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Regular Meeting Minutes dated June 11, 2013 Motion carried. Voting Yes: Vice Chairperson LeTourneau, Commissioners Tossey, Riley, Kuzma, and Strommen Voting No: None. Absent: Chairperson Backous. 5. HRA BUSINESS 5.01: Request by Flaherty & Collins to Restructure Loan Agreement Pertaining to The Residence at The COR Finance Director Lund reviewed the staff report and request of Ryan Cronk of Flaherty & Collins (F &C) to restructure the initial loan agreement per the Development Agreement that was entered into by F &C Ramsey, LLC (developer), F &C Ramsey Member, LLC (borrower) the HRA, and the City of Ramsey. The request is to restructure Note #2 ($6,916,000 debt issuance) in regard to the prepayment plan stated in Section 8.5 of Article VIII of the Development Agreement. It indicates the borrower may prepay Loan #2, in whole or in part, and all payments shall be applied first to the payment of accrued, unpaid late charges, then to accrued, unpaid interest, if any. The balance, if any, is then applied to reduction of principal. It was noted that if the borrower repays $2 million or more now or before the date or 12 months after the date of the first disbursement of Loan #2 proceeds, the HRA shall forgive $250,000 of the Loan #2 principal amount ($1,420,000). Finance Director Lund indicated F &C has prepaid $500,000 to date and needs to pay $1.5 million by July 16, 2013, to take advantage of the $250,000 forgiveness toward Loan #1. The request is to reduce the required prepayment amount from $2,000,000 to $1,000,000 and also reduce the received forgiveness from $250,000 to $125,000. Finance Director Lund presented options for consideration as detailed in the staff report and recommendation to not accept the proposal. Commissioner Strommen advocated for staff's recommendation as the original agreement was heavily negotiated over a period of time and had the intent been to offer a tiered incentive, that would have been part of the agreement. She noted the incentive was to get more equity in the project and she supports staying with that agreement. Motion by Commissioner Riley, seconded by Commissioner Tossey, to not accept the request by Flaherty & Collins for a loan agreement restructuring for The Residence at The COR. Motion carried. Voting Yes: Vice Chairperson LeTourneau, Commissioners Riley, Tossey, Kuzma, and Strommen Voting No: None. Absent: Chairperson Backous. 5.02: Consideration of Accepting Improvements and Approving Final Payment for North Commons Improvements City Engineer Westby reviewed the staff report and indicated Engineering Technician IV has inspected the completed work and the City Engineer recommends accepting the improvements and approving final payment to Country Line Excavating for IP 12 -25, North Commons, in the amount of $103,889.25. With regard to ongoing obligations, he noted that one storm sewer is Housing and Redevelopment Authority / June 25, 2013 Page 2 of 4