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HRA Work Session 4. 1. Meeting Date: 10/02/2012 By: Darren Lazan, Housing & Redevelopment Authority Information Title: Discuss early principal reduction payment - The Residence at The COR Background: Flaherty and Collins, the developer of The Residence at The COR, has offered an early principal reduction payment of $500,000 on their current construction financing note. This note has specific principal reduction payments due roughly 12 and 18 months following the first draw which occurred earlier this summer. PNC Bank, the primary lender on the project, has reviewed the progress to date, and has allowed an exception in their agreements to allow F&C to draw down their developer's fee (which according to the agreement has been withheld until the completion of the project) for the purposes of advancing payment to the city. Notification: Observations: The development team would like to review the mechanics of this agreement at the work session, then pending your consensus direction, prepare final executed documents for your formal approval on the October 9th City Council and HRA Regular meetings. Recommendation: The development team recommends the HRA accept the $500,000 early principal reduction payment, direct the team to prepare and execute the agreement, and present at the October 9th City Council and HRA Regular meetings for approval. Funding Source: N/A Council Action: Accept the $500,000 early principal reduction payment, direct the team to prepare and execute the agreement, and present at the October 9th City Council and HRA Regular meetings for approval. Attachments Letter from Mr. Bray to F&C Agreement with PNC for early principal payment Form Review Inbox Reviewed By Kurt Ulrich Kurt Ulrich Form Started By: Darren Lazan Final Approval Date: 09/27/2012 Date 09/27/2012 05:00 PM Started On: 09/27/2012 03:18 PM