CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Pass the ordinance calling for the enlargement of Special Service Area No. 33 (Downtown Marketing & Maintenance) to include 235 W. Jefferson Avenue and scheduling the required public hearing for June 6, 2023 at 7 p.m.
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
In 2006, the City established Special Service Area (SSA) 22, which was renewed in 2011 as SSA 24, and then again in 2015 as SSA 26. The City renewed SSA 26 as SSA 33 in 2020. SSA 33 provides special municipal services to the designated area, including parking lot operations and maintenance, public parking garage maintenance, custodial services, and sidewalk and parking lot snow removal. SSA 33 also includes the maintenance of landscaping, streetscape, street lighting, holiday lighting, special directional signage, and capital improvements. In addition to maintenance, the SSA supports the Downtown Naperville Alliance, which markets the downtown through print, radio, direct mail, internet, and social media. Property owners cover one-third of the SSA’s expenses, while the City covers the remaining two-thirds.
The owner of real property located at 235 W. Jefferson Avenue (the “Subject Property”) submitted a request to the City asking that SSA 33 be expanded to include the Subject Property to gain access to the benefits provided by the SSA. The Alice Chin Team has operated a real estate office at this location since May of 2021. Although the Subject Property is entirely surrounded by SSA 33, it is currently excluded from the SSA since the property has been historically used as a single-family residence. If the SSA were to be renewed today, the Subject Property would be included given its current use.
DISCUSSION:
In order to add properties to an existing SSA, the City must follow a series of steps that are outlined in the Illinois Property Tax Code. The legal requirements are as follows:
1) approval by the City Council of an ordinance proposing enlargement of the SSA boundary and setting the date for a public hearing on the proposed expansion (which must be at least 60 days after passage of the proposing ordinance); Current Action Item
2) publication and personal notice of the proposed SSA expansion and the date of the public hearing; except when the property being added represents less than 5% of the equalized assessed valuation of the entire original area, as determined by the clerk of the county in which the land is located, the notice by mailing requirement of Section 27-30 shall be limited only to the area to be added and not to the original special service area;
3) a public hearing on the date set in the proposing ordinance after which a 60-day objection period is required;
4) approval by the City Council of an ordinance establishing the expansion of the Special Service Area after the 60-day objection period; and
5) recording of the ordinance approving the expansion with the DuPage County Recorder and the DuPage County Clerk no later than 60 days after passage of the ordinance.
Staff confirmed with the owner of the Subject Property their desire to be added to the SSA and obtained a letter from the owner documenting that request (attached).
FISCAL IMPACT:
The addition of the Subject Property will have no immediate fiscal impact on the City or the other property owners within the SSA; however, the additional equalized assessed value the property will contribute to the SSA will reduce the tax burden for other property owners in the future.