Aurora COW presentation for more downtown restaurants

By Jason Crane

The Aurora City Council viewed a brief presentation of a proposal to develop more restaurants within downtown Aurora at the Committee of the Whole (COW) meeting, Tuesday, Mar. 7.

The City Council gave consent to the Resolution authorizing approval of a development agreement with Leilani Asian Fusion: Leilani Aurora Inc; Buona Italia: River Street Italian Inc; La Ville Lumiere: River Street Bistro Inc, a majority-owned affiliate of JH Real Estate Partners LLC (JH) for the purpose of facilitating the development of the vacant first floor and basement for the Leilani redevelopment agreement (RDA) for a full service Asian Fusion, Italian, and French restaurants in the recently-rehabilitated Hobbs and adjacent buildings together at 2 through 12 South River Street in downtown Aurora. Final approval could be at the March 14 full City Council meeting.

City government of Aurora documents show JH plans to open three new restaurants in the first and partial basement spaces at the Hobbs. Rather than continuing to solicit several one off operators, all with their own needs, timing and financial wherewithal, JH decided to use its own hospitality expertise and resources to create three partnerships with experienced chefs and front-of-the-house management. The RDA codifies the commitments from JH that trigger incentives that will be repaid to the City government as described below.

Proliferation of new and long-standing downtown restaurants, especially those unique to Aurora is a long-sought goal of the City government. Restaurants support a population living, working, or visiting a city that in turn add to an environment that encourages more of the same. Based on informal surveys from the Paramount Theater, attendees often comment that they would like to have more dining opportunities in walking proximity to the theater for a one-stop entertainment and dining experience. With a rising tide of a robust dining alternatives, all restaurants prosper.

JH successfully took on the long-vacant Hobbs building challenge to much acclaim and immediate residential leasing success. Less known is that the company experienced the same type of cost overruns during the high-inflationary supply-chain disruptive period as other similar developments, requiring a cash investment more than double what was anticipated ($3.5 million). Funds budgeted to white box (how completed and ready a building space is before tenant improvements) the commercial areas went instead to complete the apartments. Rather than address this challenge in the short run and knowing the City’s propensity to prioritize incentives when bona fide tenants are placed, JH and the City government timed this discussion when the users surfaced.

From the City’s standpoint, documents state they have a rare opportunity to fill these long-vacant spaces in one fell swoop all this year, filling a demand while utilizing incremental sales and food and beverage taxes to repay the cash advances to JH. Having JH as landlord and as managing member of each restaurant, LLC, provides an unusual degree of flexibility both in terms of assurances for the City’s payback and that the restaurants have their needed runway to succeed.

Fundamental to all restaurants that require incentives is that the City will be paid back, with interest for the funds advanced.

The distribution of incentives for each restaurant is allocated as follows:

• In the case of Leilani Aurora Inc, the first incentive involves a basic loan of $400,000 and $500,000 in a forgivable loan.

• In the case of River Street Italian Inc, the first incentive involves a basic loan of $300,000 and $400,000 in a forgivable loan.

• In the case of River Street Bistro Inc, the first incentive involves a basic loan of $300,000 and $400,000 in a forgivable loan.

The loan will be amortized over 13 years bearing a 5% interest rate. The loan is 100% guaranteed by the owners of JH. The City government has reviewed the financial statements of each of the partners and have determined that this is a meaningful guarantee. The financial condition of the guarantors will be monitored on an ongoing basis until the loan is repaid.

The second incentive is a forgivable loan that is projected to be paid back by the sales and food and beverage taxes levied by the City government.

Although stabilized revenues for the restaurant is estimated to be $2,000,000 (Leilani Asian Fusion), $1,500,000 (Buona Italia), $1,500,000 (La Ville Lumiere), it would take only 60% of this amount to produce sufficient taxes to repay this forgivable loan amount. If for some reason, the total amount with interest is not repaid from sales tax revenues, the principals of JH have guaranteed the difference.

In summary, both incentives will come directly back to the City government. The City government’s funding will be pari passu (dollar for dollar) with cash from JH. In addition to guaranteeing the City’s loan, JH is putting in $2,638,469.86. The City government is funding approximately 21% of the risk capital.

• Leilani Asian Fusion: 20%

• Buona Italia: 20%

• La Ville Lumiere: 21%

This incentive is meant not only to acknowledge the substantial benefit to Aurora of having three additional restaurants in terms of jobs, generation of foot traffic, filling demand, but to address the substantial cost overruns that previously have been funded by JH. Despite a projection that allowed for development fees coming to JH, these will be deferred in each year when the City government has not received its current interest and scheduled amortization.

The incentives being offered as a part of this agreement are:

• A forgivable loan of $1,300,000, paid through sales taxes and personally guaranteed.

• A non-forgivable loan of $1,000,000, second mortgage, personally guaranteed, considered risk capital.

• JH cash $1,000,000, risk capital.

• Total of $3,300,000.

Other material issues in the RDA are:

The obligations in this RDA will be cross collateralized with the previously approved RDA including the right of offset upon default.

The City government will review financial performance each quarter for the first two years and if no default, annually thereafter; annual budgets will be reviewed in advance.

• The timeline must be adhered to, subject to uncontrollable circumstances.
• JH as landlord will defer all or partial lease payments if, as per budget, revenues cannot cover operating expenses.
• JH will defer any development fees and profits needed to either sustain the restaurants or, if deemed not salvageable, to pay costs to attract and fit out replacement restaurant of similar caliber.
• Cross default for any other deal that incentive has been granted both on this and future deal, offset TIF etc..
• All funding through the title company.
• Restaurant hours, 6 days a week and more.

