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Shakopee City Council
June 18, 2024
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| | | | | | | | | FROM: | Nate Reinhardt, Finance Director | | TO: | Mayor and Council Members |
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| | | | | | | | Subject:
Consent of City Council to allow the assignment of the tax increment pay as you go note related to the Shakopee Flats Apartments. | | |
| | | | | | | | Policy/Action Requested:
Adopt Resolution R2024-091 Consenting to a Collateral Assignment of Contract for Private Redevelopment Between Shakopee Apartments, LLC and A10 Capital, LLC. | | |
| | | | | | | | Recommendation:
Adoption of Resolution 2024-091 | | |
| | | | | | | | Discussion:
Gaughan Development LLC, entered into a contract for private development of 170 market-rate apartments (Shakopee Flats) and 3,000 square feet of commercial space (Mallards Restaurant location). A tax increment revenue note in the amount of $3,570,700 was issued to reimburse Gaughan Development for public redevelopment costs as identified in the agreement. That note was assigned between Gaughan Development and Shakopee Apartments, LLC. Shakopee Apartments is now proposing to assign the tax increment note to A10 Capital, LLC. | | |
| | | | | | | | Budget Impact:
There is no impact on current or future tax increment payments, if approved, the only impact is who receives the tax increment note payments. | | |
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