Batavia schools, Aurora plan to sign casino revenue deal
The Batavia school district would receive some of the increased property taxes generated by the proposed new Hollywood Casino when it opens in northeastern Aurora, under an agreement the school district and the Aurora City Council are contemplating.
The city is planning to create a new tax increment financing district for the casino, which will be built on Farnsworth Avenue near Bilter Road. Normally, any additional property tax revenue in a TIF district is devoted to paying for the work done that increased the value of the land.
But under the proposed agreement, 10% of the increased property taxes would be set aside each year for Batavia Unit District 101 - and potentially other taxing bodies - before any project costs are paid. That includes the payments on the $50 million the city has agreed to lend PENN Entertainment to build the $360 million project.
The city and the school district have a similar pact for the current West Farnsworth District 7. The new TIF, the Farnsworth Bilter TIF, is being carved out of TIF 7. The current agreement dates back to 2011.
In exchange for the money, the school district will agree to vote favorably when the new TIF is reviewed by the city's Joint TIF review board.
The city council and the school board both are expected to vote on the agreement on Tuesday.
Ten parcels along Farnsworth, Bilter and Church roads would be in the new TIF district. According to Kane County tax records, the city owns five of them, including the sites of the former Motel 6, Papa Bear restaurant and a former Best Western hotel. The city does not pay property taxes on those sites. The other sites currently are paying a total of about $31,000 to the school district.
The city approved a redevelopment agreement with Penn Entertainment last October. It has not yet established the new TIF district. The city will borrow the $50 million it is lending to Penn, and Penn will repay it out of the property tax increment. If that is not sufficient, Penn will have to use other revenue to repay the city.
The city is also giving about $8 million worth of land to Penn.