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HomeMy Public PortalAboutDunklin Street Properties, LLC - TIF t Agreement THIS AGREEMENT, made and entered into this 1" day of April, 2015, by and between the City of Jefferson, Missouri, a constitutional charter city (hereinafter referred to as "City,") and Cole County, Missouri, a political subdivision of the State of Missouri (hereinafter referred to as "County") and the Dunklin Street Properties LLC, a Missouri Limited Liability Company (hereinafter referred to as "Developer"). WITNESSETH: WHEREAS, on or about November 16, 2009, by ordinance # 14607, the City of Jefferson, pursuant to Missouri Statutes created the Southside Redevelopment Area and adopted the Southside Tax Increment Financing Plan for purposes of redevelopment and elimination of blight; and WHEREAS, the Southside Redevelopment Area consists, generally, of all that area within the property bounded by 50/63, Highway 54 and Adams Street and Stadium Blvd; and WHEREAS, the City of Jefferson on or about November 16, 2009, by ordinance# 14607 did also activate the Dunklin Redevelopment Area (a project area within the Southside Redevelopment Area), and entered into a "Development Agreement and Tax Increment Financing Contract" with Dunklin Street Properties LLC to act as the developer for the project area; and WHEREAS, the Dunklin Redevelopment Area consists of all real property located within the 100 block of Dunklin Street; and WHEREAS, the area from which the baseline for sales and property taxes (used to determine the "increment" to be contributed to development costs) should have been established by using the Dunklin Street Redevelopment Area, only. However, in error, the area used for that determination was the entire Southside Redevelopment Area, resulting in a skewed baseline and incorrect "increment" payments. Put another way, the entire Southside Redevelopment Area was activated when only the Dunklin Street Redevelopment should have been activated; and WHEREAS, the parties have worked together to resolve this issue and the resulting overpayments/underpayments and all such payments are identified on the attached exhibit A, which all parties believe is correct; and WHEREAS, the parties enter into this agreement to correct all issues with the current plan; and NOW THEREFORE, the parties to this contract agree to the following: 1. Obligations of the City for previous "increment" collection. 1.1 For all amounts due (EATS and/or PILOTS) from the City to the Developer for the increment underpayment from 2009 through 2013, the City shall pay to the Developer the sum of seventeen thousand seven hundred sixty two dollars and twenty cents ($17,762.20). Such payment shall be made not later than June 1, 2015. 1.2 For all amounts due from the City, County, or Developer, for overpayment of property taxes, collected from 2009 through 2013, the City shall pay to the Jefferson City Public School District the sum of nineteen thousand seven hundred and seven dollars and seventy five cents ($19,707.75). Such payment shall be made not later than June 1, 2015. 1.3 Unless amended by ordinance, collect economic activity tax increments and payments in lieu of tax increments from the Dunklin Street Redevelopment Area (the 100 Block of Dunklin Street). 2. Obligations of the County. 3.1 For all amounts due from the County to the special allocation fund for net increment underpayment from 2009 through 2013, the County shall pay to the special allocation fund the sum of eleven thousand twenty three dollars and ninety six cents $11,023.96). Such payment shall be made not later than May 1, 2015. 3.2 Allow payment on the behalf of the City as described above. 3.3 Accept that the payment due it for over collection of property taxes has been utilized in the determination of its amount due the Developer and therefore it seeks no reimbursement of any such amount. 3.4 For all amounts due from the County to the special allocation fund for EATS increment collected in 2014, the County shall pay to the special allocation fund the sum of eight thousand six hundred ninety two dollars and eighteen cents ($8,692.18). Such payment shall be made not later than May 1, 2015. 3. Payment of current funds held in the Special Allocation Fund. For all amounts due (EATS and/or PILOTS) to the Developer, from the City, County, School District or other taxing entity, for the increment collected in 2014 and due in 2015, the City shall pay to the Developer the sum of forty thousand three hundred eighty one dollars and two cents ($40,381.02) which represents the amounts due for EATs and PILOTS Increments less the city's two hundred and thirty dollar administration fee. Such moneys shall be paid from funds currently held in the special allocation fund. Such payment shall be made not later than June 1, 2015. The City shall refund, from the 1, special allocation fund, to the School District $4186.43, and to the County $782.35 for over collection of the PILOT increment for 2014. 4. Obligations of the Developer. 4.1 Accept all amounts identified herein on the time frames described as payment in full for any and all amounts due pursuant to the Development Agreement and Tax Financing Contract with the City and any and all obligations of any tax collecting entity obligated to payment to it pursuant to Missouri Statute's governing tax increment financing. 4.2 Fully release the City and County for all amounts which may be due above and beyond the amounts identified herein for anything and everything due for taxes collected through 2014. 5 Governing Law. The contract shall be governed by the laws of the State of Missouri. The courts of the State of Missouri shall have jurisdiction over any dispute which arises under this contract, and each of the parties shall submit and hereby consents to such courts exercise of jurisdiction. In any successful action by the City to enforce this contract, the City shall be entitled to recover its attorney's fees and expenses incurred in such action. 6 Authorship and Enforcement Parties agree that the production of this document was the joint effort of both parties and that the contract should not be construed as having been drafted by either party. In the event that either party shall seek to enforce the terms of this contract through litigation, the prevailing party in such action shall be entitled to receive, in addition to any other relief, its reasonable attorneys fees, expenses and costs. 7 Amendments. This contract may not be modified, changed or altered by any oral promise or statement by whomsoever made; nor shall any modification of it be binding until such written modification shall have been approved in writing by an authorized both parties. IN WITNESS THEREOF, the parties hereto have caused this agreement to be executed by the respective County officers and City officials duly authorized as of the day and year first above written. CITY OF JEFFERSON COLE COUNTY 3 Q/Yn��A�v Mayor Presiding Commissioner hEIT ATTEST:County Cler Approved as to Form: Western istrict Commissioner CiY Counselor i-- Eastem istrict Commissioner Dunklin Street Property LLC.