Dolan & Murphy partnership with Caton announced at COW

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By Jason Crane

At the Aurora city government Committee of the Whole meeting Tuesday, through the Zoom video conference platform, the City Council heard a merger announcement from Brian Dolan, former managing broker with Dolan & Murphy commercial real estate agency in Aurora.

“As of today, December 1st, we are officially starting a strategic alliance with Caton Commercial and our firms are going together.

“We’ve been working on this for about a year.

“The Dolans feel very highly about the Caton family and their tradition and their capability. They are a tremendous commercial company.

“We will be with them and will be working on those properties (in Aurora) as much as the Catons will be.”

Dolan & Murphy, Inc, formed in 1965, has been involved in the syndication and ownership of neighborhood shopping centers and industrial facilities in excess of $30,000,000.00, as well as Dolan and Murphy Management, LLC, a company responsible for the management of close to 1 million square feet of retail, office and industrial properties over the past 15 years. Brian Dolan has been involved in excess of $300,000,000 of real estate transactions in his 38 year career.

Brian is on the Board of Directors for NICAR (Northern Illinois Commercial Association of Realtors) having been named its Realtor of the Year for 2014 and is on the Illinois Association of Realtors Commercial, Industrial, and Investment Committee. Dolan is an active member in the Association of Industrial Real Estate Brokers (AIREB), an Association of the leading Industrial Brokers in the Chicagoland area, the Montgomery Economic Development Corp, and principal supporter and co-chairman of the Board of Directors for the Marie Wilkinson Food Pantry, and current member of the Board of Directors for Oak Trust Credit Union. He is married to wife, Kathryn, who have five children, 11 grandchildren and two great-grandchildren.

With their headquarters in Naperville and an office in Chicago, Caton Commercial Real Estate Group was founded by Bill Caton in the late 1980s. The group is listed as a third-party brokerage firm specializing in retail leasing, commercial investment sales, land development services, industrial leasing and sales, and property management primarily in suburban Chicago.

• Aurora Ward 10 alderman Judd Lofchie requested a resolution authorizing the execution of an exclusive listing agreement with JBSC, INC. D/B/A Caton Commercial Real Estate Group, to be placed on unfinished business for further review.

Lofchie had concerns about some of the fees, “We don’t typically get paid on renewals and I think eight percent for a sale is a little high.

“I want to make sure it’s going to be split or at least close so the cooperating broker gets half or close to half. I think a couple other things need to be clarified.

“My other big issue is why is the City leasing property? I know with the garage, you probably have to, but the other three?

“I don’t know why we wouldn’t sell them and get them back on the tax rolls?”

David Dibo, director of Economic Development for the city of Aurora government replied, “Our rents might be half of what rents would be in some of our neighboring cities and the result in the commissions which is a function of that are half.”

Aurora city government records show the purpose of the request is to formally engage a full service regional commercial real estate firm known for blending a community focus with a wide range of professional contacts and experience.

The four properties covered in this listing agreement are: 35 W. New York St., 5 E. Downer Pl., 33 S. Broadway, and 51 E. Galena Boulevard.

The City’s plan to hire Caton with a one-year agreement is to build on the momentum of recent downtown development by attracting new users/tenants into the core of the City that provide services and create interest for existing and new residential and office users. 2) To fill vacant storefronts that are visually unattractive and create the impression of a less than vibrant local economy 3) To create synergies with other merchants so that patrons can look to the downtown for a “full service experience” 4) To generate revenues for the city though lease income and sale proceeds and resultant sales, food and beverage and property taxes and 5) To make a positive contribution to the local market economy that will enable rents and values to more closely reflect other healthy commercial markets.

Invest Aurora began discussions with Caton about a year ago.

Autumn Psaros, Caton senior vice president, said, “We’re taking four properties to market to see what we can do with those and how we can help.

“We are working on 100% commission. We only get paid if we perform.

“If we accomplish your goals that you have set out and the things that we say we can do, that’s the only way that we will get paid.”

• Consent was given to a resolution authorizing the Director of Purchasing to purchase a VAC-CON Combination Sewer Cleaning machine from EJ Equipment 6949 N. 3000 E. Rd. Manteno, IL 60950 in the amount of Three Hundred and Ninety Thousand Six Hundred and thirty nine Dollars and no Cents. ($390,639.00).

• Consent was given to a resolution establishing the maximum number of Class A: Package Sales (Beer and Wine) and Class B: On-Site Consumption licenses (unofficially related to the application from Casa Blanca Supermercado, Inc., at 770 Claim Street, Aurora.

• Consent was given to a resolution Authorizing Well Maintenance Services for Well No. 129 for the Water Production Division.

