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TO: Mayor Robert J. O'Connor
FROM: Bill Wiet, Chief Development Services Officer
DATE: January 17, 2017
SUBJECT:
To approve a supplemental grant not to exceed $36,000 to Save-A-Lot grocery store at 210 N. Lake Street for the installing of flooring within their retail sales area.
PURPOSE:
To cover the current cement flooring with a tile material that will provide a necessary aesthetic improvement to the already completed grocery store which has been a valued addition to the neighborhood.
BACKGROUND:
On February 11, 2014, the City of Aurora passed Resolution Number R14-015. This Resolution authorized the execution of a Development Agreement with 210 N Lake Street, LLC for the redevelopment of the property located at 212 N Lake Street and 221 Spruce Street. The redeveloped parcel has become a Save-A-Lot Foods, and received $600,000 in TIF 5 funding for a total investment of $2.6 Million.
The City of Aurora agreed to the allocation of $600,000 from TIF District #5 for the project. This amount is equivalent to 22.88% of total budgeted project costs.
DISCUSSION:
As with many redevelopment projects, the actual costs are higher than budgeted. Actual cost was over $2.7 Million. With the additional cost, the contribution from TIF District #5 falls to 21.92% of project costs. Were the City of Aurora to maintain the original budgeted percentage contribution to the redevelopment project, TIF contribution would amount to $626,224.68.
Due to project overages, the developer was not able to complete renovation on the supermarket's floors. The projected cost of completing this work is estimated at $46,000. With these additional costs factored in, the contribution from TIF District #5 falls even lower, to 21.56% of project costs. Were the City of Aurora to maintain the original budgeted percentage contribution to the redevelopment project, TIF contribution would amount to $636,000. The additional grant amount of $36,000 is available in the Tax Increment Financing Ac...
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