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Developers seek single LLC to access Beacon Hill TIF funds; county counsel recommends ‘novation’ agreement
Summary
County counsel and a private attorney described a proposed novation that would replace three developers with one new LLC for reimbursement from the Beacon Hill tax-increment financing area; limited TIF revenue exists and commissioners were asked to place the item on a future consent agenda.
County legal counsel and outside counsel briefed the Board of County Commissioners on March 24 about a requested change to how reimbursements are paid from the Beacon Hill tax increment financing (TIF) area.
Jim Amacio and counsel explained that the Beacon Hill TIF, formed in February 2013, covers approximately 423 acres and was created jointly by the city and county to fund public improvements that spur development. A reimbursement agreement signed in February 2023 allowed developers who installed public improvements to request reimbursement as the TIF generates revenue. Three developers originally signed that agreement; under its terms the first developer who signs a purchase-and-sale agreement is paid first, the second is paid second, and so on.
The three developers have proposed to form one new LLC and execute a novation agreement to replace the three separate developer signatories with the single new developer entity. Counsel said a novation would simplify reimbursement administration for the county; legal counsel recommended the Board sign the novation when it appears on a consent agenda.
Board members noted that there is only a limited amount of money currently in the Beacon Hill TIF: counsel reported approximately $140,000 had been collected in TIF revenue to date, of which an estimated $30,000–$40,000 is currently available to developers; the remainder is available to the city for improvements in the non-hatched portion of the TIF boundary shown in the county presentation.
Counsel explained county practice is to disperse monies from the TIF twice yearly (May and November) once a purchase-and-sale agreement is in place and that the Beacon Hill TIF is a 30-year instrument running through 2043. Counsel recommended placing the novation agreement on next Tuesday’s legislative consent agenda for formal action; no final vote was taken at the special meeting.
