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TO: Mayor Richard C. Irvin
FROM: David Dibo, Executive Director
DATE: February 22, 2019
SUBJECT:
Request authorization to execute the Sales Tax Sharing Agreement with Pacific Square LLC. The agreement calls for the sharing of sales tax revenues between the City of Aurora and Pacific above the 2017 base year of approximately $750,000 for a ten year period not to exceed $4.0 million.
PURPOSE:
Sales Tax sharing was part of an incentive package given to Pacific as an inducement to move forward with their purchase, renovation, reposition and expansion of the former Yorkshire Plaza shopping center located on New York Street and State Route 59. The three tiered incentive package as approved by City Council on February 27th 2018 (R18-048 Resolution was passed on February 27, 2018). This document memorializes the parameters spelled out in that approval.
BACKGROUND:
With the retail market nationally in rapid decline and vacancies at Yorkshire in particular chronically in the 50% range, the City entered into negotiations with Eddie Ni of the Windfall Group. Windfall is an international business with a variety of interests with a demonstrated expertise and significant portfolio in real estate. Mr. Ni has repositioned retail shopping centers in the United States by concentrating on securing Asian themed vendors that mix seamlessly with other more traditional stores. He and his team determined that Yorkshire was well positioned to offer a bustling urban 'Chinatown" experience with an active releasing program, substantially redesigning and upgrading the existing 362,000 square foot shopping center, and planning for other mix uses including office and residential. Currently the center is 90% leased with a new Park and Shop Market grocery store. With a $100 million dollar investment for a three phased site optimization, Ni was granted a $15 million incentive package that allows Ni to share in incremental taxes that Pacifica Square itself is generating. The Sales Tax sh...
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