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<br />and a 2nd position mortgage of $500,000 on another Heritage property during construction. The additional <br />mortgage was provided as an attempt to bridge some of the construction risks that the city will face as a <br />result of subordinating its position. The city has also included language in the proposed Subordination <br />Agreement with First Bank that certain agreements remain in effect following any foreclosure of the project <br />rather than terminate, and language that the minimum assessment agreement will only be subordinated during <br />the construction phase of the project. While these added provisions do not completely eliminate the city’s <br />risk on the project, they strengthen the city's position in the unlikely event a significant hardship befalls the <br />project. The city's financial advisor has also been consulted on this request. <br /> <br />Financial Impact <br />N/A <br /> <br />Mission/Policy/Goal <br />Support the growth and development of the community. <br /> <br />Attachments <br />1. Res 24-49 Authorizing Amendment to DDA for Heritage Millwork and Subordination Agreements <br />2. Subordination Agreement - TCM <br />3. Subordination Agreement - First Bank <br />4. Amended and Restated Development Agreement - Heritage Millwork <br /> <br /> <br />Page 213 of 327