HomeMy WebLinkAboutgr00090_000031_pg013Rather than do that, Attorney Meyers stated that they have entered
into an atornment agreement whereby M. F. J. Corp. which consists of
the Bonellos (Mario, Frank, and Julius) are named on the lease together
with Century Motor Freight. Attorney Meyers also added that Century
Motor Freight has deposited $50,000. with the trustee, and that there
will be an additional $25,000 payment if there is a default. Moreover,
Century Motor Freight will have an average rent over the life of the
25 -year bond issue of $142,000. a year to repay the bonds.
Attorney Meyers declared that there is no full faith and credit of the
Village pledged on the bonds, the bonds are tax free and the lease
and indentures are in final form. He said he has received Century
Motor Freight's insurance policy and that the Village will receive
annual financial statements from the tennants. Attorney Meyers
stated that at the request of Councilman Johnson, he is giving a
verbal opinion that the project does conform to the Industrial
Development Law and based on his review of the lease and the indenture
agreement, the articles of partnership, and the examination of the
financial statements of the tennant, in his opinion that the prodeedings
are valid and he recommends that the Council may proceed with the project.
The Council asked a number of questions of Roger Wikner regarding the
disposition of funds and defaults.
MSP (Pickar- Hodges) To adopt Resolution No. 593 authorizing the acqui-
sition, installation and leasing of a project under the Minnesota
Municipal Industrial Development Act and the issuance of Industrial
Development Revenue Bonds to finance the project°
MSP (Johnson - Baumgartner) To approve Resolution No. 594 whereby the
Village elects to have the provisions of Section 103 (c)(6d) of the
Internal Revenue Code applied to this bond issue totaling $1,500,000.
William Gillespie, operator of the Skelly station at 2045 Highway 10,
appeared at the request of the Council to discuss his gasoline station
license. The Council felt that Mr. Gillespie was failing to maintain
his property in a sightly condition and questioned him relative to improving
his property.
Councilman Baumgartner felt that Mr. Gillespie should be given 30 days
to have his back yard at his home cleaned of vehicles, that the gasoline
station lot should also be cleaned up and that if Mr. Gillespie fails to
do so at the end of 30 days a warrant should be issued and Mr. Gillespie
should be made to comply by hurting him in his billfold.
The Council generally concurred with Councilman Baumgartner with Council-
man Johnson stressing that Mr. Gillespie has been before them three or
four times previously.