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LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY AGENDA ITEM 3A STAFF ORIGINATOR: Michael Grochala, Community Development Director MEETING DATE: December 11, 2017 TOPIC: Consider Resolution No. 17-02, Approving Assignment of Contract for Private Development and TIF Note, United Properties –TIF District 1-12 VOTE REQUIRED: 3/5 BACKGROUND The Economic Development Authority (EDA) approved the Contract for Private Development with United Properties and Distribution Alternatives in July of 2016. The action also included authorization for the issuance of a Tax Increment Revenue Note. Construction of the 402,000 square foot facility and associated public improvements has been completed. Artis US Holdings, III L.P., a Delaware limited partnership, is purchasing the project from United Properties and assigning the purchase agreement to its subsidiary, AX Lino Lakes, L.P., a Delaware limited partnership, including all rights under the TIF Note and the Contract. The building tenant, Distribution Alternatives, remains unchanged. There will be no change in tenancy upon such purchase and sale, as United Properties will assign the landlord’s interest in the existing Distribution Alternatives, Inc. Lease to AX Lino Lakes in conjunction with the sale of the land and building Section 8.2 of the Contract permits the assignment of the Assignor’s rights and duties under the Contract subject to the EDA’s approval. A representative from Kennedy & Graven, the EDA’s development counsel, will be present at the meeting to address any questions. RECOMMENDATION Staff is recommending approval of Resolution No. 17-02. ATTACHMENTS 1.Resolution No. 17-02 2.Assignment of Development Agreement and TIF Note 3.Authority Estoppel 4. TIF Note