Title
An Ordinance approving an Assignment Agreement among RED Lee’s Summit East, LLC, SF TIF, LLC, and the City of Lee’s Summit, Missouri, for the Assignment of Developer’s Interests in the Lee’s Summit East (Summit Fair) Tax Increment Financing Redevelopment Area.
Body
Issue/Request:
This is a request from RED Lee’s Summit East, as the current Developer of record for the Lee’s Summit East (Summit Fair) Tax Increment Financing Plan (the “TIF Plan”) and related incentives, to transfer all of its remaining land and “Developer” interests in the shopping center to a new single-purpose entity that consists of investing parties and Block & Company as the proposed new manager of the shopping center.
Key Issues:
Council consideration of the Summit Fair Developer to transfer land and its remaining Developer interests to a new single-purpose entity that will be managed by Block & Company.
Proposed City Council Motion:
I move for second reading of An Ordinance approving an Assignment Agreement among RED Lee’s Summit East, LLC, SF TIF, LLC, and the City of Lee’s Summit, Missouri, for the Assignment of Developer’s Interests in the Lee’s Summit East (Summit Fair) Tax Increment Financing Redevelopment Area.
Background:
TIF Contract and Land Transfers:
The City and RED Lee’s Summit East, LLC, a Missouri limited liability company, the developer selected by the City ("Developer") executed the Amended and Restated Tax Increment Financing Contract on May 27, 2008 (as amended, the “TIF Contract”) to implement the TIF Plan (as defined above), for development of the Summit Fair Shopping Center. Section 32 of the TIF Contract provides that no sales of property in the TIF Redevelopment Area may be made to proposed buyers that are not directly affiliated with the Developer, while TIF bonds remain outstanding, without the prior written approval of the City. Section 32 also provides that these buyers (designated as “transferees” in the TIF Contract) are required to enter into a tra...
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