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TO: Mayor Richard C. Irvin
FROM: Trevor Dick, Director of Development Strategy and Facilitation
DATE: October 15, 2020
SUBJECT:
An Ordinance Approving the City of Aurora Fox Valley Mall Area Tax Increment Financing District Redevelopment Project Area Redevelopment Plan and Project.
PURPOSE:
The final steps in approving the Fox Valley Mall Area Tax Increment Financing District include the designation of the Redevelopment Plan and Project Area. The attached ordinance and the exhibits thereto include this information.
BACKGROUND:
The Fox Valley Mall was originally constructed in the 1970s and reflects many of the design elements that defined the early era of mall construction in the United States including a ring road encircling the mall to support “outlot” retail sites. Like many similar sites of this era, Fox Valley Mall has been challenged by changes in consumer behavior in recent decades. These challenges have created conditions which have inhibited private investment and have led to a general decline and economic underutilization of the area. Recognizing the need to take action, the City has focused recent planning efforts on the Route 59 Corridor in general, and the Fox Valley Mall area in particular, resulting in a call to reuse and revitalize the area.
Given economic factors that have impacted malls nationwide and in conformance with its recent Route 59 Corridor Study Comprehensive Plan (2019), the City has determined that the Fox Valley Mall area as a whole would not be redeveloped in a coordinated manner without the adoption of a Tax Increment Financing Redevelopment Plan. The City, with the assistance of Kane, McKenna and Associates, Inc. (KMA), has commissioned an Eligibility Report and Redevelopment Plan to use tax increment financing in order to alleviate those conditions which deter private investment in the area and meet redevelopment goals and objectives.
The City has pursued the strategy of creating micro TIF Districts from significant areas and properties to support certain redevelopment opportunities that would otherwise not occur, but for the City's assistance with a new TIF District.
The creation of this TIF District will result in a highly-visible redevelopment of the Fox Valley Mall project.
DISCUSSION:
The creation of this TIF District will continue the City’s vision for the redevelopment of key parcels within the Fox Valley Mall Area.
IMPACT STATEMENT :
Failure to pass this ordinance designating the City of Aurora Fox Valley Mall Area Tax Increment Financing District Redevelopment Project Area will result in the inability to create the Tax Increment Financing District, and would hasten the decline of the highly-visible Fox Valley Mall, resulting in a missed opportunity of redeveloping unused parcels surrounding the Mall that could represent a "flywheel" of economic development within the Route 59 Corridor.
RECOMMENDATIONS:
Staff recommends the approval of the ordinance approving the City of Aurora Fox Valley Mall Area Tax Increment Financing District, Redevelopment Project Area, Redevelopment Plan and Project.
ATTACHMENTS:
Exhibit A-1 Redevelopment Project Area Description
Exhibit A-2: Street Location Map
Exhibit B: Fox Valley Mall Area Tax Increment Financing District TIF Redevelopment Plan
cc: Finance Committee
Chair/Alderman Robert J. O'Connor
Alderman/Vice Chair Edward Bugg
Alderwoman Scheketa Hart-Burns
Alderman Carl Franco
Alderman Emmanuel Llamas
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance Approving the City of Aurora Fox Valley Mall Area Tax Increment Financing District, Redevelopment Project Area, Redevelopment Plan and Project.
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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 Mayor and City Council of the City desire to implement tax increment financing pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1, et seq. (“TIF Act”) for the City’s Fox Valley Mall Area Tax Increment Financing District (“TIF District”) redevelopment plan and project (“TIF Plan”), and designate the tax increment redevelopment project area (“Redevelopment Project Area”) relative to the TIF District; and
WHEREAS, the City authorized a study in regard to the designation of the Redevelopment Project Area for the TIF District and the adoption of the TIF Plan in relation thereto; and
WHEREAS, on August 11, 2020, the City announced the availability of the TIF Plan, with said TIF Plan containing an eligibility report for the TIF District addressing the tax increment financing eligibility of the Redevelopment Project Area (“Eligibility Report”); and
WHEREAS, a public hearing was held on October 27, 2020, in regard to the TIF Plan; and
WHEREAS, the Mayor and City Council of the City desire to implement tax increment financing pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1, et seq. (“TIF Act”) for the City’s Fox Valley Mall Area Tax Increment Financing District (“TIF District”) redevelopment plan and project (“TIF Plan”), and designate the tax increment redevelopment project area (“Redevelopment Project Area”) relative to the TIF District; and
WHEREAS, the City authorized a study in regard to the designation of the Redevelopment Project Area for the TIF District and the adoption of the TIF Plan in relation thereto; and
WHEREAS, on August 11, 2020, the City announced the availability of the TIF Plan, with said TIF Plan containing an eligibility report for the TIF District addressing the tax increment financing eligibility of the Redevelopment Project Area (“Eligibility Report”); and
WHEREAS, a public hearing was held on October 27, 2020, in regard to the TIF Plan; and
WHEREAS, the Mayor and City Council of the City desire to implement tax increment financing pursuant to the TIF Act for the TIF Plan within the municipal boundaries of the City and within the Redevelopment Project Area described and depicted in EXHIBIT A-1 and EXHIBIT A-2, both being attached hereto and made part hereof; and
WHEREAS, the City has complied with the specific notice, Joint Review Board meeting and public hearing requirements provided for in the TIF Act as a prerequisite to approving the TIF Plan in relation to the TIF District, in that the City has taken the following actions:
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ACTION |
DATE TAKEN |
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Approved, by Motion, the preparation of the Eligibility Report and TIF Plan |
December 10, 2019 |
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Published the TIF Interested Parties Registry notice in the newspaper (Beacon News) |
July 19, 2020 |
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Announced the availability of the Eligibility Report and the TIF Plan, at a City Council meeting |
August 11, 2020 |
