The Downtown Revolving Loan Committee approved a substitute of subordination parties to Anderson Management Group Building (formerly Hospitality Concepts) on September 18, 2009.

Management Group Building has requested financing from Beartooth Bank to pay off the following debt for which all liens will be released:

1. A Deed of Trust to secure an indebtedness of not more than $288,000 to Rocky Mountain Bank.

The Downtown Revolving Loan was originally subordinated to this loan of approximately $288,000. Beartooth Bank and Anderson Management Group have requested that the Downtown Revolving Loan be released from the subordination to the original Rocky Mountain Bank loan and subsequently be subordinated to the Beartooth Bank loan of $352,000. The payments of the new loan will require regular monthly principal and interest payments.

The current balance of the loan from the City’s Downtown Revolving Loan Fund is $37,037.06.

The Council may:

• Approve the Revolving Loan Committee's recommendation; or
• Not approve the Revolving Loan Committee's recommendation.

There is no financial impact to the Downtown Revolving Loan fund.

The Downtown Revolving Loan Committee recommends that council approve the loan subordination to Beartooth Bank, for the amount of $352,000.