09/12/2011 Council Packet - Laserfiche WebLink

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• • • 3. The City's remaining share of its costs, plus interest and service charges accrued by the County to carry the City's debt, will be due and payable as follows. Upon issuance by the County of bonds to finance a portion of the Project (the "County Bonds ") the City will issue and deliver to the County a General Obligation Improvement Note (the "City Note ") substantially in accordance with the terms described in this Section. a) Amount. The City Note will be issued in the original principal that compensates the County for the City's remaining share of Project costs. The principal amount of the City Note will be $3,695,000.00 determined at the time of sale of the County Bonds. b) Security. The City Note will be issued under Minnesota Statutes, Chapter 429 and the City Charter, and will be secured primarily by special assessments levied against property in the city benefited by the Project, and will be further secured by the City's full faith and credit. c) Payment Schedule. The payment schedule for the City Note will be substantially as shown in Exhibit B hereto, subject to adjustment based on the actual terms of the County Bonds. d) The City Note will include the following additional terms: i. Optional Redemption. The City may pre -pay the City Note in whole or in part on any date. Prepayments will be applied in reverse order of maturities on the City Note. The prepayment amount will be the outstanding principal amount (or relevant portion thereof) of the City's allocable share of the County Bonds. For any maturity or portion thereof that is prepaid under this Section, the parties agree and understand that the "City Admin. Fees paid to County" shown in Exhibit B (or allocable portion thereof, if only part of maturity is prepaid) is not paid, and the prepayment amount is only the sum described above. ii. Mandatory Redemption. The parties agree and understand that a substantial portion of the assessments levied against benefited property are expected to be deferred under various provisions of Minnesota law (referred to as "Deferred Assessment "). If the City receives pre - payments of any such Deferred Assessments, the City shall apply such prepayments toward redemption of the City Note, in accordance with the terms described in clause (i) above. 4. The County shall pay to the City, upon written demand by the City, $300,000 for the turnback of County Road 153 (Lilac Drive) from the County to the City; 5. As a credit to the City's share of the cost of the Project, and as executed under separate agreements, the following items may be used to reduce the City's share or to apply for the City's repayment schedule: -2-