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Economic Development Commission Minutes February 19, 2013 Page 3 of 4 Jenna Crawford gave an update on Chamber events. March Aeenda Items • Urban and Rural Taxing Districts Other Business Discussion was held regarding the request from Loneso ttage to restructure the loan to the City. The City Clerk explained the fol ng: 1. The City entered into a TIF Developmen gree with Lonesome Cottage for $146,000. TIF increments are pa' t vell&wice a year. 2. Lonesome Cottage purchased 6 cres f the City's ifIFAWrW park, which equals the tax increment amo 3. The city entered into a loan agreement Lonesome Cottage for $100,000 to be paid on January 2" in five installfiients 4. The developer is receiving about $23,500 per year in tax increment and owes the City $24,833 per year for.loan repayment;.` 5. The t nei en' will continue through 52017. The Note to the City will be paid of�ih02014. 6. The developer is requesting to restructure the loan to allow monthly /:- payments to the City for the balance of the loan for 60 months. The EDC discus h*EC cons of working with Lonesome Cottage to restructure the loa lt it would be best to work with the business as it is a viable employer i the City. It was noted that the payments should be tied to the TIF payments. It,ivas also suggested that the payments be extended to 3 to 4 years rather than S years. The EDC suggested reviewing a financial statement prior to restructuring the loan. COMMISSIONER ROGGENKAMP MOVED TO RECOMMEND THAT THE COUNCIL SUPPORT THE RESTRUCTURING OF THE LOAN CONTINGENT ON REVIEW OF A FINANCIAL STATEMENT. COMMISSIONER MERRIT SECONDED THE MOTION. MOTION CARRIED 4 -0.