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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer/City Treasurer
DATE: February 20, 2018
SUBJECT:
Business Improvement District (BID) and Tax Increment Finance District (TIF) Feasibility Studies - Yorkshire Plaza
PURPOSE:
To analyze the possibility of creating a Business Improvement District and a Tax Increment Finance District in the area commonly known as Yorkshire Plaza
BACKGROUND:
The City is in negotiations with a developer for the revitalization of the Yorkshire Plaza. As a part of this negotiation the City is examining development tools to provide incentives for the redevelopment of the Plaza. Kane McKenna has provided previous TIF District and other development tool analysis for the City in previous agreements throughout the City.
DISCUSSION:
Kane McKenna has consulted with the City of Aurora on a variety of economic development activities including the creation of TIF Districts. As a part of the development negotiations for Yorkshire Plaza, the City is reviewing a relatively new tool under Illinois Statute, the creation of a Business Improvement District or BID.
Unlike a TIF, a BID uses additional Sales Tax as the funding mechanism. The businesses within the BID may charge up to a 1.0% additional sales tax. Kane McKenna will provide an analysis for both the formation of a TIF and a BID at this site. This analysis is required under Illinois statute.
IMPACT STATEMENT:
Not applicable.
RECOMMENDATIONS:
That the City Council approve the attached resolution approving the attached consulting agreements. The first agreement for the Feasibility Study for a BID is for an expected not to exceed amount of $12,500. The second agreement for the Feasibility study for a TIF is for an expected not to exceed amount of $37,500 for a combined cost of Phase I and II of the TIF study. TIF and related consulting studies are budgeted in account 215-2502-415.32-80 in the amount of $15,000, and an additional amount of $35,000 will b...
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