Explanation
BACKGROUND: The City with Franklin County, Confluence Community Authority, Crew SC Development Company, LLC, and Crew SC Stadium Company, LLC entered into a Development Agreement and First Amendment authorized by Ordinance No. 1730-2019 and Second Amendment authorized by Ordinance No. 1492-2021 (all three collectively and as may be amended further, the “EDA”). Under the EDA, the parties made commitments relating to the development of a new multi-purpose sports, entertainment, cultural and recreational facility (the “Stadium”), and a project containing mixed-use retail, entertainment, residential, hospitality, office and/or commercial uses (the “Mixed-Use Development” and together with the Stadium, the “Project”). In order to further implement the EDA, Ordinance No. 2545-2020, as amended by Ordinance No. 3265-2021 (together, the “TIF Ordinance”), was passed by City Council to establish a tax increment financing area over the Project (the “Stadium 41 TIF”). The non-school portion of the Stadium 41 TIF service payments deposited with the City are remitted to pay debt service related to the Project and other approved purposes (the “Obligations”) pursuant to the Tax Increment Financing and Cooperative Agreement dated February 23, 2021 (the “TIF Agreement”) by and among the City, the Confluence Community Authority, and Confluence Development LLC authorized by Ordinance No. 2571-2020. As market conditions changed significantly since entering into the TIF Agreement due to the subsequent economic impacts of the COVID-19 pandemic, which have delayed the Mixed-Use Development, Confluence Development LLC and the developer of the Mixed-Used Development have requested the City to amend the TIF Ordinance to remove the undeveloped real estate portion of the Mixed-Use Development, anticipated to be valued upon completion of a 690 unit multifamily residential development at approximately $86.25 million, from the Stadium 41 TIF to create a new tax increment financing ar...
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