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HomeMy WebLinkAbout1998-11-30 TIF Commission ResolutionRESOLUTION A RESOLUTION RECOMMENDING THAT THE BOARD OF ALDERMEN AUTHORIZE NEGOTIATIONS WITH TRILLNM CORPORATION CONCERNING CERTAIN DEVELOPMENT POINTS IN CONNECTION WTI'H THE RIVERSIDE/QUINDARO L-385 LEVEE PROJECT AND AUTHORIZING ACTIONS RELATED THERETO WHEREAS, the Tax Increment Financing Commission of the City of Riverside, Missouri ("Commission"), has classified the Redevelopment Area (as defined in the L-385 Redevelopment Plan ("Plan")) as a "blighted area" and designated it as a redevelopment area under the Act; approved the Plan; and expressed its recommendation to the Board of Aldermen with respect to the same; and WHEREAS, the City of Riverside, Missouri ("City") Board of Aldermen (`Board") has classified the Redevelopment Area as a "blighted area" and designated it as a redevelopment area under the Act; and approved the Plan; and WHEREAS, the Commission has approved Phases A, B, C, D, E and F of the Plan; and WHEREAS, the Board has approved Phases A, B, C, D, E and F of the Plan; and WHEREAS, the City in conjunction with the Riverside-Quindaro Bend Levee District ("District") has submitted a Financing Plan for the Riverside/Quindaro L-385 Levee Project ("Financing Plan") detailing a suggested public-private partnership in providing the Local Share for the L-385 Levee Project (Levee Project"), which Financing Plan has been reviewed and accepted by the Corps; and WHEREAS, the City, the District, the Commission, Platte County, Missouri, the Missouri Development Finance Board and Trillium Corporation entered into the L-385 Intergovernmental Agreement ("Intergovernmental Agreement") concerning implementation of the Financing Plan; and WHEREAS, the Intergovernmental Agreement provided that the parties would enter into definitive forms of agreements setting forth each party's rights and obligations at a later date; and WHEREAS, pursuant to the Intergovernmental Agreement, Trillium has agreed that it will contribute certain lands, provide credit enhancement for bonds and provide a net of $2,800,000 towards the financing of the Levee Project if the conditions set forth in Section 1(d) of the Intergovernmental Agreement are met; those being as follows: i. Trillium in its reasonable judgment is satisfied that all parties to the Intergovemmental Agreement will fulfill their commitments and the Levee Project will be completed in accordance with the Schedule of Events. ii. The satisfactory negotiation of the other agreements and arrangements between Trillium and other parties to the Intergovernmental Agreement including, but not limited to, the terms and conditions pursuant to which Trillium will provide stand-by letters of credit, and the eligibility, order and priority for reimbursement of Trillium's cash contribution and other costs from excess TIF revenues. iii. The adoption of a satisfactory plan no later than the date that Trillium's $2,800,000 net contribution is required to be made for financing the basic infrastructure required for the development of the undeveloped land within the Redevelopment Area including an I-635 interchange, road improvements to Van de Populier, drainage, and utilities ("Redevelopment Project II"). WHEREAS, it is now desirable to finalize the definitive agreements and other arrangements relating to this matter. NOW THEREFORE, BE IT RESOLVED BY THE TAX INCREMENT FINANCING COMMISSION OF RNERSIDE, MISSOURI AS FOLLOWS: Section 1. The Commission recommends that the Board of Aldermen approve, for negotiation purposes, the terms set forth on the attached Exhibit A ("Development Points"). The Development Points are for negotiations purposes only and are not binding on the parties unless and until incorporated into an agreement executed by the parties. Section 2. Upon approval by the City, the officers, agents and consultants of the Commission are authorized and directed to proceed with negotiations with Trillium Corporation in connection with the Development Points and to proceed towards finalizing the documents necessary for the implementation of the Intergovernmental Agreement in order that such documents may then be considered by the Commission. Section 3. This Resolution shall be in full force and effect from and after its passage and approval. Passed this 30`~ day of November, 1998. CHA ATTEST: ~~~.