03-24-1993 Council Agenda - Laserfiche WebLink

Home Browse Search

RESOLUTION AUTHORIZING THE ISSUANCE OF COMMERCIAL DEVELOPMENT REVENUE REFUNDING BONDS TO REFINANCE A PROJECT UNDER MINNESOTA STATUTES, CHAPTER 469 (RLF OF MINNESOTA PROJECT) BE IT RESOLVED by the Council of the City of Little Canada, Minnesota (the "City "), as follows; 1. The Council has received a proposal from RLF of Minnesota, a Minnesota general partnership (the "Company ") that the City undertake to refinance in whole or in part the costs of a certain Project, as herein described, pursuant to Minnesota Statutes, Sections 469.152 through 469.165 (the "Act "), through issuance by the City of its Commercial Development Revenue Refunding Bonds, Series 1993 (RLF of Minnesota Project) (the "Bonds "), not to exceed $1,965,000 and in accordance with a Bond Purchase Agreement (the "Purchase Agreement ") between the City, the Company and PBS Investment Services, Inc. (the "Underwriter "). 2. The proceeds of the Bopds will be used by the Company to refund the outstanding principal balance of its Commercial Development Revenue Bonds, Series 1985 (RLF of Minnesota Project) which were issued to acquire certain real estate and construct thereon a building containing approximately 85,000 square feet and related improvements and equipment suitable for use as an office /warehouse facility and to discharge the Indenture relating thereto (hereinafter referred to collectively as the "Project "). 3. It is proposed that, pursuant to a Loan Agreement to be dated as of March 1, 1993, between the City as Lender and the Company as Borrower (the "Loan Agreement "), the City loan the proceeds of the Bonds to the Company to refinance the cost of the Project. The basic payments to be made by the Company under the Loan Agreement are fixed so as to produce revenue sufficient to pay the principal of, premium, if any, and interest on the Bonds when due. It is further proposed that the City assign its rights to the basic payments and certain other rights under the Loan Agreement to First Trust National Association, in St. Paul, Minnesota (the "Trustee ") as security for payment of the Bonds under an Indenture of Trust to be dated as of March 1, 1993 (the "Indenture "). The Company will grant a mortgage and security interest in the Project to the Trustee pursuant to a Mortgage and Security Agreement to be dated as of March 1, 1993 (the "Mortgage ") and to further secure the payment of the Bonds and the interest thereon, has entered into an Assignment of Leases 235981 2 Page 20