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EDA discusses One Roof subordination request; asks for further legal and county review
Summary
One Roof Community Housing requested permission to borrow against property equity to buy Duluth office space; the EDA expressed support in principle but said the nonprofit must complete legal and county‑level steps and cover legal costs before staff advances the matter.
Staff presented a subordination request from One Roof Community Housing to allow borrowing against the equity in its Four Directions property to purchase a new office in Duluth after the city notified One Roof it would not renew the lease. Staff and counsel recommended additional diligence: amending the development agreement, exploring Cook County Board input, and confirming legal and financial implications. The board expressed general support for One Roof as a community partner but emphasized the nonprofit should pay legal costs and that EDA staff would first consult county administrators and counsel before authorizing any changes.
Commissioners discussed the low probability of default based on a prior financial review and noted the primary downside would be if One Roof became insolvent and the property ceased to be used as housing. No motion or formal approval was taken; next steps include staff outreach to the county and further legal analysis.