Operational Overview: General management

Keystone Management Group/Jay Punukollu

Keystone Management Group will be the front-office management company that will be responsible for front of house day-to-day operations. The company is managing 91 restaurants across both Illinois, Iowa and Indiana and has extensive experience in the restaurant management arena. Jay Punukollu of Keystone Management boasts of over 21 years in the food industry Managing and operating multiple restaurant concepts which include Dunkin Donuts, Subway, Jersey Mike’s Subs, McAlister’s Deli, Currito and City Bird Tenders. Jay manages all the above businesses through direct reports, making key financial, marketing, and operational decisions to constantly improve top line sales and profitability.

Front of house/Seamus Walsh

Seamus Walsh is a highly experienced restaurant manager, who has spent more than two decades in the hospitality industry. His extensive experience in managing restaurants has made him one of the most respected and skilled professionals in the industry.

Seamus began his career in restaurant management at Chilli’s Bar and Grill, opening 35 new restaurants across the country and managing a record-breaking opening. Over the years, he has managed some of the most popular and successful restaurants in the Midwest, developing a reputation for his exceptional leadership skills and ability to build strong teams.

Continuing as a director of operations for Jersey Mike’s Subs, Seamus has overseen all aspects of restaurant operations, from staffing and training to menu development and financial management. He is known for his expertise in creating memorable guest experiences and his focus on building a culture of excellence within his teams.

As the current vice-president of operations at McAlister’s Deli, Seamus’ impact on the restaurant industry is immeasurable. He has mentored and trained countless managers, helping to shape the industry as a whole. His dedication to creating exceptional guest experiences has earned him numerous awards and accolades, and his innovative management style has inspired many other managers to follow in his footsteps.

Overall, Seamus Walsh’s extensive restaurant management experience and leadership skills make him a true asset to the hospitality industry. His dedication to excellence and passion for guest satisfaction continue to inspire and shape the industry and will shape the dining experience in the Aurora community.

Design Team

Architecture/Studio GWA

Studio GWA has been improving quality of life through design since 1982 when their founder and principal architect, Gary W. Anderson, decided he wanted to change the trajectory of a community. His dedication to the revitalization of Rockford Illinois’ downtown – honoring its unique architectural history while building spaces that met the community’s needs for the future – was visionary. Where others saw abandoned properties, Gary saw possibility. That unique blend of determination, optimism, and realism has become the firm’s calling card.

Over the years, Studio GWA has become the home to other like-minded urban planning, architecture, interior design, and development professionals. Their flexibility, adaptability and creativity make them easy to work with and acknowledged stars in their respective fields.

The firm has a reputation for being experts in historical renovation and adaptive re-use and will apply expertise to a variety of these and new construction projects. Their experience in The Hobbs apartments redevelopment sets them up for success in executing efficient and well-designed commercial spaces in the building.

Interior design/VARA Design

VARA Design is an award-winning, progressive full-service design firm based in the Chicagoland area. Their portfolio includes boutique hospitality, restaurants, multi-unit residential, education and office. At the core of VARA Design, they are a group that values creativity, collaboration, community and people. Their longtime presence and work in Aurora will lend themselves well to create beautiful, memorable spaces at the historical Hobbs building.

Branding and marketing

Scott Hodge Creative

Scott Hodge is known for his marketing and brand design work at Society 57 in Aurora. Scott’s model is all about telling the story of the brand. He is people-first in his modern design approach and is extremely excited to contribute his passion to the team in bringing something special to Aurora.

The three restaurants will expand dining choices in the downtown and help service existing and new residents and visitors. It will help anchor the northern sector of the downtown and set the stage for new development as the casino prepares to relocate. Sales and food and beverage taxes will increase. There will be a positive spillover for the emerging development on Lake Street. The Paramount, The Venue and other locales will be able to cross market with new choices and the locally owned restaurants will add to Aurora’s growing reputation for boutique non-chain restaurants.

There weren’t any individuals who signed up to use their voices for up to three minutes each.

The City Council gave consent to the following agenda items likely to be placed on the Tuesday, Mar. 14 full City Council agenda:

• Consent was given to a Resolution authorizing the reappointment of Hortencia Ramos, Ward 10, Susan Sosa Bachmeier, Ward 5, Ryan Maley, Ward 4, and Ricky Rodgers, Ward 6, and the appointment of Maureen McKane, Ward 4, to the Human Relations Commission.

City government of Aurora documents show the nomination brought forth represents four veteran members and a new candidate, Maureen McKane from Ward 4.

• Consent was given to a Resolution approving the reappointments of Elana Newkirk, Ward 5, and Sean Williams, non-resident, to the City’s Advisory Commission for Disabilities.

• Consent was given to a Resolution authorizing the reappointment of Michael Walker, Kristin Ludwig, Dan Miller, and Justyn Arnold to the Aurora Preservation Commission.

• Consent was given to a Resolution to award monies received for the Corridor Improvements Grant to Scientel Solutions LLC., 2021 N Eola Rd, Aurora, Ill. for an amount not to exceed $1,200,000.00.

City government of Aurora documents show the corridor improvements grant was awarded to the City and accepted via resolution R23-010. These monies will be used to install security cameras and license plate readers on city-owned posts and along city-owned sidewalks.

Following civil unrest on May 31, 2020, the Aurora Police Department and the IT Department identified areas of the city to place additional cameras and upgrade the existing camera inventory. A grant proposal was developed and submitted to the State of Illinois’ Department of Commerce and Economic Opportunity under the Rebuild Distressed Communities Grant Program requesting funding to install cameras and license plate readers in the strategically identified locations. The state of Illinois subsequently contracted with LISC to administer the Rebuild Distressed Communities Grant Program. This grant was awarded to the City and was accepted via resolution R23-010.

