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TO: Mayor Thomas J. Weisner
FROM: Daniel Barreiro, Chief Community Services Officer
DATE: February 12, 2016
SUBJECT:
A Resolution Approving the Execution of an Amendment to a Development Agreement for a HOME Program Loan Between the City of Aurora and VeriGreen Development, LLC (DBA Aurora St. Charles Senior Living L.P.) for a Senior Housing Development in the City of Aurora.
PURPOSE:
To amend a HOME Development Agreement with Aurora St. Charles Senior Living L.P., LLC to extend the loan term from thirty (30) years to forty (40) years.
BACKGROUND:
The proposed loan term amendment has been requested by the Illinois Housing Development Authority so that the City's subordinate 30-year loan term is coterminous with IHDA's first mortgage loan ($2,975,000.00) term of 40 years.
DISCUSSION:
The Aurora St. Charles Senior Living project involves the acquisition and rehabilitation of the former St. Charles Hospital located at 400 E. New York St. The project's total development cost is approximately $22 million and has been funded by a private first mortgage, federal and Illinois state historic tax credits (River Edge Redevelopment Zone credits), Low Income Housing Tax Credits from IHDA, and deferred developer fee. Approximately 25% of the financing for this project is coming from additional State Historic Tax Credits made possible through the River Edge Redevelopment Zone (RERZ). In order to receive these vital tax credits, the developer needs to have a Certificate of Occupancy by the December 31, 2016 expiration of the RERZ program. In order to allow enough time for the construction schedule as per the RERZ deadline, all funding components officially closed on December 18, 2015.
Through the Development Agreement, the City committed $500,000 (2014: $392,304.74 and 2015: $107,695.26) in HOME Entitlement funds to the project.
On November 25, 2015, the City received a request from IHDA to make the City's 30-year loan term coterminous with ...
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