Fiscal Note
The proposed resolution amends the Economic Development Division's (EDD) 2026 Adopted Capital Budget to add $2.8 million in TID-supported GO Borrowing in TID 54 (Pennsylvania Ave). It further authorizes a $2.8 million loan to Realta Fusion, Inc., or its assigns ("Employer").
The Project consists of redeveloping 205,000 square feet in the former Oscar Mayer building, including office, research & development, and manufacturing spaces with the goal of creating and retaining jobs at the site ("Project"). The TIF Loan would be repaid through incremental taxes generated by the Project and represents 40% of the present value of all incremental taxes anticipated from the Project over the TID’s remaining life. The TIF Loan would be repaid through incremental taxes generated by the Project. The amount of the loan represents 40% of the present value of all incremental taxes anticipated from the Project over the TID’s life.
Payment of the Loan to the Employer will be divided into 6 payments that correspond to specific milestones in the project. The payment schedule and conditions of payment are outlined in section 3. of the attached Term Sheet. Furthermore, the Employer must create and/or retain for a period of not less than 5 years at least the number of Full-Time Equivalent (FTE) jobs as outlined in section 4. of the Term Sheet. The Employer will submit a certified statement to the City's Office of Business Resources to verify this condition is met. If the jobs guaranty is not met, the Employer will be required to pay a penalty of $34,000 per job below the required number for the last payment made by the City (requirement for payment 6 is 200 jobs).
While it is anticipated that the incremental taxes generated by the Project will be sufficient to repay the loan within approximately 8 years, the Employer is required to guarantee a minimum payment if sufficient future tax increment is not available. The increment guaranty is secured by a subordinated mortgage ...
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