• Consent was given to aResolution Authorizing a Scheduled Inventory Reagent Replacement Plan with the HACH Company for the Water Production Division

• Consent was given to a resolution authorizing purchases from IDEXX Laboratories, Inc., for budget year 2021 for the Water Production Division

• Consent was given to a resolution Ratifying payment to Rush Truck Centers of Illinois for the replacement of the main engine in Truck 6 for the Aurora Fire Department in the amount of $59,645.00.

• Consent was given to a resolution Authorizing and Approving a Business Development District Sales Tax Sharing Agreement with Pacific Square, DE LLC and Authorizing and Approving the Use of Business District Taxes to Reimburse Pacific Square, DE LLC for Eligible Costs in Redeveloping Pacifica Square Shopping Center.

Staff is requesting authorization to reimburse the developer for their eligible costs in redeveloping Pacifica Square Shopping Center. The Business District Development District Tax Sharing Agreement is the Mechanism that allows the City to Use the Business District Taxes to reimburse the Developer for their eligible costs in redeveloping the shopping center.

This resolution is the final step in a series of Council actions that created mechanisms that enables the City to impose tax on customers of merchants within the center to help defray the significant costs of redevelopment of the center. This is one leg of a three-tier approach of an incentive package that keys off new dollars created by virtue of the shopping center’s redevelopment. (In February when the Center was purchased, occupancies were running about 40%; they are now above 90%)

The City previously passed ordinances creating the Business Development District and imposing a Business Development District Tax. On June 11, 2019, the City approved Ordinance (O19-225) that proposed the plan for creation of a Business District and on August 27, 2019 designated the Aurora Business District no. 1 with ordinance O19-057. With its formation, on the same date the City approved the Business District Retailer’s Occupation Tax (O2019-058) that allows for the imposition of up to a 1% tax imposed in 0.25% increments. On September 24, 2019, the City amended O2019-058 to set the tax imposed at the rate of 0.25% (O2019-063). This final resolution enables the City to use the Business District Taxes to reimburse the Developer from taxes specifically imposed within the Business District.

As recently reported, the developer (Pacific Square, DE, LLC) has made significant improvements to the shopping center and has created a unique brand that has garnered much attention with their countercyclical retail success. They have plans to add additional structures to create more traffic and increased sales that will enhance the retail, shopping and dining experience for its growing patronage. This resolution is a key element to approve a financial mechanism that has facilitated this redevelopment.

The resolution will enable the developer to continue to meet its obligations as part of a financial structure that is the foundation OF the success of the Pacifica Square shopping center.

• Consent was given to a resolution to contract with MDI Access Data Center Solutions (“MDI”), 123000 S Keeler Ave, Alsip, Ill for UPS Battery Equipment and Maintenance in various City facilities in an amount totaling $103,635.00 for five years.

• Consent was given to an ordinance Levying Certain Special Service Area Taxes For The Fiscal Year January 1, 2020 Through December 31, 2020. (Special Service Areas Number One, Twenty- Four, Forty-Four, Sixty-Three, Sixty-Five, Sixty-Six A, Sixty-Six B, Sixty-Six C, Sixty-Six D, Sixty-Seven, Seventy, Eighty-Eight, Ninety, and One Hundred Forty-One.

• Placed on unfinished business was an ordinance Adopting An Annual Budget For the Fiscal Year Beginning January 1, 2021 and ending December 31, 2021 in lieu of passage of an appropriation ordinance.

$406 Million

Carryover amount of approx $38 Million.

For instance of new maintenance facility.

Revenues in the General Fund down by a Million from last year.

• PLACED ON UNFINISHED BUSINESS was an ordinance Levying Taxes For the City of Aurora, Illinois, For The Fiscal Year January 1, 2020 Through December 31, 2020.

• Consent was given to a resolution Authorizing the Purchase of Bulk Road Salt in the amount of $45.25 per ton for the 2020-2021 winter season from Cargill Incorporated, North Olmsted, Ohio through the State of Illinois Joint Purchasing Agreement.

To obtain City Council approval for the purchase of bulk rock salt in the amount of $45.25 per ton from Cargill Incorporated for the Division of Street Maintenance under the State of Illinois Joint Purchasing Agreement bid for the 2020-2021 winter season

The bulk rock salt is used to melt snow & ice from City streets, making them safer for vehicular traffic. We have been dividing our salt purchase between DuPage County Department of Transportation and the State of Illinois Joint Purchasing Agreement. By dividing our road salt orders between two government agencies soliciting bids, we hope to have two different suppliers. Historically this has provided us an alternate source should one of the providers be unable to make timely deliveries.

The City anticipates purchasing 7,500 tons of bulk rock salt at a price of $45.25 per ton for the 2020-2021 winter season from Cargill Incorporated Salt Division, North Olmsted Ohio.

