06-22-1994 Council Agenda - Laserfiche WebLink

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RESOLUTION NO. 94- RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF $2,480,000 VARIABLE RATE DEMAND INDUSTRIAL DEVELOPMENT REVENUE REFUNDING BONDS, SERIES 1994 (WELLINGTON III ASSOCIATES PROJECT) TO REFINANCE A PROJECT BE IT RESOLVED by the Council of the City of Little Canada, Minnesota, as follows: 1. The Council has received a proposal from Wellington III Associates, a Minnesota general partnership (the "Borrower ") that the City undertake to refund existing tax- exempt bonds and refinance 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 $2,480,000 Variable Rate Demand Industrial Development Revenue Refunding Bonds, Series 1994 (Wellington III Associates Project) (the "Bonds "). 2. It is proposed that, pursuant to a Loan Agreement dated as of June 1, 1994, between the City and the Borrower (the "Loan Agreement "), the City loan the proceeds of the Bonds to the Borrower to refund the outstanding principal balance of the $2,700,000 Industrial Development Revenue Bonds, Series 1986 (Wellington III Associates Project) issued by the City on August 15, 1986 (the "Prior Bonds ") which Prior Bonds were issued to finance the acquisition, construction and equipping of an approximately 75,000 sq. ft. office/ warehouse located at 200 South Owasso Boulevard East, in the City (the "Project "). The basic payments to be made by the Borrower 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 dated as of June 1, 1994 (the "Indenture "). Payment of the Bonds is initially secured by an irrevocable Letter of Credit to be issued by First Bank National Association in favor of the Trustee in an amount equal to the principal amount of the Bonds plus certain additional interest thereon. The Bonds are intended to be placed for sale to accredited investors by FBS Investment Services, Inc. (the "Placement Agent "), pursuant to a Bond Placement Agreement dated as of closing among the Placement Agent, the Borrower and the City (the "Placement Agreement ") and a Placement Memorandum (the "Placement Memorandum ") dated as of closing. The Placement Agent shall also act as remarketing agent for the Bonds pursuant to a Remarketing Agreement dated as of June 1, 1994 between the Borrower and the Placement Agent. 3. Forms of the following documents will be executed by the City in connection with issuance of the Bonds: 6923621 Page 57