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TO: Mayor Richard C. Irvin
FROM: Trevor Dick, Director of Development Strategy and Facilitation
DATE: October 15, 2020
SUBJECT:
An Ordinance Adopting Tax Increment Financing for the City of Aurora Fox Valley Mall Area Tax Increment Financing District.
PURPOSE:
The final steps in approving the Fox Valley Mall Area Tax Increment Financing District include the adoption of the TIF enabling ordinance. The attached ordinance and the exhibits thereto include this information.
BACKGROUND:
The Fox Valley Mall was originally constructed in the 1970s and reflects many of the design elements that defined the early era of mall construction in the United States including a ring road encircling the mall to support “outlot” retail sites. Like many similar sites of this era, Fox Valley Mall has been challenged by changes in consumer behavior in recent decades. These challenges have created conditions which have inhibited private investment and have led to a general decline and economic underutilization of the area. Recognizing the need to take action, the City has focused recent planning efforts on the Route 59 Corridor in general, and the Fox Valley Mall area in particular, resulting in a call to reuse and revitalize the area.
Given economic factors that have impacted malls nationwide and in conformance with its recent Route 59 Corridor Study Comprehensive Plan (2019), the City has determined that the Fox Valley Mall area as a whole would not be redeveloped in a coordinated manner without the adoption of a Tax Increment Financing Redevelopment Plan. The City, with the assistance of Kane, McKenna and Associates, Inc. (KMA), has commissioned an Eligibility Report and Redevelopment Plan to use tax increment financing in order to alleviate those conditions which deter private investment in the area and meet redevelopment goals and objectives.
The City has pursued the strategy of creating micro TIF Districts from significant areas and properties to support certain redevelopment opportunities that would otherwise not occur, but for the City's assistance with a new TIF District.
The creation of this TIF District will result in a highly-visible redevelopment of the Fox Valley Mall project.
DISCUSSION:
The creation of this TIF District will continue the City’s vision for the redevelopment of key parcels within the Fox Valley Mall Area.
IMPACT STATEMENT :
Failure to pass this ordinance designating the City of Aurora Fox Valley Mall Area Tax Increment Financing District Redevelopment Project Area will result in the inability to create the Tax Increment Financing District, and would hasten the decline of the highly-visible Fox Valley Mall, resulting in a missed opportunity of redeveloping unused parcels surrounding the Mall that could represent a "flywheel" of economic development within the Route 59 Corridor.
RECOMMENDATIONS:
Staff recommends the approval of the ordinance adopting Tax Increment Financing for the City of Aurora Fox Valley Mall Area Tax Increment Financing District.
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 Adopting Tax Increment Financing for the City of Aurora Fox Valley Mall Area Tax Increment Financing District.
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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 Fox Valley Mall Area Tax Increment Financing District (“TIF District”); and
WHEREAS, on August 11, 2020, 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 27, 2020, 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 November 10, 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 November 10, 2020, with the initial equalized assessed valuation for said TIF District being the 2019 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 (2019 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 (2019 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 Fox Valley Mall Area 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.