02-28-2013 Council Agenda - Laserfiche WebLink

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(3) As required by the Act and Section 147t0 of the Internal Revenue Code of 1986, as amended (the "Code "), the City held a public hearing on the issuance of one or more revenue notes to finance the Project. (4) On the basis of information available to the City it appeared and the City found that the Project constitutes properties, real and personal, used or useful in connection with a revenue producing enterprise within the meaning of Subdivision 2(b) of Section 469.153 of the Act; that the availability of the financing under the Act and the willingness of the City to furnish such financing was a substantial inducement to the Borrower to undertake the Project; and that the effect of the Project, if undertaken, would be to encourage the development of economically sound industry and commerce, to assist in the prevention of the emergence of blighted and marginal land, to help prevent chronic unemployment, to help the region retain and improve the tax base, to provide the range of services and employment opportunities required by the population, and 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 region. (5) The City issued the Educational Facilities Revenue Note, Series 2007 (St. John the Evangelist School Project) dated December 20, 2007 (the "Note ") pursuant to the Act and sold the Note to BankCherokee (the "Lender "). (6) Pursuant to a Loan Agreement (the "Loan Agreement ") dated December 20, 2007 between the City and the Borrower, the Borrower agreed to repay the Note (as hereinafter defined) in specified amounts and at specified times sufficient to pay in full when due the principal of, premium, if any, and interest on the Note. In addition, the Loan Agreement contains provisions relating to the expenditure of proceeds of the Note, the maintenance and operation of the Project, indemnification, insurance, and other agreements and covenants which are required or permitted by the Act and which the City, the Borrower, and the Lender deem necessary or desirable for the financing of the Project. (7) Pursuant to a Pledge Agreement (the "Pledge Agreement ") dated December 20, 2007 between the City and the Lender, the City 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). (8) In order to secure its obligations under the Loan Agreement, the Borrower mortgaged and granted a security interest in certain of its real and personal property pursuant to a Mortgage, Security Agreement, Fixture Financing Statement and Assignment of Leases and Rents dated December 20, 2007 in favor of the Lender. (9) The Lender and the Borrower have informed the City that they have agreed to certain additional changes in the terms of the Note, including an extension of the maturity thereof. (10) As required by the Act and Section 147(0 of the Code, the City has, on this same date, held a public hearing on the amendment to and the reissuance of the Note. 5216515v1 2 4