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to be made in the amount of $24,833.57 from January 2, <br />2010, through 2014 which included 5% interest. Three <br />payments have been made, none of which were paid by the <br />required due date. Letters of Default were sent to <br />Lonesome Cottage in April, 2010, March, 2011, March, <br />2012, and February, 2013 indicating that payments had not <br />been received by the January 2nd due date. <br />The Developer receives TIF payments in the approximate <br />amount of $23,500 per year. This payment is paid twice <br />each year with half paid in January and the other half in <br />August. The payments are set to expire at the end of 2017. <br />I have presented this request to our bond attorneys, Briggs <br />and Morgan, who fully understand the issue. The Attorneys <br />are questioning whether the City should consider this <br />request for restructuring as the TIF payments the developer <br />is receiving provide the source of income to make the loan <br />payments. <br />The EDC discussed the pros and cons of working with <br />Lonesome Cottage to restructure the loan. Following much <br />discussion the EDC moved to recommend that the Council <br />support the restructuring of the loan contingent on the <br />review of a financial statement. The EDC also suggested <br />that the loan not be extended a full five years, but rather 3 <br />or 4 years and that the payments are be tied to the TIF <br />payments. <br />If the Council moves forward with the restructuring, staff <br />recommends the following: <br />