The new cameras should increase Aurora’s safety and security by providing surveillance coverage to support investigations and prosecutions. In areas with outdated cameras, the new equipment will provide higher-resolution images. The project will be managed by Scientel Solutions with oversight by the IT Department. Scientel Solutions was awarded the contract to maintain and manage Aurora’s security camera network as approved in Resolution 21-135 in June of 2021.

Expenditures under this grant will follow the city’s procurement requirements as well as the bondable requirements set by the Rebuild Illinois Program and all applicable state or federal regulations.

The grant provides 100% of the funding for the project and there is no local cost match involved with the project. The following expense accounts will be used for this grant:

340-1280-419.61-40 – supplies-general/expendable tools/equipment purchases – $1,023,880.

340-1280-419.32-20 – contracted services – $152,690.

340-1280-419.32-80 – consulting fees – $23,430.

The revenue account for this grant will be 340-1280-334.30-02.

Budget amendments will be processed for these line items to account for the revenue and expenses related to the grant.

This grant project will result in improved safety and security for Aurora residents, businesses, and visitors. Equipment installed through this project will supplement and enhance the Aurora Police Department’s existing security surveillance capabilities. Management of the project and maintenance of cameras will be the responsibility of the city’s IT Department.

• Consent was given to a Resolution authorizing the execution of a Phase II engineering agreement with Baxter and Woodman, Inc., maximum amount of $39,412.00 and appropriating Motor Fuel Tax Funds for Montgomery Road and Kautz Road Traffic Signal Installation project with MFT Section # 22-00353-00-TL.

City government of Aurora documents show the purpose is to execute the Phase II engineering agreement with Baxter and Woodman, Inc., and to appropriate Motor Fuel Tax (MFT) Funds for MFT Section Number 22-00353-00-TL by Illinois Department of Transportation (IDOT) Resolution.

A request from area residents initiated the study by City staff members for making the improvements. The project will help facilitate safe vehicular movement through the intersection and provide safe crossing of the pedestrians/bicyclists across Montgomery Road.

The project will consist of installing new traffic signal at the intersection of Montgomery Road and Kautz Road, updating ADA ramps, striping and other pertinent improvements needed as determined during design phase

Due to the anticipated low Phase 2 contract value, the need to begin the design phase in order to let the project this year (summer) and based on consultant’s availability, Baxter and Woodman, Inc. was selected to conduct phase 2 design engineering for this project. Since Motor Fuel Tax funds are being utilized, IDOT review and approval will be necessary for this project.

The project uses Motor Fuel Tax (MFT) Funds and would need appropriating the funds.

City’s 2023 budget provides funds through the following account:

GC 081 Montgomery Road and Kautz Road 203-4020-417-76-39 $39,412.00

Maintenance and energy costs for proposed traffic signal, approximately $260 per month.

• Consent was given to a Resolution to allow Aurora Public Art to apply for a Kane County Grand Victoria Riverboat Grant in an amount not to exceed $80,000.

City government of Aurora documents show the Aurora Public Art Division is seeking a grant from Kane County to assist in the creation of a mobile game app that will create a wayfinding path through downtown Aurora enhanced with augmented reality markers to guide visitors to public art installations, businesses, and other attractions.

The Kane County Grand Victoria Riverboat Grant Fund requires applicants to submit a resolution from the governing board authorizing permission to apply for a grant. The city was last awarded a Grand Victoria Riverboat Grant in 2020.

Smart maps regularly assist tourists and residents alike to plan outings. Such maps can improve and enhance the experience of a trip for people who have specific expectations or purpose for their visit, can introduce people to new businesses and attractions, and can help cities better understand foot traffic patterns. This project aims to build upon this concept to create a unique, secure mobile game app that includes a virtual map to create wayfinding paths that encourage people to explore everything that downtown Aurora has to offer and discover its hidden gems, including local businesses. Students will contribute to the creation of artwork that will be incorporated into the augmented reality content of the game.

Between the proliferation of public artworks in Aurora over the past five years and the addition of many new restaurants and business in Aurora’s downtown since the pandemic, the City’s downtown is on the threshold of a substantial renaissance. The Public Art Division aims to help further spur downtown revitalization by creating a map-based game that will guide visitors on routes that expose them to businesses, points of interest, and works of art.

The 2023 Grand Victoria Riverboat Fund grant application proposes that approximately 70% of the project will be funded through the grant. The remainder will be funded through Public Art Division funds allocated to the project in the 2023 budget. The proposed expense account number is 101-1360-450-32-20 and the proposed revenue account is 101-1360-337-30-02

This custom digital map game (virtual board game) of downtown Aurora will increase foot traffic at key locations and improve the city’s ability to understand which downtown locations receive the most visitors and which areas visitors tend to overlook. This virtual game will be unique to Aurora. It will serve as a Public Art installation and a destination feature in itself, as people will only be able to play the game and view the augmented reality art on-site in downtown Aurora.

Recommend the City Council authorize the Aurora Public Art Division to apply for a Kane County Riverboat Grant in an amount not to exceed $80,000 to fund the creation of a digital map game with augmented reality highlighting downtown Aurora’s many attractions.

• Consent was given to an Ordinance reserving 2023 volume cap in connection with private activity bond issues, and related matters.

City government of Aurora documents show the purpose is to obtain the City Council’s approval of an ordinance that will serve to reserve the city’s 2023 private activity bond (PAB) volume.

