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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. —2—