Agenda Item Title:
Authorize Mayor and Finance Director to Sign Real Estate Transfer Agreement between the City of Rapid City, the Rapid City Economic Development Foundation, and CR Lloyd Associates
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 transfer of the City owned lot at the corner of 5th & St. Joseph for the construction of a mixed use commercial and residential building. The proposed project has already been submitted to the City’s Planning Department and is currently undergoing the review and approval process. This agreement, along with the Development agreement for the project, contemplates the actual 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. This agreement authorizes the Mayor and City staff to execute any documents necessary to effectuate the transfer of the property. The City will first transfer title to the parcel to the Rapid City Economic Development Foundation and then the RCEDF will transfer title to Lloyd. The deeds contain reversionary clauses that protect the City’s interests in the parcel until the project is completed. I have attached the draft deeds to this agreement as an additional informational item. This is the same process we used to transfer City owned land to Cabela’s as part of that project in 2009.
Funding Source & Fiscal Impact (if applicable):
| Funding | Cost Center |
|---|---|
Funding Source & Fiscal Impact Notes:
No City funds will be needed to transfer the parcel. The transfer of title is part of the development incentive, so the financial impact is the value of the parcel.
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 development agreement for the City owned lot on the corner of 5th and St. Joseph streets.