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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer/City Treasurer
DATE: May 6, 2019
SUBJECT:
Approval of a resolution authorizing Lines of Credit (LOC) with Old Second Bank and Fifth Third Bank for a not to exceed amount of $10.0 million at each institution.
PURPOSE:
The City of Aurora has approved multiple development agreements, all of which involve the grant or loan of funds totaling $8.8 million. The issuance of an LOC provides for a low interest rate and flexible funding vehicle for these agreements over the next two to four years. The City anticipates further developments to occur over the next year both in the downtown and throughout the City, and therefore having LOCs at two institutions for the above requested amounts will allow for developments to proceed efficiently. These LOCs will not be accessed without approval by the City Council on a project by project basis.
BACKGROUND:
In February 2019 the City approved three development projects that total $5.8 million in grants and short-term bridge loans, and in 2018 the City approved Phase I of the Old Copley Renovation for a not to exceed grant amount of $3.0 million (August 28, 2018). Financing these actions can occur from either available funds or from debt. These transactions will also be eventually accounted and budgeted for in multiple funds, some of which will not be created until the relevant Tax Increment Finance (TIF) District is create. Below is a listing of these activities:
1) UEP (Urban Equity Partners) Keystone Building - $1.706 million bridge loan, $1.425 million grant to be provided in three milestones - TIF #9 Stolp Island
2) UEP Terminal Building - $1.195 million bridge loan, $600,000 grant to be provided in three milestones - Proposed TIF #10 Galena/Broadway.
3) 80 S. River LLC, 80 S. River building - $850,000 grant - Proposed TIF #11 Benton River St.
4) Fox Valley Developers LLC, Old Copley Hospital Renovation Phase I - $3.0 million grant - Propo...
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