Astoria Development Commission approves subordination agreement for Marc Carey Inc.

The Astoria Development Commission voted on Feb. 18, 2025, to approve a subordination agreement that will make the commissions existing loan on a downtown property junior to a new line of credit sought by Marc Carey Incorporated. The action authorizes the commissions chair to sign the agreement.

City Manager Spence told commissioners that "back in 2015, the Astoria Development Commission issued a loan of approximately $107,000 to Marc Carey Incorporated," for improvements to the building referred to in the meeting as the red building. Spence said Marc Carey Inc. is now seeking an additional line of credit from Lewis and Clark Bank for business-related expenses and has requested that the commission sign a subordination agreement so the bank would hold primary security.

Spence summarized the outstanding balances, saying the original outstanding debt figure of $157,000 has been reduced and "there's actually less than $40,000 that remains." Commissioners did not ask follow-up questions during the open session and no members of the public spoke on the item.

Commissioner Adams moved to approve the subordination agreement and asked that the authorized chair be added as a signatory; Commissioner Mazzarella seconded. The commission conducted a voice vote; Chair Fitzpatrick called for ayes and the motion carried. The commission did not record a roll-call vote on the action.

The approval means the commissions loan will be subordinate to the security interests of Lewis and Clark Bank under the terms negotiated by the borrower and the bank; the commissions authorization is limited to signing the agreement as presented. The commission then moved on to non-agenda items and adjourned at 7:47 p.m.