cover
TO: Mayor Robert J. O'Connor
FROM: Rick Guzman, Asst. Chief of Staff
DATE: Nov. 8, 2016
SUBJECT:
A Resolution urging the State of Illinois to extend the River Edge Redevelopment Zone (RERZ) State Historic Tax Credit
PURPOSE:
The RERZ State Historic Tax Credit has been a valuable tool in past redevelopment projects and would be an invaluable resource for the redevelopment of several older, vacant or underutilized structures in the downtown or within Aurora's River Edge Zone. Unfortunately the credit is set to expire on December 31st of this year and so there is no longer sufficient time for this valuable credit to benefit any additional projects unless the credit is extended beyond its current expiration date.
BACKGROUND:
The RERZ State Historic Tax Credit was the most important funding component that made the redevelopment of the former St. Charles Hospital possible. Without it, there would have been at least a $3 million gap in funding and the project would not have moved forward leaving this historic structure vulnerable to further deterioration and possible demolition. Several other downtown buildings would be eligible to use this credit if it were renewed and developer interest is high.
DISCUSSION:
The cost of rehabilitating older, historic buildings is often prohibitive. While Federal Historic Tax Credits are available, they are often insufficient to make the redevelopment of historic structures feasible or affordable without extra assistance. Federal credits can cover up to 20% of eligible renovation/preservation expenses, while the State Credits can cover an additional 25% of eligible costs.
IMPACT STATEMENT:
There is developer interest in using these credits for several buildings--including, but not limited to: the Hobbs Building; the Terminal Building; the Galena Hotel; the former District 129 administration building and several more in the downtown, along River St. and along the Fox River. The extra 25% credit could make the difference in w...
Click here for full text