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for construction of a third building, which has not yet occurred, the EDA's permission for <br />financing is necessary. <br />This agreement focuses on two matters. It partially subordinates the EDA's development <br />agreement with F&G, Inc. to the new financing. This means that the new mortgage will be <br />treated as if it had been recorded prior to the development agreement. The EDA's position <br />with the developer will remain unchanged, and none of the EDA's significant protections <br />will be weakened by this action. <br />The second matter in the agreement concerns various representations about what has or <br />has not happened with regard to the project. The lender is asking the city for assurance <br />that there have been no violations of the development agreement. Staff and legal counsel <br />have reviewed the representations. The project has gone very well, the buildings are 100% <br />occupied with excellent tenants, and, to staffs knowledge, there are no defaults or <br />violations. According to legal counsel the agreement is reasonable and represents standard <br />procedure for refinancing. <br />EDA member Bergeson moved to authorize the president and executive director to <br />execute the agreement. EDA Member Neal seconded the motion. Motion passed <br />unanimously. <br />ADJOURNMENT <br />EDA Member Neal moved to adjourn. EDA Member Dahl seconded the motion. Meeting <br />adjourned at 6:20 p.m. <br />