cover
TO: Mayor Richard C. Irvin
FROM: Bill Wiet, Chief Development Services Officer
DATE: August 3, 2017
SUBJECT:
To approve a second amendment to existing development agreement with Fox Island Apartments LLC, owner of 7 South (Leland Tower), 33-35 South (Graham Building), and 77 South Stolp Avenue (The Mayan).
PURPOSE:
The second amendment waives the requirement to complete the restaurant build out of the first floor of the Mayan (former Elks Club Building) and asks to re-distribute approximately $66,000 of the build out security to other physical improvements at the Mayan or Leland Tower.
BACKGROUND:
Per the original development agreement, the developer was to have completed build out of the first floor restaurant space at the Mayan by December 31, 2017. Questions arose as to the feasibility of achieving a restaurant build out at this particular time when the developer's efforts have been focused on Leland Legends restaurant at the Leland Tower, as well as other proposed physical improvements to the first and second floor of the Leland. In addition, recent approval was granted to The Community Builders for a first floor restaurant at the former Waubonsee Community College across from Legends. It is felt that at this time the synergy of restaurants and entertainment venues will be focused at the corner of Galena and Stolp for now. The idea of a restaurant at the Mayan has not been abandoned, rather the developer wishes to take a fresh look at available options after spending additional time and resources at the Leland Tower.
DISCUSSION:
The first amendment to the development agreement also provided for a cash security of $182, 500 to complete improvements on the first floor anticipating a future restaurant. To date $115,000 of that security has been released for work done including a fire suppression system, entranceway improvements, and a fire alarm system. There remains in the cash security $66,871.90 which is being requested to be used for other physical improvements at the basement or first floor of the Mayan, or the basement, first or second floor of the Leland. Prior to the release of the remaining security sufficient documentation will need to be provided that indicates the improvements and costs involved.
IMPACT STATEMENT:
This action should have no impact on the general public or other departments or divisions.
RECOMMENDATIONS:
It is recommended that the second amendment be approved.
cc: Alderman O’Connor, Chairman
Alderman Mesiacos
Alderman Bugg
Alderman Mervine, Alternate
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance Approving Second Amendment to Ordinance O14-097, an Ordinance Authorizing the Execution of a Redevelopment Agreement with Fox Island Apartments LLC for Properties Located at 7 South Stolp, 33-35 South Stolp, and 77 South Stolp Avenue
body
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 Council of the City of Aurora approved, by Ordinance O14-097, a Redevelopment Agreement with Fox Island Apartments LLC in regards to the acquisition and Redevelopment of three properties commonly known as 7 South Stolp, 33-35 South Stolp, and 77 South Stolp Avenue; and
WHEREAS, the City Council of the City of Aurora approved, by Ordinance O16-037, a First Amendment to the Redevelopment Agreement which requested additional time for the completion of the 77 South Stolp Avenue project, including a set-aside cash security of $182,500 for the completion of the restaurant portion of the project, of which $115,628.10 has been released due to the completion of eligible costs associated with the restaurant; and
WHEREAS, Fox Island Apartments LLC desires to seek a waiver of the December 31, 2017 completion date of the restaurant, and request that the remaining cash security be released with the intent of flexing those funds for bar and restaurant improvements on all properties rather than solely 77 South Stolp Avenue.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
1. That the Mayor and City Council of the City of Aurora hereby find that it is in the best interests of the City of Aurora and its residents that the aforesaid "Second Amendment to Redevelopment Agreement" with Fox Island Apartments LLC, be entered into by the City of Aurora, with said Second Amendment to be substantially in the form attached hereto and made a part thereof as Exhibit A.
2. That the Mayor and City Clerk of the City of Aurora, Kane, Kendall, Will and DuPage Counties, Illinois, are hereby authorized to execute for and on behalf of the City of Aurora, the aforesaid Second Amendment to Redevelopment Agreement.