Aurora looks at line of credit, grant program

Aurora City Council members will vote on Tuesday on some items the city uses for economic development.

Aldermen will vote on renewing a line of credit used in short-term financing. They also will consider moving administration of the Finish Line Grant program from the city to Invest Aurora, a not-for-profit public-private partnership that deals with business development in the city.

The Finish Line Grant program was started in 2014, and over that time has funneled nearly $2 million toward redevelopment projects. The grants are designed to plug a gap that a development or business might have as it nears the finish of a redevelopment or start-up – hence the Finish Line Grant name.

Last year, the city approved about $700,000 in Finish Line Grants. The program currently is funded with money collected in taxes from Hollywood Casino.

When the program started, it was administered by Invest Aurora. In 2022, with changes going on at Invest Aurora leadership, and a new contract in the works between the organization and the city, the program was transferred to the Mayor’s Office of Economic Development.

With the new contract in place and new leadership at Invest Aurora, both city and Invest Aurora officials are looking to transfer the program back.

“This program was traditionally administered by Invest Aurora,” said David Dibo, director of the Mayor’s Office of Economic Development.

Loretta Daly, acting president and CEO of Invest Aurora, said in transferring the program back, there would be several changes. One is to make it geographically available to all business throughout the city; at one time it was focused on downtown.

The second change is to make the cap of each grant $50,000, instead of $100,000. That’s because there is less money available in the program this year, she said.

“We’re hopeful to have a number of different applications,” she said.

At the May 21 City Council Committee of the Whole meeting, Ald. John Laesch, at large, pointed out that if the program is transferred back to Invest Aurora, aldermen will no longer vote on the grants.

Mayor Richard Irvin said that there are city representatives on the Invest Aurora board, which is made up of both public and private business officials.

Laesch asked that the vote be put on unfinished business for Tuesday’s council meeting.

Aldermen will also vote on renewing a $10 million line of credit the city carries with Old Second National Bank.

The line of credit is used to provide short-term financing for things like the city’s contributions to economic development projects or land acquisition.

The line of credit is more practical sometimes than passing bonds.

The city first approved two lines of credit, one with Old Second and the other with Fifth Third Bank, back in 2019. Both were for $10 million, but the Fifth Third Bank credit line was increased to $15 million at one point.

The city paid off the Fifth Third Bank line last year and officials would not seek to renew it.

The Old Second line of credit was last renewed in July 2023 through June 30, 2024.

There is about $6.7 million left on the line, which is about the same as it was last year at this time. No draws have been made on it in the past year.

Officials usually reduce the line from future bond issuances and repayments of development costs from developers from various economic redevelopment costs initially financed by the city.

slord@tribpub.com