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TO: Mayor Richard C. Irvin
FROM: Trevor Dick, FAICP, LEED AP, Assistant Director
DATE: December 11, 2023
SUBJECT:
An Ordinance Adopting the City of Aurora Farnsworth Bilter Tax Increment Financing District Redevelopment Project Area Redevelopment Plan and Project
PURPOSE:
The Farnsworth Bilter Tax Increment Financing District ("TIF District") is being created to support the new Hollywood Casino development at the southwest corner of Farnsworth Avenue and Bilter Road in the City. Staff has been working with our consultants, Ryan, LLC (formerly known as Kane, McKenna and Associates), and Elrod Friedman LLP to assist with the creation of the TIF District. The Ordinances create the TIF District that will support the Hollywood Casino development, as approved by the City Council in a previously approved Redevelopment Agreement in 2022.
BACKGROUND:
The creation of this TIF District is related to an existing Redevelopment Agreement (“RDA”) approved in October of 2022 between the City of Aurora and PENN Entertainment for the construction of a new Hollywood Casino at the southwest intersection of Farnsworth Avenue and Bilter Road in the City. The new Casino will create new construction jobs and permanent jobs, add new event space and new restaurants, establish a new hotel, increase gaming revenue for the City that supports many community services and programs throughout the entire City and - along with the Simon Chicago Premium Outlet Mall - strengthens the area as a rising regional and State destination.
DISCUSSION:
Adopting the Farnsworth Bilter TIF District will allow the City to collect and use incremental property taxes in support of redevelopment efforts over the life of the TIF.
IMPACT STATEMENT :
Staff anticipates that the TIF District, and the associated redevelopment activities therein, will increase the City’s overall tax base, by facilitating investment and development, which will offset any incidental Department or staffing impacts.
RECOMMENDATIONS:
Staff recommends approval of the ordinance Adopting Tax Increment Financing for the City of Aurora Farnsworth Bilter Tax Increment Financing District
ATTACHMENTS:
Exhibit A-1 Redevelopment Project Area Legal Description
Exhibit A-2 Street Location
cc: Finance Committee
Alderman Carl Franco, Chairperson
Alderman Edward J. Bugg, Vice Chairperson
Alderman-At-Large Ron Woerman
Alderwoman Shweta Baid
Alderman Brandon Tolliver
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
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An Ordinance Adopting Tax Increment Financing for the City of Aurora Farnsworth Bilter 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 City, pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1 et seq. (“TIF Act”), authorized a study in regard to designating a redevelopment project area for the City's Farnsworth Bilter Tax Increment Financing District (“TIF District”); and
WHEREAS, on September 26, 2023, the City announced the availability of the redevelopment plan and project for the TIF District (“TIF Plan”), with said TIF Plan containing an eligibility report for the TIF District addressing the tax increment financing eligibility of the area proposed for designation as the redevelopment project area for said TIF District (“Redevelopment Project Area”); and
WHEREAS, a public hearing was held on December 12, 2023, regarding the TIF Plan; and
WHEREAS, the Mayor and City Council of the City desire to adopt tax increment financing pursuant to the TIF Act; and
WHEREAS, the Mayor and City Council of the City have approved the TIF Plan and designated the Redevelopment Project Area pursuant to the provisions of the TIF Act, and have otherwise complied with all other conditions precedent required by the TIF Act;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
SECTION 1: That the recitals above are incorporated into Section 1 of this Ordinance.
SECTION 2: That tax increment financing is hereby adopted with respect to the TIF District, with the TIF Plan in relation thereto having been approved and adopted pursuant to an Ordinance adopted by the Mayor and City Council of the City on January 23, 2024, and the Redevelopment Project Area in relation thereto, described and depicted in Exhibit A-1 and Exhibit A-2 attached hereto and made a part hereof, having been approved, adopted and so designated pursuant to an Ordinance adopted by the Mayor and City Council of the City on January 23, 2024, with the initial equalized assessed valuation for said TIF District being the 2022 equalized assessed valuation of the Redevelopment Project Area.
SECTION 3: That the ad valorem taxes arising from the levies upon taxable real property in the Redevelopment Project Area by taxing districts, and tax rates determined in the manner provided in Section 9 of the TIF Act, each year after the effective date of this Ordinance until redevelopment project costs and all municipal obligations financing redevelopment project costs have been paid, will be divided as follows:
A. That portion of taxes levied upon each taxable lot, block, tract or parcel of real property which is attributable to the lower of the current equalized assessed value or the initial equalized assessed value (2022 equalized assessed valuation) of each such taxable lot, block, tract or parcel of real property in the Redevelopment Project Area will be allocated to, and when collected will be paid by the Kane County Collector to, the respective affected taxing districts in the manner required by law in the absence of the adoption of tax increment allocation financing; and
B. That portion, if any, of such taxes which is attributable to the increase in the current equalized assessed valuation of each lot, block, tract or parcel of real property in the Redevelopment Project Area over and above the initial equalized assessed valuation (2022 equalized assessed valuation) of each lot, block, tract or parcel of real property in the Redevelopment Project Area will be allocated to, and when collected will be paid by the Kane County Collector to, the City Treasurer who will deposit said funds in a special fund called “The Special Farnsworth Bilter Tax Increment Financing District Tax Increment Allocation Fund” of the City for the development and implementation of the TIF Plan.
SECTION 4: That the City will obtain and utilize incremental taxes from the Redevelopment Project Area for the payment of redevelopment project costs and all City obligations financing redevelopment project costs in accordance with the provisions of the TIF Act and the TIF Plan.
SECTION 5: That this Ordinance will be in full force and effect from and after its adoption, approval and publication in pamphlet form as provided by law.
SECTION 6: That if any section, paragraph, clause or provision of this Ordinance will be held invalid, the invalidity thereof will not affect any of the other provisions of this Ordinance.
SECTION 7: That all ordinances or parts of ordinances in conflict herewith are, to the extent of such conflict, hereby repealed.