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TO: Mayor Richard C. Irvin
FROM: David Dibo, Director of Economic Development
DATE: February 8, 2019
SUBJECT:
A Resolution authorizing the execution of a Redevelopment Agreement with UEP Aurora, LLC to facilitate the redevelopment of certain real property located at 2 N Broadway in the City of Aurora, commonly known as the "Terminal Building."
PURPOSE:
To promote the continued revitalization of the downtown, the Economic Development Division recommends the approval of the RDA between the City of Aurora and Urban. Urban plans to redevelop the property with loft type market rate apartments and a restaurant on the ground floor.
BACKGROUND:
Current plans are for the development of 20 apartments and 3,500 square feet of restaurant space. Despite a strong regional and national apartment market, the Terminal building has attracted little interest. Housing, specifically at market rates is intrinsic to the cycle that not only creates activity and excitement but brings the demand for services that in turn supports businesses that attract more residents and more spending. Property values rise so that future incents developers to take risks on projects that previously were deemed infeasible. A building that has been mostly vacant for 50 years and has been an eyesore in the center of the urban core will be re-adapted and architecturally attractive. Sales tax revenues for the City will be generated by the restaurant, impacts to School District 131 is anticipated to be minimal given the likely market for these units. The redevelopment of the Terminal Building is consistent with the goals of the City's Downtown Master Plan approved November 2017.
The City had been in court with the prior owner for the failure to correct numerous code violations. Urban Equity purchased the property in July of 2018 after a series of preliminary discussions with staff regarding possibilities for reuse. The obstacles to redevelopment are that market rents do not support the costs to re...
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