PABs are tax-exempt securities that are issued in the name of a state or local government for a variety of purposes that advance public interests. Classifications of PABs include, but are not limited to, economic development revenue bonds, industrial development revenue bonds (IDRBs), single-family mortgage revenue bonds, and multi-family mortgage revenue bonds. Although PABs are issued under the authority of a state or local government, the government concerned typically has no responsibility for repaying the debt. The development project concerned is usually responsible for repaying. PABs are commonly referred to as “conduit debt.”

The Internal Revenue Code places a cap on the dollar amount of certain PABs that a state or local government may issue in a calendar year. Currently, municipalities are limited to an amount equal to $120.00 per resident.

The Illinois Private Activity Bond Allocation Act requires that Illinois municipalities declare their intent to use their allocation of volume cap for the current year. Any volume cap that is not “reserved” is automatically ceded to the State of Illinois.

Based upon the city’s estimated population of 179,266, Aurora’s volume cap allocation for 2023 is $21,511,920. Some of the 2023 volume cap may be dedicated to the issuance of IDRBs in support of manufacturing enterprises in the city. Any volume cap not used for IDRBs will be used for single-family mortgage revenue bonds and/or mortgage credit certificates.

• Consent was given to an Ordinance calling for a public hearing and a Joint Review Board meeting to consider the designation of a redevelopment project area and the approval of a redevelopment plan and project for the city of Aurora River Vine Tax Increment Financing District.

City government of Aurora documents show the Ordinance follows the announcement of the availability of the eligibility study and report, and the redevelopment plan and project for the proposed River Vine TIF District; and would start the process of creating a TIF District for the River Vine site addressed 309 N. River Street, to be known as the River Vine. The Ordinance sets dates for a Joint Review Board meeting and a public hearing and calls for the notices to be given in connection with the meeting and public hearing.

The parcels are within the City’s downtown fringe area, generally bordered on the south by Cedar Street (as extended east to the Fox River), on the east by the shores along the Fox River, on the north by a certain park land owned by the Fox Valley Park District, and on the west by River Street. Parts of the proposed TIF District is within the City’s existing TIF # 5. The area location along the Fox River has been identified by the Downtown Master Plan as a focal point part of the “heart of Downtown” and is part of an area desired as a “vibrant designation with mixed use development, family friendly activities and nightlife entertainment”.

Constructing a new multi-family residential development on the banks of the Fox River in Downtown Aurora, particularly near the Aurora Transportation Center, has been a consistent recommendation of numerous City long-range planning documents for decades. Combined with the recommendations of the Downtown Housing Study (2019), the growing demand for rental housing, the redevelopment of long vacant historic buildings in the Downtown, and the recent completion of the new Pedestrian and Bicycle Bridge, the time for implementing the City’s vision is here.

An RDA with Windfall Group to construct a new apartment building and various amenities has been approved in 2022.

To establish a TIF district (“Redevelopment Project Area” or “RPA), Illinois municipalities must adopt several documents, including a Redevelopment Plan and an Eligibility Report, hold a Public Hearing and a Joint Review Board meeting.

The creation of a TIF district requires several steps. The first public step is the announcement of the availability of the Eligibility Study and Report, and the Redevelopment Plan and Project for the proposed River Vine TIF District. It is important to note that the actual announcement is done by the full City Council at its March 14, 2023 meeting. Further steps associated with the creation of the TIF will include the provision of mailed notices, public notices, a Joint Review Board meeting and a public hearing. The City’s Corporation Counsel has engaged Elrod Friedman LLP to serve as the City’s Special Counsel to support this TIF formation process.

The Redevelopment Agreement calls for the City to provide financial incentives to the redevelopment project paid out of the creation of a new TIF District.

In order to create the TIF District, the City Council must first approve the Ordinance, which begins the process. Steps in the process of creating the TIF District include:

1. Adopting the Ordinance
2. Send notices of the Joint Review Board meeting
3. Send notices of the availability of the Eligibility Study and Redevelopment Plan and Project for the TIF District
4. Hold the Joint Review Board meeting
5. Publish and mail notices of the public hearing
6. Hold the public hearing
7. Approve the ordinances creating the TIF District

It is anticipated that the TIF District will be created in June 2023.

Making this announcement will begin the formation process of the proposed River Vine TIF District. Failure to make this announcement will mean that this TIF District will not be created and needed financing for future development will not be created.

Staff members recommend the Committee forward this item to the City Council for formal announcement March 14, 2023.

• Consent was given to a Resolution authorizing approval of a development agreement with JH Real Estate Partners LLC for the rehabilitation of the building at 110 Cross (between River Street and Middle Avenue across from the Jimmy John’s) for conversion of the historic building into 15 market rate apartments and a brewery on the ground floor.

City government of Aurora documents show the RDA will facilitate the development with a 23 year TIF with 70% of the benefit going to the JH plus a forgivable loan of $300,000 to the developer and $75,000 to the first floor microbrewery tenant. The TIF inducement resolution was approved on July 27th, 2021 which permits certain expenses to become eligible for reimbursement after the TIF is approved by the City Council.

110 Cross is a historic building purchased about 4 years ago by JH. Plans to renovate the building have been in the works since then including the recruitment of the well-regarded Foreign Exchange Brewing company. The City government asked JH to table this request until the completion, opening and residential leasing of the Hobbs project including the renting of the retail spaces on the first floor and partial basement. In addition, Foreign Exchange wanted to affirm that they had properly capitalized this new venture as much of the high costs to create the brewery are being borne by Foreign Exchange as part of the overall lease with JH. Along with other parts of the downtown, there is a vibrant interest in the area from Benton south to at least North Avenue. (Council approved a corridor study/master plan in the 2023 budget for this area.)

