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TO: Mayor Thomas J. Weisner
FROM: Bill Wiet, Chief Development Services Officer
DATE: April 29, 2014
SUBJECT:
The purpose of the Intergovernmental Agreement is to provide a real estate tax rebate to Chicago Premium Outlets Expansion LLC, and Simon/Chelsea Chicago Development, LLC to assist financially in the expansion of Chicago Premium Outlets.
PURPOSE:
The Redevelopment Agreement, approved by City Council at their April 22, 2014 meeting, provides for up to $24 Million in assistance toward the outlet mall's expansion. The majority of the funding toward the expansion is from revenue generated in the newly created Tax Increment Financing (TIF) District 8. The other source of funding, $4 Million, will be distributed to the developer by way of a real estate tax rebate. $3.2 Million will come from Batavia Public School District 101, and $800,000 will come from the City of Aurora. The attached Intergovernmental Agreement is pursuant to Section 4.7 of the redevelopment agreement (Mechanics of the Rebate Credits). The IGA was reviewed and approved by the Batavia Public School District 101 at their April 22 Board meeting, and now awaits final approval from the City of Aurora.
BACKGROUND:
Pursuant to the agreement, the City of Aurora and Batavia Public School District 101 agree to rebate a portion of the real estate taxes collected in what was formerly known as TIF #2 and more specifically the area in the former TIF district that new construction will occur. The IGA has a ten-year period in which the real estate taxes in this specific area will be rebated to the developer, or until the full amount is rebated, whichever is less.
DISCUSSION:
This Intergovernmental Agreement, along with the provisions of the Redevelopment Agreement, provide the necessary funding to complete the major expansion of Chicago Premium Outlets. And it does so in a way that protects future sales tax revenues. There also is a mechanism in the redevelopment agreement that...
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