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CASE # ~'~ <br /> <br />ASSIGNMENT OF H & P DEVELOPMENT COMPANY L.L.C. <br /> TIF AGREEMENT <br /> <br /> By: William K. Goodrich, City Attorney <br />Sean M. Sullivan, Economic Development/TIF Specialist <br /> <br />Background: <br /> <br />The City is a proxy to a TIF Contract for Private Development with H & P Development L.L.C. ("H <br />& P"), dated June 1, 2000. The subject of the Development Agreement is Lots 1 and lA, Block 1, <br />WEST RADIUM BUSINESS CENTER FIRST ADDITION. The Development Agq'eement is in <br />effect until December 31, 2012. The terms of the Agreement state that the subject property needs to <br />generate at least $35,657 in Tax h~crement per year. <br /> <br />Recently, H & P negotiated a sale of the subject property to Diverse Development Company, LLP <br />("Diverse"). Diverse is comprised of two partners, one of whom is Gary Hugeback, an officer in H <br />&P. <br /> <br />The parties desire that Diverse be permitted to assume H & P's obligations pursuant to the <br />Development Agreement. An Assigqm~ent and Assumption Agreement executed by H & P, the City <br />and Diverse would effectively transfer the obligations of the Development Agreement to Diverse. <br /> <br />The City has obtained a certificate of good standing from the Secretmy of State for Diverse <br />confirming that it is a properly formed Limited Liability Partnership under the laws of Minnesota. <br />Staffhas also reviewed financial information fi'om Diverse to insure that the business is solvent and <br />is stable fi'om a business standpoint. The closing date for the proposed sale of the subject property <br />is unclear but staff is seeking approval of the Assigmnent and Assumption Agreement in order to <br />facilitate the sale. <br /> <br />Enclosure: <br /> <br />Assigmnent and Assumption Agreement <br /> <br />Council Action: <br /> <br />Motion for the City to enter into the Assigmnent and Assumption Agreement with H & P <br />Development L.L.C. and Diverse Development Company, LLP, by which AgTeement the City <br />releases H & P Development L.L.C. From its obligations and permits Diverse Development to <br />assume those obligations of development as required by that certain TIF Development Agreement <br />between H & P L.L.C. m~d the City dated June 1, 2000 and relating to the property described as <br />Lots 1 and IA, Block 1, WEST RADIUM BUS1NESS CENTER FIRST ADDITION. <br /> <br />Review Checklist: <br />City Attorney <br />TI~ Specialist <br />City Administrator <br /> <br />CC: 03/09/04 <br /> <br /> <br />