While the market downtown is moving to more self-sufficiency, reducing the magnitude of incentives needed to fill the “gaps’ between the costs to complete a project and the value of that project at completion, there is still a negative spread in most downtown deals because (escalating) costs are still higher than end product valuations. The Aurora market has been in a footrace between skyrocketing costs not only in Aurora but nationally and internationally and increasing commercial and residential rents. The City is working both in the affordable markets in an attempt to ameliorate rents for those who need assistance and the market rate market.

City officials have discussed and will continue to provide more detail to Council as how these gaps are calculated and even after these gaps are “filled ” with City support- economic returns to these developers are modest at best. 110 Cross is no different. Even with the benefit of State and Federal Historic Tax incentives and working to prelease to a proven tenant on the first floor the end product valuations are still less than total turnkey costs.

While gaps are analyzed and ultimately calculated on a project-by-project basis using details and nuances of each proposed development, the City compares what incentives on a “per unit basis” have been given. The gaps have induced incentive that have ranged from $27,000 to $50,000 per unit or an average of $38,000 This amount has been reduced to $20,000 per unit or $300,000 for 15 units, or about 50% lower.

The remaining $75,000 equates to about 10.5% of the $712,000 budget to put Foreign Exchange at 100 Cross. The company has not received any prior support from the City government. Because JH is the master developer of the entire building these funds will be channeled through JH to Foreign Exchange through a title company.

The City government is expected to receive about $32,000 per year in sales and food and beverage taxes from Foreign Exchange retail sales. In addition, they have a significant wholesale component.

The estimated Tax Increment from a TIF for the project is $69,000.00 and per the proposed RDA this will be split 70%/30% between the Developer/City as projected. This results in $20,000.00 in property taxes to the City within the new TIF and $49,000.00 to the Developer. This results in an estimated payback period of under 13 years for the $375,000 grant.

Policies and guidelines / impact statement:

The approval of this RDA will bring another vacant building back to productive use, creating jobs, sales tax revenue and increased taxes over the long run. It will help raise values in the vicinity and will be a catalyst for increase development in this River Street south corridor. New residential units will be created and this brewery has an ardent following likely attracting visitors. The City government will be reimbursed for this investment.

• Consent was given to a Resolution to approve the purchase of 70 Avon Protection First Responder Med Kit (gas masks) and 180 CBRN gas mask filters from MES/Lawmen Supply of Deer Creek, Ill. through the Sourcewell Cooperative Contract #032620-MES in the amount of $53,044.50.

City government of Aurora documents show the purpose is to purchase replacement gas masks and associated CBRN gas mask filters for the Aurora Police Department. These gas masks and filters are essential for the protection of first responding police officers and are being purchased to replace outdated and end-of-life.

The 2023 budget included a decision package from the Aurora Police Department to replace outdated gas masks and restore depleted stock of gas mask filters. The current stock of gas masks are either reaching or are at the end of their useful recommended life, and the current stock of associated gas masks are either expired or have been used by the police department since their initial purchase.

During the budget cycle, City officials noted that a significant number of gas masks were showing signs of deterioration and rubber failing. A determination was made that the current stock of gas masks are reaching or have reached the end of their useful life. Further, it was noted that the supply of gas mask filters, which are a single-use CBRN (chemical, biological, radiological, and nuclear) filter adapted for public safety use was depleted due to deployment or expiration. City officials developed a multi-year plan to replace the aging supply on a rotation, with an initial cost of immediate replenishment of these CBRN masks.

City officials found MES/Lawmen Supply Company, who participates in the Sourcewell Cooperative agreement, and is a vendor who has provided reliable service to the Aurora Police Department in the past. MES/Lawmen Supply Company demonstrated that they are able to meet the public safety needs of the police department and will provide these needed gas masks and filters through this turnover period.

Funding is available in the 2023 budget in account 101-3536-421.61-40.

Local preference does not apply when using a cooperative purchase program.

The purchase is vital for the protection of police responding to the threat of contamination when chemical, biological, radiological, or nuclear exposure is present. This exposure can occur through the deployment CBRN weapons, an industrial accident, or natural disaster where APD’s first responders must be present, and must be protected.

• Consent was given to a Resolution to use NTI National Technologies, Downers Grove, Ill., as the primary fiber vendor and EX2 Technology, LLC of Omaha, NE as the secondary vendor for 2023 City fiber optic projects for $1,781,554.00 plus a 11% contingency. Total not to exceed $2,000,000.

City government of Aurora documents show since 2018, NTI has performed successfully as the City’s prime and strategic partner, carrying out a full audit of the fiber optic network for asset management, preventive maintenance, remediation, and emergency repair.

NTI has extensive knowledge of the City’s outside plant and offers competitive rates validated on Kane County Resolution 22-170 dated June 2, 2022 for Fiber Optic Support Services.

As previously written, NTI has worked consistently and above expectations for the city of Aurora since 2018. NTI performed the fiber optic audit on the city of Aurora’s fiber optic network in 2018. This has given NTI extensive field knowledge of the City’s fiber optic network. The audit also provided the splicing information that City officials are in the process of adding to Aurora’s GIS ArcMap and Vetro Fiber Map software which provides the City with a comprehensive fiber map or visual representation showing the physical placement of the fiber-optic network. These maps may showcase specific cables, fiber lit buildings, telecom carriers, and more within the telecommunications infrastructure.

NTI has done extensive fiber work for the City of Aurora. NTI has provided quality service for the City of Aurora and provided competitive pricing based on the Kane County Resolution 22-170 dated June 2, 2022 for Fiber Optic Support Services.

