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File #: 14560    Version: 1 Name: CapWest Reso 3
Type: Resolution Status: Passed
File created: 4/28/2009 In control: BOARD OF ESTIMATES (ended 4/2017)
On agenda: 5/19/2009 Final action: 5/19/2009
Enactment date: 5/21/2009 Enactment #: RES-09-00490
Title: Authorizing the Mayor and City Clerk to execute an amendment to the Tax Incremental Financing Development Agreement between the City and 309 W. Washington, LLC, and amending Enactment No. RES-07-00419.
Sponsors: Tim Bruer, Michael E. Verveer
Attachments: 1. 14560 Registration Stmt.pdf
Fiscal Note
To date, the developer has sold a total of 42 units to owner occupants. Under the current agreement, the developer must sell an additional 29 units to owner occupants by June 15, 2009 or be required to repay $3,274,000 of the original TIF loan. If the developer is unable or unwilling to repay $3,274,000 at that time, the City would pursue remedies available under the development agreement in an attempt to enforce compliance with this provision of the current development contract. Those remedies could include suing the developer (309 W. Washington, LLC), suing the personal guarantor (Randy Alexander) or commencing a foreclosure action. If the developer is unable to achieve the second sales threshold on May 15, 2010, the remaining $1,000,000 of the original TIF loan would become due, with similar potential remedies available to the City.

This proposed resolution would modify and postpone for 2 1/2 years the dates by which 309 W. Washington, LLC, the developer of Capitol West, must demonstrate compliance with the unit sales thresholds contained in the current development agreement and avoid repayment of the original $4,274,000 TIF loan or a portion thereof. Under the terms of the modified agreement, the developer would be given a "credit" of $1,449,000 in recognition of the 42 units already sold. If an additional 29 units are sold by December 31, 2011, and additional $1,825,000 credit would be awarded. If fewer than 29 additional units are sold by that time, a payment of somewhere between $859,000 and $1,825,000 would be due from the developer to the City, with no opportunity for later recovery. Then, for additional units sold to owner occupants after December 31, 2011 but before December 31, 2013, the developer would receive an additional credit of $34,500 per unit up to a total of $1,000,000, the total remaining amount which could be due to the City if no additional units are sold during that period.

The 2009 budget does not anticipate any rev...

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