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Posted: April 27, 2018
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF050218-08

Agenda Item Title:

Authorize Mayor and Finance Officer to Sign Fourth Assignment Agreement for Tax Increment District No. 38 Between the City of Rapid City, Heartland Retail Center, LLC, and First Interstate Bank

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
05/02/2018
City Council Hearing Date:
05/07/2018
Staff Contact:
Pauline Sumption, Carla Cushman
Agenda Item Summary:
TIF 38 Heartland Retail Center was created in February 2003, and in 2017 the Council approved of a revision to the Project Plan and an updated agreement for public improvements which states that the developer may assign its rights to payment from tax increment funds to its bank as security for developer’s loan. On March 6, 2017, Council approved a Third Assignment Agreement with CorTrust Bank for the TIF fund proceeds. Now, the developer Heartland Retail Center, LLC, has refinanced the debt with First Interstate Bank, and the parties seek to enter into a Fourth Assignment Agreement to authorize payments out of the TIF fund to First Interstate Bank, on the condition that Developer satisfies any and all obligations it has to CorTrust Bank and provides such proof to the City. The interest rate on the CorTrust loan is 5.5%; the interest rate on the First Interstate Bank loan is 5%.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center
Any payments made pursuant to this Fourth Assignment Agreement will be made from the Tax Increment District Thirty-Eight Fund.

Recommendations:

Origination Recommendation Action:
Approve
Published in 2018 - LF Agenda Items
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