CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Adopt the resolution supporting City funding of Naper Settlement’s Innovation Gateway and Agricultural Center capital improvements
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DEPARTMENT: Legal Department
SUBMITTED BY: Michael DiSanto, City Attorney
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City of Naperville (City) is the owner of the land and buildings known as the Naper Settlement. The Naperville Heritage Society (Society) was established in 1969 to preserve Naperville’s historic landmarks and materials, exhibiting and interpreting them to the public as well as developing the City’s 19th century museum village known as Naper Settlement. In 1979, the City and Society formally partnered and reached certain agreements pertaining to the management, maintenance, development, operation, and financing of the Naper Settlement.
The Society has determined it to be in the best interest of the Naper Settlement, to engage in a capital campaign for the construction and establishment of the Innovation Gateway and the Agricultural Center on the Naper Settlement property (Capital Improvements).
The proposed Innovation Gateway will be an approximately 3,200 square foot entrance center to Naper Settlement where visitors may enjoy an interactive digital experience that will connect them to Naperville’s 20th and 21st century residents - from humanitarians to visionaries - and visitors will be able to upload their own story and become a part of history.
The proposed Agricultural Center will be an approximately 5,000 square foot exhibition space on Naper Settlement’s premises showcasing the contributions of Naperville’s farming community. Visitors will be able to visit the learning laboratory and talk with today’s botanists and engineers working to generate new ways of feeding, clothing and energizing the world.
The Society has informed the City that it desires to construct and establish the Capital Improvements and the Society desires the City to assist with financing the Capital Improvements. The City has the authority, pursuant to the laws of the State of Illinois and its home rule authority, to use its credit, revenues, and other resources to pay costs and service debt related to activities which involve a public purpose.
At the October 15, 2019 City Council meeting, the Heritage Society presented Council with its request for the City to assist with financing the Capital Improvements. Council directed staff to bring back a resolution for Council consideration that memorializes the Council’s support for City funding of Naper Settlement’s proposed capital improvements.
DISCUSSION:
The attached resolution memorizes that the City Council is supportive of the proposed Capital Improvements and intends for the City to contribute funds to assist with the financing of said Capital Improvements subject to the following conditions:
1. The City will consider contributing $2,400,000 for the Capital Improvements based on Society representations that the estimated cost, without endowment costs, is $3,364,080 for the Innovation Gateway and $3,928,909 for the Agricultural Center for a total of $7,292,989 for the Capital Improvements, including a $775,226 contingency.
2. The total amount of funding which may be provided by the City for the Capital Improvements shall not exceed one-third (1/3) of the total cost of the construction and establishment of the Capital Improvements.
3. The City shall not contribute any funds towards the Capital Improvements unless and until the Society has received funds from other donors which constitute at least two-thirds (2/3) of the total cost of the construction and establishment of the Capital Improvements (currently estimated at approximately $4,900,000). Commitments to make contributions towards the Capital Improvements for which contributions have not actually been received shall not be included in determining whether the two-thirds (2/3) threshold has been met.
4. The City shall be reimbursed for any unused or unspent portion of the designated contingency (currently estimated at $775,226) related to the construction and establishment of the Capital Improvements.
5. The City shall not contribute any funds for the Capital Improvements, to the extent that it determines to make such contribution, earlier than 2021.
6. The City may determine its revenue sources for funding a contribution for the Capital Improvements as it deems appropriate, including, but not limited to the City’s Special Events and Cultural Amenities Fund (SECA), the City’s Naper Settlement Fund, and/or the issuance of municipal bonds.
7. That the Capital Improvements shall be completed and open to the public by July 1, 2025.
If Council adopts the proposed resolution, the Society will use Council’s memorialized support to assist with its private fundraising efforts. Future Council action will be necessary to finalize the intent expressed via the proposed resolution. If Council adopts the resolution staff will prepare a recommendation for funding said contribution as part of the City’s CY 2021 budget.
FISCAL IMPACT:
The City is expected to contribute $2.4 million for the Capital Improvements based on total estimated costs of approximately $7.3 million. The contribution will not be budgeted sooner than CY2021 and the City may determine its funding revenue sources as it deems appropriate, including, but not limited to the City’s Special Events and Cultural Amenities Fund (SECA), the City’s Naper Settlement Fund, and/or the issuance of municipal bonds.