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From:Larry Olson <br />To:O"Neil, Brent <br />Cc:Peggy Bonicatto ; Jason Moore; Larry Olson <br />Date:Friday, November 18, 2022 12:20:12 PM <br />Attachments:Copy of PV CDBG 400000 11-11-22 (1).xlsx <br />Brent – Thank you for your response to our meeting last summer. <br /> <br />Your CDBG funds allocated to Jackson Place were structured as a subordinate loan to allow Jackson <br />Place to utilize more housing tax credits from the State. We brought in a tax credit investor in 2007 <br />to provide equity for Jackson Place. The Federal restrictions for the tax credits have a 15 year <br />compliance period after which the investor often elects to be bought out. Tax credit restrictions for <br />the state last 30 years. We purchased the investor’s interest in January 2022. Prior to this it was not <br />possible to restructure the debt on affordable housing projects. <br /> <br />This is the reason we met with you last summer. Our plans are a long term hold for Jackson Place. <br />When we settle subordinate debt for less than face value we have a taxable event adding to the cash <br />outlay by 40 to 45% in Minnesota. For this reason our offer to you is based on a 9% discount rate. <br />The offer is $160,000 per the attached calculation. If you have a high priority City initiative that this <br />fits into it may be an attractive opportunity. If not we are happy continuing our current relationship <br />until maturity in 2036. <br /> <br />Let us know how you want to proceed. <br /> <br />Thanks, Larry <br /> <br /> <br />Larry Olson <br />LWO Properties, LLC <br />MetroPlains Management, LLC <br />1600 University Ave. #212, St. Paul, MN 55104 <br />651-523-1246 (Direct) 612-747-3728 (Cell) <br />metroplains.com <br />Our Values Inspire Our Vison <br /> <br /> <br />Disclaimer <br />The information contained in this communication from the sender is confidential. It is intended solely for use <br />by the recipient and others authorized to receive it. If you are not the recipient, you are hereby notified that <br />any disclosure, copying, distribution or taking action in relation of the contents of this information is strictly <br />prohibited and may be unlawful.