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HomeMy WebLinkAbout031-R-22 Authorizing the City Manager to Execute A Grant Agreement For The Aux4/5/2022 31-R-22 A RESOLUTION Authorizing the City Manager to Execute A Grant Agreement For The Aux WHEREAS, the City of Evanston is the recipient of approximately forty- three million one hundred seventy-three thousand six hundred and fifty-four dollars ($43,173,654) in funds from the federal government's American Rescue Plan Act (ARPA); and WHEREAS, the Coronavirus State and Local Fiscal Recovery Funds (SLFRF), a part of ARPA, have been provided to the City to support its response and recovery from the COVID-19 public health emergency; and WHEREAS, City Council previously allocated $10.1 million in ARPA funds to address the negative economic impacts of the COVID-19 pandemic; and WHEREAS, the Aux is a proposed $7 million, 16,000 square foot redevelopment located at 2223 Washington Street in Evanston, Illinois, which is described as a commercial hub dedicated to community wellness and racial equity; and WHEREAS, the Aux project is co -developed by a team of Evanston leaders organized as the Auxiliary Cord, LLC and The Growing Season (the Aux co - development team); and d© Page 1 of 6 Doc ID: 377eb30691e4aab559fObd17ff7dd545450ed23e 31-R-22 WHEREAS, the Aux co -development team is seeking $1 million from the City's ARPA funds to assist with constructing an adaptive reuse of the abandoned industrial building at 2223 Washington Street to deliver the estimated $7 million project; and WHEREAS, the Aux co -development team believes that the City's investment will leverage additional investment from other public and private sources; and WHEREAS, the Evanston City Council has determined it is in the best interests of the City to grant the Aux co -development team's application for $1 million in ARPA funds, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS: SECTION 1: The City Council hereby adopts the foregoing recitals as its findings, as if fully set forth herein. SECTION 2: The City Manager is hereby authorized to negotiate and execute a grant agreement for ARPA funds with the Aux co -development team. SECTION 3: The City Manager is also authorized and directed to negotiate and execute any additional documents required for the grant agreement as they may determine to be in the best interests of the City. SECTION 4: That this Resolution 31-R-22 shall be in full force and effect from and after its passage and approval in the manner provided by law. --2-- Page 2 of 6 Doc ID: 377eb3069le4aab559fObdl7ff7dd545450ed23e 31-R-22 Attest: Stephanie Mendoza, City Clerk Adopted: April 11 12022 lJaAe1 8z:r,r Daniel Biss, Mayor Approved as to form: ✓Vccholas &. Ca01-n4i Nicholas E. Cummings, Corporation Counsel Page 3 of 6 MCC Doc ID: 377eb30691e4aab559fObd17ff7dd545450ed23e �iliil� ■���� The Aux is a commercial hub dedicated to racial equity and wellness — a space co -created and co -owned by the community. Located in Evanston, the transformed space will become home to entrepreneurs of color and a vibrant space to build community and heal from stress, trauma and isolation. Impact 1. Design a high -quality, tax -paying commercial property by transforming a blighting, long -vacant industrial building; 2. Create spaces for 30+ Black -owned businesses (10 anchor, 20 rotating) that, in turn, support an estimated 50 jobs and local economic growth; 3. Provide entrepreneurial support to small business owners of color, including tenant build -out, technical assistance, mentorship, and peer support; 4. Increase community access to wellness offerings by practitioners of color including mental health services, healthy foods, movement, meditation, hair & beauty and healing therapies; 5. Develop a sustainable social change model that addresses systemic barriers to racialequity. Wellness Model SPIRITUAL WELLNESS ASENSE OF PURPOSE AND MEANING,AND ACHIEVING GREATER MINDFULNESS OF YOUR IMPACT ON THE WORLD. ENVIRONMENTAL WELLNESS WING A LJFESIYIE THAT NURTURES THE NATURAL WORLD AND MI➢GATES THE IMPACT OF HARMFUL ENVIRONMENTAL FACTORS. (I FINANCIAL WELLNESS ECONOM1IIC OPPORFUNIIYANDTHE IAPAIIIY FOR SELFDETERMINATION. 61 COMMUNITY WELLNESS A FEELING OF CONNECTOR, BELONGING, AND A WELL DEVELOPED wPPoRrSYSTEM. (J EMOTIONAL WELLNESS THE AWARENESS, UNDERSTANDING, AND PHYSICAL WELLNESS ACCEPTANCE OF OUR EMOTIONS AND THE ABILIIYTO EFFECTIVE LY MANAG F CHAT LENGES. OPIIMALBaDILY HEALTH AND FUNCTIONING PROMOTED BY LIVING INA BALANCED STATE OF MIND, BODY,AND SPIRIT. Financial Model The Aux uses a proven model that has demonstrated impact over the past decade. It blends philanthropy, pubic support, and equity to address historical disparities and build local ownership. Philanthropy and public support is raised by our non-profit partner, The Growing Season. Through a unique crowdfunding strategy, equity will be raised from community stakeholders. This model ensures The Aux will continue to thrive while building community wealth. The redevelopment is designed to be a financially self- sufficient, tax -paying property once in full operation without ongoing subsidy, enabling market conditions to take root in ways traditionally abandoned by mainstream economic development practices. Page 4 of 6 Doc ID: 377eb30691e4aab559fObd17ff7dd545450ed23e Project Team and Tenant Partners The Aux is led by a diverse, experienced, local team. Seven anchor tenants are committed already and include: The Laundry Caf6, Podcast Studio, Chef Q Catering Kitchen, Well Beings Chicago, The Growing Season Mindfulness Studio, Embrace Your Crown Salon, and Sunshine