With Pietig's promotion to city manager, the most important revision to his contract is assigning the administration of the agreement to the city attorney, rather that the city manager, according to Frank.
Other changes include allowing Pietig to deduct maintenance expenses from income for the purpose of the housing assistance payment; providing an incentive for Pietig to buy out the city's interest when he leaves city employment in order to reduce the city's cost and providing that a loan to ratio value of 70% or less does not impact the city's security interests, which may help in refinancing.
Pietig's wife, Peggy, was added as a party to the agreement.
Modifications to the LaTendresse agreement include removing the potential for a significant reduction in city equity if LaTendresse makes major capital improvements, which will require city manager approval.
Changes also reduce the annual payments to LaTendresse by reducing income tax liability and the city's share of insurance and property tax payments; ensuring the city will receive the full amount of its share of proceeds from the sale of the property, and clarifying that LaTendresse must pay any encumbrance from his share of the proceeds.
The interest rate of the city loan was reduced, changing the maximum from 8% to 5% and the minimum from 5% to 2%, with the actual rate remaining at .5% above the city's investment returns.
LaTendresse's ownership interest was increased to reflect extensive capital improvements made to the property in the last 10 years.
He also will be allowed to buy a different property and transfer the city loans and ownership interest to the new property.