CC PACKET 02061996 - Laserfiche WebLink

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U1/lt7/b0 !'ttl 1J:4frnA 1V ILJYVLUYY vvaor41 IIII111IL1 W.JVV& . 3z • MEMORANDUM TO: Michael Mornson Roger Larson CC: William Soth,_ " FROM: Jerry Gilligan DATE: January 19, 1996 RE: $6,350,000 14U'Iti.famly,Housing Revenue Bonds (St. Anthony Nursing Home Project), Series 1985 City of St. AAthony, Minnesota , In 1985 the,City issiipd-the Bonds referred to above (the "1985 Bonds") to finance the Chandler Place project-' in',connection with this development the HRA established a TIF District and entered into a Development Agreement with St. • Anthony Nursing Home, the owner of the project, which provided the HRA to make a loan of up to $700,000 from tax increment revenue derived frorn the TIF District to fund a reserve fund for the 1985 Bonds (the "Reserve Fund Loan"). The Developraent-;Agree nent'provides that the Reserve Fund Loan is to bear interest at 3% per-anrium"::ort the-amount advanced. On December 1, 1993 all interest accrued on the Reserve>Piuld Loan.through that date was to be added to the principal of the Reserve Fund_Loan.�_ The Development Agreement provides that repayment of the Reserve Fund Loan is as follows: (i) on December 1, 1996 and each December 1 thereafter interest is to be-paid on the Reserve Fund Loan; (ii) the entire principal balance of the Reserve Fund Loan and all accrued interest is due and payable on December 1, 2005. The Reserve Fund Loan is secured by a second mortgage on the Chandler Place project, which mortgage is subordinate to the mortgage securing the 1985 Bonds and provides that it will be subordinate to any mortgage securing an obligation which refinances the 1985 Bonds, provided such obligation is not in excess of $6,350,000-and proceeds of such obligation are used only to refinance the • 1985 Bonds and to pay the costs and fees of such refinancing or costs related to the improvements or repairs to the project. DORSEY & WHITNEY P.L.L.P.