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Aurora council approves two downtown redevelopment agreements, staff say TIF increment pays costs
Summary
The council approved a third-amendment redevelopment deal with DAC Development and a renovation agreement with Barrera Organization for properties downtown, with staff explaining higher costs stem from environmental remediation and that incentive payments come from TIF increment—not general taxpayer funds.
The Aurora City Council on Sept. 24 approved two redevelopment agreements for downtown projects, including a third amended agreement with DAC Development and a separate agreement with the Barrera Organization for 116 West Galena Boulevard.
Alderman Lesch criticized the DAC amendment as “corporate welfare,” saying rents cited in debate — "$1,700 for a 1 bedroom or $2,300 for a 2 bedroom" — were out of line with affordability for many Aurora residents. City staff, including finance staff and the CFO, countered that increased costs were driven by unforeseen environmental site preparation and remediation discovered after initial core sampling during the pandemic. “These…items contributed significantly to the cost increase,” staff said, and TIF increment mechanics mean the developer is paid from the value the project itself creates, not from a general city tax increase.
Council debated interest-rate impacts; staff said the redevelopment agreement includes provisions for cost-sharing and upside-sharing if costs fall (such as if interest rates decline or construction costs are lower than projected). The DAC resolution passed on roll-call 9–2.
Separately, the council approved an agreement with Barrera Organization for renovation of 116 West Galena Boulevard. Staff confirmed the project uses riverboat funds plus an 80% share of the incremental tax revenue the project produces; micro-units under 400 square feet will be limited to single-occupant occupancy and larger units to two occupants. The Barrera resolution passed 11–0.
Both items move forward with TIF-based incentive structures and oversight; councilors who raised affordability concerns said they would continue to press for balancing development and resident needs.
