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Council approves amendment allowing sale of Riverbend building while retaining developer obligations
Summary
The Common Council approved a third amendment to the Riverbend pre‑development agreement allowing the sale of a building without transferring certain development‑obligation liabilities to the buyer; the Hendricks Group will retain the obligations and stands to be repaid infrastructure advances of about $4,000,000 as increment shifts.
The West Bend Common Council on Feb. 3 approved a third amendment to the pre‑development agreement for the Riverbend development that allows a building sale without transferring the seller’s TID‑backstop obligations to the buyer.
Ian, a city staff member, explained the amendment: "This amendment is doing is allowing the sale of that building and the new owner will not take on those obligations. Those will stay with Hendricks and Riverbend." He and the economic development representative said prior agreement language permitted parts of the property to be sold without assigning backup obligations; the amendment clarifies that the original developer — the Hendricks Group — will retain obligations tied to backfilling any shortfalls.
The city’s financial adviser (Ehlers) prepared or updated a cash‑flow analysis that staff said shows the transaction will be net positive within three to five years. The city’s economic development speaker noted Hendricks “has fronted over $4,000,000 for infrastructure improvements” and that those advances would be repaid as tax‑increment financing (TID) increment shifts back to the developer under the amended arrangement.
Council members moved and seconded the ordinance amendment and approved it by voice vote without recorded opposition. Staff said the amendment is intended to allow the development to proceed and to facilitate a prospective close by a buyer that Hendricks has been seeking.
Actions taken reference the pre‑development agreement between the city and Hendricks and Riverbend LLC; staff cited an attached or referenced Ehlers financial analysis that, in staff's words, indicates no major negative fiscal impact in the near term.
Staff offered to answer additional questions from the council; none were raised prior to the voice vote approving the amendment.
