03-05-2013 City Council Minutes - Laserfiche WebLink

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City Council Minutes March 5, 2013 Page 3 of 9 6. The developer is requesting to restructure the loan to allow 60 monthly payments to the City for the balance of the loan. The Clerk noted that the EDC has reviewed this request and has recommended that the Council consider the restructure of the loan based on several conditions: • A review of a current financial statement • The note must be paid in full prior to the TIF district ending • Loan payments are tied to TIF funds (if loan is in default, the City uses TIF funds to make the loan payments) • Reduction from the requested loan payback of 60 months to either 36 or 48 months • Late fees to be assessed to delinquent payments • The developer is responsible for costs associated with the restructuring of the loan COUNCIL MEMBER AKERSON MOVED TO RESTRUCTURE THE LOAN TO BE AMORTIZED OVER A 60 -MONTH PERIOD AT 5% INTEREST WITH A THREE -YEAR REVIEW BY THE COUNCIL AND THAT PAYMENTS MUST BE CURRENT AT THE THREE -YEAR REVIEW PERIOD OR IT WILL BECOME A BALLOON PAYMENT. COUNCIL MEMBER GARDNER SECONDED THE MOTION. The Council debated the motion with the concern of being able to pay a balloon payment if the developer is having difficulty paying the monthly payments. Brandon Anderson stated that the business is not struggling. He stated that due to the decrease in property value he has had to refinance his mortgages. The Council discussed the conditions that were recommended by the EDC and by Staff. Council Member Pederson stated that he would like to see the Council implement the recommendations of the EDC. He also indicated he would like to see the payments being paid back in 48 months. COUNCIL MEMBER AKERSON WITHDREW HIS MOTION AND COUNCIL MEMBER GARDNER WITHDREW HIS SECOND TO THE MOTION. MAYOR ADAMS MOVED TO RESTRUCTURE THE NOTE FOR LONESOME COTTAGE AS FOLLOWS: