5.12.
CC Regular Session
- Meeting Date:
- 07/26/2022
- By:
- Sean Sullivan, Community Development
Information
Title
Adopt Resolution #22-169 Approving Subordination Agreement and Estoppel for Oppidan Project
Purpose/Background:
Purpose:
The purpose of this case is to consider approval of Resolution #22-169 Subordinating the City TIF Agreement and executing an Estoppel to allow the Oppidan project to obtain financing for its project.
Background:
The City of Ramsey entered into a TIF Agreement, Assessment Agreement and Development Agreement with Oppidan. Each agreement requires Oppidan performance relating to the construction of the initial project, establishing minimum assessed values, and outlining the terms of the Pay-Go TIF financing. All terms previously agreed upon will be in force force and effect.
City TIF Attorney, Mary Ippel from Taft Law, has reviewed the attached Subordination Agreement and recommends approval. This document protects the City interest and performance requirements for the developer relating to the transfer to the new ownership entity for each lot and pending financing.
City Attorney Knaak has reviewed the Estoppel and recommends approval. The request for the Estoppel is unusual because the project is not complete but its necessary for the buyer to obtain financing. The City Attorney has assured the City that the existing development agreement and the performance requirements outlined by the Developer are not released as part of this Estoppel. The Estoppel simply confirms that the Developer is currently not in default.
The purpose of this case is to consider approval of Resolution #22-169 Subordinating the City TIF Agreement and executing an Estoppel to allow the Oppidan project to obtain financing for its project.
Background:
The City of Ramsey entered into a TIF Agreement, Assessment Agreement and Development Agreement with Oppidan. Each agreement requires Oppidan performance relating to the construction of the initial project, establishing minimum assessed values, and outlining the terms of the Pay-Go TIF financing. All terms previously agreed upon will be in force force and effect.
City TIF Attorney, Mary Ippel from Taft Law, has reviewed the attached Subordination Agreement and recommends approval. This document protects the City interest and performance requirements for the developer relating to the transfer to the new ownership entity for each lot and pending financing.
City Attorney Knaak has reviewed the Estoppel and recommends approval. The request for the Estoppel is unusual because the project is not complete but its necessary for the buyer to obtain financing. The City Attorney has assured the City that the existing development agreement and the performance requirements outlined by the Developer are not released as part of this Estoppel. The Estoppel simply confirms that the Developer is currently not in default.
Notification:
None required
Observations/Alternatives:
The City TIF Attorney, City Attorney and Staff have reviewed the Subordination Agreement and Estoppel and recommend execution of the attached documents.
Alternatives:
1) Adopt Resolution #22-169 Approving Subordination Agreement and Estoppel for Oppidan Project (as presented); subject to City Attorney review.
2) Adopt Resolution #22-169 Approving Subordination Agreement and Estoppel for Oppidan Project (with changes); subject to City Attorney review
3) Something else.
Alternatives:
1) Adopt Resolution #22-169 Approving Subordination Agreement and Estoppel for Oppidan Project (as presented); subject to City Attorney review.
2) Adopt Resolution #22-169 Approving Subordination Agreement and Estoppel for Oppidan Project (with changes); subject to City Attorney review
3) Something else.
Funding Source:
This item is being covered under Staff duties.
Recommendation:
The City TIF Attorney, City Attorney and Staff have reviewed the Subordination Agreement and Estoppel and recommend execution of the attached documents.
Action:
Motion to adopt Resolution #22-169 Approving Subordination Agreement and Estoppel for Oppidan Project (as presented); subject to City Attorney review.
Attachments
Form Review
| Inbox | Reviewed By | Date |
|---|---|---|
| Brian Hagen | Brian Hagen | 07/21/2022 09:44 AM |
- Form Started By:
- Sean Sullivan
- Started On:
- 07/20/2022 03:15 PM
- Final Approval Date:
- 07/21/2022