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REDA Meeting <br /> Minutes—Monday,March 18,2019 <br /> Page 4 <br /> Housing & Economic Development Program Manager Jeanne Kelsey provided <br /> a brief summary of this request as detailed in the staff report and attachments <br /> dated March 18, 2019. <br /> President Roe offered an opportunity for public comment with no one <br /> appearing to speak to this issue. <br /> Etten moved, Laliberte seconded, adoption of REDA Resolution No. 36 <br /> (Attachment C) entitled, "Resolution Authorizing the Assignment and <br /> Subordination of Contract for Redevelopment and Tax Increment Financing <br /> Note for 2785 Fairview, LLC." <br /> Council Discussion <br /> Member Etten thought this was an important renovation improvement in an <br /> area that has been dilapidated for a number of years. <br /> Member Laliberte echoed that comment and pleased the McGough Company <br /> and business saw promise in that building and land because a lot of people did <br /> not. <br /> Member Willmus asked regarding subordination of the development contract is <br /> necessary so the McGough Company is able to obtain financing from their <br /> lender. <br /> Attorney Ingram stated that was correct. <br /> Member Willmus asked in doing so, what remedies does the City have in place <br /> to assure that the terms the City is looking for that are spelled out in the <br /> development contract do occur. <br /> Attorney Ingram stated the subordination is a subordination of certain EDA <br /> rights but not all of them. The contract itself, already contemplated that the <br /> EDA would be subordinating its right, for example, to receive insurance <br /> proceeds in the case of damage to the property. That has already been <br /> negotiated away as part of the development agreement contract. The right of <br /> the EDA to set a minimum value assessment is not subordinated, that is <br /> specifically retained by the EDA. The right of the EDA to suspend or <br /> terminate the TIF note in the event of default by the developer has been <br /> retained by the EDA. Those are really the two most important rights the EDA <br /> has. The lender is just asking that if there is some kind of event of default by <br /> the redeveloper, the bank can step in and basically act as the developer to <br /> remedy that, so it retains its ability to get tax increment. <br /> Ayes: 5 <br />