Harmony EDA approves $22,250 counteroffer to settle Tin Rust and Harmony loan foreclosure

The Harmony Economic Development Authority voted Aug. 11, 2022, to approve a $22,250 counteroffer to settle the Tin Rust and Harmony loan foreclosure, the board minutes show. The motion carried 3-0-1, with Committee member Greg Schieber recorded as the lone abstention.

The board reviewed earlier negotiations: the EDA had offered $22,500 to allow the first mortgage holder to buy out the EDA’s mortgage, an amount the minutes say was roughly $900 less than the outstanding principal, interest and legal fees. The first mortgage holder responded with a counteroffer of $21,500, prompting further discussion at the special meeting.

Committee member Andy Batstone said he was not in favor of continuing negotiations. Staff attendee Chris Giesen relayed that absent board chair Kingsley also opposed further negotiation, according to a comment Giesen reported to the board. Committee member Steve Donney said he supported limited further negotiation aimed at a cooperative resolution that would limit additional public expense.

Committee member Greg Schieber outlined the legal trade-offs if the EDA pursued foreclosure: a standard six-month redemption period for the owner, which the minutes note could be shortened to about five weeks if a judge determines the building is abandoned or vacant. Board members considered the scheduled sheriff’s sale on Sept. 1, 2022, and the likelihood of recouping funds through foreclosure before deciding on a settlement path.

After discussion the board reached a consensus to make a counteroffer of $22,250 "in the spirit of cooperation" with the first mortgage holder and to limit additional resources spent on the matter. Committee member Steve Donney moved to approve the $22,250 counteroffer; Committee member Andy Batstone seconded. The motion carried with three votes in favor and one abstention by Schieber.

There was no other business; Donney adjourned the meeting at 8:56 AM.