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Council backs EDA recommendation to allow bank to market foreclosed school property pending bond release
Summary
The council voted to approve the EDA’s recommendation to allow Cornerstone State Bank to market the foreclosed school property and to pursue a deed‑in‑lieu of foreclosure; the city attorney will review bond documents to ensure the city is discharged from bond obligations before a final transfer.
The Green Isle City Council on Dec. 9 approved the Economic Development Authority’s recommendation to allow Cornerstone State Bank to market the school property while the deed‑in‑lieu of foreclosure process moves forward, subject to legal review to ensure the city is released from any bond obligations attached to the property.
An EDA representative reported the EDA voted to move forward with the bank’s proposal and that the bank’s attorney would draft paperwork to release bond obligations and handle the deed‑in‑lieu and related documentation. The EDA also agreed to allow the bank to hire a realtor to list the property while transfer paperwork is finalized.
City Attorney Ken Jansen said his primary concern is ensuring the city’s obligations under the revenue bond are fully discharged upon transfer. He told the council he will review bond documents and return guidance to the council before any final action to relinquish the property.
The council approved a motion to accept the EDA’s recommendation to permit the bank to market the property; the council also agreed to table any final authorization of transfer until Jansen completes his review to confirm the city will be released from bond liabilities.
Next steps: the city attorney will review the bank’s draft documents for the deed‑in‑lieu and bond release and report back; staff will coordinate with the EDA and the bank’s attorney on marketing and any required federal or bond‑holder approvals.
