Fiscal Note
This resolution would reduce the increment guarantee payments due from Monroe Neighbors, LLC in 2009 and 2010 from a total of $322,525 to $90,000. It is also anticipated that the extended guarantee schedule contained in this resolution would eliminate the need for additional payments from the developer in future years. These revisions to the guaranteed increment schedule will delay the estimated closing of TIF District #33 for approximately 2 to 3 years. All costs associated with the TIF assistance granted to Monroe Neighbors, LLC will be repaid through increment guarantee payments from the developer and TIF increment prior to the required closing of the TIF district.
Title
Authorizing the Mayor and City Clerk to execute an amendment to the 2005 Tax Incremental Financing Loan and Regulatory Agreement between the City and Monroe Neighbors, LLC
Body
In 2005, the Common Council authorized a tax incremental finance loan in the amount of $2,322,000 (the “2005 TIF Loan”) to Monroe Neighbors, LLC (“Developer”) to assist in funding the development of a fifty-two unit residential condominium, grocery store and related parking. In 2007, the Common Council authorized a supplemental TIF loan to Developer in the amount of $195,000 (the “2007 TIF Loan”). The 2005 TIF Loan and the 2007 TIF Loan were memorialized by separate TIF Loan Agreements and secured by mortgages on the project. The 2005 and 2007 TIF Loan Agreements obligate Developer to guaranty that the project will generate a specified amount of tax increment for the years 2006 through 2012. Each TIF Loan Agreement provides that if the project does not generate enough tax increment in any year, Developer is required to pay the City the amount of any deficiency by August of the following year. Excess increment, meaning tax increment received in excess of the amount guaranteed, is carried over as a credit to Developer to be used in any succeeding year in which the increment fell short of the guaranty.
Th...
Click here for full text