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TO: Mayor Thomas J. Weisner
FROM: Bill Wiet, Chief Development Services Officer
DATE: December 2, 2014
SUBJECT:
To request authorization to execute a Redevelopment Agreement with Fox Island Apartments LLC which would allow for Fox Island Apartments LLC ("Developer") to acquire the city owned building at 77 South Stolp Avenue, commonly known as the Elks Club Building. This agreement would also provide the Developer partial reimbursement for the recent acquisitions of 7 South Stolp Avenue, commonly known as the Leland Tower, as well as 33-35 South Stolp Avenue, commonly known at the Graham Building. All three buildings are planned for residential units above the first floor, plus commercial/restaurant uses on the street level. The total investment cost of all three buildings (acquisition and rehab) is estimated at $12.4 Million. The City's total contribution pursuant to this agreement amounts to 9.7% of the total investment.
PURPOSE:
The City of Aurora has owned the Mayan Revival Elks Club Building for 14 years. While it has been used in the past as offices for the Aurora Election Commission and more recently rehearsal space for the Paramount Theatre, it has largely remained vacant. The City has attempted in the past to sell the property, but with the combination of hotel rooms, a banquet/ballroom and a restaurant, it was difficult to find an operator with expertise in all three functions. After recent attempts to redevelop the property failed due to the economic downturn, there has now been renewed interest in the building.
BACKGROUND:
Both the City and Seize the Future Development Foundation (STFDF) have been working to both expand and enhance residential development downtown, as well as market the Elks Building for possible mixed use. STFDF went out and solicited RFP's for the redevelopment of the Elks Building. After receiving several proposals, Karademas Management was recommended by the STFDF Board. Given that the Developer owns the L...
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