Governing body approves assignment of NP Rentals LLC tax-increment note to Exchange Bank

Meeting members approved a motion to sign a receipt notice assigning the NP Rentals LLC tax-increment revenue note to Exchange Bank and authorized the chair to sign the document as presented in the agenda packet. The motion passed on a roll-call vote with recorded affirmative votes during the call.

Mike Bacon, a staff member, explained that the tax-increment note is issued to the redeveloper, which commonly takes the note to a bank to obtain financing. He said the bank often holds the note as security and requested that payments be directed to the bank, which requires the formal assignment document now before the governing body. Bacon said different banks use different assignment forms and that counsel and staff had reviewed the form to ensure it did not contain improper provisions.

Bill (staff member) told meeting participants he had interchanged with staff and counsel on the matter, noting that banks sometimes ‘‘try and sneak stuff in’’ on assignment forms; he recommended formal board action to create a record rather than relying on an administrative sign-off. The staff description of the disbursement process noted that developers must submit invoices and canceled checks for review and that staff (Don, Mike and Greg) sign off on eligible disbursements.

A board member moved to approve the sign-off of the assignment and authorize the chair to sign the receipt notice; another member seconded. During the roll-call vote the names called in the transcript were: Covey (yes), Ty Wilke (yes), Velozko (yes) and Madam Hall (yes). No votes or abstentions were recorded in the transcript excerpts for this item.