09-10-10 Council Special Minutes

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MINUTES OF THE SPECIAL MEETING CITY COUNCIL LITTLE CANADA, MINNESOTA SEPTEMBER 10, 2010 Pursuant to due call and notice thereof a special meeting of the City Council of Little Canada, Minnesota was convened on the 10th day of September, 2010 in the Council Chambers of the City Center located at 515 Little Canada Road in said City. Mayor Bill Blesener called the meeting to order at 3:02 p.m. and the following members of the City Council were present at roll call: CITY COUNCIL: Mayor Mr. Bill Blesener Council Member Ms. Shelly Boss Council Member Mr. John Keis Council Member Mr. Mike McGraw ABSENT: Council Member Ms. Shelly Boss Council Member Mr. Rick Montour ALSO PRESENT: City Administrator Mr. Joel R. Manson City Attorney Mr. Trevor Oliver GRABA The City Administrator presented the Graba Properties hLC Loan PROPERTIES Agreement which was reviewed in detail. The Administrator reported LLC -LOAN that the loan will allow Graba Properties to satisfy its SAC charge AGREEMENT obligation to the City as well as provide funds to assist in the build out of tenant space. The total amount of the loan is will be $204,355.48 plus all costs of issuarxe incurred by the City. The City will be using excess "Tax Increment Financing proceeds in TIF District 3-2 to fund the loan as allowed by MN Statute 469.176, Subdivision M. This loan will be secondary Y<o other financing on the property, but will be superior to $90,000 of private equity financing (First American Bank and SBA). Should Graba Properties default on the loan, the City can use TIF proceeds to make itself whole. The terms of the loan are based on a 15- year amortization schedule at 6% interest with a 5-year balloon. The City Administrator noted that the personal guarantees will not have much value and rental income is the key to our security. Projected rents exceed debt service by about $4,500 per month. Mr. Blesener introduced the following resolution and moved its adoption: