Agenda Item Title:
Authorize Mayor and Finance Director to Sign Development Agreement between the City of Rapid City and CR Lloyd Associates for the Development of a Mixed Use Project and for the Payment of Funds from the Revenue Generated by Tax Increment Financing District Eighty-Five
Origination Group:
Legal & Finance Committee
Origination Meeting Date:
03/30/2022
City Council Hearing Date:
04/04/2022
Staff Contact:
Joel Landeen, City Attorney
Location:
Corner of 5th & St. Joseph
Agenda Item Summary:
This is the agreement covering the construction of a mixed use commercial and residential building on the City owned property at the corner 5th & St. Joseph Streets by the Lloyd companies pursuant to the Block 5 development proposal it has submitted to the City. The proposed project has already been submitted to the City’s Planning Department and is currently undergoing the review and approval process. The agreement also serves as the developer’s agreement with Lloyd for Tax Increment Financing District #85 and establishes the terms for payment of the tax increment funds for the project. Section 3 of the agreement lays out the project inclusion requirements which consist of a residential, hotel, and commercial component. The agreement contemplates that the transfer of the title to the property will occur after Lloyd has provided the City with evidence that it has sufficient financing in place to complete construction of the project. If the title to the property is transferred and the agreement is terminated or the project does not get built, title to the property will revert back to the City. Once the project is completed and a certificate of occupancy has been issued for the hotel and residential components, the City’s right to regain title to the property will cease. If approved, Lloyd believes the project is on track to be under construction sometime this summer.
Funding Source & Fiscal Impact (if applicable):
| Funding | Cost Center |
|---|---|
Funding Source & Fiscal Impact Notes:
The grant for the improvements will be funded out of the proceeds of TIFD #85
Recommendations:
Origination Recommendation Action:
Approve
Origination Recommendation Notes:
Staff is recommending approval
City Council Options:
You can approve or deny. This agreement will need to be approved in conjunction with the resolutions creating TIFD #85 and approving its project plan as well as the real estate purchase agreement for the City owned lot on the corner of 5th and St. Joseph streets.