cover
TO: The Honorable Mayor and City Council
FROM: The Law Department
DATE: November 2, 2018
SUBJECT:
An Ordinance approving a settlement agreement between the City of Aurora and G6 Hospitality Property, LLC for the acquisition of real property located at 2380 N Farnsworth Ave, commonly known as Motel 6.
PURPOSE:
To resolve the City's pending eminent domain litigation against the owners of the Motel 6 and acquire it for roadway construction and economic development purposes.
BACKGROUND:
Following negotiations with the owner of the motel, the City brought a condemnation action in 2016 seeking to acquire the property to facilitate the reconstruction and realignment of Corporate Boulevard. Approximately one year ago, the parties reengaged each other in settlement talks before reaching an agreement in principle earlier this spring. Counsel for the parties negotiated the particulars and the timing of the transaction during the summer with the final documents tendered to the City on November 1.
DISCUSSION:
The proposed settlement agreement contemplates the City's acquisition of the Motel for $3.4 million with the parties to close on the transaction on January 31, 2019. Motel 6 will continue to operate the motel until the sale closes. Motel 6 is responsible for insuring that the site will be free of all tenants and guests at the time of closing.
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 AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance authorizing the acquisition of certain real estate commonly known as 2380 Nor...
Click here for full text