HomeMy WebLinkAbout2001.12.03 RESO 2001-0073RESOLUTION 2001— 73
RESOLUTION AUTHORIZING THE EXECUTION OF
AN ASSIGNMENT AND SUBORDINATION OF
DEVELOPMENT AGREEMENT
BE IT RESOLVED by the City Council of the City of Hugo, Minnesota (the "Issuer"),
as follows:
1. The City Council has entered a Development Agreement, dated as of May 29,
2001, (the "Development Agreement") with Hugo Land Development, LLC, a Minnesota limited
liability company (the "Company'). The Development Agreement provides that the Issuer will
reimburse the Company for a portion of the cost of the Development Property from Tax
Increments (as those terms are defined in the Development Agreement) upon certain conditions
referred to in the Development Agreement. The Company desires to assign its interest in this
Development Agreement pursuant to an Assignment and Subordination of Development
Agreement (the "Assignment") by and among the Issuer, the Company and U.S. Bank Trust
National Association (the "Trustee").
2. In addition the Issuer has undertaken to finance a portion of the same
development project financed by the Tax Increments through issuance by the Issuer of its
$6,550,000 Industrial Development Revenue Bonds, Series 2001 (Minnesota Union Builders
Project) (the "Bonds"), pursuant to the Indenture of Trust (the "Indenture") dated as of December
1, 2001 between the Issuer and the Trustee.
3. A draft of the Assignment has been submitted to the City Council for approval
4. The City Council hereby approves the Assignment in substantially the form
submitted, and the Mayor and the Clerk -Treasurer are hereby authorized and directed to execute
the Assignment on behalf of the Issuer. In the absence of the Mayor or the Clerk -Treasurer, any
of the documents authorized by this resolution to be executed may be executed by an acting or
duly designated official.
Adopted: December 3, 2001
AUKayor
Attest:
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Citye • c Treasurer
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