Town of Aurora - Real Property Acquisition and Sale (2018M-64)

Issued Date
September 14, 2018

Audit Objective

Determine whether the Town Board (Board) used an adequate process to purchase and sell real property in the most cost beneficial manner.

Key Findings

  • The Board did not use an appropriate process when selling and acquiring property, resulting in the likely expenditure of more money than necessary:
    • The Town spent over $3.6 million to purchase and renovate the Southside Municipal Center (SMC). After an adjustment for the stated value of rent, we estimate the sale price was approximately $718,000 less than the cost to purchase and renovate the SMC.
    • The Town purchased a former fire hall, senior center and a residential building for $586,000. The Town estimates it will take $3 million to $4 million to renovate the building for use as a new Town hall.

Key Recommendations

  • Use a deliberate process that fully considers all suitable options and long-term implications.
  • Develop specific planning steps prior to initiating significant capital projects.

Town officials disagreed with our findings and recommendations. Appendix B includes our comments on issues raised in the Town’s response letter.