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TO: Mayor Richard C. Irvin
FROM: Rick Guzman, Manager of Neighborhood Redevelopment
DATE: November 3, 2017
SUBJECT:
To approve a Development Agreement between The City of Aurora and The Aurora Revitalization Owner LLC (formed by The Development Partner, The Community Builders) for the Redevelopment of residential units 2 - 20 S. Stolp Avenue; 5 E. Galena Blvd. and 104 E. Downer Place.
PURPOSE:
Attached is a Development Agreement that covers the development of the residential portions of the buildings at 2 - 20 S. Stolp; 5 E. Galena Blvd.; and 104 E. Downer Place. This agreement is strictly between the City of Aurora and "The Aurora Revitalization Owner" formed through the City's development partner, The Community Builders (TCB), a nationally renowned, non-profit developer that has expertise in utilizing Historic Tax Credits and other tax credit financing to redevelop vacant buildings into vibrant, mixed-use centers for artist residences, retail and community center-type spaces.
BACKGROUND:
On December 13, 2016, the City Council passed Resolution R16-385 (attached), which approved a Development Agreement with the same entity, "The Aurora Revitalization Owner," to provide an equivalent amount ($600,000.00) of federally provided HOME funds subject to nearly identical repayment and other terms and conditions set forth in this new Development Agreement (Exhibit 1). Accordingly, such HOME funds have already been set aside and reserved by the Neighborhood Redevelopment Division of the City of Aurora for this very purpose.
Subsequent to the passage of R16-385, HUD staff instructed the City not to execute an agreement that formally committed the HOME funds until after January 28, 2018 at which point the 15-year "period of affordability" attached to the current project and current ownership at of the property at 104 E. Downer Place (commonly known as "Coulter Court") shall expire. HUD cited Federal Regulation 24 CFR 92.214(a)(6) as effectively prohibiting HOM...
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