11-10-1993 Council Agenda - Laserfiche WebLink

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FROM BRIGGS & MIO GAN ST. PAUL 612- 223 -66 (WED) i 1. 03 93 16 :23 /ST. RESOLUTION AUTHORIZING THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE REFUNDING BONDS TO REFINANCE A PROJECT UNDER MINNESOTA STATUTES, CHAPTER 469 (K &L ASSOCIATES OF LITTLE CANADA PROJECT) ju 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 K &L Associates of Little Canada, 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 Industrial Development Revenue Refunding Bonds, Series 1993 (K &L Associates of Little Canada Project) (the "Bonds "), not to exceed $2,B15,000 and in accordance with a Bond Purchase Agreement (the "Bond Purchase Agreement ") between the City, the Company and Miller, Johnson & Kuehn, Incorporated (the "Underwriter "). 2. The proceeds of the Bonds will be used by the Company to refund the outstanding principal balance of its Industrial Development Revenue Bonds, Series 1986 (K &L Associates of Little Canada Project) which were issued to acquire certain real estate and construct thereon a building containing approximately 112,000 square feet and related improvements and equipment suitable for use as an office /warehouse facility (hereinafter referred to collectively as the "Project "). 3. It is proposed that, pursuant to a Loan Agreement to be dated as of November 1, 1993, between the City and the company (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 November 1, 1993 (the "Indenture "). The Company will grant a mortgage and security interest in the Project to the City pursuant to a Mortgage and Security Agreement to be dated as of November 1, 1993 (the "Mortgage ") and to further secure the payment of the Bonds and the interest thereon, has entered into an Assignment of Leases and Rents, to be dated as of November 1, 1993 (the 250774 2 Page 8