By Jason Crane
The Aurora City Council is considering a Resolution approving the establishment of a transformation fund for the Aurora business community and authorizing the deposit of $5,000,000 with Invest Aurora for its funding.
City government of Aurora documents show four entities have voted to consolidate into one economic development entity: Invest Aurora, Aurora Regional Chamber of Commerce, Aurora Downtown, and the Quad County African American Chamber of Commerce.
These organizations have historically concentrated on economic development efforts and the City has provided financial support for various initiatives. There has been some overlap in the efforts by these entities. The consolidation is designed to allow for more efficient and effective use of funding.
The City government wishes to provide funding for the efforts of the consolidated organization, including a transformation fund to allow for various enhancements to the business climate within the city of Aurora.
In June 2024, the City approved a development agreement with C1 Chicago, LLC which required a reimbursement of $16,000,000 for City investment in infrastructure improvements in the area proximate to I-88 and Eola Rd that occurred in the early 2000’s. The City received the funds as specified in the development agreement in mid-July 2024.
City officials are proposing to utilize the funds to enhance economic development efforts throughout the City. To that end, the funds are to be utilized in support of the following initiatives:
$9 million for an economic development initiative fund for the Mayor’s Office of Economic Development. This funding is intended to be utilized for investments in economic development projects that will ultimately be paid back to the fund. To date funds have been utilized for property acquisition along the north side of Bilter Road as approved in July of 2024.
$1 million to be added to the Historic Preservation Program (to be approved through the 2025 Budget process)
$1 million to be added to the Façade Improvement Program (to be approved through the 2025 budget process)
$5 million to fund a transformation fund to be applied to business and economic development throughout the City. The transformation fund will be managed by Invest Aurora initially and be part of the efforts of the new consolidated economic development entity in the City as described below.
The legal structure for the consolidation of the entities will be in place in the fourth quarter of 2024, with the public launch of the new entity scheduled for the first quarter of 2025. The pertinent documents and required filings to create the new entity are being developed. It is intended that the president/CEO of Invest Aurora, Kelly O’Brien, will be installed as the president/CEO of the new organization. She will coordinate and have responsibility for its day-to-day operations.
One of the first tasks will be the development of a strategic plan. The strategic plan will formally define and enumerate the goals for the organization. It is anticipated that the goals could include initiatives related to small minority and women owned businesses, workforce development, innovation and entrepreneurship, promotion of the overall City vision for economic development, enhancing communication between the municipality and the private sector, promotion of Aurora’s downtown, marketing and advertising, and business attraction and retention.
The overall programs initiated and undertaken would be finalized by the new organization after development of the strategic plan. The new organization will be governed by an approximately 50-member Board of directors consisting of the boards of the individual consolidating organizations.
Additionally, there will be a 13-member Executive Committee who will further guide policy and strategic direction. Five of the Executive Committee members would be appointed by the mayor with the advice and consent of the City Council and the remaining 8 members would be representatives of the consolidating organizations.
Invest Aurora, The Aurora Regional Chamber of Commerce, Aurora Downtown and the Quad County African American Chamber of Commerce, with 2 members coming from each of the 4 consolidating organizations.
It is anticipated that the Transformation Fund would be self-sustaining with revenue streams and private sector funding. The City would require semi-annual presentations of programs, initiatives, and results.
Discussion:
Initial funding for the Transformation Fund is available from the $16 million proceeds of the development agreement with Cyrus 1, but would require a budget amendment. The City would require semi-annual presentations of programs, initiatives, and results as a requirement of the funding provided.
Impact statement:
Approval of the resolution will allow for the establishment of the new consolidated organization and the development and implementation of its strategic plan. This plan can then be put into action with specific programs and initiatives meeting the goals of the Transformation Fund. The business climate within the City of Aurora will be significantly enhanced in numerous areas such as attraction and retention, marketing, entrepreneurship opportunities, and communication.
If this measure is not approved, economic development activities will continue in a fragmented and inefficient manner. The City will not maximize the efforts and resources of the individual organizations and the opportunity to improve the City’s overall business climate will be lost. Economic development opportunities and the resultant additional revenues and resources will be lost due to the lack of aligned and coordinated efforts.
Recommendations:
A motion to approve a Resolution approving the establishment of a transformation fund for the Aurora business community and authorizing the deposit of $5,000,000 with Invest Aurora for its funding.
- Final approval for items on the consent agenda are set to be made at the October 22 Aurora City Council meeting.
