The Authority and Shakopee Crossings Limited Partnership, a Wisconsin limited partnership entered into a Contract for Private Redevelopment, dated October 16, 2018 pursuant to which the Redeveloper agreed to remove or remediate the hazardous substances, pollution and contaminants on certain property in the TIF District owned by the Redeveloper and the Authority agreed to reimburse the Redeveloper for site remediation costs related to the Minimum Improvements and other costs eligible with tax increment.  To that end, the Authority delivered its Tax Increment Revenue Note, Series 2019 in the principal amount of $1,387,138.04, to the Redeveloper.

In order to provide additional financing for the Minimum Improvements, the Redeveloper is obtaining a loan from Great Southern Bank, a Missouri state-chartered trust company in the amount of $1,550,000 As a condition to providing the Loan to the Redeveloper, the Lender is requiring that the Redeveloper assign all of its rights and interests in the Contract and the TIF Note, including the Redeveloper’s right to receive payments thereunder, to the Lender.  The Lender is also requiring that the Authority consent to this assignment.

This is typical since Shakopee Crossings Limited Partnership had to borrow funds to complete the site remediation to prepare it for development.  The original estimate was for over $2 million but the qualified expenses totaled only $1,387,138.04   This will shorten the payment period depending on what other development occurs within the Planned Unit Development.  The Redeveloper is examining at least one project that would accelerate the repayment since it would include residential, which does not pay fiscal disparities. 

The EDA's attorney has written a letter to explain the transaction in great detail that is attached to the report.