CITY of RAPID CITY Agenda Item Summary
Meeting Date: 5/14/2014		Commission, Board or Committee: N/A
Staff Contact: Joel Landeen, City Attorney		PW Committee or L&F Committee: Legal & Finance Committee
Petitioner: President’s Plaza LLC		City Council 1st Reading: N/A
Location: Click here to enter text.		City Council 2nd Reading: N/A
Agenda Title:
Authorize Mayor and Finance Officer to Sign Escrow Agreement Between the City of Rapid City and President’s Plaza LLC
Summary:
In the 5 year plan for the Vision Fund adopted in 2005, the City allocated $2.8 million for downtown parking. In September of 2009 the City entered into a Master Development Agreement with St. Joe Investments which committed the $2.8 million from the Vision Fund to be used to help fund the design and construction of the public improvements within the project. In November of 2009, the First Addendum to the Master Development Agreement was approved which required the City to place the money for this project from the Vision Fund into an escrow account. The proposed agreement fulfills that obligation and the terms of the escrow agreement are consistent with the requirements contained in the First Addendum. Both of these agreements were assigned to President’s Plaza LLC in 2011. The attached escrow agreement is necessary to provide the terms by which disbursements are made from the escrow account. We need an escrow agreement before we can deposit money in an escrow account. Once the money is deposited, President’s Plaza will be able to make draws and pay eligible expenses. The City will consent to all draws to ensure they are being used to pay for eligible costs. Pennington Title is the escrow agent and all costs and fees for the escrow account are being paid by President’s Plaza per the agreements.
Funding Source & Fiscal Impact (if applicable):
The $2.8 million to be deposited in the escrow account will come from the City’s Vision Fund.
Recommendation:
Action: Choose an item. Approve Notes: Failure to approve this agreement will further delay the project and potentially put the City in breach of its previous agreements.
Options:
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Attachments & Links:
Escrow Agreement	Click here to enter text.		Click here to enter text.
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