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TO: The Honorable Mayor and City Council
FROM: Law Department
DATE: July 20, 2018
SUBJECT:
An Ordinance approving a settlement agreement between the City of Aurora and Fox Valley Hospitality, LLC and the acquisition of real property located at 2450 N Farnsworth Ave, commonly known as the Fox Valley Motel.
PURPOSE:
To resolve the City's pending eminent domain litigation against the Fox Valley Motel and acquire it for roadway construction and economic development purposes.
BACKGROUND:
After negotiations with the owner of the Fox Valley Motel failed, the City brought a condemnation action in 2016 seeking to acquire the property to facilitate the reconstruction and realignment of Corporate Boulevard. Earlier this year, the City amended its eminent domain action to allege economic development as an additional public purpose for the acquisition. Following the amendment, the parties re-engaged each other with the goal of working towards an amicable resolution and have reached a tentative agreement subject to Council approval.
DISCUSSION:
The proposed settlement agreement contemplates the City's acquisition of the Motel for $3.6 million with the parties to close on the transaction as soon as practicable. Following the closing, the Motel's former owner will continue to operate the facility as a holdover tenant until January 31, 2019. During the holdover period and for one year thereafter, Fox Valley Hospitality will insure the property with the City named as an additional insured and maintain a $100,000 escrow.
IMPACT STATEMENT:
Approval of this agreement will result in the City incurring the cost associated with the property's acquisition, but allow the City to further its goals to realign Corporate Blvd and redevelop the area consistent with the Tax Increment Redevelopment Plan for the West Farnsworth TIF District No, 7.
RECOMMENDATIONS:
That the City Council approve the settlement agreement and authorize the completion of the acquisition.
CITY OF AU...
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