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f �F <br />. { <br />�.J <br />ECONOMIC DEVELOPMENT AUTHORITY <br />AGENDA ITEM 3 <br />STAFF MEMBER Mary Alice Divine <br />DATE March 25, 2013 <br />SUBJECT <br />Consideration of Resolution No. 13-04, Approving the <br />Second Amendment to Contract for Private Development <br />and Subordination Agreement and First Amendment to <br />Declaration of Covenant and Restriction <br />VOTE REQUIRED Simple Majority <br />BACKGROUND <br />co <br />In July 2010 the Economic Development Authority approved an amendment to the <br />original Contract for Private Development so that Lino Lakes Housing Limited <br />Partnership (LLHLP) could acquire the senior housing project from the original <br />developer. In connection with that acquisition, LLHLP obtained a HUD loan insured by <br />the Federal Housing Administration. <br />As conditions of the 2010 Amendment, HUD required that the EDA subordinate its rights <br />under the Contract, and the Developer agreed to replace the original City Senior <br />Covenant with a new one that imposes the 55 age restriction through February 1, 2045 <br />(roughly the same term as the HUD Loan). <br />LLHLP wishes to refinance its HUD loan to take advantage of favorable interest rates. <br />Attached are two documents amending the subordination agreement and restrictive <br />covenants to reflect the new mortgage. The new mortgage is identical to the current one, <br />with the same lender and HUD guarantee. The only item changed is the interest rate. <br />RECOMMENDATION: <br />Staff is recommending approval of Resolution 13-04 <br />ATTACHMENTS: <br />1. Second Amendment to Contract for Private Development and Subordination <br />Agreement <br />2. First Amendment to Declaration of Covenant and Restriction <br />3. Resolution No. 13-04 <br />