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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer/City Treasurer
DATE: March 14, 2019
SUBJECT:
A Resolution With Respect to the Potential Reimbursement of Eligible Costs in a Possible Tax Increment Finance District (TIF) and to Induce Development Interest within Such Area (Terminal Building at Galena and Broadway and surrounding property)
PURPOSE:
Adoption of a Reimbursement Resolution is the first step following the approval of the Redevelopment Agreement (RDA) with Urban Equities for the redevelopment of the Terminal building at Broadway and Galena. This resolution will allow initial expenses to be reimbursed by the TIF once formed later in 2019.
BACKGROUND:
The Terminal Building at Broadway and Galena has remained vacant on the upper floors decades. The City Council recently approved a RDA with Urban Equities (UEP Aurora, LLC) to redevelopment the entire building into a mixed use of 1st floor restaurant and upper floor residential space at an estimated cost of $6.5 million.
Urban Equities plans to use a variety of sources to fund this redevelopment including grants, loans, tax credits and TIF revenues paid solely from the development. The City negotiated a "pay as you go" sharing of TIF revenues on an 80/20 split with Urban Equities.
DISCUSSION:
The redevelopment of the Terminal Building is a part of the first wave of redevelopment in the downtown using Micro-TIF that will only involved a small area of the downtown. The City Council will be asked to approve the removal of property from TIF 1 to allow for this property to become a new TIF as the City Council did for TIF 9
The creation of the new TIF is critical to the redevelopment agreement and without it, the RDA is void. As such the City will be moving transparently, yet expeditiously to form the new TIF through the same process used in creating TIF #9, the Stolp Island TIF.
IMPACT STATEMENT:
Adopting this resolution will allow for initial costs incurred duri...
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