Consent 1.F.
Regular City Council Meeting
- Meeting Date:
- 11/28/2016
- TITLE
- Assign Northridge Assets, LLC Development Agreement
- PRESENTED BY:
- Bruce McCandless
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
On December 21, 2015, the City Council approved a Development Agreement and tax increment grant to Northridge Assets, LLC, owners of the recently completed Comfort Suites, 4910 Southgate Drive, Billings, Montana. The grant will reimburse the owners for public improvements associated with the hotel. The grant amount is $370,847, to be paid in four equal annual installments beginning on June 1, 2017. Northridge recently sold the property to Southgate Hotels, LLC. Northridge requests that the City assign the Development Agreement benefits to the new owner.
ALTERNATIVES ANALYZED
City Council may:
- Approve the assignment , or;
- Disapprove it.
FINANCIAL IMPACT
None of the funds have been distributed, but the first installment of $92,711.75 is budgeted in the South Billings Urban Renewal Area (SBURA) FY17 budget. The FY17 SBURA revenue is projected to be $2,619,000, so the Northridge reimbursement represents about 3.5% of the total.
RECOMMENDATION
Staff recommends that the City Council approve the Assignment Agreement that transfers the benefits of a development agreement and City TIF grant from Northridge Assets, LLC to Southgate Hotels, LLC.