Title
Subject: (Direct Referral) Communication from Mayor Mason requesting acceptance and approval of an Offer to Purchase and Addendum, Mortgage and Mortgage Addendum, and Note relating to the land sale and land seller financing between the City of Racine and Racine Harborside, LLC (Royal Capital Group, LLC, Manager) for the proposed @North Beach Development at 1129 Michigan Blvd.
Recommendation of the Finance & Personnel Committee on 03-25-2019: To authorize and approve the attached series of documents between the City and Racine Harborside, LLC for the conveyance of property at 1129 Michigan Boulevard in order to facilitate the @North Beach Development project consistent with the terms of the Tax Increment Financing Agreement; specifically consisting of: an Offer to Purchase; Promissory Note; and mortgage lien.
Fiscal Note: Following the Tax Increment Financing Agreement between the City of Racine and Racine Harborside, LLC in #1291-18 Resolution the following terms are set forth in these documents: 1.) Offer to purchase City property at 1129 Michigan Boulevard from Racine Harborside, LLC in the amount of $3,250,864.00 subject to the conditions within the officer and Addendum A; 2.) Promissory note between Racine Harborside, LLC and the City of Racine to pay the City of Racine $3,250,864 through annual installment payments of $160,776 between December 1, 2020 and December 1, 2033 and one balloon payment on or before December 1, 2034 of $1,000,000; 3.) A mortgage lien against the property at 1129 Michigan Boulevard to Racine Harborside, LLC of $3,250,864, including Addenum A which contains subordination and standstill terms.