04/27/1998 Council Packet - Laserfiche WebLink

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RESOLUTION NO. RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF $1,400,000 INDUSTRIAL DEVELOPMENT REVENUE BONDS (MOLIN CONCRETE PRODUCTS COMPANY PROJECT) SERIES 1998A AND $2,000,000 INDUSTRIAL DEVELOPMENT REVENUE BONDS (MOLIN CONCRETE PRODUCTS COMPANY PROJECT) SERIES 1998B TO FINANCE A PROJECT BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota (the "Issuer "), as follows: 1. The Issuer has received a proposal from Molin Concrete Products, a Minnesota corporation (the "Company ") that the Issuer undertake to finance a certain Project as herein described, pursuant to Minnesota Statutes, Sections 469.152 through 469.165 (the "Act "), through issuance by the Issuer of its $1,400,000 Industrial Development Revenue Bonds (Molin Concrete Products Company Project) Series 1998A and $2,000,000 Industrial Development Revenue Bonds (Molin Concrete Products Company Project) Series 1998B. The Series 1998A Bonds and the Series 1998B Bonds are collectively referred to as the "Bonds ". 2. It is proposed that, pursuant to a Loan Agreement dated as of May 1, 1998, between the Issuer and the Company (the "Loan Agreement "), the Issuer loan the proceeds of the Bonds to the Company to finance a portion of the costs of the construction and equipping of an approximately 16,000 square foot building at the Company's existing manufacturing facility at 415 Lilac Street, Lino Lakes, Minnesota 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 Issuer assign its rights to the basic payments and certain other rights under the Loan Agreement to Norwest Bank Minnesota, National Association in Minneapolis, Minnesota (the "Trustee ") as security for payment of the Bonds under an Indenture of Trust dated as of May 1, 1998 (the "Indenture "). Payment of the Bonds is initially secured by an irrevocable Letter of Credit to be issued by Norwest Bank Minnesota, National Association in favor of the Trustee in an amount equal to the principal amount of the Bonds plus certain additional interest and premium, if any, thereon. The Bonds are intended to be privately placed with accredited investors by Norwest Bank Minnesota, National Association (the "Placement Agent "), pursuant to a Placement Memorandum (the "Memorandum ") and in accordance with a Bond Placement Agreement among the Issuer, the Company and the Placement Agent (the "Placement Agreement "). 3. Forms of the following documents have been presented to the Issuer and are proposed to be executed by the Issuer in connection with issuance of the Bonds: (a) The Loan Agreement 921019.1 2