Cascade council approves development agreement with BLM Rentals LLC, asks attorney to clarify default provisions

The Cascade City Council voted Feb. 24 to approve a development agreement with BLM Rentals LLC and a resolution authorizing annual appropriation tax-increment payments and the pledging of certain tax-increment revenues, but asked the city attorney to clarify language in the agreement's default provisions before final implementation.

Council opened a public hearing on the proposed development agreement and then discussed a clause described in the agreement as a default for failure “to observe or perform any other material covenant.” Council members said the language sounded like business-operation requirements commonly included in incentive agreements tied to business operations rather than in a straightforward tax-rebate/tax-increment rebate agreement.

One councilmember noted the municipality sometimes includes both tax-rebate (TIF) agreements and separate business-incentive agreements; the council asked staff or counsel to confirm whether the clause belonged in this contract. Councilmember Oliphant moved to approve the resolution with the understanding staff would get clarification from the city attorney on the default provisions; the motion was seconded by Weber and passed on a roll-call vote with all members recorded as aye.

The approved resolution was listed in the meeting as Resolution No. 20-25 and was described in the packet as approving the development agreement with BLM Rentals LLC and authorizing the pledged tax-increment payments. The council did not change other terms at the meeting; members said they preferred counsel to confirm whether the clause should be removed or revised and report back at the next meeting so public-notice requirements would not be triggered for a material change.

The decision authorizes the city to pledge tax-increment revenues as described in the draft agreement; any future changes the attorney recommends will be reported to the council for further action.