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Board approves second amendment for Lofts of Honey Creek agreement as developer deposits escrow
Summary
Trustees approved a second amendment allowing the Lofts of Honey Creek developer to deposit escrow funds in lieu of renewing a letter of credit while the developer approaches its guaranteed assessed value.
The Village Board approved a second amendment to the development agreement for the Lofts of Honey Creek that lets the developer substitute an escrow deposit for a letter of credit scheduled to expire.
Eileen explained the existing development agreement required the developer to maintain a letter of credit sized to one year of tax increment based on a $15,000,000 guaranteed assessed value; that instrument was due to expire April 24. The developer asked to deposit funds in escrow with the village to cover the shortfall in assessed value while awaiting updated assessments. The developer’s current assessed value stood at about $14,300,000, which produces a tax-increment difference the memo calculated as approximately $12,200 in the property-tax/tax-increment shortfall; staff indicated they expect the property to reach the $15,000,000 guaranteed value as of the first of the year after the assessor’s market update.
The board voted to accept the second amendment allowing the escrow approach; trustees said they expect staff to release any deposited funds once assessments confirm the guaranteed value and to continue monitoring the developer’s compliance with the agreement.
