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Recommendation: <br />The Ramsey RLF loan for MS Holdings would be permanent financing, not construction financing. As such the <br />money would not be needed until the renovations are completed in March or April. What is important are the <br />provisions in the subordination agreement. The two primary issues are: 1) We are not willing to appoint U.S. Bank <br />as its agent and attorney -in -fact for collection efforts on the City's Note. 2) As the junior creditor we are not <br />willing to standby regarding the loan principal and interest payments pending payment of the U.S. Bank senior debt <br />payment. A redlined version with the City's proposed changes was provided to MultiSource and their attorney on <br />1/6/11. We await the response from U.S. Bank and MultiSource. <br />Funding Source: <br />Business Revolving Loan Fund <br />Council Action: <br />Until the issues with the Subordination Agreement are resolved, it is recommended that the Ramsey EDA not take <br />any formal action regarding the RLF financing vis a vis MS Holdings. <br />Form Review <br />Inbox Reviewed By Date <br />Heidi Nelson Heidi Nelson 01/07/2011 03:54 PM <br />Kurt Ulrich Amy Dietl 01/07/2011 04:07 PM <br />Form Started By: Aaron Backman Started On: 01/07/2011 12:58 PM <br />Final Approval Date: 01/07/2011 <br />