CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Pass the ordinance approving the first amendment to the Block 59 Business District Plan (Item 1 of 2)
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DEPARTMENT: Transportation, Engineering and Development
SUBMITTED BY: Jennifer Louden, Director and Michael DiSanto, City Attorney
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Brixmor Property Group owns the Block 59 and Westridge Court commercial properties located at the northeast corner of Illinois Route 59 and Aurora Avenue. In 2023 the Block 59 Business District (Business District), encompassing Block 59 and a portion of Westridge Court, was established for the purpose of imposing a 1% sales tax to fund qualified redevelopment improvements.
The following ordinances were passed on March 21, 2023 to establish the Block 59 Business District:
* Ordinance 23-039 designating the Block 59 Business District, approving the Business District Plan (BD Plan), and making a blighted area finding in relation to the Block 59 Business District;
* Ordinance 23-040 imposing a Business District Retailers' Occupation Tax and Business District Service Occupation Tax for the Block 59 Business District; and
* Ordinance 23-041 approving the Block 59 Business District Redevelopment Agreement (Agreement) between Brixmor and the City of Naperville.
Following establishment of the Business District, staff notified the Illinois Department of Revenue (IDOR) and IDOR began imposing the 1% tax on July 1, 2023. The taxes will be in effect for 23 years or until the payment of the obligations outlined in the BD Plan and Agreement, whichever is earlier. The maximum reimbursement was established at $13.4 million.
Since that time, the developer has completed the qualified improvements and met the requirements outlined in the Agreement to begin receiving disbursement of the business district taxes that have been collected by IDOR and transferred to the City.
DISCUSSION:
Brixmor Property Group has requested an amendment to the Block 59 ...
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