Fiscal Note
There is no material change relative to the City financing, which was previously authorized in the 2014 adopted capital budget of the Planning and Community and Economic Development agency (project no. 22, "TID 44 - Royster Clark").
Title
Amending RES-13-00876, authorizing the Mayor and City Clerk to execute a development agreement to fund a $400,000 Tax Incremental Finance Loan to Pinney Lane Apartments, LLC ("Developer") to assist in the development of an approximately 70-unit income-restricted housing project located at Lot 5 of the Royster Corners plat, generally located at the corner of Cottage Grove Road and Dempsey Road in TID #44 (Royster Clark).
Body
WHEREAS on December 5, 2013, the Common Council approved RES-13-00876 in which the Mayor and the Common Council authorized a TIF loan of $400,000 to Pinney Lane Apartments, LLC ("Developer"), and
WHEREAS the loan is contingent on the awarding of Low Income Housing Tax Credits, and
WHEREAS the resolution did not authorize the Developer to assign its rights to the loan, which, for the purposes of receiving Low Income Housing Tax Credits, is required, and
WHEREAS any "material change" to the ownership of the Project or Property is subject to reconsideration by the City.
NOW, THEREFORE, BE IT RESOLVED that the paragraph entitled Form of Assistance in Resolution 13-00876 be amended to state that the TIF assistance shall be provided in the form of a zero interest (0%) loan at closing from the City to Developer, or its assigns, in the amount of Four Hundred Thousand Dollars ($400,000) ("TIF Loan"). Said TIF Loan becomes a grant when the tax increment recovered from the Project and/or cash payments from Developer are sufficient to repay the TIF Loan and the City's associated borrowing costs. Said TIF loan may be re-loaned by the Developer or its assigns for the purpose of receiving Low Income Housing Tax Credits.