~ SECRETARY 2 THE DEVELOPMENT POINTS ARE FOR NEGOTIATIONS PURPOSES ONLY AND ARE NOT BINDING ON THE PARTIES UNLESS AND UNTIL INCORPORATED INTO AN AGREEMENT EXECUTED BY THE PARTIES. EXHIBTI' A DEVELOPMENT POINTS IN CONNECTION WITH TRILLIUM CORPORATION'S PARTICIPATION IN FINANCING THE LEVEE PROJECT 1. Order of Priority for Payments of TIF Revenues: First, to pay TIF Bonds. ii. Second, to fund the City's administrative and other T1F related costs. iii. Third, to reduce annual assessments with respect to assessment bonds. iv. Fourth, to repay the MDFB Loan; v. Fifth, the then remaining TIF revenues after payment of the above as follows: - 20% of such then remaining TIF Revenues to be distributed to the Taxing Districts. - 40% of such then remaining TIF Revenues to be applied to reimburse Trillium for (A) reimbursable project costs for Redevelopment Project II; however, (i) such reimbursement shall not exceed 35% of the TIF Revenues generated during the applicable time period from redevelopment project areas established in property owned by Trillium; (ii) the reimbursement period shall not extend beyond the earlier of the 15`~ year after the completion of the Levee Project or the termination of the project area and (iii) not more than 90% of such reimbursement shall be paid from PIL.OTs; and (B) the then outstanding balance of its $2.8 Million Payment, the Trillium Property Amount and the Credit Enhancement Costs. - 40% of such then remaining TIF Revenues to repay to the City the then outstanding balance of the City's $2.8 Million Payment. vi. Sixth, applied pursuant to the Plan. The right to receive payment of and/or reimbursement from TIF revenues is conditioned upon the acceptance of a bid and award of contract for the construction of the Levee Project by the Corps. Payment of TIF bonds outstanding aze excepted from this condition. 2. Redevelopment Proiect II. The TIF Commission and the City will consider, as an Amendment to the Plan; the approval of Redevelopment Project II. ii. The Amended Plan would include: a. the addition of the following improvements as Redevelopment Project II: the construction of a full diamond interchange at I-635 and Van de Populier Road and improvement of Van de Populier Road to arterial street standards. b. the designation of property owned by Trillium as Redevelopment Project UII Area(s). c. classifying certain Redevelopment Project Costs for Redevelopment Project II to be reimbursed or paid from TIF Revenues as Reimbursable Project Costs as follows: 50% of the net Redevelopment Project Costs for Redevelopment Project II' but not to exceed $2,143,500; with (i) such reimbursement being limited to not more than 35% of the TIF Revenues generated in such year from within Redevelopment Project II Areas, (ii) the reimbursement period shall not extend beyond the eazlier of the 15`~ year after the completion of Levee Project or the termination of the project area and (iii) not more than 90% of such reimbursement shall be paid from PILOTS. iii. Trillium will finance the construction of Redevelopment Project II. Any and all reimbursable project costs will be reimbursed only out of available TIF revenues pursuant to the Reimbursement Agreement. iv. Trillium will exhaust all state and federal funding sources for Redevelopment Project II. 'After being reduced by any and all federal and/or state funding. v. Trillium will, upon approval of Redevelopment Project II, enter into a Redevelopment Contract as developer of Redevelopment Project II. 3. Trillium Rezoning. By filing a rezoning application with the City, Trillium will request a rezoning of its property to a planned district which contemplates industrial, commercial and retail uses, which may include, assuming proper compliance with all applicable laws, a gaming development on the Trillium Property. 4. Trillium Obligations. i. Contribute property for the Levee Project and be repaid the value of such property from TIF revenues. ii. Contribute, in cash, a net amount of $2,800,000. iii. Support bond issues as follows: - reasonably support the marketing of the TIF bonds; and - cause to be provided, as credit enhancement for the bonds, astand-by letter of credit in the amount of $4,000,000 with terms mutually agreeable to Trillium and the issuer of the bonds and provides for repayment eligibility of credit enhancements costs. iv. Execute the L-385 Neighborhood Improvement District Petition should it be determined that NID Bonds will be utilized in the financing of the Levee Project. v. Develop Master Plan which, to the greatest extent reasonably possible, promotes retail development on the Trillium Property. vi. Trillium acknowledges that it may be required to construct drainage accommodations on the Trillium Property and Trillium agrees to undertake such actions. 5. Conditions for Rights and Obligations. Trillium's rights and obligations are conditioned as follows: - The obligations of Trillium and the rights of the other parties are conditioned upon the approval of the Application for Rezoning and Redevelopment Project II. - The rights of Trillium under the agreement are conditioned upon the acceptance of a bid and award of contract for the construction of the Levee Project.