1997-019 Council Resolution - Laserfiche WebLink

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NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota as follows: 1. It is proposed that the City issue its Variable Rate Demand Industrial Development Revenue Bonds, Series 1997 (Taylor Corporation Project) (the "Bonds") in the principal amount of $6,000,000, the proceeds of which will be used to finance the cost of the Project; 2. The City will issue the Bonds pursuant to an Indenture of Trust dated as of March 1, 1997 (the "Indenture") between the City and Norwest Bank Minnesota, National Association, in Minneapolis, Minnesota as trustee (the "Trustee"). The Bonds will be privately placed with an accredited investor by Norwest Bank Minnesota, National Association, located in Minneapolis, Minnesota (the "Placement Agent") pursuant to a Bond Placement Agreement dated as of the date of issuance of the Bonds (the "Bond Placement Agreement") by and between the City, the Company and the Placement Agent, and a Placement Memorandum dated as of the date of issuance of the Bonds (the "Placement Memorandum"). 3. The City will loan the proceeds from the sale of the Bonds (the "Loan") to the Company pursuant to a Loan Agreement dated as of March 1, 1997 (the "Loan Agreement") by and between the City and the Company. The Company will use the Bond proceeds to finance the costs of the Project. Under the terms of the Loan Agreement. the Company has agreed to repay the Loan by making payments to the Trustee (the "Basic Payments") in amounts necessary to provide for the payment of the principal of, purchase price, and interest on the Bonds. 4. As security for the payment of the Bonds, the City will assign and pledge all of its right, title and interest in and to the Loan Agreement (except certain rights reserved to the City), including the Basic Payments, to the Trustee pursuant to the Indenture. The Bonds will also be secured by an irrevocable direct pay letter of credit (the "Letter of Credit") issued by Norwest Bank Minnesota, National Association (the "Bank") to the Trustee in the principal amount of the Bonds, fifty (50) days' interest on the principal amount of the Bonds and a three percent premium upon a Determination of Taxability pursuant to a Reimbursement Agreement dated as of March 1, 1997 (the "Reimbursement Agreement") by and among the Bank, the Company and the Trustee. 5. Nothing in this Resolution or in the documents prepared pursuant hereto shall authorize the expenditure of any City funds to finance the Project. The Bonds and interest thereon shall not constitute an indebtedness of the City within the meaning of any constitutional or statutory limitation and shall not constitute or give rise to a pecuniary liability or moral obligation of the City or a charge against its general credit or taxing powers and neither the full faith and credit nor the taxing 776937.1 2