Aurora urges extension of state historic tax credit that aids riverfront development
Aurora leaders are urging the state to extend the life of a special tax credit that made possible redevelopment of a closed downtown hospital into homes for seniors.
The city council unanimously approved Thursday a resolution urging the state to extend the River Edge Redevelopment Zone State Historic Tax Credit.
Assistant Chief of Staff Rick Guzman told council members the tax credit was the "most important funding component" in the nearly $25 million redevelopment of the former St. Charles Hospital building at 400 E. New York St. in Aurora. The building, which has been vacant for many years, is set to open next month as a senior independent living community.
The tax credit program was created by the state to stimulate the development of environmentally challenged and/or historic properties near rivers by using tax incentives and grants.
"Without it, there would have been at least a $3 million gap in funding, and the senior living project would not have moved forward, leaving this historic structure vulnerable to further deterioration and possible demolition," Guzman said.
The credit is set to expire at the end of this year, which means future projects in Aurora and the four other River Edge cities: Elgin, Peoria, Rockford and East St. Louis, would not see funding from the tax credit, Guzman said. The extension would prolong the program until 2022.
"This bill enjoys bipartisan support, but with the sunset of this program coming up, we felt it was important to go on record and call attention, along with some of our other River Edge cities, to this very important program," Guzman said.
"There are many buildings in the River Edge Redevelopment Zone that the council has designated would stand to benefit from this and, in fact, just like the St. Charles Hospital, this credit could make the difference in whether or not these buildings are saved and redeveloped and preserved for the long haul."
Guzman said the buildings include the "very historically significant" Hobbs Building, the Terminal Building, the Galena Hotel and the former Aurora School District 129 administration building.
"There is interest in these and we know that the renewal of the state tax credit would drive investor and developer interest in these buildings even more so."
Eighth Ward Alderman Rick Mervine urged taxpayers to get involved.
"Quite honestly It's one thing for us to vote in support of this and to send something to Springfield, but this is one of those that not only those of us on the council, but also the residents as well, need to get behind and need to pick up the phone and make a phone call or send an email because this is something that we would benefit greatly from as a city."