Explanation
BACKGROUND: Pursuant to Ordinance No. 2135-2023 passed July 24, 2023, the Department of Development on behalf of the City of Columbus, Ohio (“City”) entered into that certain First Amended and Restated Economic Development Agreement dated August 29, 2023 (the “Restated EDA”) with The North Market Development Authority, Inc. and NM Developer LLC (the “NM Developer”). Pursuant to Ordinance No. 3215-2021 passed July 25, 2022, the City entered into that certain North Market Workforce Housing Agreement dated August 29, 2023 (the “Housing Agreement”) with the NM Developer. Huntington National Bank (“Huntington”), a national banking association in its capacity as Administrative Agent of the Holders and Secured Parties of the indebtedness owed by NM Developer, pursuant to that certain Disbursing, Payment and Collateral Agreement, for completion of the North Market Development Project, requested the NM Developer to grant, assign, and transfer a security interest and all of its other right, title, and interest in and to the Restated EDA pursuant to that certain Security Agreement and Assignment of Amended and Restated Economic Development Agreement (the “EDA Assignment”) to the Administrative Agent to secure the full and prompt payment of any and all such indebtedness owed. Huntington in its capacity as Administrative Agent also requested the NM Developer to grant, assign, and transfer a security interest and all of its other right, title, and interest in and to the Housing Agreement pursuant to that certain Security Agreement and Assignment of North Market Workforce Housing Agreement (the “Housing Agreement Assignment”) to secure the full and prompt payment of any and all indebtedness owed by for completion of the North Market Development Project. Pursuant to the terms of the Restated EDA, the NM Developer may only assign the Restated EDA with the prior consent of the parties and any consent of the City must be authorized by City Council. While not required ...
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