HomeMy WebLinkAboutIV.D - ADDED AT MEETING - Resolution - Collateral Assignment of TIF - Common Bond - GA
Memorandum
To: HEDRA Commissioners
From: John Hinzman, Community Development Director
Rusty Fifield, Economic Development Coordinator
Date: September 24, 2019
Item: Approve and Authorize Signature
Collateral Assignment of Tax Increment Financing Note and Available Tax Increment
Action Requested
The HEDRA Board is requested to approve the Collateral Assignment of Tax Increment
Financing Note and Available Tax Increment (the “Agreement”) from CB Guardian Angels
Limited Partnership to U.S. Bank.
Background
This action is a continuation of HEDRA action in March of this year that transferred the
property from between the original developer (Sherman Associates) and CommonBond
Communities. Communities. CommonBond now seeks approval to transfer the Note with the
right to receive tax increment payments as part of its overall finance package for acquisition and
rehabilitation of the facility. This action is similar to the assignment approved by HEDRA in
March.
Financial Impact
There is no financial impact on HEDRA. The Agreement does not alter HEDRA’s obligation or
the use of TIF. CommonBond retains all obligations as developer in the original Development
Agreement. The only difference is that the Note is held by a bank rather than the developer or
property owner.
Attachments
1. Resolution approving the assignment and authorizing the Executive Director to sign on
behalf of HEDRA
2. Collateral Assignment document
HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY
RESOLUTION NO. 2019-03
A RESOLUTION APPROVING COLLATERAL ASSIGNMENT OF TIF NOTE AND
AUTHORIZING EXECUTIVE DIRECTOR TO EXECUTE DOCUMENTS
Board member ___________________________ introduced the following Resolution and
moved its adoption:
WHEREAS, the Hastings Economic Development and Redevelopment Authority (“HEDRA”)
entered into a Development Agreement (“Development Agreement”) with Guardian Angels of
Hastings Limited Partnership (“Original Developer”) dated as of December 21, 2000 and issued
to Original Developer its Taxable Tax Increment Revenue Note (Guardian Angels), dated as of
June 14, 2001, in the original principal amount of $484,000.00 (“TIF Note”); and
WHEREAS, HEDRA approved the assignment and assumption of the Development Agreement
and the assignment of the TIF note from the Original Developer to CB Guardian Angels Limited
Partnership (“CommonBond”) on March 21, 2019; and
WHEREAS, CommonBond has requested that HEDRA approve the assignment of the TIF Note
and the Available Tax Increment as defined in the Development Agreement as part of the collateral
for its loan with U.S. Bank.
NOW THEREFORE BE IT RESOLVED that HEDRA approves the Collateral Assignment of Tax
Increment Financing Note and Available Tax Increment (“Assignment”) as submitted by
CommonBond.
BE IT FURTHER RESOLVED that John Hinzman, the Executive Director of HEDRA, is hereby
authorized to sign the Assignment on behalf of HEDRA.
Board member ______________________ moved a second to this resolution and upon
being put to a vote it was unanimously adopted by all Board Members present.
Adopted by the Board of Commissioners of the Hastings Economic Development and
Redevelopment Authority on September 26, 2019 by the following vote:
Ayes:
Nays:
Absent:
ATTEST: __________________________
Scott Sinclair, President
________________________________
John Hinzman
Executive Director
I HEREBY CERTIFY that the above is a true and correct copy of resolution presented to and
adopted by the Hastings Economic Development and Redevelopment Authority, City of Hastings,
County of Dakota, Minnesota, on the 26th day of September, 2019, as disclosed by the records of
the City of Hastings on file and of record in the office.
________________________________
Julie Flaten
City Clerk
This instrument drafted by:
City of Hastings (RF) 101 4th St. E. Hastings, MN 55033