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TO: Mayor Richard C. Irvin
FROM: Bill Wiet
DATE: November 21, 2017
SUBJECT:
To acquire, through assignment from Invest Aurora, the property at 7 S Broadway, and enter a lease agreement with a tenant. The current owner agrees to open an art gallery and workshop
PURPOSE:
The City of Aurora is the majority landowner on the block, and has in the past acquired properties in this area when the opportunity presents itself. However, other than for municipal purposes, it is the City's goal to lease these properties, which is the case here. This deal will allow the City of Aurora to gain ownership of an additional parcel on the block and also fill a vacant building with a viable business. The leasee has agreed to use the space as an art gallery & workshop.
BACKGROUND:
The City has planned to take the lead in the redevelopment of this block. While most of the City-owned properties are occupied, an effort is underway to lease or occupy the remaining properties. It is anticipated that the future redevelopment may be for municipal purposes, commercial, offices, open space, parking, or a combination thereof. In the meantime, it is in the best interest of the City to lease City-owned properties. The property in question is to be leased to the previous property owner, who has agreed to open an art gallery and workshop.
DISCUSSION:
Invest Aurora took the lead in the negotiations for the acquisition of this property and lease agreement. The term is five years with two five-year extensions. Rent is $10 per month plus $175 annually in lieu of SSA tax and the annual property tax. The City of Aurora will cover the cost of roof repairs, tuck-pointing, and HVAC repairs and provide $23,000 to the tenant for tenant improvements. The city will have the right to terminate the lease with one year's notice. Tenant will receive a relocation reimbursement if the lease is terminated within the first ten years. Reimbursement is $10,000 if the lease is terminated in the first year and...
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