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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer/City Treasurer
DATE: July 5, 2019
SUBJECT:
A resolution to amend the Redevelopment Agreement (RDA) between the City of Aurora and 80 S. River LLC, for the redevelopment of the former West Aurora School District Administration Building located at 80 S. River Street to allow for the release of the grant of $850,000 prior to final adoption of the Tax Increment Finance (TIF) District approval.
PURPOSE:
The RDA provided for the whole agreement to be void in Section 2 (j) if the proposed Benton River TIF district is not approved. The same agreement also provides the Developer in the amount of $850,000 (the "Grant"). The City shall disburse thirty-three percent (33%) of the Grant amount to the Developer upon (i) the developer providing the City with final architectural drawings for the Project; (ii) the building permits being pulled by the Developer for the Project; (iii) completion of all applicable studies and reports; and (iv) the Developer providing the City with proof of sufficient financing, including but not limited to a written loan commitment from a registered bank, chartered credit union or other financial institutions and pledged equity, to fulfill its obligations under this Agreement. The City shall disburse the second thirty-three percent (33%) of the Grant amount upon the satisfactory completion of the rough-in inspection for the Project. The City shall disburse the final thirty-three percent (33%) of the Grant amount upon the Developer's receipt of the Certificate of Project Completion, as is hereinafter defined. This resolution will allow for 80 S. River to proceed and for the City to disburse according to the above schedule. The developer will need to make a substantial investment in the project in order to receive all three payments and as such the investment of the $850,000 will result in substantial improvement of the property regardless of the disposition of the TI...
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