Fiscal Note
The proposed resolution authorizes a $2,600,000 TIF Loan to University Research Park, Inc. or its assigns ("Developer") for the redevelopment at 501 Charmany Drive in the existing TID #46 (Research Park) boundary.
The Project consists of approximately 186,000 square feet of renovated and new office space and approximately 472 parking stalls ("Project"). Exact Sciences Corporation shall lease and occupy the space as its office headquarters and innovation laboratory. This loan would be repaid through incremental taxes generated by the Project and represents approximately 50% of the present value of all incremental taxes anticipated from the Project over the 17 years of life remaining in TID #46.
Funding of the TIF Loan to the Project requires an amendment to the 2018 Adopted Capital Budget authorizing issuance of $2,600,000 in General Obligation (GO) Borrowing and authorizing its expense as a payment to a developer. While it is anticipated that the incremental taxes generated by the Project will be sufficient to repay the loan within approximately 7 years, the Developer is required to guaranty a minimum payment if sufficient future tax increment is not available.
The increment guarantee is secured by a subordinated mortgage on the property. The TIF Loan also requires that Developer be prohibited from selling or transferring the Property prior to repayment of the TIF Loan. If Developer sells or transfers the Property to a tax-exempt entity, Buyer shall pay an annual payment in lieu of taxes (PILOT) in the amount of the property tax paid as of the date of sale, frozen, until 2035.
The 2018 Adopted Capital Budget includes a separate $2,500,000 TIF Loan, funded by GO Borrowing, to Exact Sciences Corporation within TID #46. The TIF Loan proposed by this resolution is within TID #46’s authorized expense amount and will not require a TID Project Plan amendment.
Title
Amending the 2018 Capital Budget and Authorizing the Mayor and City Clerk to execute a ...
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