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TO: Mayor Thomas J. Weisner
FROM: Bill Wiet, Chief Development Services Officer
DATE: July 1, 2016
SUBJECT:
To consider a development agreement that would give the City ownership of the former West Aurora School Administration Center at 80 South River Street. Also, the West Aurora School District (SD 129) will be acquiring Dreyer's former clinic at 1870 West Galena Boulevard. A property tax rebate will be provided to Dreyer from real estate property taxes (City share only) collected from their tax paying properties at 1221 North Highland Avenue and the soon to be open new facility at 2285 Sequoia Drive. This would allow SD 129 to acquire the former clinic at a reduced price. An announcement by the School District of their intentions was made public November of 2015.
PURPOSE:
This action would allow the 80 South River property to be actively marketed by the City, which ultimately could place this building back on the tax rolls. Properties similar to this on the Fox River have garnered a lot of developer interest and the City is confident that this property could have a user in the not too distant future. This action also fulfills SD 129's vision for an early learning center at the former clinic site.
BACKGROUND:
The disposition of Dreyer's Galena Boulevard building came up pursuant to a variation request for their new facility on Sequoia Drive. Dryer had indicated that they would be vacating the Galena site, and the City had concerns about the future of the building in its vacant state. An agreement was reached with Dreyer that would have them begin to market the building, and also insure that if there were no buyers, Dreyer would demolish the building, with a $500,000 letter of credit to the city to guarantee this happens.
DISCUSSION:
SD 129 will be purchasing the former clinic for $600,000, which is below the fair market value of the property. The City will be providing Dreyer Clinic, Inc. with a $150,000 property tax rebate in or...
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