Additionally, City staff members can request comparative pricing from EX2 Technology, LLC of Omaha, Nebraska if pricing submitted by NTI does not conform to the Kane County Resolution.

Prioritized Proposed Fiber Projects for 2023 are listed below:

• New Public Works Campus Phase 2 – $398,338.00
• Yearly open purchase order for fiber maintenance/field repairs – $120,000.00
• Handhold / Fiber Distribution Point Audit – $$281,400.00
• Fiber to Well 23 (3290 Jericho Road) – $324,256.00
• Fiber to Well 119 (119 South Constitution Drive) – $61,436.00
• Fiber to Well 19 (2201 Prairie Street) – $32,581.00
• Fiber to Well 115 (1435 Southlawn Place) – $224,313.00
• Fiber to Lift Station Linden Estates (3112 Moraine Drive) – $82,531.00
• Fiber to Lift Station Butterfield East (2550 Frieder Lane) – $256,699.00

Total cost for the abovementioned projects = $1,781,554.00 (adding 11% contingency = $218,446.00). Total not to exceed $2,000,000.

Funds are available in account 287-1280-419.73-86 (C104) ($2,000,000.00)

Local preference does not apply, as this resolution is piggybacking on the Kane County Resolution.

By approving this resolution, it will ensure fiber projects start by Spring and will get completed before frozen ground in the Fall. This request will have a positive impact as the City of Aurora will get the most competitive pricing for any fiber work that is done in the City of Aurora.

• Consent was given to a Resolution authorizing Engineering Enterprises, Inc. to provide professional engineering services to the Water Production Division for a Water Treatment Plant Coatings Rehabilitation project, in the not-to-exceed amount of $99,000.00.

City government of Aurora documents show the purpose is to obtain City Council authorization to enter into an agreement for professional engineering services with Engineering Enterprises, Inc. (EEI), Sugar Grove, IL, for the design and construction engineering for the Water Treatment Plant Coatings Rehabilitation project for the Water Production Division (WPD).

The City of Aurora Water Treatment Plant (WTP) underwent a plant expansion in 2002. New treatment units were added in the form of a Claricone clarifier, a recarbonation vessel/tank, and vertical pipe gallery which directs water to downstream filters. All of these steel vessels are now in need of coating (paint) rehabilitation. Periodic recoating of steel treatment infrastructure protects against metal loss (corrosion) and maintains the infrastructure integrity for long-term service life.

Due to the complexity and scope of such a project, a professional engineering consultant is required to provide design, bidding administration, and construction observation services to assure all project aspects are properly completed.

EEI has a substantial resume of experience in water tank recoating and rehabilitation projects for the WPD, including the Indian Trail Elevated Water Tank in 2013/14 and more recently the Fox Valley East Ground Storage Tanks in 2022, delivering excellent performance on both projects. In addition, EEI was selected for the Fox Valley East project via a QBS process. The proposed project is substantially similar to both previous projects in the expertise required in design and construction management. EEI excels in the technical aspects of coatings selection, bidding specifications and construction observation, including National Association of Corrosion Engineers (NACE) certified inspections. EEI understands the possible impacts of projects of this type on operations and will work to facilitate smooth coordination between the City and the contractor. EEI is approximately 10 miles from the project site at the WTP. Specific duties and responsibilities are documented in the Agreement for Professional Engineering Services.

In consideration of EEI’s past performance and project specific experience with the WPD, it is recommended the agreement be approved per City of Aurora Code of Ordinances, Chapter 2, Division 2, Section 2-336 Contracts Exempt or Excluded From Formal Bidding: (a) The city may award a written contract for professional services, which shall include architectural, engineering, surveying, construction management, accounting, auditing, safety and security risk assessment, computer and data assessment and services, legal and other financial services, without complying with the other provisions of this division.

• Consent was given to a motion authorizing and directing the chief Human Resources officer to execute a settlement agreement on behalf of the City in Workers Compensation Claim #189549271-001.

• Final approval for items on the consent agenda are set to be made at the March 14 Aurora City Council meeting.

• Information was shared about a Resolution approving the Final Plat for Butterfield Phase II Unit 5A Subdivision, on vacant land at 2815 Bilter Road being south of Bilter Road and west of N. Eola Road.

City government of Aurora documents show the petitioner, Seefried Properties is requesting approval of a Final Plat for Butterfield Phase II Unit 5A Subdivision, at 2815 Bilter Road being south of Bilter Road and west of N. Eola Road which includes subdividing the lot into six lots to allow for the development of a three-building data center complex.

The Property is vacant with PDD Planned Development District zoning, which is part of the Butterfield Planned Development.

The Petitioner is requesting approval of a Final Plat for Butterfield Phase II Unit 5A Subdivision, at 2815 Bilter Road being south of Bilter Road and west of N. Eola Road. The details of the request include a six-lot subdivision with associated easement dedications.

Concurrently with this proposal, the Petitioner is requesting approval of a Final Plan for Lots 1-6 of Butterfield Phase II Unit 5A Subdivision for a Warehouse, Distribution and Storage Services (3300) Use, limited to a data center complex. The details of the request include a phased development of three electronic data center buildings consisting of two 209,967 square foot buildings and one 415,934 square foot building. An electrical substation will be constructed to support the electrical requirements of the data centers, which substation will also provide stability to the area electrical grid. In addition, a passenger vehicle electric charging area will be made available and will be abutting Bilter Road. The lot will begin with a minimum of five spaces with plenty of spaces to grow as the need requires. An area beside the electric charging station will be available for future retail use.

