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• H.R.A. RESOLUTION NO. 1987-001
<br /> RESOLUTION RELATING TO TERMINATIONOF ALL RIGHTS OF
<br /> THE- REDEVELOPER UNDER THAT CERTAIN REDEVELOPMENT .
<br /> 'CONTRACT FOR THE KENZIE TERRACE REDEVELOPMENT PROJECT
<br /> BETWEEN THE HOUSING .AND REDEVELOPMENT AUTHORITY OF THE
<br /> CITY OF ST. ANTHONY; MINNESOTA, AND ARKAND .
<br /> PARTNERSHIP, DATED MAY 24 , .1983 , AS AMENDED. .
<br /> WHEREAS , the Housing and Redevelopment Authority of
<br /> the .City of .,St.. Anthony, Minnesota ( the, "HRA" ) and Arkand
<br /> Partnership, a Minnesota general partnership ( "Arkand" ) , whose
<br /> partners are The Arkell Development Corporation and
<br /> Kraus-Anderson, Inc. , each a Minnesota corporation, entered.
<br /> into a Redevelopment Contract, dated May 24 , 1983 , which
<br /> contract was subsequently amended by certain amendments, the
<br /> last of which was a Ninth Amendment, dated May 20 , 1986 (as
<br /> amended, the -"Redevelopment Contract" ) ;
<br /> WHEREAS , under the Redevelopment Contract, Arkand .is
<br /> required to maintain with the HRA a letter of credit in the
<br /> amount of $400 , 000 , which letter of credit obligation is to be
<br /> reduced to $360, 000 under Section 10 . 11 of the Redevelopment
<br /> Contract upon issuance of a Certificate of Completion for
<br /> • Phase I of the Project ( the --"-Letter of Credit) ; ,
<br /> WHEREAS , the HRA, Arkand , Arkand Lifi-i'ted
<br /> Partnership II , and Arkand Limited Partnership III , entered
<br /> into an Agreement dated November 25 , 1986 (the "Bond
<br /> Agreement'". ) which, among other - thing's, provided for the
<br /> assignment to the HRA of all right , title and interest in and
<br /> to certain Loan Agreements, Indentures, Bonds and B-ond
<br /> proceeds, as further described in the Bond Agreement;
<br /> WHEREAS, on January 27, 1987 Arkand continued to be in
<br /> default of its obligation to provide the HRA with the required ,
<br /> Letter of Credit, and the HRA extended its deadline for Arkand
<br /> to meet the Letter of Credit obligation to March 2, 1987 on the
<br /> condition that if -the Letter of Credit was not delivered- to the
<br /> HRA on or before March 2, 1987 , the 30-day notice of default
<br /> provided for under the Redevelopment Contract was waived by
<br /> Arkand with respect to that default;
<br /> WHEREAS, Arkand subsequently delivered to the HRA a
<br /> letter-. of credit in the amount .of. $100,000, which letter of
<br /> credit was due to expire on March -20., 1987;
<br /> WHEREAS , the HRA drew upo,n _the $100,000 letter of
<br /> credit prior to its 'expirat'ibn;
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