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Posted: February 23, 2017
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF030117-03

Agenda Item Title:

Authorize Mayor and Finance Officer to Sign Third Assignment Agreement for Tax Increment District No. 38 Between City, Heartland Retail Center, LLC, and CorTrust Bank (continued from the March 1, 2017 Legal and Finance Committee meeting)

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
03/01/2017
Stage 2 Group Name:
Legal & Finance Committee
Stage 2 Meeting Date:
03/15/2017
City Council Hearing Date:
03/20/2017
Staff Contact:
Carla Cushman
Agenda Item Summary:
Recently Council approved a Project Plan Revision #2 for Tax Increment District Thirty-Eight. The Second Amended Developer’s Agreement between the City and Heartland Retail Center, LLC allows the developer to assign its rights to payment from TIF funds to a bank. This Third Assignment Agreement does just that – provides that the City will make payments out of the TIF 38 fund directly to CorTrust Bank instead of to the developer. The Third Assignment Agreement also addresses the previous assignment agreement to transfer the right to payment from TIF funds from a previous lender to CorTrust Bank.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center
Any payments made due to this Assignment Agreement will be made from the Tax Increment District Thirty-Eight Fund.

Recommendations:

Origination Recommendation Action:
Approve