cover
TO: Mayor Thomas J. Weisner
FROM: Bill Wiet, Chief Development Services Officer
DATE: April 10, 2014
SUBJECT:
A Resolution Authorizing the Execution of a Development Agreement with Simon Property Group, Inc. / Chicago Premium Outlets for 1901 Bilter Road
PURPOSE:
The purpose if this resolution is to approve a redevelopment agreement by which a financial incentive through Tax Increment Financing District #8 funds will be distributed to Chicago Premium Outlets for the expansion of the current retail facility.
BACKGROUND:
The City of Aurora and Chicago Premium Outlets had executed a redevelopment agreement in 2002 for the construction of the existing outlet mall, which consists of 438,000 square feet of retail buildings. The agreement at the time provided for a combination of sales tax sharing and tax increment financing (TIF) funding from the recently dissolved TIF #2. Similar to the initial agreement, this new agreement reimburses Chicago Premium Outlets Expansion LLC for TIF eligible expenses such as acquisition, site preparation, stormwater management, utility work, etc. from future tax increment in TIF #8.
DISCUSSION:
Chicago Premium Outlets will be undertaking up to a 293,000 square foot expansion to the mall on the eastern portion of the current property as well as 45 acres immediately adjacent to the current mall, which is being acquired. Costs estimates for the expansion are approximately $110,000,000. The proposed agreement consists of the use of TIF funds from the newly created TIF #8 on a pay as you go basis for the life of the TIF (unless reimbursed early), with a supplement of tax rebates from the new portion of the mall that will be located in former TIF #2. The overall funding assistance requested is between $21.5 and $24 Million depending on the ultimate build-out of the mall.
IMPACT STATEMENT:
The development made possible through this development agreement with Chicago Premium Outlets Expansion, LLC, will have a...
Click here for full text