Adopt Resolution #25-089 Approving the Assignment and Assumption of Tax Increment Financing (TIF) Agreement

Purpose:  The owners of the Residence at the COR Apartments - Residence at the COR Apartments, LLC, are planning to refinance the apartment building and go through a different lender.  The current lender is PNC Bank and they would like to refinance with Lument Real Estate Capital, LLC.  They need the City's consent to do so, as the City has issued a $3,000,000 TIF note on said property.  There is currently a balance of approximately $1,276,000 owing on said note, with the note expected to be paid by February 2032.

Background:  Residence at the COR Apartments LLC purchased the apartment building from F&C Ramsey, LLC in 2015.  On April 9, 2015, Residence at the COR Apartments LLC entered into a Collateral Assignment of Development Agreement and TIF Note between the Residence at The COR Apartments LLC and PNC Bank.  See copy of attached Collateral Assignement of Development Agreement and TIF Note and respective memorandum from Briggs and Morgan (now Taft) outlining various actions relating to the F&C Ramsey sale of the Residence at the COR apartment building to Residence at the COR Apartments LLC in 2015.

Marin Magill, attorney with TAFT Law, reviewed the current request and related documents:  Subordination Agreement and Collateral Assignment of Development Agreement and TIF Note.  Her recommendations have been incorporated into the final documents attached. 

As noted, Maren Magill with Taft Law reviewed all documents and drafted related resolution.

Recommend to Approve Resolution #25-089 Approving the Assignment and Assumption of Tax Increment Financing (TIF) Agreement.