What's Happening?
The city of Aurora is in the process of developing new lending programs aimed at fostering economic development, sustainability, and community projects. These programs, presented to the Aurora City Council, are designed to be low-risk and self-replenishing
through loan repayments, some of which would be paid back via property taxes. Aurora Mayor John Laesch and Chief of Staff Shannon Cameron have highlighted the need for affordable capital among local businesses and developers. The proposed programs include loans with below-market interest rates to support small businesses, special service area capital improvement loans for neighborhood enhancements, and Property Assessed Clean Energy (PACE) financing for energy-efficient upgrades. The funding for these initiatives would come from the city's Transformation Fund, established with a $16 million payment from CyrusOne as part of a redevelopment agreement.
Why It's Important?
These loan programs are significant as they aim to stimulate local economic growth by providing businesses with the necessary capital to expand and improve. By offering loans with favorable terms, the city hopes to encourage business development, job creation, and neighborhood stabilization. The focus on sustainability through PACE financing also aligns with broader environmental goals, promoting energy efficiency and reducing utility costs for property owners. The initiative reflects a strategic shift in Aurora's approach to economic development, moving away from traditional incentives that have not always yielded the expected returns. This could serve as a model for other municipalities seeking to balance economic growth with fiscal responsibility.
What's Next?
The proposed loan programs are not yet finalized and will require further approval from the Aurora City Council. The city is currently working to establish the necessary banking regulatory systems and plans to meet with regulatory agencies to ensure compliance. The commercial PACE lending program is expected to be the first to seek council approval, with funding anticipated from state sources. The city will continue to negotiate the repayment of funds from the Aurora Regional Economic Alliance, which could impact the available budget for these programs.