The data center will be accessed from a full entrance on Bilter Road across from the main entrance of the church and a right-in/ right-out on Bilter Road across from the right-in/right-out access of the church. A left turn lane will be installed on Bilter Road at the full entrance. A landscaped median will be inserted along much of the roadway of Bilter Road. Additional stacking will be added to the right turn lane on Bilter Road at Eola Road. A fire access only entrance will be on Eola Road at Prospect Drive. The developers are installing a bike path along Bilter Road along their frontage and along the detention pond to connect the Prairie Path at the Tollway Ramp to Eola Road. Seefried will also build a sidewalk on Eola Road from Bilter Road to the bridge.

The Landscape Plan shows that the views of the buildings and substation are heavily buffered by berms and trees. A three-to-four-foot berm will be installed on Bilter Road in front of the building and the charging station. The substation will be buffered by a ten-foot masonry wall and a five-foot berm. Adjacent to the Prairie Path will be a four-foot berm and the detention pond. Each berm and pond are landscaped with a mixture of evergreen and canopy trees. Staff members worked with developers to add additional evergreen trees along Bilter Road, in front of the substation and along the Path for year-round screening. Shrub beds are at the entrances and along Bilter Road to creative attractive viewsheds.

Staff members and developers worked to create more attractive elevations than a standard data center by adding architectural features like height variations, large expanses of spandrel glass on the front and sides, and larger glassed office space on the front. The equipment yards and substations will be enclosed by stone molded walls.

Staff members worked with the developers to provide heavy buffering to the project through berms, masonry walls, and heavy landscaping. The traffic study provided concluded that the development would have little to no effect upon the operations of the roadways. Additional roadway improvements are being proposed to alleviate and improve traffic including a right-in/right-out access for the eastern most access, no access to Eola Road, raised landscaped median and turn lanes on Bilter.

Staff members reviewed the Final Plat Resolution petition and have sent comments back to the petitioner on those submittals. The petitioner has made the requested revisions to these documents and they now meet the applicable codes and ordinances, with the exception of the items reflected in the conditions listed in the staff member recommendation below.

Policies and guidelines:

The staff members’ evaluation and recommendation are based on the following Physical Development Policies:

10.0 To provide for the orderly, balanced and efficient growth and redevelopment of the City through the positive integration of land use patterns, functions, and circulation systems. To protect and enhance those assets and values that establishes the desirable quality and general livability of the City. To promote the City’s position as a regional center.

11.1 (5) To guide and promote development to areas where public utilities, public roads and municipal services are either available or planned.

12.0 To plan and provide for the growth of the city through the integration of land use patterns and functions that promotes complementary interactions between different land use components.

40.1 (1) To attract and encourage industrial, office and office-research development to planned sites where requisite public facilities are either present or proposed.

40.1 (5) To plan and promote the extension of the office and office-research corridor along the tollway in the City of Aurora.

40.1 (6) To promote attractive, well-maintained industrial and office-research areas through landscaping and site design.

Recommendations:

The Planning and Zoning Commission recommended conditional approval of a resolution approving the Final Plat for Butterfield Phase II Unit 5A Subdivision, on vacant land at 2815 Bilter Road being south of Bilter Road and west of N. Eola Road, with the following conditions:

1.) That all the comments of the Engineering Division be addressed prior to approval of Final Engineering.

2.) That all required permits and approvals from outside agencies be obtained.

• Information was given about a Resolution approving a Final Plan for Lots 1-6 of Butterfield Phase II Unit 5A Subdivision, at 2815 Bilter Road being south of Bilter Road and west of N. Eola Road, for a Warehouse, Distribution and Storage Services (3300) Use in the form of a data center complex.

City government of Aurora documents show the petitioner, Seefried Properties is requesting approval of a Final Plan for Lots 1-6 of Butterfield Phase II Unit 5A Subdivision at 2815 Bilter Road, being south of Bilter Road and west of N. Eola Road, for a Warehouse, Distribution and Storage Services (3300) use, limited to a data center complex which includes the development of a three-building data center complex.

The Property is vacant with PDD Planned Development District zoning, which is part of the Butterfield Planned Development.

The Petitioner is requesting approval of a Final Plan for Lots 1-6 of Butterfield Phase II Unit 5A Subdivision for a Warehouse, Distribution and Storage Services (3300) Use, limited to a data center complex. The details of the request include a phased development of three electronic data center buildings consisting of two 209,967 square foot buildings and one 415,934 square foot building. An electrical substation will be constructed to support the electrical requirements of the data centers, which substation will also provide stability to the area electrical grid. In addition, a passenger vehicle electric charging area will be made available and will be abutting Bilter Road. The lot will begin with a minimum of five spaces with plenty of spaces to grow as the need requires. An area beside the electric charging station will be available for future retail use.

The data center will be accessed from a full entrance on Bilter Road across from the main entrance of the church and a right-in/ right-out on Bilter Road across from the right-in/right-out access of the church. A left turn lane will be installed on Bilter Road at the full entrance. A landscaped median will be inserted along much of the roadway of Bilter Road. Additional stacking will be added to the right turn lane on Bilter Road at Eola Road. A fire access only entrance will be on Eola Road at Prospect Drive. The developers are installing a bike path along Bilter Road along their frontage and along the detention pond to connect the Prairie Path at the Tollway Ramp to Eola Road. Seefried will also build a sidewalk on Eola Road from Bilter Road to the bridge.

The Landscape Plan shows that the views of the buildings and substation are heavily buffered by berms and trees. A three-to-four-foot berm will be installed on Bilter Road in front of the building and the charging station. The substation will be buffered by a ten-foot masonry wall and a five-foot berm. Adjacent to the Prairie Path will be a four-foot berm and the detention pond. Each berm and pond are landscaped with a mixture of evergreen and canopy trees. Staff members worked with developers to add additional evergreen trees along Bilter Road, in front of the substation and along the Path for year-round screening. Shrub beds are at the entrances and along Bilter Road to creative attractive viewsheds.