Enterprises. Here are some of our leaders and tenant highlights: Tiffini Holmes is a co -developer of The Aux, a Co -Owner of Aux anchor tenant Well Beings Chicago, and owner of Total Transformation Solutions. As a certified Health Coach, Tiffin lives out her passion for partnering with people to improve their lives. Gabori Partee is a co -developer of The Aux, owner of The Fitness Representative OC!N f.7, g Personal Training and Co- Owner of Well Beings Chicago. He is NASM certified in Personal Training and host of The Fitness Report Radio Show. Gabori is a US 1 r, Marine Corps veteran. Goal To raise Aux Redevelopment Budget $7.5 M Goal $1.7M raised to date from nearly 50 private donors $1.5M in the philanthropic pipeline $1.OM requested from the City of Evanston $1.3M sought from County, State and Federal sources $2.0 M community equity goal (Black ownership) Watch The Aux Video Here Website: theauxevanston.com Chef Q. Ibraheem, is an AUX anchor tenant partner, who will open her kitchen and gardens in the Aux. Honored as a 2021 CNN Hero for her extraordinary efforts to feed families during the pandemic, Chef Q's is Owner & Executive Chef of Teertsemasesottehg - Secret Location Underground Supper Club. Jacqui White is a co -developer of The Aux and y co-owner of The Laundry Cafe. She is a proud lifelong Evanston resident with 20+ years of experience mentoring and coaching young women combined with 16 years dedicated to law enforcement. As a mother and an aspiring entrepreneur, Jacqui wants to continue serving the community. Tosha Wilson: Tosha is 5th generation - Evanstonian, a co -developer of The Aux and co- ; , �I owner of Aux anchor tenant The Laundry Cafe. Tosha has served the Evanston community in law ' enforcement since 2002. She has learned that = .�1 strong communities include healthy people, healthy living, healthy choices and healthy spaces. Lori Laser is the Founder of anchor Aux tenant and nonprofit fiscal partner The Growing Season and a co -developer of The Aux. A graduate of the Engaged Mindfulness Teachers Association, she is a passionate advocate for ensuring that all families have equitable access to healing and wellness resources. Juli Kaufmann is President of Fix Development, an award -winning Milwaukee -based real estate company with $25+ million in projects. Fix Development creates projects for positive cultural, social, economic and environmental impact. Juli is the Co -Developer of the Sherman Phoenix in Milwaukee and lead consultant to The Aux. The Aux / 2223 Washington St. Evanston, IL 60202 TheAuxEvanston@gmail.com Page 5 of 6 Doc ID: 377eb3069le4aab559fObdl7ff7dd545450ed23e The Aux Funding Evaluation - April 11, 2022 CRITERIA DESCRIPTION Project Feasibility Team/Organization Capacity Budget Return on Investment Addresses Inequities and Inequality Community Support Proposal is detailed and clear with a business plan including timeline and revenue projections in addition to meeting community standards POSSIBLE PROJECT SPECIFIC EXAMPLES SCORE 0- 5 GENERAL EXAMPLE GUIDELINES Unique business plan with multiple tenants sharing larger space. Angel Investors and Philanthropy required to launch, unclear about longer term commitment from philanthropy. This is not completely market driven. Some uncertainty. Revenue stream negative impacts with vacancies resulting from individual businesses fail, grow and move out, etc. Furthermore, location will require significant marketing as it is hidden from automobile and foot traffic. Team has demonstrated Strong energized team with deep experience or knowledge of community roots. Philanthropists are subject matter or has committed short term and are local. demonstrated capacity to be Consultant team has experience launching resourceful similar projects 3.5 Business Plan shows realistic revenue sources and sustainted revenue projections. Relatively quick timeline to construct project and achieve revenues / generate community benefits. 4 Past performance on grants, Staffing levels and management, Strength of organization, experience in other areas Realistic estimates with diverse sources of funds 5 Sources of funds less than 25% city with majority of funding from funding. Realistic estimates based on non -city sources Excellent diversity of funding. current market conditions/best practices. The return on investment is strong on the social side and provides much needed POC and women entrepreneurship and 4 Depending on project type, Jobs, tax training opportunities. Also a potential real revenues, affordable units, affordability Detailed description of all estate development ownership model for mix, workforce development opportunity expected project outcomes Black community vs. job training, carbon reduction, etc. Project led by or guided by team with diverse Project reflects community goals focused perspectives. Considerate on poverty reduction, job creation, of impacted communities 5 education,employment, workforce including communities Addressing inequities and damage caused development opportunities in impacted represented by People of by institutional racism is the foundation of communities. Local hiring initiaitves a Color. their program priority Emails and letters of support from Demonstrated support from stakeholders who support the project. community members, built 5 Project/program is identified in a through authentic The community has strongly supported this neighborhood/community plan. community outreach. concept and has spoken in favor. Acknowledgement of community concerns. Average 4.42 Total 26.5 Percentage 88.33% Page 6 of 6 Doc ID: 377eb30691e4aab559fObd17ff7dd545450ed23e