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Committee approves collateral assignment of Conservancy Bend phase 2 TIF agreement to Lake Ridge Bank
Summary
The committee consented to a collateral assignment of the 2019 TIF agreement for Conservancy Bend Apartments Phase 2 from Conservancy Bend 2 Residences LLC to Lake Ridge Bank; staff clarified the TIF is developer-financed and that 100% of the tax increment is available to the developer up to a capped amount.
The committee approved a consent to collateral assignment of the 2019 Tax Increment Financing (TIF) agreement for Conservancy Bend Apartments Phase 2, transferring the collateral interest from Conservancy Bend 2 Residences LLC to Lake Ridge Bank. The motion was made by Speaker 3 and seconded (the transcript records Lohrmann as second). The item was approved by voice vote.
Committee members requested and received clarifications about the original 2019 TIF agreement. A member asked whether the TIF was developer-financed rather than a city-financed TIF; staff (Speaker 4) confirmed it is developer-financed and stated that, for this development, 100% of the tax increment is available to the developer up to a capped amount. Speaker 4 further explained the city acquired the land, selected Tiwal Enterprises, and the original agreement was later amended to divide the project into additional phases, including the current apartment phase 2.
The committee's consent enables the lender (Lake Ridge Bank) to receive the collateral assignment under the terms of the existing TIF agreement; no changes to the TIF cap or percentage of increment were recorded in the meeting discussion.
Next steps: staff will proceed with the administrative steps necessary to document the collateral assignment and present any required paperwork to the full council as needed.
