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Board OKs collateral assignment to secure financing for King Parkway spec building
Summary
Trustees unanimously approved a collateral assignment and municipal revenue obligation tied to the TDC DeForest 5 development agreement; staff said the assignment lets the construction lender step in to finish the project if the developer defaults, which the village views as protective of completion goals.
The board approved Resolution 2026‑098, which authorizes a collateral assignment of the development agreement and municipal revenue obligations for the TDC DeForest 5, LLC industrial spec development on King Parkway. Staff said the assignment is a routine financing tool that allows the lender (Tri City National Bank) to assume or facilitate completion of the project in a foreclosure or default scenario and does not remove the developer’s obligations to construct the project.
Village legal staff described the arrangement as common in commercial construction financing and as providing an additional means to get the project finished if the developer cannot complete it. Trustees voted in favor of the resolution without public comment and the motion carried unanimously.
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