05-28-2014 Council Agenda - Laserfiche WebLink

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(f) Pursuant to a Payment Performance Agreement (the "Payment Performance Agreement") given by Presbyterian Homes and Services to the Lender, the Borrower has further caused the payment of amounts due under the Loan Agreement and Notes to be secured. A draft of the Payment Performance Agreement has been submitted to the City Council. (g) The Little Canada Note will be a special, limited obligation of the City. The Little Canada Note shall not be payable from or charged upon any funds other than the revenues pledged to the payment thereof, nor shall the City be subject to any liability thereon. No holder of the Little Canada Note shall ever have the right to compel any exercise of the taxing power of the City to pay the Little Canada Note or the interest thereon, nor to enforce payment thereof against any property of the City. The Little Canada Note shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. (h) On the basis of information available to the City it appears, and the City hereby finds, that the Project constitutes properties, real and personal, used or useful in connection with a health care facility within the meaning of the Act; that the Project furthers the purposes stated in the Act; that the availability of the financing under the Act and the willingness of the City to furnish such financing will be a substantial inducement to the Borrower to undertake the Project, and that the effect of the Project, if undertaken, will be to assist in the prevention of the emergence of blighted and marginal land, to help prevent chronic unemployment, to help the surrounding area retain and eventually improve the tax base, to provide the range of service and employment opportunities required by the population, to help prevent the movement of talented and educated persons out of the state and to areas within the State where their services may not be as effectively used, and to promote more intensive development and use of land within the City and surrounding communities, and to provide available adequate senior housing and health care facilities to residents of the State at a reasonable cost. (i) It is desirable, feasible, and consistent with the objects and purposes of the Act to issue the Little Canada Note, for the purpose of refinancing the costs of the Project. SECTION 2. THE LITTLE CANADA NOTE. 2.1 Authorized Amount and Form of Little Canada Note. The Little Canada Note is hereby approved and shall be issued pursuant to this Resolution in substantially the form submitted to the City Council with such appropriate variations, omissions and insertions as are necessary and appropriate and are permitted or required by this Resolution, and in accordance with the further provisions hereof; and the total aggregate principal amount of the Little Canada Note that may be outstanding hereunder is expressly limited to $3,000,000, unless a duplicate Note is issued pursuant to Section 2.7. The Little Canada Note shall bear interest at a rate or rates as set forth therein. 6233403v2 7 4