Agenda - Council - 04/24/2018 - Laserfiche WebLink

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Patrick Brama TIF Agreement — CAP Acquisitions March 23, 2018 Page 2 2. Development Timeline Commencement and Completion. The Developer shall commence construction by June 1, 2018 and be completed by December 31, 2019. 3. City Assistance and Tax Increment Note a. COR TIF District. The project is located within the City's existing Tax Increment Financing (TIF) District No. 14 (the COR). b. Administration Expense Allocation. 10% of Available Tax Increment from the project is available to the EDA for administration and repayment of City interfund loans within the district. c. Pay As You Go TIF Note. The City will issue a pay-as-you-go TIF note in a principal amount as determined by the cost sharing formula referred to in 1.b. above. This is currently estimated to be $1,109,600. The interest rate shall be 4.5% per annum. The TIF Note is payable from 90% of the TIF generated from CAP Acquisition's project and is payable on February 1 and August 1 of every year commencing on August 1, 2020 through February 1, 2040. Once the note is repaid, however, TIF payments will stop. Based on current estimates, the TIF note could be fully repaid by 2027. d. Conditions Precedent to Issuance of the TIF Note. The Developer must complete construction of all the required infrastructure and the 174-unit senior housing project before the TIF note is issued. These costs must be documented to the satisfaction of the City. 4. Taxes a. Assessment Aareement. The Developer is required to execute a Minimum Assessment Agreement (MAA) for the project. The MAA will be for $20,760,000 ($95,000/unit) as of January 2nd in the years 2019 through 2039 (for taxes payable in 2020-2044). b. Taxes. The Developer will pay all taxes when due. c. Tax Petitions. The Developer may petition to reduce the property value, but only as low as the MMA amount. The City reserves the right withhold increment until the petition is settled. Once the petition is settled, then any shortfalls in TIF payments will be made up on the next TIF note payable date (August 1 or February 1). Compass Pointe Limited Partnership is required to inform the City and of any tax petitions they submit for the project. d. Assianment of TIF Note. The TIF Agreement may be assigned only with the consent of the City.