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TO: Mayor Richard C Irvin
FROM: Chris Minick, Chief Financial Officer
DATE: January 6, 2022
SUBJECT:
A Resolution Authorizing the Chief Financial Officer to Release funds in the amount of $351,031.76 to Seize the Future Development Foundation (dba Invest Aurora) for Finish Line Grant Program funding commitments and authorizing a budget amendment to TIF 1 to Effectuate the Transfer.
PURPOSE:
The Purpose of this request is to authorize the release of previously budgeted funds for the Finish Line Grant Program. The release of these funds will satisfy the City's commitment to funding the Finish Line Grant program which is administered by Invest Aurora, allowing Invest Aurora to honor its existing commitments and to evaluate future Finish Line Grant funding requests as they are received.
BACKGROUND:
The Finish Line Grant Program has been a success in rehabilitating the downtown’s older building stock and occupying, in some cases, buildings that have sat vacant for years. The program has filled funding gaps that but for the use of Finish Line Grant Funds projects may not have been undertaken. During 2020 and 2021 the City budgeted its customary budget allotment to the Finish Line Grant program, but made no contributions to the program. This action was taken in response to concerns of a significant revenue disruption because of the COVID emergency. Funds sufficient to alleviate the current shortfall and provide additional resources for the Finish Line Grant Program were budgeted for Fiscal Years 2020 and 2021. Funding for this grant program has historically been allocated via TIF 1 and TIF 3.
DISCUSSION:
Invest Aurora has approved funding allocations for various redevelopment projects, including key development projects such as the Keystone and Terminal Building projects in the City's downtown. Currently, Invest Aurora has funding commitments and additional funding requests in the amount of $645,000 and has approximately $294,000 on hand in the Finish Line Grant program fund, resulting in the approximate $351,000 shortfall. The City has adequate funding budgeted for Finish Line Grant purposes to cover the shortfall and to allow for consideration of additional funding requests during 2022.
Should the request be approved, funds will be made available via budget amendment to TIF 1 in line 231-1830-465.55-82
IMPACT STATEMENT:
The approval of the release of Finish Line Grant Funding will allow for existing commitments to be honored as contemplated in prior year's City budgets. In addition, IA can continue to administer the Finish Line Grant Program and accept new funding requests once the City has contributed a sufficient amount to alleviate the current funding backlog.
Continued operation of the Finish Line Grant Program will enable the further implementation of the Master Plan for Downtown, provide meaningful assistance to help bridge necessary funding gaps, and make occupied or vacant buildings code compliant for current or future users in the downtown.
RECOMMENDATIONS:
Staff is recommending the City Council authorize the Chief Financial Officer to release funds in the amount of $351,031.76 to Seize the Future Development Foundation (dba Invest Aurora) for Finish Line Grant Program funding commitments. The funding will be provided by TIF 1 via a budget amendment to line 231-1830-465.55-82 in the amount of $351,031.76..
cc: Alderman Carl Franco, Chairman
Alderman Sherman Jenkins, Vice Chairman
Alderwoman Shweta Baid
Alderman Edward Bugg
Alderwoman Scheketa Hart-Burns
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing the Chief Financial Officer to Release funds in the amount of $351,031.76 to Seize the Future Development Foundation (dba Invest Aurora) for Finish Line Grant Program funding commitments and authorizing a budget amendment to TIF 1 to Effectuate the Transfer.
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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 City of Aurora historically commits funding to the Finish Line Grant Program in its annual budget; and
WHEREAS, Seize the Future Development Association (dba Invest Aurora) administers the Finish Line Grant Program on behalf of the City of Aurora; and
WHEREAS, The City allocated funding in its fiscal year 2020 and 2021 budgets for the Finish Line Grant Program but did not contribute those funds to Invest Aurora because of the COVID emergency; and
WHEREAS, Invest Aurora continued to evaluate Finish Line Grant funding requests on behalf of the City and make funding commitments to key and vital projects in the City's downtown in furtherance of the City's goal of economic development; and
WHEREAS a shortfall of $351,031.76 now exists between resources and funding commitments for the Finish Line Grant program as a result of the foregone City contributions during 2020 and 2021; and
WHEREAS, Release of the previously budgeted funds would allow for Invest Aurora to honor funding commitments made to date and continue to administer the successful and vital Finish Line Grant program )
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: The Chief Financial Officer is authorized to Release funds in the amount of $351,031.76 to Seize the Future Development Foundation (dba Invest Aurora) for Finish Line Grant Program funding commitments and the Chief Financial Officer is further authorized to process a budget amendment to line 231-1830-465.55-82 by the same amount to effectuate the release of the funds.