Agenda Item Title:
Authorize Mayor and Finance Director to sign an Estoppel Certificate for the David Lust Accelerator Building.
Origination Group:
Legal & Finance Committee
Origination Meeting Date:
04/26/2023
City Council Hearing Date:
05/01/2023
Petitioner:
Elevate Rapid City
Staff Contact:
Joel Landeen, City Attorney
Location:
DLAB/East Blvd & Main
Agenda Item Summary:
In 2018 the City transferred the real property where the David Lust Accelerator Building is now located to the Rapid City Economic Development Foundation (RCEDF). One of the conditions of this transfer is that the land be used as a “business development center” for a period of ten years. Elevate Rapid City is in the process of streamlining and consolidating more of the operations and activities that have been placed under its umbrella. One of those entities is the RCEDF. The RCDEF historically existed to hold real property to be used for economic development. The RCEDF is being dissolved and its operations and assets are being consolidated into Elevate. As part of this process title to the parcel provided by the City will be transferred to Elevate. Elevate will continue to operate the facility as a business development center and the only change will be to the legal entity holding the property. The U.S. Dept. of Commerce has a mortgage on the property and has authorized the consolidation and transfer to Elevate. While Elevate does not require the City’s approval, they would like a formal acknowledgement by the City that merely changing the legal entity holding title to the property does not trigger the reversionary clause in the deed. While this transfer would not trigger the reversionary clause, the clause will remain in place and Elevate will be required to comply with the condition that the land be used for a business development center for the period specified in the deed. The estoppel certificate is the City’s formal acknowledgement that we agree the transfer does not trigger the reversionary clause in the deed.
Funding Source & Fiscal Impact (if applicable):
| Funding | Cost Center |
|---|---|
| None | |
Recommendations:
Origination Recommendation Action:
Approve