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TO: Mayor Richard C. Irvin
FROM: Bill Wiet, Chief Development Services Officer
DATE: October 16, 2017
SUBJECT:
To approve a Redevelopment Agreement with the Fox Valley Music Foundation (FVMF) for the City-owned building at 19-21 South Broadway which provides a TIF grant of $110,000 (requested change to $125,000 per Finance Committee discussions)to the Foundation for interior demolition and some building improvements. Along with the Redevelopment Agreement, if approved, are approvals for the City of Aurora to begin separately environmental remediation ($50,000) and exterior parapet work ($15,000) on the building.
PURPOSE:
The purpose of this agreement is to request a Tax Increment Financing Grant from 2018 TIF District 1 funds to fill a currently vacant building acquired by the City of Aurora in 2015 for future redevelopment purposes. The FVMF has found the size of the building's first floor a fitting location for a music venue, retail facility, museum, office and studio. The FVMF has also recognized the art and cultural synergy within the block and wishes to expand upon that synergy with the location they have chosen.
BACKGROUND:
The FVMF has been interested in this building for the past two years. But the City has also been strategically acquiring properties in this block of Broadway for redevelopment purposes. It is the desire of the City to one day demolish these properties. The demolition estimate for the 19-21 South Broadway building is $400,000. Knowing this and the possible time frame for when it might occur, the FVMF and the City have been careful not to add too much value to the building. Many of the functions are to the benefit of future demolition (abatement, interior demo, etc.), and/or can be considered portable (if there is some useful life to the equipment) and non-permanent.
DISCUSSION:
The TIF grant amount to the FVMF is $110,000 (with a 10% contingency) (requested change to $125,000 per Finance Committee discussions). As indicated ...
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