Aurora staff seeks SSA 1 funds to form independent downtown nonprofit; council moves item to unfinished business

City staff presented a plan to use Special Service Area 1 (SSA1) funds to form an independent nonprofit to deliver downtown special services formerly provided by the dissolved Aurora Downtown organization.

Danielle Tavano, Downtown Economic Development Manager, outlined listening-session feedback from downtown property and business owners and a proposed path to create a 501(c)(4) organization that would be governed by downtown stakeholders with city staff serving as liaison and administrative support.

"We're coming to you to request the use of these SSA1 funds to cover the initial startup of this organization — legal costs, accounting, and consulting services," Tavano said. She explained startup costs were estimated between $5,000 and $10,000 and that staff originally requested up to $50,000 to also support an early staff hire; the request could be trimmed to $15,000 to cover initial formation costs.

The proposal prompted detailed questions about governance, financial oversight and relationships among the Alliance, Chamber and other downtown entities. Several aldermen asked for an accounting of prior funds distributed to the Aurora Regional Economic Alliance and for the Alliance to present its current financial status to council. Alderman Buck and others noted that lowering the requested threshold below $50,000 would permit the organization to move forward without additional council approvals.

City CFO and other staff described options for disbursing funds: the city could pay startup invoices directly from the SSA fund, hold money in escrow or transfer it to the nonprofit once established. Staff also said the nonprofit's bylaws would determine board composition and voting rights; Tavano said eight downtown stakeholders have expressed interest in serving on an initial board.

Concerns from council included a historical lawsuit involving Aurora Downtown, transparency requirements, and whether the proposed entity should be a 501(c)(3) or 501(c)(4). Staff said the legal structure and procurement of counsel would be determined by the new board and its attorneys.

The mayor and several aldermen emphasized the need to repair relationships among downtown organizations. After discussion the council moved the item (agenda item 25‑0‑820) to unfinished business to allow additional engagement and for staff to gather financial information requested by aldermen.

Why it matters: SSA1 funds are collected from property owners in the downtown district. How those funds are governed and spent affects downtown events, beautification, marketing and small business support and can influence downtown investment and visitor activity.

Next steps: Item placed on unfinished business; staff to provide a detailed accounting of prior Alliance expenditures on request and to work with interested stakeholders and counsel to produce draft bylaws and startup budget for council review.