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TO: Mayor Richard C. Irvin
FROM: David Dibo, Executive Director
DATE: September 10, 2019
SUBJECT:
A Resolution Authorizing a Redevelopment Agreement (RDA) between the City of Aurora and JH Real Estate Partners, LLC (JH) for the redevelopment of the 2-4 North River Street, commonly known as the Hobbs building and the 6-12 North River Street.
PURPOSE:
To facilitate the redevelopment and leasing of the long vacant 2-4 N. River Street (Hobbs) and 6-12 N. River Street, (6-12) that will include incentives provided by the City of Aurora (COA).
BACKGROUND:
On May 2018, JH Real Estate Partners LLC, (JH) whose managing members are Jay Punukollu and Harish Ananthapadmanabhan purchased two vacant buildings at 6-12. JH approached COA about combining 6-12 with Hobbs to create one unified development with market rate residential and retail on the ground floor. COA had long advocated the simultaneous development of both properties that would provide construction, design and marketing efficiencies and had indicated that it would use best efforts to negotiate an agreement with the owner of 6-12 for the combined development. The vacancy of the architecturally significant Hobbs building on the prominent corner of Galena and River has long been a blight on the City and symbolic of the unrealized potential of the downtown. Redevelopment has been targeted as a key building in the "first wave "of downtown redevelopment that includes Terminal. Keystone, and 80 South River, all now in various phases of redevelopment.
The importance of the Hobbs building and its precarious physical condition necessitated more time and due diligence than the other first wave participants. COA wanted to be sure that the developer had the wherewithal, not only financial, but also the experience and track record to complete this challenging project. This past winter's frigid temperatures took a further toll on the building's masonry and structure. How this time sensitive and costly issue would be...
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