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e C), $,300,,000 and LCDA $149,08). If the funds are received as grant dollars by Sienna Green 11, the IRS 29 will lower the amount of tax credits received,, thus creating a new gap. In addition, the developer's tax- 3 ('-) credit investor views grants as a project negative as they are considered income into the project. 3 i The Note that Sienna Green 11 would give the City is for the $,449,688 with an estimated 3-percent 32 annual interest rate. Principal and interest would be paid off at the end of a 30-year term. See 33 Attachment D to review the Note. 34 The Mortgage describes the terms and conditions that are placed on the City loan. To review the loan 35 agreement, see Attachment E. 36 Finally, the City Attorney has drafted a document that will Assign the UD Agreement to Sienna Green 37 11. See Attachment F to review the Assignment Agreement. 38 The TIF Development Agreement Assignment assigns the TIF Development Agreement between the 39 City and AEON to Sienna Green 11 Limited Partnership, the actual entity that will own the second 40 phase of Sienna Green. See Attachment G to review the Assignment Agreement. °11 Sienna Green 11 will be utilizing two funding sources for the project, US Bank for construction 42 financing and the Minnesota Housing Finance Agency (MHFA) for permanent financing once the 43 project is completed. As part of that arrangement, both U.S. Bank and MHFA will require additional 44 documents that the City will need to be part of 45 'U. S. Bankk Documents cuments 46 Master Subordination Agreement- U.S. Bank has requested that the City agree to take a second position 47 on the financing. See Attachment H to review the Master Subordination Agreement with U.S. Bank. Master Disbursement Agreement - This agreement refers to the fund raw own schedule agreed to in 49 the Mortgage, which states Sienna Green's equity would first be disbursed, followed by the City (Met Council) funds, and finally the U.S. Bank funds. See Attachment I to review the Master Disbursement 'i Agreement 52 Assignment ofDevelop� ent Agreement and Tax Increment Financing Note — In this agreement, Sienna 53 Green 11 is assigning its rights under the TIF Development Agreement and TIF Note to U.S. Bank to �` 4 secure its loan to Sienna Green and the City consents to the Assignment. See Attachment J to review 55 the Assignment Agreement. 56 MHFA Documents A lore Endorsement to TIF Note — This legal document is attached to the TIF Note as evidence that the 58 Note has been assigned to another entity. See Attachment K to review Alonge Endorsement. �,, 9 Master Subordination Agreement- Similar to the U.S. Bank document, this agreement will have the 6('-) City in second position on the permanent financing. See Attachment L to review the Master 6 1 Subordination Agreement with MHFA. 62 Assignment ofDevelop� ent Agreement and Tax Increment Financing Note — Similar to the documents 63 required by U.S. Bank, these documents will assign Sienna Green 11's rights under the TIF 64 Development Agreement and Note to MHFA, which serves as the permanent financing for the project, 65 and the City consenting to this assignment See Attachment M and N to review Assignment 66 Agreements. 67 All of these documents have been reviewed by the City Attorney and Bond Counsel (Mary Ippel of 64, Briggs and Morgan) for the past couple of weeks and found to be the standard legal documents for a tax 69 credit project. Page 2 of 3