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TO: Mayor Thomas J. Weisner
FROM: Bill Wiet, Chief Development Services Officer
DATE: April 10, 2014
SUBJECT:
A Resolution Authorizing the Execution of a Development Agreement with Simon Property Group, Inc. / Chicago Premium Outlets for 1901 Bilter Road
PURPOSE:
The purpose if this resolution is to approve a redevelopment agreement by which a financial incentive through Tax Increment Financing District #8 funds will be distributed to Chicago Premium Outlets for the expansion of the current retail facility.
BACKGROUND:
The City of Aurora and Chicago Premium Outlets had executed a redevelopment agreement in 2002 for the construction of the existing outlet mall, which consists of 438,000 square feet of retail buildings. The agreement at the time provided for a combination of sales tax sharing and tax increment financing (TIF) funding from the recently dissolved TIF #2. Similar to the initial agreement, this new agreement reimburses Chicago Premium Outlets Expansion LLC for TIF eligible expenses such as acquisition, site preparation, stormwater management, utility work, etc. from future tax increment in TIF #8.
DISCUSSION:
Chicago Premium Outlets will be undertaking up to a 293,000 square foot expansion to the mall on the eastern portion of the current property as well as 45 acres immediately adjacent to the current mall, which is being acquired. Costs estimates for the expansion are approximately $110,000,000. The proposed agreement consists of the use of TIF funds from the newly created TIF #8 on a pay as you go basis for the life of the TIF (unless reimbursed early), with a supplement of tax rebates from the new portion of the mall that will be located in former TIF #2. The overall funding assistance requested is between $21.5 and $24 Million depending on the ultimate build-out of the mall.
IMPACT STATEMENT:
The development made possible through this development agreement with Chicago Premium Outlets Expansion, LLC, will have a positive impact on the economic health of the City of Aurora including but not limited to:
The proposed expansion will create a large number of construction jobs, and will employ approximately 500 full and part-time jobs upon full tenant build-out.
The proposed expansion will further create development and redevelopment opportunities in this commercial corridor.
The redevelopment of this property will enhance the tax base of the City of Aurora.
RECOMMENDATIONS:
Staff recommends approval of the resolution authorizing the execution of a redevelopment agreement with Chicago Premium Outlets Expansion, LLC
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Peters, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Authorizing the Execution of a Development Agreement with Simon Property Group, Inc. / Chicago Premium Outlets for 1901 Bilter Road
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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 Corporate Authorities of the City of Aurora, Kane, Kendall, Will and DuPage Counties, Illinois have considered a Development agreement for certain property within the City of Aurora and the TIF #8 Redevelopment Project Area/Tax Increment Financing District, a true and correct copy of the Development Agreement (the "Development Agreement") being attached hereto and made a part hereof as EXHIBIT "A"; and
WHEREAS, the City Council has determined that it is in the best interests of the residents of the City of Aurora that this Development Agreement be entered into, and further, that but for the provision for incentives as provided therein, the property would not otherwise be developed.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows:
Section One: The Preambles hereto are made a part hereof as fully as if completely repeated at length herein.
Section Two: That the Mayor and City Council hereby find that it is in the best interests of the City of Aurora and its residents that the aforesaid "Development Agreement" with Simon Property Group, Inc. / Chicago Premium Outlets be entered into by the City of Aurora, with said Agreement to be substantially in the form attached hereto and made a part hereof as EXHIBIT "A".
Section Three: That the Mayor and City Clerk are hereby authorized to execute for and on the behalf of the City of Aurora, the aforesaid Development Agreement.
Section Four: That this Resolution shall take effect from and after its adoption and approval as required by law.
PASSED AND APPROVED on ______________.
AYES ____ NAYS ____ NOT VOTING ____ ABSENT ____
____________________________ __________________________
Alderman Bohman, Ward 1 Alderman Garza, Ward 2
____________________________ __________________________
Alderman Mesiacos, Ward 3 Alderman Donnell, Ward 4
____________________________ __________________________
Alderman Peters, Ward 5 Alderman Saville, Ward 6
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Alderman Hart-Burns, Ward 7 Alderman Mervine, Ward 8
____________________________ __________________________
Alderman Bugg, Ward 9 Alderman Johnson, Ward 10
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Alderman Irvin, At Large Alderman O'Connor, At Large
ATTEST:
____________________________ __________________________
City Clerk Mayor
Legistar Number: 14-00150
ATTACHMENTS:
Exhibit "A" Development Agreement