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TO: Mayor Richard C. Irvin
FROM: David Dibo, Executive Director
DATE: March 22, 2019
SUBJECT:
A resolution authorizing certain revisions of a Real Estate Purchase and Development Agreement with Mora Asian Fusion Bolingbrook, LLC to facilitate the redevelopment of certain real property located at 43 E Galena Ave. in the City of Aurora, commonly known as the "Vargas Building."
PURPOSE:
These revisions will facilitate the opening of the restaurant by allaying concerns expressed by potential investors in the restaurant.
BACKGROUND:
In February, Council approved the initial agreement with Mora to acquire, renovate and open one or more restaurants in the Vargas/Culture Stock building.
DISCUSSION:
After Council approval, Mora learned that its investors were troubled by language in the agreement that gave the City broad discretion to reacquire the property at fair market value if it chooses to. The likelihood that the City will want to or will opt to buy back the property is low and detailing these circumstances bogged down the simplicity of the intent of the initial agreement, which is to get the restaurant opened. Because a municipality always has a right of eminent domain, attorneys for both sides agreed that maintaining this endless right was a "belt and suspenders" that was not needed. Mora has proposed narrowing the City's shorter term option so that the City may require in two situations: First would be if the restaurant was not to open at all in the first 12 months and the second would be if the restaurant were to close by year six. Each instance, would create an option (but not an obligation) on the part of the City to reacquire the building. In the first instance, the price would be 100% of the structural improvement costs, in the second 100% of the structural improvement costs plus the appraised value of the property.
IMPACT STATEMENT:
Because the City always has the option to reacquire the property through eminent domain, the City's attorney and...
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