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RESOLUTION AUTHORIZING A PROJECT UNDER <br />THE MINNESOTA MUNICIPAL INDUSTRIAL <br />DEVELOPMENT ACT AND THE ISSUANCE OF <br />INDUSTRIAL DEVELOPMENT REVENUE BONDS <br />TO FINANCE THE PROJECT <br />Pa.nk. /`0e64>b9 afectatzSZzc <br />?4o c. <br />BE IT RESOLVED by the Council of the City of Little <br />Canada, Minnesota, as follows: <br />1. The Council has received a proposal from <br />Wellington Associates III, a Minnesota general partnership (the <br />"Company ") that the City undertake to finance a certain Project <br />as herein described, pursuant to the Minnesota Municipal <br />Industrial Development Act, Chapter 474, Minnesota Statutes <br />(the "Act "), through issuance by the City of its $2,700,000 <br />Industrial Development Revenue Bonds, Series 1986 (the <br />"Bonds "), and in accordance with a Bond Purchase Agreement (the <br />"Purchase Agreement ") between the City, the Company and Miller <br />Securities Incorporated (the "Bond Purchaser "). <br />2. The Company desires to acquire certain real <br />estate and construct thereon a 75,000 square foot building and <br />related improvements and equipment suitable for an office /manu- <br />facturing /warehouse facility (hereinafter referred to as the <br />"Project "). The Project as described above will provide <br />employment to 20 additional persons and will otherwise further <br />the policies and purposes of the Act and the findings made in <br />the preliminary resolution adopted by this Council on July 9, <br />1986 with respect to the Project are hereby ratified, affirmed <br />and approved. <br />3. It is proposed that, pursuant to a Loan Agreement <br />dated August 1, 1986, between the City as Lender and the <br />Company as Borrower (the "Loan Agreement "), the City loan the <br />proceeds of the Bonds to the Company to finance the cost of the <br />Project. The basic payments to be made by the Company under <br />the Loan Agreement are fixed so as to produce revenue <br />sufficient to pay the principal of, premium, if any, and <br />interest on the Bonds when due. It is further proposed that <br />the City assign its rights to the basic payments and certain <br />other rights under the Loan Agreement to Marquette Bank <br />Minneapolis, N.A. in Minneapolis, Minnesota (the "Trustee ") as <br />security for payment of the Bonds under an Indenture of Trust <br />dated August 1, 1986 (the "Indenture ") and that the Company <br />grant a mortgage and security interest in the Project to the <br />1e <br />