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O 1,0: <br />G From: <br />W Date: <br />G Subject: <br />Mike Morrison — City Manager <br />Stacie Kvilvang — Ehlers and Associates <br />December 11, 2007 <br />Request For Extension of Fannie Mae Loan <br />EHLERS <br />a ASSOCIATES INC <br />On May 22, 2007, the City Council and housing and Redevelopment Authority (HRA) <br />approved a resolution extending the repayment agreement with Fannie Mae for its $3,350,000 <br />loan. The resolution authorized the City Manager and City Attorney to proceed with <br />negotiating with Fannie Mae the terms of an extension of the loan to August 27, 2009, and to <br />prepare necessary documents for execution. <br />Since that time, a final agreement has been approved by Fannie Mae on the extension of the <br />loan as follows: <br />1. Payment of origination fee (approximately $12,500) <br />2. Unpaid principal balance to be paid down to $2,500,000 at closing of the extension <br />($111,097) <br />3. Payment of $125,000 due on March 1, 2008 <br />4. Payment of $125,000 due on June 1, 2008 <br />5. Payment of $1,800,000 due on September 1, 2008 <br />6. All remaining outstanding balances due on maturity of the loan which will be 12 months <br />from the date of closing (anticipated to be December 12, 2008) <br />Since the resolution the City originally approved had a two-year extension date, Fannie Mae <br />requested a new authorizing resolution based upon the above referenced terms (one-year <br />extension). <br />It should be noted that pursuant to the Development Agreement, the developer is responsible to <br />make all the above referenced payments. <br />Please contact me at 651-697-8506 with any questions. <br />LEADERS IN PUBLIC FINANCE <br />3060 Centre Pointe Drive Phone: 65s -697-85o6 Fax: <br />Roseville, MN SSii3-uoS skvilvangQa ehlers-inc.com <br />17 <br />