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AGENDA ITEM 3 <br />STAFF ORIGINATOR: Brian Wessel <br />DATE: 12/21/98 <br />TOPIC: Consideration of Agreement relating to <br />Development Contract and Mortgage <br />Financing, F&G, Inc. <br />BACKGROUND: <br />In 1997 the EDA entered into a development agreement for financial assistance <br />with F&G, Inc. regarding a project within TIF District No. 1-7 in the Apollo <br />Business Park. The agreement called for the construction of two buildings in <br />1997 and a third in 1998. In March of 1998 the EDA authorized the developer to <br />place a mortgage on the property for permanent financing on the first two <br />buildings. The third building is now complete and this agreement authorizes a <br />mortgage for an additional $635,000 in connection with permanent financing for <br />the final building. <br />Staff and legal counsel have reviewed the agreement and are able to represent <br />that there have been no violations of the original development agreement. This <br />authorization is reasonable and represents standard procedure for financing. <br />The only further action necessary is to modify the assessment agreement with <br />the developer to reflect the additional market value of the property. This action <br />will be taken tonight by the city council. <br />OPTIONS: <br />1. Authorize the president and executive director to execute the agreement on <br />behalf of the EDA <br />2. Return to staff for further consideration <br />RECOMMENDATION: <br />Option 1 <br />