Aurora City Council urges state lawmakers to extend vital tax credit for redevelopment projects

On Nov. 22, the Aurora City Council voted unanimously on a resolution urging lawmakers in Springfield to extend a program that could help breathe new life into Aurora's historic buildings and bring residents and businesses to Aurora.

"It is vital for the success of our river communities that this tax credit is extended," said Aurora Mayor Robert J. O'Connor. "We've seen the direct and immediate impact this has had on Aurora and know the potential it has to transform so much more in the future."

The River Edge Redevelopment Zone State Historic Tax Credit is a credit provided for companies that take on the rehabilitation, renovation and revitalization of key historic buildings in Aurora, Elgin and other cities throughout Illinois. This successful program has generated jobs, put buildings back on the tax rolls, helped revitalize downtown communities, and put $10 back into the community for every $1 invested.

The tax credit program ends on Dec. 31, 2016, without the action of lawmakers in Springfield and Gov. Bruce Rauner.

On Nov. 22, the Aurora City Council unanimously asked lawmakers in Springfield to extend the credit, and pointed to one of the program's major success stories right here in Aurora.

In Aurora, the program helped close a $3 million funding gap to complete the rehabilitation of St. Charles Hospital on Aurora's near East Side. The $20 million project by Verigreen Development has transformed the once-vacant hospital into a senior living community that will begin welcoming new residents by the end of this year.

The project has not only helped to stabilize an economically distressed neighborhood, but also created 60 local construction jobs and beautified the New York Street Corridor by restoring an historic building to the requirements of the National Register.

Without the River Edge Redevelopment Zone Tax Credit, the St. Charles Hospital rehabilitation would not have moved forward, and the building would have been left vulnerable to further deterioration and possible demolition.

The cost of rehabilitating older, historic buildings is often prohibitive for developers, and the River Edge Redevelopment Zone State Historic Tax Credit offered developers tax incentives of up to 25 percent of eligible costs of these rehabilitation projects at no net cost to Illinois taxpayers.

In Aurora alone, developers have shown interest in using these tax credits to redevelop the Hobbs Building, the Terminal Building, the Galena Hotel and several other properties in downtown Aurora.

Members of the city council also urged residents to contact their representatives in Springfield and ask them to support the extension of the River Edge Redevelopment Tax Credit.

"It's one thing for us to vote in support of this and send something to Springfield, but this is one of those that not only us on the Council, but the residents as well need to get behind," said Ward 8 Alderman Rick Mervine. "We need to pick up the phone and make a phone call or send an email. This is something that would benefit our city greatly."

For information on the program and how to contact your legislators, visit www.facebook.com/rivercredit.