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TO: Mayor Richard C. Irvin
FROM: Elle Withall, Downtown Development Director
DATE: April 25, 2023
SUBJECT:
A resolution authorizing the Chief Financial Officer/City Treasurer to disburse payments of eligible businesses recommended for award as part of the City's Finish Line Grant and Re-Start Retention Grant programs as per attached Table I and Table II.
PURPOSE:
The purpose of both grants is to assist viable small businesses that have demonstrated a financial commitment to the City yet need funding generally not provided by banks and similar financial institutions.
BACKGROUND:
The City has two business assistance programs developed and administered by the Mayor's Office of Economic Development to retain and recruit businesses in the City of Aurora.
The Finish Line Grant is a long-standing reimbursement program that was made city-wide this year and provides the “last dollars” to complete a rehabilitation project. The program bolsters the long-term prospects of a business that might not otherwise have ready access to the final funds to complete the project. This is accomplished by reimbursing up to 20% of the verified costs for business improvements. The objective is for all monies to be utilized for capital improvements that reinvest into their properties and the City of Aurora as a whole.
The Re-Start Grant was conceived last year on the heels of the pandemic to assist small businesses that were suffering longer term financial impacts of the pandemic. While these impacts have subsided, the uncertain economic climate and rising interest rates cause the City to extend this program to worthy businesses. The funding is coming from the gaming tax and carried over from the general fund.
Both programs were marketed to the public through news coverage on Fox32, Channel 5, Channel 7 among others, through local newspapers including The Beacon, on social media and shared with our partners from Invest Aurora and the Aurora Area Hispanic Chamber of Commerce who followed up with Spanish speaking workshops.
DISCUSSION:
Finish Line Grant:
For Finish Line, property proposed for rehabilitation must be intended for permitted commercial and/or mixed-use and be located within the limits of the City of Aurora.
26 businesses are being recommended for approval totaling the amount of $513,226. All businesses that met the established guidelines have been approved and are recommended for a grant. The average grant proposed is $19,739.45 which represents a total average investment by these businesses of $98,697.27 into their properties. The total amount of reinvestment back into the City of Aurora from these recommended grant recipients totals more than $2.5 million for the City of Aurora. Table I lists all applications recommended for approval.
Re-Start Grant:
For Re-Start, small businesses located within commercial areas of the City of Aurora, including those operating on City-owned property, are eligible to apply with some noted exceptions.
24 applicants are being recommended for approval of a Re-Start Grant totaling the amount of $182,406. Table II lists all applications recommended for approval. All businesses that met the established guidelines have been approved and are recommended for a grant.
Both of these grants are being funded through the gaming tax and supplemented through the general fund. The total amount available in funding is $766,946.60 with $68,045 allocated previously in 2022 as a FLG grant to PreMil LLC as noted in their RDA agreement (O2022-080 attached). The total amount for the combined grants (Finish Line $513,226 and Re-Start $182,406) for recommendation is $695,632 leaving a surplus of $3,269.60 for the year. All awardees must be current on all payments of City obligations before checks will be released.
This grant program is a testament to the success of obtaining business registration which is a requirement for all businesses in the City of Aurora. We have a 100% success record with all applicants.
IMPACT STATEMENT:
By providing these grants, the City is providing small businesses the opportunity to reinvest back into their businesses and the community. Approval of these grants will provide continued employment for a workforce of hundreds of employees, assure continued growth and provide the City with a steady flow of revenues from these businesses be it in real estate, sales and/or food and beverage taxes while adding to an increase of property value. With this round of grants, it is important to note that the Finish Line Grants were more in demand which indicates Aurora's economic development is strong and the business community is recovering from the COVID-19 pandemic.
RECOMMENDATIONS:
Staff recommends approval of the resolution approving and authorizing the Disbursement of the Finish Line and Re-start Grants."
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Approving and Authorizing the Disbursement of the Finish Line and Re-start Grants.
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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 wishes to address the needs of local businesses through locally administered financial relief programs using local financial and business data and practices to determine qualifications that will not be subject to Federal regulations that have impacted the outreach of prior programs; and
WHEREAS, total available funding for both grants is $766,946.60 which includes $68,045 allocated previously in 2022 as a FLG grant to PreMil LLC as noted in resolution R022-080. The total amount for the combined grants (Finish Line $513,226 and Re-Start $182,406) being approved is $695,632; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the Chief Financial Officer/City Treasurer is authorized to disburse payments to the businesses, in need locating or presently doing business in Aurora recommended for award as shown in the beforementioned tables as part of the Finish Line Grant and Re-Start Retention Grant programs.