11-27-1991 Council Agenda - Laserfiche WebLink

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RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF AMENDED AND RESTATED COMMERCIAL DEVELOPMENT REVENUE NOTE OF 1981 (YORKTON INDUSTRIAL BUILDING B PROJECT) AND FIRST AMENDMENT TO LOAN AGREEMENT IN CONNECTION THEREWITH WHEREAS, the City of Little Canada, Minnesota (the "City ") has heretofore issued its $670,000 Commercial Development Revenue Note of 1981 (Yorkton Industrial Building B Project), (the "Note ") which provided funds to finance the construction of an office /warehouse facility (the "Project ") by Curtis J. Cargill (the "Borrower "); and WHEREAS, the Note was purchased by The Midway National Bank of St. Paul in St. Paul, Minnesota (the "Bank ") and currently bears tax exempt interest at the rate of eleven and five - eighths percent (11 5/8 %) per annum; and WHEREAS, the Company and the Bank have agreed to amend the Note to, among other things, reduce the interest rate, accelerate the maturity schedule, and convert the Note to a taxable obligation, all as set forth in the First Amendment to Commercial Development Revenue Note of 1981 attached hereto as Exhibit A; and WHEREAS, in connection with the issuance of the Amended and Restated Note it is also necessary to amend certain provisions of the financing documents executed in connection with the issuance of the Note, including, but not limited to, the Loan Agreement dated October 14, 1981, executed by the City and the Company in connection with the issuance of the Note. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Little Canada, Minnesota, as follows: 1. Subject to the approval of the City Attorney, the forms of the Amended and Restated Note and First Amendment to Loan Agreement are hereby approved substantially in the forms submitted, on the condition that all costs and expenses incurred by the City in connection herewith are paid by the Borrower. The Amended and Restated Note and First Amendment to Loan Agreement, in substantially the forms submitted, are directed to be executed in the name of and on behalf of the City by the Mayor and City Clerk. 2. The approval hereby given to the amendments referred to above includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by the City Attorney prior to the 24987 Page 54