APPROVAL of the Personal Guaranty of David Flaherty as required under Section 501 of the Development Agreement City of Topeka Contract No. 53457 between the City of Topeka and Topeka FC 1, LLC for the Project View Reinvestment Housing Incentive District (RHID).

Voting Requirement: Action requires at least six (6) votes of the Governing Body.

(Approval of the personal guaranty in the form as presented, as required by the executed Development Agreement, which will provide the City with security for repayment of the Economic Development Grant from RHID proceeds if necessary.)

Action requires at least six (6) votes of the Governing Body.

Whether to approve the personal guaranty in the form as presented, as required by the executed Development Agreement, to provide the City with security for repayment of the Economic Development Grant from RHID proceeds if necessary.

Staff recommends that the Governing Body approve the personal guaranty in the form presented.

The $1,500,000 City Economic Development Grant will be repaid by the Developer through two $30,000 annual installments, beginning the calendar year following the earlier of stabilization or five years after issuance of a certificate of occupancy. If the Developer does not make the required payments, the City may withhold the corresponding amount from RHID Increment. The repayment obligation is secured by a personal guaranty from David M. Flaherty until stabilization is achieved.

Staff recommends approval of the personal guaranty in the form presented that was negotiated by the parties and meets the requirements of Section 501 of the Development Agreement.

Economic Development Grant of $1,500,000 made by the City to be repaid over 25 years

Reimbursement by Developer: Pay-as-you-go RHID