Concurrently with this proposal, the Petitioner is requesting approval of a Final Plat for Butterfield Phase II Unit 5A Subdivision. The details of the request include a six-lot subdivision with associated easement dedications.

Staff members reviewed the Final Plan Resolution petition and have sent comments back to the petitioner on those submittals. The petitioner has made the requested revisions to these documents and they now meet the applicable codes and ordinances, with the exception of the items reflected in the conditions listed in the staff members’ recommendation below.

Policies and guidelines:

The staff members’ evaluation and recommendation are based on the following physical development policies:

10.0 To provide for the orderly, balanced and efficient growth and redevelopment of the City through the positive integration of land use patterns, functions, and circulation systems. To protect and enhance those assets and values that establishes the desirable quality and general livability of the City. To promote the City’s position as a regional center.

11.1 (5) To guide and promote development to areas where public utilities, public roads and municipal services are either available or planned.

12.0 To plan and provide for the growth of the city through the integration of land use patterns and functions that promotes complementary interactions between different land use components.

40.1 (1) To attract and encourage industrial, office and office-research development to planned sites where requisite public facilities are either present or proposed.

40.1 (5) To plan and promote the extension of the office and office-research corridor along the tollway in the City of Aurora.

40.1 (6) To promote attractive, well-maintained industrial and office-research areas through landscaping and site design.

The Planning and Zoning Commission recommended conditional approval of a resolution approving a Final Plan for Lots 1-6 of Butterfield Phase II Unit 5A Subdivision, at 2815 Bilter Road being south of Bilter Road and west of N. Eola Road, for a Warehouse, Distribution and Storage Services (3300) use in the form of a data center complex, with the following conditions:

1.) That at least five electronic vehicle charging stations be installed prior to the certificate of occupancy for the last building. The entirety of the vehicle charging station to be completed in conjunction with the development of the commercial area on Lot 2 and in accordance with market demands and conjunction with the end user for the commercial lot.

2.) That the street trees along N. Eola Road and Bilter Road, the street trees in the landscaped medians, and the berm be installed with Building 1. Landscaping in front of the future substation shall be installed as soon as weather permits after construction plans for the substation are finalized and construction of the future substation has progressed to a point that landscaping in front of the future substation can be completed without risk of damage or potential replanting to landscaping.

3.) That the developers and owners work with the Mayor’s Office of Economic Development to market the area identified as future commercial on Lot 2.

4.) That all the comments of the Engineering Division be addressed prior to approval of Final Engineering.

5.) That the developers extend the multi-use path across the property with the detention pond at the southwest corner of Bilter Road and N. Eola Road.

6.) That the developers install raised medians on Bilter Road as required by the Engineering Division.

7.) That all required permits and approvals from outside agencies be obtained.

8.) That the FDC at Building 3 be moved to in front of the sidewalk and not be obstructed by a parking space, and that all Fire Hydrants be placed within five feet of a fire lane.

Information/Discussion Only – Update on proposed changes to Chapter 25, Article XII “Mobile Food Unit Vendors”.

City government of Aurora documents show staff members provided an update to the Rules, Administration and Procedures (RAP) Committee following the February 15, 2023 meeting with mobile food unit vendors to present on proposed changes.

Following the November 22, 2022 Moratorium on mobile food unit operators in the city of Aurora, City staff members have been working on revisions to the ordinance. Specific areas of concern were distance to brick-and-mortar establishments, operational/set up issues, other location concerns and general enforcement concerns.

The revision process has included surveys to local businesses, including brick-and-mortar establishments, liquor licensees and registered mobile food unit vendors, research of other communities, aldermanic and community concerns. Wednesday, Feb. 15, 2023 a meeting was held for mobile food unit vendors to present the preliminary proposals to the ordinance.

Approximately 34 vendors attended the meeting. The draft proposals previously taken to RAP were presented to the vendors along with the ability to ask questions. Several questions and concerns were raised, specifically why the city is looking to regulate the days of the week, hours, and locations of mobile food units. And why units were given permission by the city to operate if it is not allowed even under the current ordinance. Vendors were provided the dates and times of upcoming meetings as well as information as to how they can participate in the rest of the process.

Based on the feedback provided, staff members are providing options for the RAP Committee to consider, the direction received will inform how amendments are drafted for the March 7, 2023 meeting.

The discussion will inform next steps for revisions to the mobile food unit ordinance.

Proposed Changes to Chapter 25, Article XII

“Mobile Food Unit Vendors”

• Distance for a mobile food unit to operate from a restaurant will be 100 feet from property line to property line or adjacent to the location of the restaurant.

• Adjacent: All land adjoining and abutting the site, including streets, sidewalks, bridges and buildings adjoining the site.

• Mobile food units will no longer be able to operate from vacant properties or parcels unless it is an approved designated location.

• All registered mobile food units will be listed on the city of Aurora website for event organizers.

• Approved locations will be posted on the city of Aurora website.

• Locations will be limited to food trucks (as defined) only.

• Food carts and open grills will only be permitted at permitted or private events.

• Mobile food units will no longer be able to operate daily and will be limited to events or designated locations and times.

• If you have a notarized lease signed before the moratorium start date of November 22, 2022:

• Please provide a notarized copy with your application.

• Leases dated before the start of the moratorium will be reviewed on a case-by-case basis.

• Any leases signed after the start of the moratorium will not be honored.

• City government staff members are working to streamline the application and renewal process and plan to continue to keep vendors notified.