R2020-182 Resolution Authorizing the Final Agreement Between the City of Decatur, Illinois and Airport Plaza Joint Venture, LLC-Payment of Reimbursable Costs

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MEMORANDUM 2020-12 DATE: December 21,2020 TO: Honorable Mayor Julie Moore Wolfe and City Council FROM: Scot Wrighton, City Manger Jon Kindseth,Deputy City Manger SUBJECT: Resolution Authorizing the Final Agreement Between the City of Decatur, Illinois and Airport Plaza Joint Venture, LLC -Payment of Reimbursable Costs SUMMARY RECOMMENDATION: Staff recommends City Council authorize this final settlement agreement with Airport Plaza Joint Venture to resolve disputed costs and close out the SE TIF district BACKGROUND: The City of Decatur has 7 TIFs,with the oldest one being the Southeast Plaza TIF which expires this year after 23 years. SE TIF was began in 1997 and this final agreement seeks to clarify the costs to the district staff prepares the close out of it. This TIF includes commercial development on the south end of Decatur along Mt. Zion Road including the movie theater, Hawthorne Suites, and a new residential subdivision behind the theater. This TIF development agreement is complex and been amended more than five times and reimbursed the developer approximately $8M. This final agreement seeks to clarify the remaining anticipated reimbursable costs anticipated to be paid out of the SE TIF. The legal language of actual final agreement is still being negotiated by the attorneys from both sides and this will be sent out as an addendum tomorrow(Dec. 18th) The City will realize an additional $120-150K annually after this agreement is closed out next year from sales tax and property taxes. The new increase in EAVs that were created in this redevelopment area will be realized by all taxing bodies in 2021,paid in 2022. INPUT FROM OTHER SOURCES: City staff and Legal Counsel negotiated this settlement. STAFF REFERENCE: City Manager, Scot Wrighton or Jon Kindseth can address any questions related to this agreement.