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TO: Mayor Richard C. Irvin
FROM: Trevor Dick, Director of Development Strategy and Facilitation
DATE: January 13, 2020
SUBJECT:
An Ordinance Designating the City of Aurora's River and Benton Tax Increment Financing District, Redevelopment Project Area.
PURPOSE:
The final steps in approving the River and Benton Tax Increment Financing District includes the designation of the Redevelopment Plan and Project Area. The attached ordinance and attachments thereto include this information.
BACKGROUND:
The creation of a TIF District for the River Benton area is part of an existing RDA between the City of Aurora and a private developer for the redevelopment of 80 South River. The creation of this TIF District will continue the City’s vision for redevelopment within key parcels within the Downtown as noted in the attached plan.
DISCUSSION:
The creation of a TIF District for the River Benton area is part of an existing RDA between the City of Aurora and a private developer for the redevelopment of 80 South River. The creation of this TIF District will continue the City’s vision for redevelopment within key parcels within the Downtown as noted in the attached plan.
IMPACT STATEMENT :
Failure to pass this TIF Redevelopment Plan and Project Area will result in the rescinding of the 80 South River Development Agreement.
RECOMMENDATIONS:
Staff recommends the Finance Committee Approve this Ordinance to be forwarded on to the Committee of the Whole at the January 21, 2020 meeting.
ATTACHMENTS:
Exhibit A-1: Redevelopment Project Area Description
Exhibit A-2: Street Location Map
cc: Finance Committee
Chair/Alderman Robert J. O'Connor
Alderman/Vice Chair Edward Bugg
Alderwoman Scheketa Hart-Burns
Alderman Carl Franco
Alderman Emmanuel Llamas
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
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An Ordinance Designating the City of Aurora's River and Benton Tax Increment Financing District, Redevelopment Project Area.
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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, pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1, et seq. (“TIF Act”), the City authorized a study in regard to designating a redevelopment project area for the City's River Benton Tax Increment Financing District (“TIF District”); and
WHEREAS, on July 23, 2019, the City announced the availability of the redevelopment plan and project for the TIF District (“TIF Plan”), with said TIF Plan containing an eligibility report for the TIF District addressing the tax increment financing eligibility of the area proposed for designation as the redevelopment project area for said TIF District (“Redevelopment Project Area”); and
WHEREAS, a public hearing was held on October 8, 2019, in regard to the TIF Plan; and
WHEREAS, the Mayor and City Council of the City desire to adopt tax increment financing pursuant to the TIF Act; and
WHEREAS, the Mayor and City Council of the City have approved the TIF Plan and designated the Redevelopment Project Area pursuant to the provisions of the TIF Act, and have otherwise complied with all other conditions precedent required by the TIF Act;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
SECTION 1: That tax increment financing is hereby adopted with respect to the TIF District, with the TIF Plan in relation thereto having been approved and adopted pursuant to an Ordinance adopted by the Mayor and City Council of the City on January 28, 2020, and the Redevelopment Project Area in relation thereto, described and depicted in EXHIBIT A-1 and EXHIBIT A-2 attached hereto and made a part hereof, having been approved, adopted and so designated pursuant to an Ordinance adopted by the Mayor and City Council of the City on January 28, 2020, with the initial equalized assessed valuation for said TIF District being the 2018 equalized assessed valuation of the Redevelopment Project Area.
SECTION 2: That the ad valorem taxes arising from the levies upon taxable real property in the Redevelopment Project Area by taxing districts, and tax rates determined in the manner provided in Section 5/11-74.4-9 of the TIF Act (65 ILCS 5/11- 74.4-9), each year after the effective date of this Ordinance until redevelopment project costs and all municipal obligations financing redevelopment project costs have been paid, shall be divided as follows:
A. That portion of taxes levied upon each taxable lot, block, tract or parcel of real property which is attributable to the lower of the current equalized
assessed value or the initial equalized assessed value (2018 equalized assessed valuation) of each such taxable lot, block, tract or parcel of real property in the Redevelopment Project Area shall be allocated to, and when collected shall be paid by the Kane County Collector to, the respective affected taxing districts in the manner required by law in the absence of the adoption of tax increment allocation financing; and
B. That portion, if any, of such taxes which is attributable to the increase in the current equalized assessed valuation of each lot, block, tract or parcel of real property in the Redevelopment Project Area over and above the initial equalized assessed valuation (2018 equalized assessed valuation) of each lot, block, tract or parcel of real property in the Redevelopment Project Area shall be allocated to, and when collected shall be paid by the Kane County Collector to, the City Treasurer who shall deposit said funds in a special fund called “The Special River Benton Tax Increment Financing District Tax Increment Allocation Fund” of the City for the development and implementation of the TIF Plan.
SECTION 3: That the City shall obtain and utilize incremental taxes from the
Redevelopment Project Area for the payment of redevelopment project costs and all City obligations financing redevelopment project costs in accordance with the provisions of the TIF Act and the TIF Plan.
SECTION 4: 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 5: 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 6: That all ordinances or parts of ordinances in conflict herewith are,
to the extent of such conflict, hereby repealed.
ADOPTED this 28th day of January, 2020, pursuant to a roll call vote as follows:
AYES: NAYS: ABSENT:
APPROVED by me this 28th day of January, 2020.
Richard Irvin, City Mayor
(SEAL)
ATTEST:
Jennifer Stallings, City Clerk