HomeMy WebLinkAbout2012-020 RESOLUTION NO. 2012-020
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APPROVING USE OF TIF FOR
PAYING OFF PARKING RAMP LAND PURCHASE
WHEREAS, the City is a party to a Development Agreement made on the 12th day of
June, 2008, between the City, Lutheran Church (Trinity), ri, Trinity ( and 102 Second, LLC, a limited
liability company (Lowell Inn); and
WHEREAS, the Development Agreement was made for the purpose of the construction,
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improvement, operation, and maintenance of a municipal parking ramp
th at necessitated the
acquisition of certain real estate from the Lowell Inn in order to place the parking ramp where it
is now; and
WHEREAS, as consideration for the transfer of the real estate from the Lowell Inn to the
City, a value was established based upon County records as of May 1, 2008, at an agreed upon
rate of $14.50 per square foot. In order to allow for the amortization of this credit in the form of
parking rate reductions equal to the value of the parcel, less one - fourth (1 /4th) of the value based
upon the parcel reconveyed to the Lowell Inn by the City for construction of a conference room;
and
WHEREAS, the administration of the credit has proved cumbersome for the City and for
the Lowell Inn, and it is apparent that the payment to the Lowell Inn of the balance of the
remaining credit would be the best and most favorable action to save both parties significant time
and expense. As of the date of this meeting, the unamortized balance of the remaining parking
credit is $106,187.00, and tax increment funds remaining inTax Increment Financing District
No.1 are available for the payment of this credit since it represents consideration paid for the
acquisition of real estate.
NOW, THEREFORE, BE IT RESOLVED:
1. That the payment of $106,187.00 from the funds remaining from Tax Increment
Financing District No. 1 is authorized to be paid to the Lowell Inn for the satisfaction of this
debt.
2. City staff, including the administrator, finance director, and city attorney, be and are
hereby authorized to consummate this action and to execute any drafts or other documents
necessary to accomplish this purpose.
Respectfully subm'tted and enacted this I (7 d y of January, 2012. -
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Dated: \ r
en r P. cki, Mayor
n �f 1 wY
Dated: 1 1 D'' , ( /► '�yir -�
Larry SA IL! Hansen, Acting City Clerk