1f. North Bay TIF Assignment0
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
MEMORANDUM
TO: Todd Gerhardt, City Manager
FROM: Laurie Hokkanen, Assistant City Manager ub
DATE: January 17, 2013
SUBJ: Approve Assignment of TIF Note (TIF 45, North Bay)
PROPOSED MOTION
The City Council approves the Consent to Assignment of Interest in Limited
Revenue Tax Increment Note.
A majority vote is required for adoption.
BACKGROUND
TIF #5:
This is a housing district, established in 1997, that encompasses the Rottlund housing
development known as North Bay. The city used increment to repay itself and Rottlund
for public improvements and other certain development costs associated with the
project.
Recreation Center TIF 45 obligations included payments to Rottlund Homes on a $400,000 + interest note.
2310 Coulter Boulevard This is a pay -as- you -go note with the final payment due in 2014. This district may then
Phone: 952.227.1400
Fax: 952.227.1404 be eligible for decertification in 2015.
Planning & In November, the city council approved assignment of this note to US Bank because of
Natural Resources the bankruptcy of Rottlund Homes. Now, US Bank has sold the note and is requesting
Phone: 952.227.1130
Fax: 952.227.1110 re- assignment to Dominion Development and Acquisition, LLC.
Public Works
There are three projected payments remaining on the note, totaling approximately
7901 Park Place
$83,461. As detailed within the Agreement, payments are made only to the extent that
Phone: 952.227.1300
the City receives tax increment. Our obligation will end with the February 1, 2014
Fax: 952.227.1310
payment, regardless of the balance of the note.
Senior Center
Phone: 952.227.1125
As was true with original reassignment, the only change from the City's perspective
Fax: 952.227.1110
realized through this Consent is the recipient of the tax increment check.
Web Site
RECOMMENDATION
www.ci.chanhassen.mn.us
Staff recommends approval of the Consent to Assignment of Interest in Limited
Revenue Tax Increment Note.
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
Mr. Todd Gerhardt
January 28, 2013
Page 2
ATTACHMENTS
Consent to Assignment of Interest in Limited Revenue Tax Increment Note
CITY CONSENT TO ASSIGNMENT
The City of Chanhassen, Minnesota, a Minnesota municipal corporation ( "City ") issued a
Limited Revenue Tax Increment Note ( "TIF Note "), dated June 24, 1996 in the principal amount
of $400,000.00, payable to The Rottlund Company, Inc. ( "Rottlund "). The TIF Note was later
assigned to Bank of America, N.A., a national banking association, in its capacity as
Administrative Agent for itself and each of the other lenders party to that certain Credit
Agreement dated April 24, 2008 ( "Assignor ").
Under the terms and conditions of the TIF Note, the City must approve all assignments of
the TIF Note. Assignor desires to assign all of its right, title and interest in the TIF Note to
Dominium Development and Acquisition, LLC, a Minnesota limited liability company, or a
subsidiary or other affiliated company ( "Assignee ").
The City hereby approves and consents to the assignment of the TIF Note from Assignor
to Assignee. From and after the date of this Consent, all payments due to Assignor (including those
accrued but unpaid) under the TIF Note will be paid directly to Assignee.
On this day of January, 2013, the City Council of the City has caused this Consent to
be executed by the signatures of the Mayor and City Manager.
CITY OF CHANHASSEN,
a Minnesota municipal corporation
By:
Thomas Furlong
Its: Mayor
By:
Todd Gerhardt
Its: City Manager