1i. North Bay TIF Reassignment0
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
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Phone: 952.227.1120
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Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
7901 Park Place
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
www.ci.chanhassen.mn.us
MEMORANDUM
TO: Todd Gerhardt, City Manager
FROM: Laurie Hokkanen Assistant City Manager er g J�Z
DATE: January 30, 2013
SUBJ: Approve Assignment of TIF Note (TIF #5, 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.
1 ti
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.
TIF #5 obligations included payments to Rottlund Homes on a $400,000 + interest note.
This is a pay -as- you -go note with the final payment due in 2014. This district may then
be eligible for decertification in 2015.
In November, the city council approved assignment of this note to US Bank because of
the bankruptcy of Rottlund Homes. Now, US Bank has sold the note and is requesting
re- assignment to Mark Sween. (On January 28, the Council approved reassignment to
Dominion Development, but the sale terms have changed. New approval is now
required.)
There are three projected payments remaining on the note, totaling approximately
$83,461. As detailed within the Agreement, payments are made only to the extent that
the City receives tax increment. Our obligation will end with the February 1, 2014
payment, regardless of the balance of the note.
As was true with original reassignment, the only change from the City's perspective
realized through this Consent is the recipient of the tax increment check.
Chanhassen is a Community for Life - Providing forTodayand Planning for Tomorrow
Mr. Todd Gerhardt
February 11, 2013
Page 2
RECOMMENDATION
Staff recommends approval of the Consent to Assignment of Interest in Limited
Revenue Tax Increment Note.
ATTACHMENTS
Consent to Assignment of Interest in Limited Revenue Tax Increment Note
g: \admin \lh \city council\staff report assignment of of note for northbay, 3rd time.doc
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 Mark
Sween ( "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 ' 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