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Redevelopment commission amends and approves $434,393 reimbursement to Auburn Development Group after MOU clarification
Summary
The Auburn Redevelopment Commission approved an amended reimbursement of $434,393.07 to Auburn Development Group, removing a contested $82,000 purchase-item after discussion about what the project's MOU allows; the commission voted to consider the remaining amount at a later date.
The Auburn Redevelopment Commission voted July 7 to approve an amended reimbursement of $434,393.07 to Auburn Development Group, after commissioners questioned whether the developer’s request included a property acquisition not specified in the project memorandum of understanding (MOU).
Commission members raised concerns about line items tied to 308 South Jackson Street and whether acquisition costs were an allowable use under the MOU. Chair (speaking for the commission) asked staff and counsel to clarify the loan and MOU language before approving the full $500,000 second payment from the commission’s pledged $2 million for the project.
A developer representative, identified in the meeting as Nick, acknowledged the acquisition was not listed in the MOU and called that an error on his part. He told the commission that project paperwork used in the loan agreement and series note included parcel descriptions intended to tie 308 South Jackson to the broader project footprint, and that lien waivers and bank draw procedures affected how invoices and proof-of-payment were presented to the lender.
Commissioners asked for documentation that payments had been made and that lien waivers were in place. Staff said portions of the requested payout could be split across months and that the loan agreement’s project-based descriptions — rather than a single legal footprint in the MOU — might allow reimbursable expenses so long as they tied to the approved project.
After the discussion, a motion to approve an amended reimbursement total for Auburn Development Group of $434,393.07 passed by voice vote. Commissioners said the remaining disputed amount would be returned for later review rather than paid at this meeting.
The commission’s vote amends the developer’s second payment under the previously announced pledge; commissioners did not adopt any new policy language at the meeting and directed staff to confirm document ties between the project and the referenced parcel before releasing any remaining funds.
