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HOUSING AUTHORITY REQUEST FOR ASSISTANCE RE PHASE If VICTORY PARK <br />It was noted that the Housing Authority has found itself in <br />a "Catch 22" situation in that the anticipated funding for Phase <br />II of Victory Park is hinging on the completion of Phase 1, which <br />will not be completed until after the date the DCA is saying <br />their mortgage must be paid, and they have asked the County for <br />assistance in meeting the $83,000 payment. Action on this was <br />tabled from previous meetings while Commissioner Wheeler did <br />research to become better informed on the history of the Housing <br />Authority and its finances. <br />Commissioner Wheeler advised that what he can live with is <br />the County outright purchasing the property offered as security <br />and giving the Housing Authority a two-year option to purchase <br />the property back at market value in two years or establish a set <br />interest rate somewhere above prime and they would have the two <br />year option to exercise whichever one we choose, and after two <br />years, if they haven't exercised the option, then we could market <br />the property. <br />Commissioner Eggert had a problem with market value. She <br />did believe we should take over the property for the money they <br />are asking ($83,000), give them a loan with an equitable interest <br />rate, and they will be able to get the property back for the loan <br />plus the interest within two years. She was hesitant about what <br />the market value of the land might be two years from now and <br />would like to see us at least get our money back plus interest. <br />Attorney Collins, representing the Housing Authority, <br />confirmed that they can live that. He noted the $83,000 may be <br />plus or minus a few dollars depending on the estoppel letter from <br />the DCA. Actually the market value right now is $110,000. As <br />far as interest is concerned, he believed prime plus 1% is <br />probably a commercial rate and something they can live with. <br />Commissioner Eggert believed her Motion at the earlier <br />meeting was to take the property over for the $83,000 at prime <br />plus 1% for two years, and she would be glad to repeat it. <br />21 <br />APR .1; 'i1j" BUUr b� f'AGE 1 5 <br />