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TO: Mayor Thomas J. Weisner
FROM: Bill Wiet, Chief Development Services Officer
DATE: May 29, 2014
SUBJECT:
To request approval for the City of Aurora to accept the assignment of the purchase contract for 143 Middle Avenue from Seize the Future Development Foundation (STFDF) in order to acquire the two rental houses on the property, along with an ice cream vending service known as Aurora Curbside Limited.
PURPOSE:
New development is occurring on the block bounded by River, Cross, Lake and Benton Streets. The Aurora Public Library is under construction, a recent purchase was made of the property south of the library, and additional parking spaces will be constructed to compliment these developments. The property at 143 Middle Avenue, owned by Jeffrey L. and Karen Sue Anderson and described above, is the last remaining parcel of land in this block which was contemplated to be integrated in the future parking lots along Lake Street. According to the final plan approved for the City/Library parking lots, this property was planned to be the main entrance from Lake Street to the two parking lots on either side.
BACKGROUND:
The City has in the past, and more recently Seize the Future Development Foundation (STFDF), been seeking to acquire this property for the above-stated purpose. Finding alternative sites that met the needs of Curbside Limited proved difficult at times. Recently STFDF has executed a purchase contract for Curbside's current property at 143 Middle Avenue, but also for the property at 260 South Highland Avenue. It is the 260 South Highland property where Curbside Limited is going to relocate.
DISCUSSION:
At time of closing, the City of Aurora would assume the rights to purchase 143 Middle Avenue for $297,000 from the Andersons. Also, under separate resolution, the City will be executing a redevelopment agreement for $50,000 to Aurora Curbside Limited in additional expenses consisting primarily of the installation of a freezer with electrical upgrades at 260 Highland. STFDF will then work to get 260 South Highland contracted closed to allow for Curbside Limited to acquire their future property. The closings should be occurring simultaneously which will result in the City's receipt of 143 Middle and Curbside's receipt of 260 Highland. Funds are available for this request in Account Number 215-1710-417.71-01 (Cost of Land). Through these same funds will be a reimbursable to STFDF for professional services and contingencies in an amount not to exceed $22,000 and upon Aurora Finance Director's approval. This is in the event that additional services need to be performed, and to allow a contingency for some modifications if necessary, to getting the new property ready to accept the ice cream vending service.
IMPACT STATEMENT:
This proposed action of acquiring 143 Middle Avenue (after building demolition) would have an immediate impact on the orderly redevelopment of the block anchored by the Aurora Public Library. It also provides the necessary entrance off Lake Street linking the two parking lots on either side.
RECOMMENDATIONS:
Staff recommends approval of the following:
1. Accepting the assignment of the purchase agreement from Seize the Future Development Foundation to acquire the property at 143 Middle Avenue for $297,000;
2. Providing up to $22,000 in reimbursables to Seize the Future Development Foundation for any professional services and contingencies necessary in the execution of this acquisition/relocation proposal, per Finance Director approval.
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
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An Ordinance Accepting an Assignment of an Agreement for Purchase and Sale of Certain Improved Real Property Commonly Known as 143 Middle Avenue, Aurora, Illinois (Jeffrey L. and Karen Sue Anderson, Seller).
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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 143 Middle Avenue, Aurora, Illinois, with current owners Jeffrey L. and Karen Sue Anderson (collectively, "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 Ninety Seven Thousand Dollars ($297,000.00), and;
WHEREAS, an additional amount, not to exceed Twenty Two Thousand Dollars ($22,000.00), shall be provided to Seize the Future Development Foundation as reimbursable expenses for any professional services and contingencies necessary in the execution of this acquisition/relocation proposal, contingent upon City of Aurora Chief Financial Officer's approval; and
WHEREAS, funds are available for the acquisition of 143 Middle Avenue and reimbursable expenses from 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, 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 Ninety Seven Thousand Dollars ($297,000.00) , plus the contingency reimburseables amount not to exceed Twenty Two Thousand Dollars ($22,000.00) to STFDF in accordance with the terms and conditions set forth in the attached Purchase Agreement ,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 said143 Middle Avenue property.
PASSED AND APPROVED on ______________.
AYES ____ NAYS ____ NOT VOTING ____ ABSENT ____
ATTEST:
____________________________ __________________________
City Clerk Mayor
Attachments:
Exhibit A Purchase Agreement
143 Middle Avenue STFDF Proposal
260 Highland Avenue Purchase Agreement