Aurora set to renew $15 million line of credit to support city’s economic development efforts – Chicago Tribune

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Aurora City Council is expected to approve the renewal of a $15 million line of credit for the city at its meeting Tuesday night.

The Fifth Third Bank account, along with another $10 million line of credit the city has at the Old Second National Bank, are considered important to the city’s economic development efforts.

At the end of June, the aldermen approved the renewal of the credit line at Old Second.

Lines of credit are useful for short-term financing when issuing bonds isn’t practical “because time is running out,” said Chris Minick, the city’s chief financial officer.

“These are used for economic development and also to buy property,” Minick told aldermen at a July 5 full committee meeting.

Currently, the city has a balance of $6.5 million on the Fifth Third Line of Credit, which Minick said the city will repay with proceeds from a recent bond issue.

The city is also repaying the balance with developer reimbursements for various short-term city-funded costs, primarily related to historic preservation tax credits, according to Minick.

He said some of them were used to fund the difference between construction costs and the repayment of tax credits.

“Staff foresee that there will be an additional need for short-term funding for economic development projects in the future and the (lines of credit) provide a convenient and cost-effective vehicle for these needs,” Minick wrote in a statement. memo.

The aldermen put the renewal on the agenda for Tuesday evening’s meeting, meaning it is likely to be approved.

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