Explanation For Yesterday’s Loan Notification

To All Shareholders:

Yesterday you received a letter advising you of an impending loan for window replacement. The letter is a requirement of the loan itself and you will also be receiving something similar from HPD but we’d like to explain in normal terms what this represents. It’s a template letter. There is no rent increase it’s just part of the template language they reuse for all 8A loans.

As you may have heard repeated on a number of occasions, we’ve been promised $21mil toward the large $67mil construction project currently underway. The project’s main parts are the facades, roofs, windows, some boilers, and leftover money will go to things like fixing our terraces. The $21mil comes in different parts but, and this is important, no part of the $21mil has to be repaid. The first $5mil will not be new money, instead they will forgive an existing $5mil we owe them. The next $10mil will be another loan we don’t have to pay back (a forgivable loan) which will go toward window project costs with leftover money going to the rest of the project. The final $6mil is coming directly from various politicians. Yesterday’s letter was for the $10mil forgivable loan going to windows. What you’re seeing is HPD taking steps to keep its promises to us. We will keep you informed as things progress.

Thank you,
Luna Park’s Board of Directors & Management

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