03-14-2012 Council Agenda - Laserfiche WebLink

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(d) Pursuant to a Pledge Agreement (the "Pledge Agreement ") to he entered into between the City and the Lender, the City has pledged and granted a security interest in all of its rights, title, and interest in the Loan Agreement to the Lender (except for certain rights of indemnification and to reimbursement for certain costs and expenses). A draft of the Pledge Agreement has been submitted to the City. (e) Pursuant to a Mortgage, Security Agreement and Fixture Financing Statement (the "Mortgage ") and an Assignment of Leases and Rents (the "Assignment") each to he executed by the Borrower in favor of the Lender, the Borrower has secured payment of amounts due under the Loan Agreement and Note by granting to the Lender a mortgage and security interest in and an assignment of leases from the property described therein. Drafts of the Mortgage and the Assignment have been submitted to the City but will not be executed by the City. (f} The Note will be a special, limited obligation of the City. The Note shall not he payable from or charged upon any funds other than the revenues pledged to the payment thereof, nor shall the City be subject to any liability thereon. No holder of the Note shall ever have the right to compel any exercise of the taxing power of the City to pay the Note or the interest thereon, nor to enforce payment thereof against any property of the City. The Note shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. (g) On the basis of information available to the City it appears, and the City hereby finds, that the Project constitutes properties, real and personal, used or useful in connection with one or more revenue producing enterprises within the meaning of Subdivision 2(d) of Section 469.153 of the Act; that the Project furthers the purposes stated in Section 469.152; that the availability of the financing under the Act and the willingness of the City to furnish such financing will be a substantial inducement to the Borrower to undertake the Project, and that the effect of the Project, if undertaken, will be to assist in the prevention of the emergence of blighted and marginal land, to help prevent chronic unemployment, to help the surrounding area retain and eventually improve the tax base, to provide the range of service and employment opportunities required by the population, to help prevent the movement of talented and educated persons out of the state and to areas within the State where their services may not be as effectively used, and to promote more intensive development and use of land within the City and surrounding communities. (h) It is desirable, feasible and consistent with the objects and purposes of the Act to issue the Note, for the purpose of financing and refinancing the costs of the Project. 1.2 Authorization and Ratification of Project. In anticipation of the approval of the Project by the State Department of Employment and Economic Development and all other necessary entities and the issuance of the Note to finance all or a portion of the Project, and in order that completion of the Project will not be unduly delayed when approved, the City hereby authorizes the Borrower, in accordance with the provisions of' the Act and subject to the terms and conditions imposed by the Lender, to provide for the financing and refinancing of the Project by such means as shall be available to the Borrower and in the manner determined by the 4529743x1 4 6