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TO: Mayor Thomas J. Weisner
FROM: Bill Wiet, Chief Development Services Director
DATE: December 2, 2014
SUBJECT:
To request approval for the City of Aurora to accept the assignment of the purchase agreement for 310 North Broadway Avenue, Aurora, Illinois from Seize the Future Development Foundation (STFDF) in order to acquire the property commonly referred to as Randy's Automotive.
PURPOSE:
Randy's Auto property is an 11,725 square foot parcel directly east of RiverEdge Park. This parcel is one of two properties that were excluded from the Park's development. There is currently a 1,500 square foot auto repair shop along with a graveled parking area immediately north. The City of Aurora, along with Seize the Future Development Foundation (STFDF), has been negotiating the acquisition of this property for several years.
BACKGROUND:
This property is an integral acquisition for park purposes. Once acquired and demolished, the series of park amenities on either side of the property can be joined together. As indicated previously, the property's acquisition will open up the park to further views along Broadway, and will allow patrons of RiverEdge Park to have better access throughout (also with the acquisition of the property to the north).
DISCUSSION:
STFDF has entered into a purchase agreement with owner Randy Martinson for a total acquisition price of $355,000. The actual purchase price is $275,000. There will be a reimbursement for legal expenses of $5,000, plus a business interruption payment of $75,000. This business interruption payment would be owing if Randy ceases operation of his auto repair business at the date of closing (he would be entitled to occupy the property for the purpose of removing his personal and non-personal property until March 31, 2015).The City of Aurora would then accept assignment of the purchase agreement and acquire the property. Funding is available in the 2015 City Budget Account 215-1710-417.71-01 (Cost of Land).
IMPACT STATEMENT:
It is anticipated that once the City acquires the parcel that the building itself will be demolished prior to the opening of the 2015 RiverEdge Park season. The improvements to the Park, in accordance with the Park's concept plans, may be a second phase of this project. This acquisition will have a positive impact to RiverEdge Park and the patrons who will frequent it.
RECOMMENDATIONS:
It is recommended that the City accept the assignment of the Purchase Agreement from Seize the Future Development Foundation to acquire the property at 310 North Broadway.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Peters, Alternate
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
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An Ordinance Accepting the Assignment of an Agreement for Purchase and Sale of Certain Improved Real Property Commonly Known as 310 North Broadway, Aurora, Illinois (Randy Martinson).
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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 Aurora City Council approved via Resolution R13-182 an agreement with Seize the Future Development Foundation ("STFDF") to provide economic development activities and services needed for the City of Aurora, including the necessary funding for its economic development efforts; and
WHEREAS, STFDF has entered into an Agreement of Purchase and Sale ("Purchase Agreement") for the acquisition of improved real property commonly known as 310 North Broadway Avenue, Aurora, Illinois, with current owner Randy Martinson ("Seller"), a copy of the Purchase Agreement is attached hereto as Exhibit "A" and made a part thereof; and
WHEREAS, the City is willing to accept, and STFDF is willing to provide, an assignment of rights to the Purchase Agreement to the City of Aurora; and
WHEREAS, said Purchase Agreement provides for the payment at closing of Two Hundred Seventy Five Thousand Dollars ($275,000.00), plus reimbursement of legal expenses of Five Thousand Dollars ($5,000.00), plus a business interruption payment of Seventy Five Thousand Dollars ($75,000.00), for total of Three Hundred Fifty Five Thousand Dollars ($355,000.00)and;
WHEREAS, funds are available for the acquisition of 310 North Broadway Avenue from the 2015 City Budget Account Number 215-1710-417.71-01 (Cost of Land).
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows: pursuant to its home rule powers as provided by Article VII, Section 6 of the Illinois Constitution of 1970, that the City accept the assignment from STFDF of the Purchase Agreement attached hereto as EXHIBIT "A" and made a part thereof, that the City is authorized to pay to Seller at closing Two Hundred Seventy Five Thousand Dollars ($275,000.00), plus reimbursement of legal expenses of Five Thousand Dollars ($5,000.00), plus a business interruption payment of Seventy Five Thousand Dollars ($75,000.00), for total of Three Hundred Fifty Five Thousand Dollars ($355,000.00) ,and the Mayor and City Clerk of the City of Aurora, or their designees, are authorized and directed to execute and deliver any assignment documents, the Purchase Agreement, and all other instruments and documents that are necessary to fulfill the City's obligations under the Purchase Agreement in order to purchase and take possession of the said 310 North Broadway Avenue.
PASSED AND APPROVED on ______________.
AYES ____ NAYS ____ NOT VOTING ____ ABSENT ____
ATTEST:
____________________________ __________________________
City Clerk Mayor
Attachment: Exhibit "A" Purchase Agreement