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TO: Mayor Robert J. O'Connor
FROM: Bill Wiet, Chief Development Services Officer
DATE: April 20, 2017
SUBJECT:
To provide financial assistance in the amount of $310,000 to M14 Properties to help in the construction of a 39,200 square foot basketball skills development center, using Tax Increment Financing District No. 7 funds, as well as a property tax rebate.
PURPOSE:
M14 Hoops provides basketball skills development for boys and girls in grades 3-12. They also sell apparel and digital ball handling workout programs. For the past six years, M14 Hoops has been renting court time from facility located at 525 N Washington Street in Naperville. To accommodate their increased need for court time, they will be building a new 39,200 square foot facility near the intersection of Church Road and Corporate Boulevard.
M14 Hoops anticipates bringing sixteen full-time and sixteen part-time jobs to Aurora in the first year of the project. Two years from now, that number will grow to twenty full-time and sixteen part-time jobs. With an expected salary of $40,000 per full-time job, this represents an annual payroll of $1,120,000.
BACKGROUND:
Since selecting the site, the budget for the entire project has increased from $4,900,000 to $5,210,000. The budget increases are due to unforeseen infrastructure and site costs including looping the water main from Raddant Road, acquiring two easements from NiGAS to bore directly underneath the gas main and extending sewer and water. As a result there is a $310,000 gap in the project.
M14 Hoops has been approved for a loan in the amount of $310,000.00 under the Aurora Township Development Assistance Program (CDAP). The CDAP is a revolving loan fund that is used for companies that are locating or expanding in Aurora Township. Projects are required to benefit at least 51% low-to-moderate income individuals and are required to create at least one job for every $15,000 loaned. The loan term will be 10 years at an interest rate ...
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