City of Racine - File #: 0025-25

• File #: 0025-25
• Version: A
• Name: Subject: Communication sponsored by Mayor Mason, on behalf of the Finance director seeking approval to amend the TIF Incentive Agreement with The Main Attraction, LLC, regarding the Verdant Hotel project at 500 Main Street.
• Type: Communication
• Status: Committee Report To Council
• File created: 1/8/2025
• In control: Finance and Personnel Committee
• Title: Subject: Communication sponsored by Alder Coe, on behalf of the Finance Director, requesting approval to amend the TIF Incentive Agreement with The Main Attraction, LLC, regarding the Verdant Hotel project at 500 Main Street. Recommendation of the Finance and Personnel Committee on 01-13-2025: That the Mayor and City Clerk be authorized and directed to enter into an amendment to the TIF Incentive Agreement with the Main Attraction, LLC and execute any and all necessary documents associated with this amendment. Fiscal Note: This amendment modifies the Pay-go portion of the TIF Incentive agreement to reflect more closely, the actual TID increment proceeds available. The amendment authorizes a re-amortization of the original municipal revenue bond obligation issued for the project with bond payments from 03/01/2024-03/01/2034. The obligation will be payable directly to the lender based on tax increment received within the TIF District #26. If increment is not produced, payment will n...

Date	Ver.	Action By	Action	Result
1/13/2025	A	Finance and Personnel Committee

Title

Subject: Communication sponsored by Alder Coe, on behalf of the Finance Director, requesting approval to amend the TIF Incentive Agreement with The Main Attraction, LLC, regarding the Verdant Hotel project at 500 Main Street.

Recommendation of the Finance and Personnel Committee on 01-13-2025: That the Mayor and City Clerk be authorized and directed to enter into an amendment to the TIF Incentive Agreement with the Main Attraction, LLC and execute any and all necessary documents associated with this amendment.

Fiscal Note: This amendment modifies the Pay-go portion of the TIF Incentive agreement to reflect more closely, the actual TID increment proceeds available.  The amendment authorizes a re-amortization of the original municipal revenue bond obligation issued for the project with bond payments from 03/01/2024-03/01/2034. The obligation will be payable directly to the lender based on tax increment received within the TIF District #26. If increment is not produced, payment will not be made by the City, and the developer will be responsible for making the payment to the lender.  Total amount of “pay go” distribution under this amended agreement is expected to be $3.35 million over a 11 year period. The District anticipates adequate funding for this arrangement.