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TO: Mayor Thomas J. Weisner
FROM: Bill Wiet, Chief Development Services Officer
DATE: May 5, 2015
SUBJECT:
To request approval of the First Amendment to Seize the Future Development Foundation (STFDF) Finish Line Downtown Grant Program, This First Amendment changes the funding ratios from the initial amounts pursuant to Resolution R14-152.
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 Finish Line Grant 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), was included in the program. The program provides $500,000 from the two TIF Districts listed above for implementing the program. The program originally provided up to 20% of the total project costs to any one project in an incentive amount not to exceed $75,000.
DISCUSSION:
This program continues a move to streamline the economic development process. The 20% maximum adheres to generally accepted standards for incentives, however, based upon the categorized funding limits, it was determined by STFDF over the past year that for the smaller project amounts, a larger percentage of Finish Line funds seemed more appropriate in meeting redevelopment goals. Therefore, it is recommended to modify the percentages based upon the amount of the total project costs. For projects up to $10,000, Finish Line will provide a 50% match. For projects up to $25,000, it will be a 40% match, for a maximum of $50,000 there will be a match of 30%, and for projects up to $75,000 there will be the original 20% match. Again, as listed in the original resolution, 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.
IMPACT STATEMENT:
The amended Finish Line Downtown Grant Program will better 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 the amended funding ratios for the STFDF 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 the First Amendment to Resolution R14-152 to Revise the Funding Ratios of the Seize the Future Development Foundation Finish Line 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 R14-152 an agreement with Seize the Future Development Foundation (STFDF) to provide economic development assistance in the downtown under the Finish Line Grant Program; and
WHEREAS, ,STFDF is proposing modifications to the Finish Line Grant Program to enhance and expand upon the existing program requirements, including a modification to the funding ratios attached hereto and incorporated herein as Exhibit "A", and
WHEREAS, The City Council of the City of Aurora fund that it in the best interest of the City and its residents to approve said First Amendment.)
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows:
1. That the modifications to the funding ratios as indicated on Exhibit A be approved;
2. That all other provisions, terms and conditions of the Finish Line Grant Program contained in Resolution R14-152 remain in effect.