Posted: March 24, 2022
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF033022 02

Agenda Item Title:

Authorize Mayor and Finance Director to Sign Assignment Agreement for Tax Increment Financing District Number Eighty-one between Park Hill Development, Inc., Pioneer Bank & Trust, and the City of Rapid City

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
03/30/2022
City Council Hearing Date:
04/04/2022
Staff Contact:
Kinsley Groote, Assistant City Attorney
Agenda Item Summary:
In April 2019, Council created Tax Increment Financing District Number 81 and approved an association Project Plan. On February 22, 2022, the City entered into an agreement for public improvements with Park Hill Development, Inc. for TIF District 81, which states that the developer may assign its rights to payment from tax increment funds to its bank as security for developer’s loan. This Assignment Agreement does just that. This Agreement provides that the City will make payments out of the TIF 81 fund directly to Pioneer Bank & Trust instead of to the developer.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center
Funding Source & Fiscal Impact Notes:
All payments to be made to the Lender pursuant to this Agreement will be paid out of the Tax Increment Financing District Eighty-one Fund.

Recommendations:

Origination Recommendation Action:
Approve

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