-50,000 estimate) and Parapet removal ($15,000). If approved this contract could fall under the 2017 TIF 1 account, or can be included in the 2018 TIF 1 Budget.
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 Redevelopment Agreement between the City of Aurora and the Fox Valley Music Foundation be approved, and also that the Superintendent of Central Services be authorized to use FH Paschen (Per Naperville JOC cooperative program) to perform environmental remediation and parapet removal work on the building under separate contract.
cc: Alderman O’Connor, Chairman
Alderman Mesiacos
Alderman Bugg
Alderman Mervine, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Authorizing the Execution of a Redevelopment Agreement with the Fox Valley Music Foundation for the Property at 19-21 South Broadway
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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 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, 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 and the Fox Valley Music Foundation have negotiated a Redevelopment Agreement for a Tax Increment Financing (TIF) Grant in the amount of One Hundred Ten Thousand Dollars ($125,000) plus a 10% Construction Management contingency for interior demolition and other improvements to the building as further outlined in the Redevelopment Agreement attached hereto and made a part thereof as Exhibit A, of which without the grant approval from the City of Aurora the lease can be cancelled by the Lessee; and
WHEREAS, as is mentioned in the Redevelopment Agreement and as part of the redevelopment of the building the City will be undertaking environmental remediation and partial parapet removal under separate contract with FH Paschen, per Naperville JOC cooperative program, in a combined amount not to exceed $65,000; and
WHEREAS, funding for the Fox Valley Music Foundation TIF Grant and will be codified in the 2018 Tax Increment Financing District No. 1 Budget, while funding for the environmental remediation and partial parapet removal is budgeted in the 2017 TIF 1 Budget Account Number 231-1830-465.55-63 (Major Project Development Fund), or if work is to begin in 2018, also codified in the 2018 TIF 1 Budget)
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows:
1. That the Redevelopment Agreement between the City of Aurora and the Fox Valley Music Foundation in regards to the City owned property at 19-21 South Broadway, attached hereto and made a part thereof as Exhibit A, be approved.
2. That the Superintendent of Central Services be authorized to utilize and contract with, per Naperville JOC cooperative program, FH Paschen to perform environmental remediation and partial parapet wall removal and repair at 19-21 South Broadway in a combined amount not to exceed Sixty Five Thousand Dollars ($65,000)