Fiscal Note
This resolution would authorize a $913,000 loan to Landmark Oaks Development, LLC or its assigns ("Developer") for the redevelopment at 2921 Landmark Place in the existing TID #35 (Todd Drive - West Beltline) boundary.
The Project consists of approximately 109,000 square feet of office space and approximately 353 parking stalls ("Project"). This loan would be repaid through incremental taxes generated by the Project and represents approximately 37% of the present value of all incremental taxes anticipated from the Project over the 15 years of life remaining in TID #35.
Funding of the $913,000 TIF Loan to the Project requires an amendment to the 2017 Adopted Capital Budget for the Economic Development Division authorizing the expenditure. 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 2044.
Title
SUBSTITUTE - Amending the 2017 Adopted Capital Budget for the Economic Development Division to appropriate $913,000 in GO Borrowing authority for TID 35 and Authorizing the Mayor and City Clerk to execute a development agreement to fund a $913,000 Tax Incremental Finance Loan to Landmark Oaks Development, LLC or its assigns to assist in the development of approximately 109,000 square feet of office space and 353 parking stalls located at 2921 Landmark Place within the boundary of TID #35 (Todd Drive - West Beltine).
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WHEREAS, the Cit...
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