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TO: Mayor Robert J. O'Connor
FROM: Rick Guzman, Assistant Chief of Staff
DATE: November 29, 2016
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 and 32 S. Broadway.
PURPOSE:
Attached is a Development Agreement that covers the development of the residential portions of the buildings at 2 - 20 S. Stolp and 32 S. Broadway. 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:
There are two separate, but "companion" development agreements because there will need to be separate ownership partnerships established for (a) the residential portions of the buildings at 32 S. Broadway and 2 - 20 S. Stolp; and (b) the commercial portions of the buildings located at 5 E. Galena Blvd. and 2 - 20 S. Stolp. This is necessary because separate tax credit investors will need to be part of the ultimately separate partnerships created to hold the properties and ensure compliance with the different Tax Credit requirements.
DISCUSSION:
The residential portion of redeveloping these two buildings is almost entirely funded by affordable housing Tax Credits (LIHTC) and Federal Historic Tax Credits so the City only has to invest $600,000 of federal pass-through dollars to leverage more the more than $20 million of the total $35 million budget that will be applied to the renovation and/or creation of housing units.
Together with the Companion Development agreement, these agreements authorize a total City contribution ...
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