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TO: Mayor Richard C. Irvin
FROM: Trevor Dick, FAICP LEED AP, Assistant Director Mayor's Office of Economic Development
DATE: May 22, 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 Cross Street Tax Increment Financing District.
PURPOSE:
The Ordinance would start the process of creating a TIF District for the Cross Street area that includes a future rehabilitation of the building at 110 Cross Street. 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 immediately adjacent to the City’s Downtown Fringe, generally bordered on the south by a property fronting Gale Street, on the east by River Street, on the north by a Cross Street, and on the west by Middle Avenue. Currently, the proposed TIF District is located within the City’s existing TIF # 3. The area location described above has been underutilized and blighted for decades.
On March 4, 2023, a redevelopment agreement was approved between the developer, JH Real Estate Partners LLC, and the City of Aurora (resolution R2023-076, Legistar #23-0190). Per the RDA the city would establish a 23-year TIF with 70% of the benefit going to the developer.
To establish a TIF district (“Redevelopment Project Area” or “RPA), Illinois municipalities must adopt several documents including a Redevelopment Plan and an Eligibility Report.
DISCUSSION:
The creation of a TIF district requires several steps. The City’s Corporation Counsel has engaged Klein Thorpe and Jenkins 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. It is anticipated that the TIF District will be created in late summer 2023.
IMPACT STATEMENT:
Making this announcement will begin the formation process of the proposed Cross Street TIF District. Failure to make this announcement will mean that this TIF District will not be created and needed financing for future development of the renovation of 110 Cross Street per an approved RDA between the City of Aurora and the developer will not be created.
RECOMMENDATIONS:
Staff recommends approval of the 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 Cross Street Tax Increment Financing District.
cc: Finance Committee
Alderman Carl Franco, Chairperson
Alderman Edward Bugg, Vice Chairman
Alderman at Large, Ron Woerman
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 Cross Street 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, on August 10, 2021 the City Council of the City approved a motion authorizing Kane, McKenna & Associates, Inc.(Now Ryan) to prepare an eligibility study and report, and a redevelopment plan and project relative to the Cross Street TIF District; and
WHEREAS, on April 26, 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 May 23, 2023 the City announced the availability of the redevelopment plan and project for the proposed Cross Street TIF District (“TIF Plan”), with said TIF Plan containing an eligibility report for the proposed Cross Street 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 Cross Street 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 Cross Street 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; and)
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, August 8, at 6:00 p.m. at the Aurora City Hall, 5th Floor Conference Room, 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 Cross Street TIF District.
SECTION 2: That copies of the Eligibility Report and the TIF Plan for the proposed Cross Street 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 May 8, 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 Cross Street TIF District shall meet on Friday, July 7 at 9:00 a.m. at the Development Services Center - Training Room Lower Level, located at 77 S 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 Cross Street 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 Cross Street 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, Aurora Waubonsee Community College, a Public Member, Aurora West School District (# 129), Fox Valley Park District, Aurora Public Library, and the City of Aurora.
SECTION 5: That the City of Aurora's representative on the JRB is hereby confirmed as the Assistant Director of the Mayor's Office of Economic Development, Trevor Dick, or his designee.
SECTION 6: That a notice setting forth the availability of the Eligibility Report and the TIF Plan for the proposed Cross Street 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 Cross Street 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