Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Development Tidf topic
No spam. Unsubscribe anytime.
Council approves Riverbend amendment letting Hendricks sell building without transferring TID backstop
Summary
The West Bend Common Council approved a third amendment to the Riverbend pre-development agreement that lets Hendricks Group sell a building while retaining responsibility for potential TID shortfalls.
The Common Council on Feb. 3 approved a third amendment to the Riverbend pre-development agreement with Hendricks and Riverbend LLC that allows sale of a building while keeping the original developer’s obligation to cover potential tax-increment financing (TID) shortfalls with Hendricks and Riverbend.
Ian (city staff) described the amendment as a change to the existing agreement that preserves the developer’s backstop obligations even if the cast-iron building is sold to a new owner. "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," Ian said.
Economic-development staff (ED) said Hendricks has fronted more than $4,000,000 for infrastructure improvements in the district and that Ehlers performed a cash-flow analysis showing the TID should be net positive within three to five years. "They're selling the buildings without that liability... the TID is now, as Ian shared, in a position where those payments can start going back to them," ED said.
Council moved and approved the amendment on a voice vote after the staff presentations. City staff listed follow-up tasks including finalizing closing documents and updating TID cash-flow records.
The vote authorizes staff to complete paperwork so a buyer can close soon after council action if the closing proceeds; the amendment keeps developer obligations tied to Hendricks and Riverbend LLC rather than transferring them to the purchaser.
