File #: 19-0260R    Name:
Type: Resolution Status: Passed
File created: 4/12/2019 In control: Planning and Economic Development
On agenda: 4/22/2019 Final action: 4/22/2019
Title: RESOLUTION AUTHORIZING THE CITY TO ENTER INTO A THIRD AMENDED AND RESTATED MASTER SUBORDINATION AGREEMENT REGARDING THE WASHINGTON SCHOOL PROJECT.
Attachments: 1. Exhibit 1

..Title

RESOLUTION AUTHORIZING THE CITY TO ENTER INTO A THIRD AMENDED AND RESTATED MASTER SUBORDINATION AGREEMENT REGARDING THE WASHINGTON SCHOOL PROJECT.

 

Body

CITY PROPOSAL:

                     RESOLVED, that the proper city officials are hereby authorized to enter into a third amended and restated master subordination agreement, substantially in the form of that attached hereto as Exhibit 1, with Washington Studios Limited Partnership (Washington Partnership), Artspace Projects, Inc., TCF Bank Minnesota (TCF), Duluth economic development authority (DEDA) and housing and redevelopment authority of Duluth, Minnesota (HRA), regarding the Washington school project.….

 

Statement of Purpose

STATEMENT OF PURPOSE: The purpose of this resolution is to authorize execution of a third amended and restated master subordination agreement setting forth the priority of liens with respect to the Washington school project loans as follows:

 

                     TCF Loan                                                 $                      338,000

                     DEDA Loan                                                               419,324

                     DEDA II Loan                                                               419,324

                     City Abatement Loan                                          312,636

                     City Loan                                                               100,000

                     HRA Loan                                                               285,000

                     City HOME Loan                                          100,000

                     Deferred Fees Loan                                            38,220

                     DEDA Assigned Loan                                            80,000

 

Washington Partnership has been working with its first mortgage lender, TCF, to extend their financing time line of the Washington School Project.  The partnership continues to work on maintenance analysis for the purpose of resyndicating housing tax credits for this property.  The order of priority of all liens subordinate to TCF remains unchanged.