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MINUTES <br />CITY COUNCIL <br />NOVEMBER 21, 2011 <br />BEYOND THE <br />YELLOW <br />RIBBON <br />COMMUNITY <br />THE LODGE <br />REFINANCING <br />SUBORDINATION <br />AGREEMENT <br />The foregoing resolution was duly seconded by Montour. <br />Ayes (5). <br />Nays (0). Resolution declared adopted. <br />Mayor Blesener read a resolution in support of the Beyond The Yellow <br />Ribbon Community which recognizes and thank military members and <br />their families for their service sacrifices and declares support for the <br />efforts of the Beyond the Yellow Ribbon Community Group in their support of <br />military members and their families. <br />Montour introduced the following resolution and moved its adoption: <br />RESOLUTION NO. 2011 -11 -230 — SUPPORTING THE EFFORTS OF <br />BECOMING A BEYOND THE YELLOW RIBBON COMMUNITY <br />The foregoing resolution was duly seconded by McGraw. <br />Ayes (5). <br />Nays (0). Resolution declared adopted. <br />The City Administrator reported that Sherman Associates is seeking to <br />refinance The Lodge and the primary lender is looking for Subordination <br />Agreements from all lenders. The Administrator reported that the City's <br />Development Agreement with The Lodge provides for subordination of the <br />City's interests to the primary lender, but one of the provisions could prove <br />troublesome. The City has been asked to subordinate its restrictive covenants in <br />the tax increment financing (TIF) documents. Mary Ippel of Briggs and Morgan <br />has advised the lender's attorney that the City cannot subordinate its interests <br />under Section 7.2 of the Development Agreement. This provision requires <br />compliance with income limits for tenants to enable this area to be a valid <br />"housing district" under TIF laws. The Administrator reported that Ippel is <br />working to resolve this issue with the lender. Given that the City Council does <br />not meet again until December 21St, the City Administrator recommended <br />approval of the Subordination Agreement subject to its modification and <br />approval by Mary Ippel of Briggs and Morgan. <br />Montour noted that this will require action of the Economic Development <br />Authority rather than the City Council. <br />Montour introduced the following resolution and moved its adoption: <br />RESOLUTION NO. 2011 -11 -231— TEMPORARILY ADJOURNING THE <br />CITY COUNCIL MEETING AND CONVENING AS THE ECONOMIC <br />DEVELOPMENT AUTHORITY <br />4 <br />