Posted: November 09, 2022
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF111622 01

Agenda Item Title:

Authorize Mayor and Interim Finance Director to Sign Assignment Agreement for Tax Increment Financing District Number Eighty-six for Black Hills Industrial Center, LLC, BankWest, Inc., and the City of Rapid City

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
11/16/2022
City Council Hearing Date:
11/21/2022
Staff Contact:
Kinsley Groote, Assistant City Attorney
Agenda Item Summary:
In May of 2022, Council created Tax Increment Financing District Number 86 and approved an association Project Plan. On September 22, 2022, the City entered into an agreement for public improvements with developer Black Hills Industrial Center, LLC for TIF District 86, which states that the developer may assign its rights to payment from tax increment funds to its bank as security for developer’s loan. Among other things, this Assignment Agreement assigns Black Hills Industrial Center, LLC’s rights to payment to BankWest, Inc. This Agreement provides that the City will make payments out of the TIF 86 fund directly to BankWest, Inc. 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-six Fund.

Recommendations:

Origination Recommendation Action:
Approve

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