Posted: January 27, 2023
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF020123 19

Agenda Item Title:

Authorize the Mayor and Interim Finance Director to Acknowledge the City’s Consent to the Assignment of the Right to Payment of the Proceeds from Tax Increment District #85 Directly to Pioneer Bank

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
02/01/2023
City Council Hearing Date:
02/06/2023
Petitioner:
Lloyd Co. & Pioneer Bank
Staff Contact:
Joel Landeen, City Attorney
Location:
TIFD #85
Agenda Item Summary:
Lloyd Companies through Block 5, L.L.C., an entity Lloyd has formed to own and manage the mixed use project at 6th and St. Joseph, has secured financing from Pioneer Bank for the portion of the project to be financed through Tax Increment Financing District #85. This is a standard assignment agreement that was acknowledged in Section 2.16 of the development agreement for the tax increment district. Approval of the agreement will allow the City to pay the proceeds of the tax increment district directly to the lender for its loan to help construct the project.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center
Funding Source & Fiscal Impact Notes:
The proceeds from TIFD #85

Recommendations:

Origination Recommendation Action:
Approve
Origination Recommendation Notes:
Staff is recommending approval
City Council Options:
If you do not approve this assignment, the City would likely be in breach of our Development Agreement with Lloyd Companies.

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