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',4G . . 24( ceerneee <br />515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(612) 484 -2177 / FAX: (612) 484 -4538 <br />MEMORANDUM <br />MAYOR <br />Michael I. Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morel= <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />TO: Mayor Fahey & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: May 17, 1996 <br />RE: Amendment to Loan Agreement - Market Place Redevelopment <br />In our capacity as the Economic Development Authority, we loaned <br />$500,000 to Market Place Center, Limited Liability Company to <br />enable the renovation and enhancement of the center. Pursuant to <br />the loan agreement, I am not authorized to release funds if there <br />are insufficient amounts remaining to complete the work in <br />accordance with the cost estimates that were included with the <br />loan documents (Exhibits "C" and "D "). Currently, about $41,000 <br />remains to be drawn under the loan agreement. While the <br />developers have not completed each item under the loan agreement <br />as initially listed, they have done work in excess of original <br />estimates. Mr. Grootwassink and Mr. Hotzler would like to draw <br />these funds for work completed because they have been paying <br />interest on them since the loan closing. <br />Attached is a letter from Mark Hotzler which includes revised <br />Exhibits "C" and "D" (schedules for enhancement work and <br />rehabilitation work). It also indicates a source of additional <br />funding which they will use to complete the scheduled work as <br />well as additional improvements they have undertaken. I am in <br />receipt of a loan commitment which documents the availability of <br />this money. <br />Based upon this information, it would be my recommendation that <br />the EDA amend the loan agreement with Market Place Center, <br />Limited Liability Company reflecting the revisions to Exhibits <br />"C" and "D" with the condition that an additional $170,000 be <br />provided by the developers to guarantee completion of the <br />improvements to the center as originally agreed to. With this <br />approval, we would then be in position to release the balance of <br />their funds. <br />JRH:kpv <br />Enclosure <br />Page 87 <br />