cover
TO: Mayor Richard C. Irvin
FROM: David Dibo, Director Mayor's Office of Economic Development
DATE: July 10, 2020
SUBJECT:
A resolution authorizing the City Of Aurora (City) to amend the previously approved resolution (R19-382; November 12th 2019) adopting a redevelopment agreement (RDA) with Fox Valley Developers (FVD) to facilitate the redevelopment of the Old Copley Hospital located at 502 S. Lincoln Ave. The RDA was the second part of a two-step process that started with the remediation and securing of the complex (resolution No. R18-220) approved in late August 2018)
PURPOSE:
The purpose of this amendment is to modify the RDA approved last November in a manner that assists the execution of FVD's development plan while maintaining the spirit and key provisions in the approved RDA. The modifications are centered on resetting certain threshold dates and providing a short-term advance of $1.5M by the City to FVD that will be matched by an additional $1.5M advanced by the School District. These loans will likely be outstanding for no more than three months (but in no event later than year end 2020) to be repaid when the School District purchases the turnkey completed building. It also provides the City with the ability to more closely monitor the details of any proposed financing and allows for the developer to substitute collateral in lieu of standard infrastructure bonding requirements.
BACKGROUND:
After years of neglect and unfulfilled promises at Copley, the City entered into the two agreements with FVD referenced above; each RDA was self-contained yet depended on the success of the other. The cleanup was economically feasible only if amortized over a successful project, something that could not be implemented or even visualized without first gaining control of the property and cleaning it up. The building was certified clean in September 2019.
The RDA that was approved two months later contained a series of mutual commitments, obligations and r...
Click here for full text