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Approved Ordinance calling for a Joint Review Board meeting and a Public Hearing relative to the proposed approval of the Redevelopment Project Area and the TIF Plan in relation thereto |
August 25, 2020 |
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Mailed a copy of the Eligibility Report and the TIF Plan, a notice of the Joint Review Board meeting and the Public Hearing, and the Ordinance setting dates for the Joint Review Board meeting and the Public Hearing, to all taxing districts and the Illinois Department of Commerce and Economic Opportunity (by certified mail, return receipt requested) |
August 28, 2020 |
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Mailed notices relative to the availability of the Eligibility Report and TIF Plan to all residential addresses within 750 feet of the boundaries of the Redevelopment Project Area, to all parties who were registered on the City’s TIF Interested Parties Registry, and a courtesy mailing to all taxpayers of record and residential addresses within the Redevelopment Project Area (by First Class U.S. Mail) |
August 28, 2020 |
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Held the Joint Review Board meeting |
September 18, 2020 |
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Published notice of the Public Hearing in the newspaper (Beacon News) twice |
October 7, 2020 and October 14, 2020 |
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Mailed notices of the Public Hearing to each taxpayer of record (by certified mail, return receipt requested) within the Redevelopment Project Area and to each person on the City’s TIF Interested Parties Registry (by First Class U.S. Mail) |
October 14, 2020 |
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Held a Public Hearing |
October 27, 2020 |
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Introduction and Adoption of Ordinances creating the TIF District to the City Council |
November 10, 2020 |
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WHEREAS, on September 18, 2020, the Joint Review Board, relative to the TIF District, recommended the approval of the Redevelopment Project Area and approval of the TIF Plan in relation thereto; and
WHEREAS, pursuant to the TIF Act, the City has waited at least fourteen (14) days, but not more than ninety (90) days, from the Public Hearing date to take action on this Ordinance approving the TIF Plan; and
WHEREAS, the TIF Plan sets forth the conditions in the Redevelopment Project Area qualifying the Redevelopment Project Area as a “conservation area,” and the Mayor and City Council of the City have reviewed testimony concerning said conditions presented at the Public Hearing and are generally informed of the conditions causing the Redevelopment Project Area to qualify as a “conservation area,” as said term is defined in Section 5/11-74.4-3 of the TIF Act (65 ILCS 5/11-74.4-3); and
WHEREAS, the Mayor and City Council have reviewed the conditions pertaining to the lack of private investment in the Redevelopment Project Area to determine whether private development would take place in the Redevelopment Project Area as a whole without the adoption of the TIF Plan; and
WHEREAS, it is the intent of the Mayor and City Council of the City to utilize the tax increment from all sources authorized by law; with such revenues to be exclusively utilized for the development of the TIF Plan within the Redevelopment Project Area (except as provided in 65 ILCS 5/11-74.4-4(q), as incorporated into the TIF Plan budget of estimated redevelopment project costs); and
WHEREAS, the Redevelopment Project Area would not reasonably be redeveloped without the use of such incremental revenues; and
WHEREAS, the Mayor and City Council have reviewed the conditions pertaining to real property in the Redevelopment Project Area to determine whether contiguous parcels of real property and improvements thereon in the Redevelopment Project Area would be substantially benefited by the TIF Plan improvements;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
SECTION 1: That the Mayor and City Council hereby make the following findings:
A. The area constituting the Redevelopment Project Area is described and depicted as set forth in the attached EXHIBIT A-1 and EXHIBIT A-2;
B. There exist conditions which cause the area proposed to be designated as the Redevelopment Project Area to be classified as a “conservation area,” as such term is defined in Section 5/11-74.4-3 of the TIF Act (65 ILCS 5/11-74.4-3);
C. The Redevelopment Project Area on the whole has not been subject to growth and redevelopment through investment by private enterprise and would not be reasonably anticipated to be redeveloped without the adoption of the TIF Plan;
D. The Redevelopment Project Area would not reasonably be redeveloped without the tax increment derived from real property tax incremental revenues, and the increment from such revenues will be exclusively utilized for the redevelopment as outlined in the TIF Plan within the Redevelopment Project Area (except as provided in 65 ILCS 5/11-74.4-4(q), as incorporated into the TIF Plan budget of estimated redevelopment project costs);
E. The TIF Plan conforms to the City's Comprehensive Plan for the development of the City as a whole;
F. The parcels of real property in the Redevelopment Project Area are contiguous and only those contiguous parcels of real property and improvements thereon which will be substantially benefited by the TIF Plan are included in the Redevelopment Project Area;
G. The estimated date for final completion of the TIF Plan is December 31st of the year in which the payment to the City Treasurer is made with respect to ad valorem taxes levied in the fifteenth (15th) calendar year after the year in which the ordinance approving the Redevelopment Project Area is adopted, which, as to the TIF District, is December 31, 2036; and
H. The estimated date for retirement of obligations incurred to finance TIF Plan costs is not later than December 31st of the year in which the payment to the City Treasurer is made with respect to ad valorem taxes levied in the fifteenth (15th) calendar year after the year in which the ordinance approving the Redevelopment Project Area is adopted, which, as to the TIF District, is December 31, 2036.
SECTION 2: That the TIF Plan is hereby adopted and approved. A copy of said TIF Plan is attached hereto as EXHIBIT B and made a part hereof.
SECTION 3: That this Ordinance shall be in full force and effect from and after its adoption, approval and publication in pamphlet form as provided by law.
SECTION 4: That if any section, paragraph, clause or provision of this Ordinance shall be held invalid, the invalidity thereof shall not affect any of the other provisions of this Ordinance.