CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Adopt the resolution authorizing a covenant incentive agreement between the City of Naperville and Little Friends for the preservation of the Kroehler Mansion
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DEPARTMENT: Legal Department
SUBMITTED BY: Michael DiSanto, City Attorney
BOARD/COMMISSION REVIEW:
Not required.
BACKGROUND:
At the November 19, 2019 Council meeting, after approving a Certificate of Appropriateness (COA) authorizing the demolition of the Kroehler Mansion on the current Little Friends property, Council directed staff to continue dialogue with Little Friends for possible incentives that could lead to the preservation of the Mansion.
At the December 3, 2019 Council meeting, Council adopted a resolution that proposed to Little Friends an incentive opportunity of up to $562,000 in exchange for the preservation of the Kroehler Mansion. The maximum incentive amount was based on estimated anticipated property tax revenues to be generated by a residential development on the property over 20 years. The resolution anticipated that the actual amount of the incentive would be the difference between the highest offer Little Friends received for its property with the mansion preserved versus the highest offer without the mansion.
On May 1, 2020, Little Friends submitted documentation (attached) to pursue the incentive opportunity including an overview of the history of bids it received for its property. Based on those bids, Little Friends initially requested the full incentive of $562,000, however based on the offers described in the letter, City staff opined that $450,000 is the highest justifiable incentive amount, as that represented the difference between the highest current offers of $4.95 million (without the Mansion) and $4.5 million (with the Mansion preserved).
At the May 19, 2020, Council meeting Council provided input to the potential developer, Ram West Capital, concerning its conceptual plan for the property, which included re...
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