HomeMy WebLinkAboutCity Council Resolution 1980-870CITY OF PLYMOUTH
Pursuant to due call and notice thereof, aspecial meeting of
the City Council of the City of Plymouth, Mirnnesota was Fold on the 24th
day of November , 19 80 The following members were present: Mayor Hunt,
Councilmembers Davenport, Hoyt, Neils and Schneider. The following members
were Absent: none
Councilmember Neils introduced the following Resolution and moved its adoption:
80-870
A RESOLUTION RELATING TO
UNION CITY MISSION INDUSTRIAL
DEVELOPMENT PROJECT, APPROVING
SUPPLEMENTAL LOAN AGREEMENT, AND
AUTHORIZING NEW BOND TO EXTEND
MATURITY OF TEMPORARY BOND
WHEREAS, on December 18, 1978 the City Council adopted
a "Resolution Providing for the Issuance and Sale of Revenue
Bonds Pursuant to Chapter 474, Minnesota Statutes, To Provide
Funds to Be Loaned to Union City Mission Industrial Development
Project" (the "Original Resolution"), and
WHEREAS, pursuant to the Original Resolution and a Loan
and Purchase Agreement, dated as of December 1, 1978 (the "Original
Loan Agreement") by and among the City, Union City Mission (the
"Mission") and Northwestern National Bank of Minneapolis (the
"Bank"), the City's $1,400,000 Temporary Industrial Development
Revenue Bond (Union City Mission Project) (the "Temporary Bond")
due December 1, 1980, was issued, is outstanding in the unpaid
principal amount of $1,400,000 and is held by the Bank, and
WHEREAS, the Mission has requested an extension of the
due date of the Temporary Bond from December 1, 1980 to June 1,
1981, and the Bank is willing to accept a New Bond (hereinafter
defined) to evidence the extension, and to hold the Temporary
Bond as collateral for the New Bond, all as set forth in a form
of First Supplemental Loan and Purchase Agreement dated as of
December 1, 1980, and
WHEREAS, the New Bond will be directly secured by the
Original Loan Agreement, as amended by the First Supplemental
Loan and Purchase Agreement, by the Loan Agreement Assignment
dated as of December 1, 1978 executed by the City to the Bank,
and by the Temporary Bond, and indirectly secured by the Combination
Mortgage and Security Agreement dated as of December 1, 1978,
executed by the Mission to the Bank to secure the Temporary Bond,
but the New Bond and Temporary Bond are payable solely from the
loan repayments by the Mission, from proceeds of the property
mortgaged under the Mortgage, and (if issued) from the proceeds
of refunding bonds, and do not constitute a general obligation of
the City or a charge against its credit, properties or taxing
power,
BE IT RESOLVED by the City Council of the City of
Plymouth, as follows:
Resolution #80-870
Page 2
1) The form of First Supplemental Loan and Purchase
Agreement dated as of December 1, 1980 by and among the City, the
Mission and the Bank, on file with the City Clerk, is hereby
approved, and the Mayor and City Manager are authorized to execute
the same on behalf of the City and to affix the corporate seal of
the City, with all such changes therein and in such number of
counterparts as the officers executing the same shall approve.
2) The form of the $1,400,000 City of Plymouth Indusr
trial Development Revenue Bond (Union City Mission Project),
dated December 1, 1980 (the "New Bond"), attached as Annex 1 tc.'
the First Supplemental Loan and Purchase Agreement, is hereby.
approved, and the Mayor and City Manage. are authorized to execute
the New Bond and affix the corporate seal thereto and to deliver
the New Bond to the Bank. The New Bond shall be in the principal
amount of $1,400,000, shall bear interest at the same rate as the
Temporary Bond, payable monthly, and principal thereof shall be
due and payable on June 1, 1981, subject to prepayment at any
time at the option of the City at the request of the Mission, as
provided therein.
3) The findings, terms and provisions of the Original
Resolution are hereby ratified and confirmed and made applicable
to the New Bond, for the benefit of the Bank and registered
assigns as holder of the New Bond, except to the extent inconsistent
with the provisions of this Resolution, the First Supplemental
Loan and Purchase Agreement, or the New Bond.
4) The Ci; -..y Council reserves the right but shall have
no obligation to issue refunding bonds and bonds for permanent
financing of the Project, as described in the Original Resolution
and Original Loan Agreement, in the amount of not to exceed
$1,750,000, as provided in Resolution 76-483 and Resolution '8-
516 giving preliminary approval to the Project.
The motion for the adoption of the foregoing Resolution was duly seconded by
Councilmember Hoyt , and upon vote being taken thereon, the following
voted in favor thereof: Mayor Hunt, Councilmembers Davenport, Hoyt, Neils
and Schneider
The following voted against or abstained: none
Whereupon the Resolution was declared duly passes and adopted.
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