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PROPOSED RESOLUTION
A RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF A SECOND AMENDED AND RESTATED PROMISSORY NOTE, AMENDED QUIT CLAIM DEED AND SUBORDINATION AGREEMENT FOR THE TOWN SQUARE DEVELOPMENT PROJECT
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The City of Luverne previously agreed to assist in financing a multifamily housing project, which was later assigned to Greensmith Luverne Holdings, LLC. The new developer completed the project and is now seeking to refinance with Harper Capital Partners, LLC, with HUD insurance. This refinancing requires the City's rights to be subordinated to Harper Capital's rights, necessitating a Subordination Agreement and an amended promissory note. The Council's action will not materially affect the City's security interest, and the new financing offers lower borrowing costs for the developer.
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City Administrator Recommendation: Adopt Proposed Resolution No. 8-25.