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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer/City Treasurer
DATE: March 7, 2019
SUBJECT:
An Ordinance designating the City of Aurora Downtown Tax Increment Financing District 9 (Stolp Avenue - Downtown Area) Redevelopment Project Area.
PURPOSE:
The final steps in approving the Tax Increment Financing District (TIF ) 9 includes the designation of the redevelopment Plan and Project Area. The attached ordinance and attachments thereto include this.
BACKGROUND:
The creation of TIF 9 is an integral part of the ACCA/Paramount and more recently the Keystone development agreements. This TIF, as noted in the attached area map is bordered by the Fox River, Stolp Ave, Galena, and Downer Place.
In the past several meetings the City Council has approved the carve out of the properties identified in TIF 9 from the present TIF 1 property listing. This change will be noted in property tax records and any incremental property tax value represented by those properties carved out from TIF 1 will be available to all taxing bodies. These properties will then be again frozen at the new level when TIF 9 is created.
DISCUSSION:
Upon the creation of TIF 9, the City will accumulate funding from the two developments noted above. TIF 9 is critical to the success of the Keystone project and tax increment received from this development will be shared on an 80% developer and 20% City basis for at least the first 13 years of the TIF. Depending on the performance of the development, this sharing formula could be changed to 70% developer and 30% City.
It is anticipated that the City will provide a distribution of the 20% Tax Increment listed above to all taxing bodies on an annual basis to give some measure of tax relief/revenues while the TIF is still open.
IMPACT STATEMENT:
Failure to pass this TIF 9 Redevelopment Plan and Project Area will result in the rescinding of the Keystone Development Agreement.
RECOMMENDATIONS:
Staff recommends the ...
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