Fiscal Note
No fiscal impact.
Title
Authorizing the Mayor and City Clerk to execute a partial assignment of interest in the $913,000 TIF Loan to Landmark Oaks Development, LLC as approved by RES-1700229 to Holborn Landmark, LLC.
Body
WHEREAS, Landmark Oaks Development, LLC, or its assigns, (“Assignor”) has proposed to construct 109,000 square feet of commercial space on the Property at an estimated development cost of approximately $26,330,000 (“Project”) located at 2921 Landmark Place (“Property”); and
WHEREAS, Common Council approved a $913,000 TIF Loan (“Loan”) on March 21, 2017 by RES 17-00229, File No. 46229; and
WHEREAS, Assignor will be assigning a twenty-five percent interest in the Property to Holborn Landmark, LLC (“Assignee”) as part of a tenant in common (“TIC”) ownership structure; and
WHEREAS, in order to effectuate the TIC for tax purposes, twenty-five percent of the Loan and related documents (“Loan Documents”) and their obligations and benefits must also be assigned to the Assignee; and
NOW THEREFORE BE IT RESOLVED, that the assignment documents necessary to effectuate the transaction described above shall be on substantially the following terms:
1. Acceptance and Assumption. Assignee accepts the assignment made hereby and agrees to perform all obligations of Assignor, as applicable, under the Loan Documents and all other obligations of Assignor, as applicable, with respect to the Loan, limited, however, only to 25% of such obligations.
2. The parties represent and warrant to City (“Lender”) as follows as of the Effective Date:
a. The Property is subject to a written tenancy-in-common agreement (“TIC Agreement”) dated on or prior to the date of this Assignment that satisfies each of the following requirements:
1. It is executed by Assignor and Assignee (each, a “Co-Owner Borrower”).
2. It specifies that any termination, cancellation, amendment, or waiver of the TIC Agreement must be in writing and signed by all of the Co-Owner Bor...
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