VILLAGE OF NORTH AURORA
COMMITTEE OF THE WHOLE MEETING MINUTES
FEBRUARY 18, 2019
CALL TO ORDER
Mayor Berman called the meeting to order.
ROLL CALL
In attendance: Mayor Dale Berman, Trustee Mark Gaffino, Trustee Mike Lowery, Trustee Mark Carroll, Trustee Tao Martinez, Trustee Mark Guethle, Village Clerk Lori Murray. Not in attendance: Trustee Laura Curtis.
Staff in attendance: Village Administrator Steve Bosco, Community & Economic Development Director Mike Toth, Public Works Director John Laskowski, Street Superintendent Brian Richter, Deputy Police Chief Joseph DeLeo, Village Attorney Kevin Drendel.
AUDIENCE COMMENTS – None
TRUSTEE COMMENTS – None
DISCUSSION
1. Town Centre Economic Incentive
Community & Economic Development Director Mike Toth stated that since the Town Centre was first approved, there has been a decline in tenants. Best Buy, National Tire and Lazy Boy have all closed.
The original incentive agreement was to pay out $15 million over a 15-year term. The agreement commenced on November 1, 2006 and ends on 10/31/2021.
As of November 2018, $3.2 million has been paid out to Preferred Real Estate, LLC.
North Aurora Town Centre generates $440,000 per year based on the 1% sales tax. Half of that is received by the village and the other half goes to Preferred Real Estate.
Preferred Real Estate owns the inline center between Target and JCPenney and they are looking to lease 35,000 s.f. for a tenant, UFC Gym.
The amendment to the economic incentive agreement being proposed is as follows:
1. The current economic incentive agreement be amended to provide Preferred Real Estate with 100% of the 1% generated in the inline portion of the shopping center (not including Target or JCPenney) for the remainder of the existing agreement. For all other properties the reimbursement terms remain unchanged. (Est. Additional Value $112,500 (2.5 years @ $45,000).
2. All vacant land be removed from the current reimbursement area upon approval of the amended agreement.
3. A new agreement be adopted providing Preferred Real Estate with 100% of the 1% generated in the inline portion of the shopping center for a term of 15 years and a cap of $120,000 per year. (Est. Value $1,350,000 (15 years @ $90,000).
4. Reimbursement of the increased rate would commence upon occupancy of the UFC Gym and include any retroactive payment dating back to the January 2019 sales.
5. All building permit fees, plan review fees and inspection fees for the UFC buildout be waived. (Est. $40,000).
6. Preferred Real Estate relinquish any operation and easement agreement restrictions for permitted uses on all vacant land in perpetuity.
Toth said that the waiving of permit fees would be in the area of $40,000 – $50,000. Toth also noted that the waiving of permit fees is not something new and has been done in the past.
Trustee Carroll asked if the $440,000 in generated sales tax includes Pennys and Target. Toth said it does. Bosco noted that Target and JCPenney are only included for the next 2.5 years.
Trustee Gaffino asked about the kind of foot traffic this would bring to the center. Toth said that he is waiting to hear back from the other location in Downers Grove but has not heard back yet. Toth noted that gyms have higher parking demands which insinuates higher foot traffic than typical retail. Gaffino said he likes the idea of getting another tenant for the area. The rest of the committee agreed.
Toth said that a draft agreement would be presented at the next meeting.
Trustee Gaffino asked if the improvements are limited to the use. Doug Vitale of Preferred Real Estate said that most of the cost will be for plumbing and electrical upgrades and workout rooms as well as demolition and structural engineering.
Mayor Berman said the Towne Centre has not been the most successful development and the village really needs to get tenants in there to assist with the future. The board was in favor of moving forward.
ADJOURNMENT
Motion to adjourn made by Trustee Carroll and seconded by Trustee Gaffino. All in favor. Motion approved.
Respectfully Submitted,
Lori J. Murray
Village Clerk
