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TO: The Mayor and City Council
FROM: Jessica Kalal
Assistant Corporation Counsel
DATE: May 26, 2020
SUBJECT:
Rent deferrals for City tenants due to COVID-19
PURPOSE:
The purpose of this resolution is to authorize the Director of Finance to enter into rent deferral agreements on behalf of the City with its various tenants.
BACKGROUND:
The City has received requests from several of its tenants for rent deferrals due to lost revenue as a result of COVID-19. The City Council approved a rent deferral agreement with Subway at its April 28, 2020 meeting (R20-099). The City has received additional requests from other tenants requesting similar reductions in rent due to COVID-19.
DISCUSSION:
The proposed resolution will authorize the Director of Finance to enter into rent deferral agreements on behalf of the City with those City tenants affected by COVID-19. This would provide for a more efficient process and negate the need to seek City Council approval each time for similar agreements.
IMPACT STATEMENT:
The impact on the City is positive as the City will be assisting local businesses by allowing for a rent reduction due to COVID-19. The proposed resolution will allow City staff to respond to and work with City tenants quicker and more efficiently as these requests are made.
RECOMMENDATIONS:
That the Council approve this Resolution.
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution authorizing the Director of Finance to enter into rent deferral agreements with City tenants who have experienced a loss of revenue as a result of COVID-19.
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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, many local businesses have experienced a loss of revenue due to COVID-19, some of which are City tenants; and
WHEREAS, the City has received requests from a number of its tenants for rent deferrals as a result of COVID-19; and
WHEREAS, the City determines it to be in the best interest of the City and its tenants to authorize the Director of Finance to enter into rent deferral agreements without further approval from City Council.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: the Director of Finance is hereby authorized to enter into rent deferral agreements with City tenants who have experienced a loss of revenue as a result of COVID-19.