2002.02.19 RESO 2002-0004 - Laserfiche WebLink

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RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF $6,550,000 INDUSTRIAL DEVELOPMENT REVENUE BONDS, SERIES 2002 (MINNESOTA UNION BUILDERS PROJECT) TO FINANCE A PROJECT BE IT RESOLVED by the City Council of the City of Hugo, Minnesota (the "Issuer"), as follows: 1. The City Council has received a proposal from Hugo Land Development, LLC, a Minnesota limited liability company (the "Company"), that the Issuer undertake to finance a certain Project as herein described, pursuant to Minnesota Statutes, Sections 469.152 through 469.1651 (the "Act"), through issuance by the Issuer of its $6,550,000 Industrial Development Revenue Refunding Bonds, Series 2002 (Minnesota Union Builders Project) (the "Bonds"). ON , the Issuer held a public hearing with respect to the Project. 2. It is proposed that, pursuant to a Loan Agreement between the Issuer and the Company (the "Loan Agreement"), the Issuer loan the proceeds of the Bonds to the Company to refund the Issuer's outstanding $6,550,000 Industrial Development Revenue Bonds, Series 2001 (Minnesota Union Building Project) (the "Prior Bonds") the proceeds of which were used to finance the acquisition of land, the construction and equipping of an approximately 94,000 square foot manufacturing facility for the manufacture of custom modular and panelized homes to be located in the Bald Eagle Industrial Park in the City of Hugo, 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 U.S. Bank National Association in St. Paul, Minnesota (the "Trustee"), as security for payment of the Bonds under an Indenture of Trust (the "Indenture"). Payment of the Bonds will be secured by a Mortgage, Security Agreement and Fixture Financing Statement (the "Mortgage") and an Assignment of Leases and Rents (the "Assignment") both from the Company to the Trustee and a Guaranty from James Boo to the Trustee (the "Guaranty"). The Bonds will be purchased by Miller Johnson Steichen Kinnard, Inc. (the "Purchaser") pursuant to an Official Statement (the "Official Statement") and in accordance with a Bond Purchase Agreement among the Issuer, the Company and the Purchaser (the "Purchase Agreement"). 3. Forms of the following documents (the "Bond Documents") have been submitted to the City Council for approval: (a) The Loan Agreement, (b) The Indenture, (c) The Purchase Agreement, (d) The Mortgage (not executed by the Issuer), (e) The Guaranty (not executed by the Issuer), 1375253x1