• Placed on unfinished business was a resolution authorizing the Chief of Police the authority to sign a yearly updated agreement for use of an outdoor firearms range between the Kendall County Sheriff’s Office (KCSO) and the Aurora Police Department (APD).

An updated Firing Range Use Agreement between the KCSO and APD will allow Aurora Police Officers access and use to an outdoor firing range that is owned and operated by the KCSO.

The Aurora Police Department has had a long standing relationship with the Kendall County Sheriff’s Office. The Sheriff’s Department owns and operates an outdoor firing range, which they allow other police agencies access. The Aurora Police Department uses this outdoor range for certain activities that are outside the operating limits of the indoor range at the Aurora Police Department. An example of this is that the indoor range at the Aurora Police Department is 25 yards long. This distance is acceptable for working with handguns, however, when working with rifles, this distance is too short. The outdoor range allows officers to target their rifles in at 100 yards plus. The outdoor range also allows members of the Special Response Team Sniper Unit to train with greater distances to hone their marksmanship skills.

A new Firing Range Use Agreement with the Kendall County Sheriff’s Department is sent yearly to the Aurora Police Department for review and signature. The document outlines indemnification (as have past documents), but highlights the mandatory range clean-up day for all agencies that participate in using the range for each year.

Approval of this Firing Range Use Agreement for 2021, 2022, and 2023 will allow Aurora Police Officers use to an outdoor range that will allow them to work with their firearms at a greater distance than is allowed by the indoor range at Aurora Police Headquarters.

Adopt the updated Firing Range Use Agreement between the Kendall County Sheriff’s Office and the Aurora Police Department.

• Consent was given to a resolution Authorizing Purchase of Property/Boiler Machinery, Fine Arts, Crime, Cyber Liability, Excess Cyber, General Liability/Law Enforcement/Auto Liability, Excess Liability, Excess Workers Compensation, Liquor Liability, Special Events Liability and Drone Liability insurance policies for the period of December 31, 2020 through December 31, 2021.

To obtain approval of the proposal from broker Hub International Midwest Limited for Property/Boiler Machinery insurance from Chubb Insurance Company, Fine Arts Insurance from Hanover Insurance Company, Cyber Liability Insurance from AIG, Excess Cyber from AxisCrime Insurance from Travelers, Excess General Liability/Law Enforcement/Auto Liability Insurance from Allied World National Assurance Company, Hallmark Insurance Company and Great American Insurance Company, Excess Workers Compensation insurance from Safety National Casualty Insurance, Liquor Liability insurance from Lloyds of London, Special Events Liability from Cincinnati Specialty and Drone Liability from American Alternative Insurance Company for the period of December 31, 2020 through December 31, 2021.

The City has historically maintained these types of insurance coverages as part of its overall insurance and risk management program including self-insured retention levels. For 2020 the City purchased through broker Hub Property/Boiler Machinery and Inland Marine from Chubb, Crime coverage from Travelers, Excess Workers Compensation Insurance from Safety National, Excess General Liability/Law Enforcement/Auto Liability Insurance from Allied World National Assurance Company, Excess Liability from StarStone National Insurance Company and Endurance American Insurance Company, Cyber Liability Insurance from AIG, Fine Arts coverage from Hanover Insurance, Liquor Liability from Lloyds of London, Special Events Liability Insurance from Cincinnati Specialty and Drone Liability Insurance from AAIC. 2020 total program cost including broker service fee was $987,387.00.

The City’s authorized broker Hub International reviewed our existing program and solicited additional market bids beyond renewal of the existing program. Hub’s marketing summary is attached. In light of the worldwide pandemic and its adverse and ongoing effect on the economy and insurance markets for these coverages, the city’s total overall program cost has increased approximately 17% over 2020 for 2021. Also contributing adversely to our renewals are increased risk and claims activity in nationwide markets for public safety liability coverages which have resulted in increased premiums for excess liability and excess workers compensation for municipalities and their police and fire personnel in 2021. Similar increases in Cyber and Crime premiums can be attributed to increases in cybersecurity attacks and criminal fraudulent activity involving both the public and private sectors. Attached is the 2020-21 Program Summary. As a result, all of the listed carriers are recommended for 2020-2021 program renewal. Doing so will maintain the three layers of excess liability coverage of $35M above the City’s $2M self-insured retention. Also in order to maintain our $10M total Cyber coverage we have to split the coverages into two $5M policies as no carriers including the incumbent AIG would cover more than $5M maximum so we are recommending excess cyber coverage for $5M through Axis. Attached is the 2020-2021 Program SIR structure. Overall, based on the increased renewal premium costs and increased coverage limits for Cyber and Crime coverages, the total cost including broker service fee is $1,158,019.00 as compared to $987,387.00 for 2020, an increase of approximately 17%. Funds for these insurance policies are budgeted for in the Property and Casualty Fund budget.

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