Agenda - Council - 02/12/2019 - Laserfiche WebLink

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CC Regular Session 4. 7. Meeting Date: 02/12/2019 By: Sean Sullivan, Community Development Information Title Adopt Resolution #19-046 Approving Assignment and Assumption of TIF Agreement for Parkview East Apartments Purpose/Background: The City of Ramsey entered into a Tax Increment Financing (TIF) Agreement, dated October 1, 2015 with ParkView East, LLC, which is assumed to be associated with PSD, LLC for purposes of this project. PSD desires to assign its interest in the TIF Agreement to Park View East - Minneapolis LLC. It appears that this corporation is associated with the Curtis Capital Group from Washington (state) for purposes of this project. The Curtis Capital Group recently purchased Parkview East from PSD, LLC. A draft of the Assignment and Assumption Agreement has been submitted to the City Council for approval. The TIF Agreement includes a TIF note issued in the original principal amount of $500,000. Assignment and Assumption of TIF Agreements and TIF Notes is common practice in the industry and the City has not identified any reason to withold the assignment and transfer. Notification: Notification is not required. Observations/Alternatives: The City's TIF Attorney has worked with Staff and drafted the attached form of the resolution and the Assignment and Assumption Agreement and recommends adoption and execution by City Officials. The original request for assistance was reviewed by the Ehlers, the City's financial advisor. The Developer's return on investment were within industry standards with the inclusion of the assitance package, meaning the project would likely not have happened without the assistance and the requested amount was reasonable. Additionally, the amount of tax increment generated from the project over the life of the TIF District far exceeds the assistance amount. That excess increment can be used for eligible activites such as site improvements and administration of the district. A more detailed analysis is attached to this case. Funding Source: All costs associated with processing the Application are the responsibility of the Applicant. Recommendation: Staff recommends adoption of Resolution #19-046 Approving Assignment and Assumption of TIF Agreement for Parkview East Apartments. Action: Motion to adopt Resolution # 19-046 Approving Assignment and Assumption of TIF Agreement for Parkview East Apartments. Attachments Site Location Map