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TO: Mayor Thomas J. Weisner
FROM: Bill Wiet, Chief Development Services Officer
DATE: May 19, 2014
SUBJECT:
To request approval of an annual grant to Seize the Future Development Foundation (STFDF) for a new downtown grant program. The program is to be called the Finish Line Downtown Grant Program, and will be administered by STFDF. The annual funding amount for this rehabilitation program is $500,000.
PURPOSE:
In 2013 The City and Seize the Future Development Foundation created a public private partnership in which STFDF will perform all the economic development functions for the City. Resolution R13-182 provided the framework for the partnership, including the funding of the expanded organization. The STFDF is also tasked with developing incentive programs for the purpose of commercial revitalization throughout the City of Aurora.
BACKGROUND:
The goal of the new rehab program is to create a streamlined, simple and quick process to aid in economic development downtown. Whereas most of downtown falls within Tax Increment Financing District (TIF) #1, a portion of TIF 3 (River City), will be included in the program. The program description indicates that $500,000 from the two TIF Districts listed above will be granted to STFDF annually for implementing the program. The program will provide up to 20% of the total project costs to any one project in an incentive amount not to exceed $75,000. STFDF hopes to undertake 8 projects annually but the number will depend on the project needs. STFDF will review each project on its own merits, with the intent to provide first floor commercial development with residential above.
DISCUSSION:
This proposed program continues a move to streamline the economic development process. Funding will come exclusively from Tax Increment Financing in TIFs 1 and 3. A budget line item will be created for this program where funds can be allocated annually. All funds will be spent in accordance with the TIF Act, and reports will be made available on a quarterly basis to the Mayor and City Council, and on an annual basis for State TIF reporting requirements. This annual allocation limits will conform with Section 6.1 of R13-182, which indicates the term of the current agreement with Seize the Future Development Foundation being June 1, 2015, with 3 automatic renewals unless notice is given by either party. So for the purposes of this agreement the termination of the agreement is June 1, 2018.
IMPACT STATEMENT:
The proposed Finish Line Downtown Grant Program will assist in the rehabilitation of buildings in the downtown, thereby increasing the tax base, bringing more residents into the downtown, and providing the necessary foot traffic to help patronize existing downtown businesses.
RECOMMENDATIONS:
Staff recommends approval of annual grant funding to STFDF for their Finish Line Grant Program.
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 Approving Annual Grant Funding To Seize The Future Development Foundation For A Downtown Grant Initiative To Be Called Finish Line Downtown Grant Program
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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 is proposing a new Downtown Grant Initiative, to be called the Finish Line Downtown Grant Program, the proposed program overview is attached hereto and incorporated herein as Exhibit "A", the goal of said new program is to create a streamlined, simple and quick process to aid in economic development downtown; and
WHEREAS, the Finish Line Grant Program will utilize $500,000 annually in funding from Tax Increment Financing Districts Number 1 (Downtown) and Number 3 (River City), as herein submitted in the attached map incorporated herein as Exhibit "B"; and
WHEREAS, funding for this initiative is available in the budgets of the various Tax Increment Financing Districts Number 1 ($425,000), and Number 3 ($75,000); and
WHEREAS, said annual funding shall be for the same term as the TERM OF AGREEMENT for STFDF contained in Section 6.1 of R13-182 or no longer than June 1, 2018, whichever comes first; and
WHEREAS, said annual grant shall be conditioned upon the following:
1. STFDF provide quarterly progress reports to the Mayor and City Council during the term of this program; and
2. That any use of Tax Increment Financing (TIF) funding shall be in compliance with the TIF Act; and
3. STFDF shall provide documentation as deemed necessary by the City's Finance Director for annual tax increment finance reporting purposes.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the annual grant funding to Seize the Future Development Foundation for their Finish Line Grant Program, per overview attached hereto as Exhibit "A", and in accordance with the conditions stated hereinabove, is hereby approved.
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
Exhibit "A" Finish Line Grant Program Overview
Exhibit "B" Map of Program Area
Exhibit "A" Finish Line Grant Program Overview
Seize the Future Development Foundation
Finish Line Downtown Building Rehabilitation Grant Program
Program Overview
Program Overview and Objectives
This grant program would incentivize building owners to take on repairs to their property as well as encourage others to purchase property downtown and rehabilitate it to modern standards. Through this program, first floors will be filled with commercial uses while second and third floors of downtown buildings will fill with residential units and /or commercial, bringing more foot traffic and population density downtown. This density in turn will help support the downtown businesses. With a developer having income-producing residential and commercial units, they are likely to be eligible for additional loans to make investments in our community.
Implementation
The Seize the Future Development Foundation (STFDF) shall be responsible for the implementation of the Finish Line Downtown Rehabilitation Grant Program
Eligibility
Buildings must be located in Tax Increment Financing District #1, plus a portion of Tax Increment Financing District 3 as further depicted on attached map.
Financing
The Finish Line Grant Program proposes that the grant cover twenty percent (20%) of project costs up to an amount of seventy-five thousand dollars ($75,000)
Funding
Funding shall come from accounts to be established in TIF 1 and 3.
Term
The Term of the program shall be the same as the term indicated for Seize the Future Development Foundation agreement with the City of Aurora (R13-182), but in no event beyond June 1, 2018.
Guidelines/Policies
May be amended from time to time as necessary to meet program objectives so long as Eligibility and Financing limits remain unchanged.