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Council authorizes reimbursement agreement with Chadwick Farms up to $1.5M, caps interest at $500K
Summary
Council (acting as TIRS board and then as council) authorized a reimbursement agreement to repay developer upfront contributions (up to $1.5 million) as last-in-line priority, with interest capped at $500,000 and a maximum APR of 4.5% charged only against the Chadwick Farms portion of the TIRZ.
Staff explained that the developer (Chadwick Farms) previously agreed to pay $1,000,000 up front in two installments to help fund initial public improvements for the Star Center site. Under the proposed reimbursement agreement, those upfront contributions may be reimbursed from TIRS funds as last in priority, with reimbursement terms limited to a maximum 4.5% APR and total interest not to exceed $500,000. "So we expect by the time we're able to have the funds...to pay back the developer, it's going to get up to that 500,000 mark is what we're estimating," the presenter said.
Council approved the reimbursement agreement in the TIRS board and then separately approved the resolution authorizing the town to execute the agreement as part of the council agenda. The agreement applies reimbursement only to the Chadwick Farms portion of the TIRS (about 68 acres of the overall zone) and ties repayment to available incremental revenues and the priority structure described in the plan.
