Discussion:
On August 15, 2017, the City's EDA approved a façade loan to the MOBOB Shakopee LLC in the amount of $50,000 for the project located at 120 First Avenue East and the Borrower completed the project. In order to finance the remaining costs of the Project and additional improvements to its building, the Borrower intends to obtain a loan from First Resource Bank in the amount of $421,500 As a condition to providing the Bank Loan, the Bank is requiring that the Authority subordinate the mortgage provided by MOBOB Shakopee, LLC to the Authority to secure the EDA Loan, all pursuant to the terms of the Subordination Agreement.
MOAB is not taking any cash out of the project and is combining two existing loans into one loan. Their EDA loan repayment requirement expires in 2027.