Aurora, Illinois

File #: 24-0692    Version: 1 Name: COA/ DAC/ 3rd Amendment
Type: Resolution Status: Passed
File created: 9/10/2024 In control: City Council
On agenda: 9/24/2024 Final action: 9/24/2024
Title: A Resolution Approving a Third Amended and Restated Redevelopment Agreement Between the City of Aurora, an Illinois municipal corporation, and DAC Development, LLC.
Attachments: 1. RDA - Exhibit A - Legal Description, 2. RDA - Exhibit B - Depiction of Property (ALTA survey), 3. RDA - Exhibit C - Preliminary Project Plan, 4. RDA - Exhibit D - Redevelopment Project Area, 5. RDA - Exhibit E - Redevelopment Project Cost Schedule, 6. RDA - Exhibit F - Affidavit of Compliance (DAC Developments LLC), 7. RDA - Exhibit G - Project Checklist, 8. RDA - Exhibit H Revised Project Timeline, 9. RDA - Exhibit I -City Consent to Collateral Assignment of Redevelopment Agreement, 10. R21-204_fully Executed RDA, 11. R22-227_fully Executed RDA first amendment, 12. R22-408_fully Executed RDA second amendment, 13. The Trillion Dollar Apartment Industry article, 14. Measuring the Economic Impact of Apartment Communities - Multifamily Executive Magazine, 15. Three U.S Cities Reinventing the Modern Waterfront article, 16. Third Amended and Restated RDA
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TO: Mayor Richard C. Irvin/ and City Council

FROM: David Dibo Executive Director, Division of Economic Development

DATE: September 12, 2024

SUBJECT:
A Resolution authorizing a third amendment to and restatement of the approved redevelopment agreement (R21-204) with DAC Developments LLC regarding the development of 100 North Broadway

PURPOSE:
The DAC Development group is requesting to update the existing RDA (approved by City Council on September 29, 2021) in order to change certain milestones within the agreement to maintain an up-to-date timeline in the RDA, and to address increased costs associated with the project

BACKGROUND:
In September 2021 City Council approved a Redevelopment Agreement with DAC Developments LLC. The RDA included Exhibit H which outlined a schedule outlining key steps in the construction process and associated dates.

In July 2022 City Council approved a 1st Amendment to the RDA to update the schedule outlined in the original RDA.

In December 2022 City Council approved a 2nd Amendment to the RDA to update certain milestones within the agreement and to adjust the project budget to reflect COVID 19 induced inflationary impacts on construction costs.

DAC has broken ground on the development and has begun work on the site and foundation construction. This work has uncovered substantial remediation issues not revealed in the prior review of the property. This remediation centered both on the need to remove contaminated soils from the site as well as removal of structures such as foundations as deep as 20 feet below grade.

DISCUSSION:
At the time of the 2nd Amendment which increased the project budget from $68,000,000 to $84,000,000.00, DAC did not make a request for additional City contributions to the project opting instead to test the altered lending environment. In fact, lenders severely tightened their requirements. Specifically loan amounts as a percentage of costs reduced along with higher lending costs. In add...

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