cover
TO: Mayor Richard C. Irvin
FROM: Law Department
DATE: April 17, 2025
SUBJECT:
Resolution of disputes between the City and the owners of 35 N Broadway Ave. 114 Prairie St; acquisition of 35 N Broadway.
PURPOSE:
To avoid litigation regarding the cost or necessity of the City's emergency repairs to 35 N Broadway Ave and to remediate ongoing code violations at 114 Prairie St.
BACKGROUND:
35 N Broadway is located at the southeast corner of North Broadway Avenue and New York Street,. The property has parcel identification number of 15-22-332-001 and is improved with 7,140 square foot, two story, masonry-constructed building with the underlying land parcel containing approximately 4,356 square feet. The building contains 3 units, with a first-floor retail unit. Second floor unit contains a residential apartment, a remodeled office space and a rear unit that has been gutted and yet to be updated. The property is zoned Downtown Core District. In 2023, Property Standards cited the owner of 35 N. Broadway with multiple citations which the City cured due to the life and safety concerns.
The owner of 35 N Broadway disputed the necessity and cost of the City's remediation efforts. Separately, another property under common ownership, 114 Prairie has been the subject of code violations dating to 2020. In an effort to resolve this dispute and to ensure the redevelopment of 114 Prairie, City staff and the owner (through various business entities) have agreed that the City will acquire 35 N Broadway for $278,500 with $75,000 being held in escrow to fund the redevelopment of 114 Prairie.
DISCUSSION:
Purchase of this property will allow the City to provide development opportunities in an area adjacent to other significant developments in the downtown area and lead to the redevelopment of the property at 114 Prairie. The funding for this purchase will be from Risk funds. The City will be purchasing a property that has been appraised with a value in the middle range of $1,700.000.
IMPACT STATEMENT:
The purchase of this property and resolution of administrative matters will provide the greater opportunities for business in this location and for the owner's other business in Aurora.
RECOMMENDATIONS:
That the Resolution be adopted.
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution authorizing the execution of a settlement agreement with Middle Prairie LLC, Aurora Broadway LLC, and Knightsbridge Global, Ltd and a purchase and sale agreement for the acquisition of real property located at 35 N Broadway.
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, the real property located at 35 N Broadway ("the Property") is subject of various building code violations, including a structural issue that required the City's intervention to remediate; and
WHEREAS, the costs of said remediation are a cost due and owing to the City; and
WHEREAS, Knightsbridge Global, Ltd, is an Illinois Business Corporation and serves as the manager of Middle Prairie, LLC; and
WHEREAS, Middle Prairie LLC is an Illinois Limited Liability Company and is the managing member of Aurora Broadway LLC; and
WHEREAS, Aurora Broadway LLC and Knightsbridge Global, Ltd, are owners of 35 N Broadway and the City wish to resolve their disagreements as to the necessity and cost of the remediation amicably; and
WHEREAS, Aurora Broadway and Knightsbridge Global, Ltd., have agreed to convey 35 N Broadway to the City in the amount of $287,500; and
WHEREAS, the City will hold $75,000 of the proceeds of the sale in escrow to reimburse Middle Prairie LLC for the costs of remedying building code violations pending against the real property located at 114 Prairie St and to redevelop the site;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that a settlement agreement, release of claims, and purchase and sale agreement for 35 N Broadway consistent with the terms of this resolution and substantially in the form attached hereto shall be and hereby are authorized; and further
BE IT RESOLVED, that the respective officers and employees of the City, shall be and hereby are authorized and directed to execute final copies of said agreements and any other related documents necessary to carry the purposes of this resolution into effect and to complete the contemplated real property acquisition.