The city of Aurora could realize about $16 million in reimbursements if the City Council approves a redevelopment agreement with Cyrus One.
The money comes after negotiations between the two entities over a second campus Cyrus One intends to build on the far East Side.
Cyrus One is a major, national data center with a facility at Eola and Diehl roads. The company intends to build another campus – with two new, 350-foot-high towers, a 411,000-square-foot building and another, 150,000-square-foot building – just to the north, along one side of the entrance from Bilter Road to Interstate 88.
Most of the building space would be for data center servers, although the front of the main building would include a lobby and some office space.
The City Council last week approved rezoning and plans for that development.
The new campus is being built on property the city once intended for a different kind of economic development – commercial and possibly hotel uses.
That was the thought in 2008 when the city spent money to help get what is called the Eola Road interchange to I-88, even though it does not actually go directly to Eola Road. Eastbound I-88 exits onto Diehl Road, and westbound I-88 exits onto Bilter Road.
That westbound access bisects part of the Butterfield development, with 60 acres to the east and 30 acres to the west. Endeavour Edge is building a large data center campus on the 60 acres, and Cyrus One would build on the 30 acres to the west.
“The city worked closely with (the Illinois Department of Transportation) and funds were expended,” said Alex Alexandrou, Aurora’s chief management officer. “The goal was to attract economic development.”
The city spent about $8 million in 2008, which in today’s money is more than $13 million, Alexandrou said. The city spent another $787,500 in soft costs in 2008, which in today’s dollars is about $1.23 million.
Alexandrou told members of the City Council Finance Committee last week with the Cyrus One development, the city will not only get the $16 million in reimbursement from the company, it expects to get plenty of property and utility taxes from the development.
The company has estimated it will pay about $90,000 a year in utility taxes alone.
Ald. Carl Franco, 5th Ward, Finance Committee chairman, said the city is getting back the money it spent, plus inflation, which “sounds pretty good.” He asked where the money would go.
Alexandrou said it would be unencumbered, so officials are working to figure out what to do with the money.
slord@tribpub.com
