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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer/City Treasurer
DATE: June 4, 2019
SUBJECT:
A resolution to amend the Redevelopment Agreement (RDA) between UEP Aurora LLC (UEP), Urban Equity Partners, LLC and the City of Aurora to allow for the release of the short term loan of $1,195,408.24 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 3 (h) if proposed TIF district #10 was not approved. The same agreement also provides for the disbursement of the short term loan of $1,195,408.24 upon satisfactory proof that the Terminal building will be eligible for historic tax credits. This has been accomplished and UEP would like to move forward with the redevelopment project. This resolution will allow for this expedited schedule and will make clear that UEP is still responsible for the loan repayment regardless of the disposition of the TIF if they choose to proceed.
BACKGROUND:
In February 2018 the City approved two RDAs involving Urban Equity Partners, LLC and its related entities. One RDA was for the renovation of the Terminal Building at Broadway and Galena and the second for the Keystone Building on Stolp south of Galena. Both agreements included the provision of a short term loan ($1.706 million for Keystone and $1.195 million for Terminal) to be paid back through the use of Historic tax credits within approximately two years depending on the construction/occupancy timing of both buildings. The Keystone loan has not been an issue due to the fact that TIF 9 has already been created. The Terminal loan has not been processed because of the originally anticipated adoption of the new TIF before financing was being processed. UEP Aurora desires (as does the City), to move ahead with their own financing and begin construction. To do this, they also need the City's short term loan financing of $1.195 million.
DISCUSSION:
The C...
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