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TO: Mayor Richard C. Irvin
FROM: Trevor Dick, Assistant Director
DATE: February 17, 2022
SUBJECT:
An Ordinance making minor amendments to the Redevelopment Plan and Project for the City of Aurora 75th Street and Ogden Avenue Tax Increment Financing District. .
PURPOSE:
This Ordinance will amend the Redevelopment Plan and Project in the 75th Street and Ogden Avenue Tax Increment Finance (TIF) District by reducing the term of the District from 23 years to 15 years per the attached Intergovernmental Agreement with School District 204 (Attachment B).
BACKGROUND:
During the negotiations and creation of the Cedarwood development, the City and School District 204 had lengthy negotiations regarding the need for a TIF at this site. As a result of these negotiations the City agreed to limit the length of TIF Districts in the Route 59 Corridor to 15 years instead of 23 years in an Intergovernmental Agreement with School District 204, which is attached. Unfortunately, due to the timing and calendar for the approval of the 75th Street and Ogden Avenue TIF District, it was created with a 23 year duration, before the Intergovernmental Agreement was completed.
DISCUSSION:
In order to make an administrative amendment to a TIF District Redevelopment Plan and Project, such an amendment must be deemed to be minor in nature as defined in the TIF Act. Klein Thorpe and Jenkins (KTJ) and Kane McKenna & Associates (KMA) have provided counsel on the creation of all of the City Micro TIFs and has also provided counsel in this matter. KTJ and KMA have agreed that the changing of the TIF duration from 23 years to 15 years can be done administratively by the City Council through the minor amendment process.
Attachment A is the Ordinance that provides for the amendment of the initial ordinance adopting the 75th Street and Ogden Avenue TIF. The City will also take the following steps to complete this amendment process.
Within 10 days after approval of the ordinance, the City must complete and have the attached notice published in a local newspaper.
Within 10 days after approval of the ordinance, the City must complete and send certified mail with the attached notice to all the affected taxing districts and send by regular mail to all people / entities on the City’s TIF Interested Parties Registry.
After ordinance approval, the City needs to file the ordinance with the DuPage County Clerk.
IMPACT STATEMENT:
Approval of this Ordinance will bring the City into compliance with the intergovernmental agreement with School District 204. .
RECOMMENDATIONS:
That this Ordinance be approved.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance making minor amendments to the Redevelopment Plan and Project for the City of Aurora 75th Street and Ogden Avenue Tax Increment Financing District.
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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 General Assembly of the State of Illinois has provided by law the Illinois Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1 et seq. (“Act”), to assist in the financing of certain improvements in areas in the City which meet the requirements therein; and
WHEREAS, the City, pursuant to Ordinance Numbers O20-002, O20-003 and O20-004, adopted January 28, 2020, established the City’s 75th Street and Ogden Avenue Tax Increment Financing District (“TIF District”) relative to the redevelopment project area, legally described in EXHIBIT A attached hereto and made part hereof (“Redevelopment Project Area”), approved a redevelopment project and plan in relation to the TIF District (“Redevelopment Plan”) and adopted tax increment financing for the TIF District; and
WHEREAS, pursuant to 65 ILCS 5/11-74.4-5(c), amendments to the TIF District and the Redevelopment Plan which do not (1) add additional parcels of property to the proposed redevelopment project area, (2) substantially affect the general land uses proposed in the redevelopment plan, (3) substantially change the nature of the redevelopment project, (4) increase the total estimated redevelopment project cost set out in the redevelopment plan by more than five percent (5%) after adjustment for inflation from the date the redevelopment plan was adopted, (5) add additional redevelopment project costs to the itemized list of redevelopment project costs set out in the redevelopment plan, or (6) increase the number of inhabited residential units to be displaced from the redevelopment project area, as measured from the time of creation of the redevelopment project area, to a total of more than ten (10), may be made without need for further hearing, provided the City gives certain notices of any such amendments within ten (10) days following the adoption of the Ordinance providing for any such amendments; and
WHEREAS, the City desires to make the minor amendments to the Redevelopment Plan for the TIF District set forth in EXHIBIT B attached hereto and made a part hereof (collectively the “Minor Amendments”), including reducing the term of the TIF District from twenty-three (23) years to fifteen (15) years, in order to bring the Redevelopment Plan into alignment with the “Intergovernmental Agreement Between the City of Aurora and Indian Prairie School District 204 Regarding Tax Increment Financing in the Route 59 Corridor” dated February 20, 2020; and
WHEREAS, the Minor Amendments will not adversely impact the eligibility factors relied upon by the City in establishing the TIF District as a tax increment financing district under the Act;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
SECTION 1: That the recitals set forth above are hereby incorporated herein as Section 1 of this Ordinance.
SECTION 2: That the Redevelopment Plan is hereby amended by making the Minor Amendments.
SECTION 3: Pursuant to 65 ILCS 5/11-74.4-5(c), within ten (10) days of the adoption and approval of this Ordinance, this Ordinance shall be published in the Aurora Beacon, or another appropriate newspaper, and a copy of this Ordinance shall be sent by certified mail, return receipt requested, to each taxing district that is affected by the TIF District, and by First Class U.S. Mail to each person/entity registered on the City’s TIF Interested Parties Registry.
SECTION 4: That a certified copy of this Ordinance shall be filed with the County Clerk of DuPage County, Illinois.
SECTION 5: This Ordinance shall be in full force and effect from and after its adoption and approval as provided by law