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CDRA approves amended participation agreement for The Gardens at Mount Ogden after debate over TIF access and financing
Summary
The CDRA board voted to approve amendments to the participation agreement with The Gardens at Mount Ogden LLC (Resolution 24-02) after developers and staff explained lender concerns that a clause restricting transfer of TIF revenue made long‑term financing difficult. Board approval passed with one dissent; discussion focused on a roughly $600,000 capital shortfall if the lender could not count TIF revenue and on the TIF cap (up to $700,000 over 10 years).
The Community Development Renewal Agency board reconsidered and approved Resolution 24-02 to amend the participation agreement with The Gardens at Mount Ogden LLC after two board members who missed the previous meeting asked the item be reintroduced. The amendment includes technical date insertions and removes or alters language that lenders had identified as preventing them from counting TIF revenue toward underwriting.
Jared, a representative of the ownership group, told the board that lenders require the ability to count TIF revenue when underwriting long‑term loans; without that treatment the project would need roughly $600,000 in additional capital, which could translate into higher rents for residents. "To secure a long term loan, we have to be basically at 95% occupied on the project... With this TIF agreement right now... the lender will not utilize that income as part of that reference, which will basically cost an additional $600,000 of capital," Jared said.
Board counsel and staff said the changes are largely technical and do not create legal liability for the agency; counsel told the board that a no vote would not necessarily create legal exposure but could have political consequences for developer relations. The participation amendment also specified a maximum TIF contribution (discussed at up to $700,000 over the next 10 years, with current-year equivalents discussed in the staff presentation).
After discussion and questions about default scenarios, occupancy, and moderate-income unit impacts, the board moved, seconded and adopted the resolution on a roll-call vote with one member dissenting.
Vote: board members present recorded a majority yes vote; one board member voted no. Staff will update the participation agreement per the approved amendment and proceed with the lender’s financing timeline.
