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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer/City Treasurer
DATE: November 20, 2019
SUBJECT:
Approval of a resolution authorizing Tax Increment Finance District (TIF) Feasibility Study River and Galena/JH Real Estate Partners (JH), using the services of Kane McKenna.
PURPOSE:
To analyze the possibility of creating a Tax Increment Finance District in the area of the corner of Galena Blvd. and River St.
BACKGROUND:
The City has recently approved a Redevelopment Agreement (RDA) with JH (the Hobbs Building) for the redevelopment of the area around the corner of Galena Blvd. and River St. as defined in the attached map. As shown in the RDA the creation of a TIF is necessary for the execution of the agreement. Kane McKenna has provided previous TIF District and other development tool analysis for the City in previous agreements throughout the City
DISCUSSION:
Kane McKenna has provided TIF consulting work on all of the current active TIFs for the City. The firm provides timely responses, flexible scheduling and is an accepted expert in the field of TIF eligibility analyses throughout Illinois. As noted in the attached proposal Kane McKenna will provide complete advisory services and work closely with the City's outside counsel, Klein Thorpe and Jenkins on the total TIF approval process. This contract will initially be charged to account 215-2502-415.32-80, but eventually can be reimbursed from the TIF funds once set up. A budget transfer from account 215-4010-417.7101 in the Gaming Fund for will be used to fund these initial expense that were not originally budgeted in the 2019 Budget and if work continues past December 31, 2019 into the 2020 budget for the same accounts.
IMPACT STATEMENT:
This analysis will allow the City to move forward with a critical development project improving the Downtown.
RECOMMENDATIONS:
We recommend approval of this agreement with Kane McKenna by resolution of the City Council in an amount not to exceed $34,000.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution authorizing an agreement with Kane McKenna and Associates to perform a Tax Increment Financing (TIF) District Eligibility Study for the Galena Blvd./River Street area as attached..
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, The City has employed Kane McKenna to determine TIF eligibility for previous development areas; and
WHEREAS, funding for this agreement will be in account 215-2502-415.32-80 after a budget transfer is completed; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: That the Chief Financial Officer is authorized to enter into an agreement with Kane McKenna and Associates for the completion of a TIF eligibility study in an amount not to exceed $34,000 for the Galena Blvd and River St. area as defined in the attached area map.