12-19-2007 Council Agenda - Laserfiche WebLink

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RESOLUTION NO. Draft 12/13/2007 RESOLUTION APPROVING THE ISSUANCE AND SALE OF THE CITY OF LITTLE CANADA, MINNESOTA EDUCATIONAL FACILITIES REVENUE NOTE (ST. JOHN THE EVANGELIST SCHOOL PROJECT), SERIES 2007 AND AUTHORIZING THE EXECUTION OF DOCUMENTS RELATING THERETO BE IT RESOLVED by the City Council (the "City Council ") of the City of Little Canada, Minnesota (the "City "), as follows: SECTION I. LEGAL AUTHORIZATION AND FINDINGS; THE LOAN. 1.1 Findings. The City hereby finds, determines and declares as follows: (a) The City is authorized under Minnesota Statutes, Section 469.152 to 469.1651, as amended (the "Act ") to assist the revenue producing project herein referred to, and to issue and sell the Note, as hereinafter defined, for the purpose, in the manner and upon the terms and conditions set forth in the Act and in this Resolution. (b) The City has received a proposal that it issue its revenue Note in the aggregate principal amount of up to $2,000,000 to provide funds to be loaned to St. John's Church of Little Canada, a religious corporation organized under the laws of the State of Minnesota and constituting a nonprofit corporation under the laws of the State of Minnesota and a entity described in Section 501(c)(3) of the Intemal Revenue Code of 1986, as amended (the "Code ") by virtue of being listed in the Official Catholic Directory (the "Borrower "), to refinance a portion of the indebtedness incurred by the Borrower (the "Project Indebtedness ") in connection with non - religious portions of the renovation and equipping of, and construction of additions to, a school for grades kindergarten through 8th grade known as St. John the Evangelist School, owned and operated by the Borrower and located at 2621 McMenemy Street in the City (the "Project "). 2110606v2 (c) As required by the Act and Section 147(0 of the Code, the City has, on Wednesday, November 14, 2007, held a public hearing on the Project and the issuance of the Note to refinance the Project Indebtedness. (d) The issuance and sale of the City's Educational Facilities Revenue Note (St. John the Evangelist School Project), Series 2007, to be dated the date of issuance and delivery (the "Note "), by the City pursuant to the Act is in the best interest of the City, and the City hereby determines to issue the Note and to sell the Note to BankCherokee, a Minnesota banking corporation (the "Lender "), as provided herein. The City will loan the proceeds of the Note (the "Loan ") to the Borrower to prepay a portion of the Project Indebtedness pursuant to a loan agreement by and between the City and the Borrower (the "Loan Agreement "), which Loan Agreement and Note will be assigned, except for certain reserved rights, by the City to the Lender as security for the payment of the Note. 1