12-13-1993 EDA MIN - Laserfiche WebLink

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Elk River EDA Meeting December 13, 1993 Page 2 --------------------- e 6. Subordination Agreements 6.1. Subordination and Attornment Agreements Bill Rubin distributed a "Subordination and Attornment Agreement" as a supplemental document for the EDA loans to Ken and Carrie Beaudry (Beaudry Convenience) and to Richard and Dawn Schulz (R & D Sales). Because the EDA made loans to individuals and repayment of the loan is based on a lease to a tenant, the Attornment Agreement means the tenant agrees to continue in this capacity even if the EDA is the owner by an event of default. Bill Rubin explained that the Subordination and Attornment Agreement will be a customary document for subsequent EDA Loans involving individuals as the mortgagor and a lease to a company. COMMISSIONER FARBER MOVED TO AUTHORIZE A SUBORDINATION AGREEMENT AS WELL AS A SUBORDINATION AND ATTORN~~NT AGREEMENT WITH THE BEAUDRY (BEAUDRY CONVENIENCE) LOAN. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 6-0. COMMISSIONER HOLMGREN MOVED TO AUTHORIZE A SUBORDINATION AGREEMENT AS WELL AS A SUBORDINATION AND ATTORNMENT AGREEMENT WITH THE SCHULZ (R & D SALES) LOAN. COMMISSIONER DWYER SECONDED THE MOTION. THE MOTION CARRIED 6-0. 7. Update on Business Park Task Force e Bill Rubin informed the EDA members that the Planning Commission has reviewed the initial draft of the proposed business park zoning ordinance during a workshop session. The review led to minor changes which were studied by the Business Park Task Force. The Planning Commission will review the proposed business park ordinance and make a recommendation to the City Council. This issue will be before the Council in January with a rezoning request in February. Bill Rubin updated the EDA on a potential grant source which is available to defray infrastructure costs associated with a business park/industrial park development. Bill Rubin explained that a new Rural Electrification Administration (REA) program will be available which will enable R.E.A. borrowers to access grants in conjunction with low-interest loans to support community development projects like a business park or an industrial park. Bill Rubin stated that a letter requesting AEC's assistance has been sent to its general manager. Pat Dwyer updated the EDA on a presentation that was made to AEC earlier in the day. The meeting went well and it is hoped that AEC will participate in the REA Program. 8. Status of SBA Certified Development Company (CDC) . Bill Rubin reviewed the status of an SBA Certified Development Company to Elk River and/or Sherburne County. He explained that Twin Cities-Metro CDC, whose service territory includes the seven-county metro area (with the exception of Anoka County), is willing to take on additional service territory and would be interested in serving