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CASh # I <br />Assumption of Rum River Dental Creations, LLC Development Agreement to Miller <br /> Rickard Properties, LLC <br /> <br />By: Sean M. Sullivan, Economic Development / TIF Specialist <br /> William Goodrich, City Attorney <br /> <br />Background: <br /> <br />The City currently is a party in a Development Agreement with Rum River Dental <br />Creations, LCC that was executed February 27, 2004. The development agreement is in <br />effect until December 31, 2011. The terms of this agreement state that Lot 3, Block 1, <br />Sunfish Lake Business Park and the building to be constructed this summer needs to <br />generate at least $4,400 in Tax Increment per year. The agreement also requires Rum <br />River Dental Creations, LLC to create four full-time jobs paying at least $12.00 an hour. <br /> <br />The officers, Walt Rickard and Wayne Miller, of Rum River Dental Creations have <br />recently formed Miller Rickard Properties, LLC and would like to transfer the property <br />and all the rights and the development agreement to the new entity which they are party <br />to. The development agreement and the terms of the agreement must be transferred to the <br />new entity to guarantee that the City receives the increment necessary to fulfill the <br />financial obligations of the development agreement. An Assumption Agreement <br />executed by Rum River Dental Creations, LLC, Miler Rickard Properties, LLC, the City <br />of Ramsey would effectively transfer the development agreement to the new entity. <br /> <br />The City Attorney and Staff obtained a certificate of good standing and adequate financial <br />in formation fi'om the prospective entity to insure that the business is solvent and is stable <br />fi'om a business standpoint. This is done to assure the City Council that the business is <br />solid and that there shouldn't be any foreseeable problems with performance under the <br />development agreement. Staff is seeking approval to enter into an assumption agreement <br />with Miller Rickard Properties, LLC. <br /> <br />Council Action: <br /> <br />Direct staff to enter into an assumption agreement to transfer Development Agreement <br />fi'om Run] River Dental Creations, LLC to Miller Rickard Properties, LLC. <br /> <br />Reviewed by: <br />City Administrator <br /> <br />CC: 05/25/04 <br /> <br /> <br />