Loading...
HomeMy WebLinkAboutCity Council Resolution 1992-731CITY OF PLYMOUTH RESOLUTION NO. 92-731 AUTHORIZING THE EXECUTION AND DELIVERY OF AMENDMENTS RELATING TO THE $860,800 COMMERCIAL DEVELOPMENT REVENUE NOTE OF 1985 (OAKLAND PROPERTIES PROJECT) AND DOCUMENTS RELATING THERETO WHEREAS, pursuant to a Final Note Resolution No. 85-945 adopted by the City Council on December 2, 1985 (the "Resolution"), the City issued its $860,800 Commercial Development Revenue Note of 1985 (Oakland Properties Project) dated as of December 5, 1985 (the "Note"), to provide financing for Oakland Properties, a Minnesota partnership ("Oakland"), to acquire, construct and equip a commercial/warehouse building located at 12615 - 16th Avenue North (the "Project") which is owned by Oakland and leased to Exotic Rubber and Plastics of Minnesota, Inc. (the "Company"). The proceeds of the Note were loaned to Oakland pursuant to a Loan Agreement dated as of December 5, 1985 (the "Loan Agreement"). The Note was purchased by American National Bank and Trust Company (the "Bank"). Pursuant to a Pledge Agreement dated as of December 5, 1985, the City assigned the Loan Agreement to the Bank. The obligations of Oakland under the Loan Agreement including the obligation to repay the Note are secured by a Mortgage, Security Agreement and Fixture Financing Statement dated December 5, 1985, executed by Oakland in favor of the Bank (the "Mortgage"), by an Assignment of Leases and Rents dated December 5, 1985, executed by Oakland in favor of the Bank (the "Assignment") and by a Guaranty dated as of December 5, 1985, executed by Richard G. Ogle in favor of the Bank (the "Guaranty"); and WHEREAS, the Bank has agreed to sell the Note and transfer the assign all of its right, title and interest in and to the Note, the Mortgage, the Loan Agreement, the Guaranty and the Assignment to Nils Sandquist, Richard G. Ogle and Roland L. Nordlund (collectively, the "Purchaser") who, following principal reduction of the Note by Oakland to $820,000, will own $650,000, $100,000 and $70,000, respectively, in principal amount of the Note; and WHEREAS, as of December 1, 1992, William J. McNeeley ("McNeeley"), President of the Company, will acquire the Project from Oakland and will continue to lease the Project to the Company. As a condition to the sale of the Project, McNeeley will assume all of Oakland's obligations under the Note, Loan Agreement, Mortgage and Assignment and will also personally guaranty repayment of the Note from and after November 1, 1992; and RESOLUTION NO. 92-731 Page 2 WHEREAS, the Purchaser and McNeeley have agreed to reduce the interest rate on the Note and to amend certain of the terms of repayment of the Note as set forth in the Amendment No. 1 to Final Note Resolution which has been submitted to the Council for approval (the "Resolution Amendment") and have agreed to amend the Loan Agreement in connection with the Resolution Amendment pursuant to Amendment No. 1 to Loan Agreement and Assumption (the "Loan Agreement Amendment") which has also been submitted to the Council for approval. NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLYMOUTH, MINNESOTA, as follows: 1. The City shall proceed forthwith to execute and deliver the reissued Notes as described in the Resolution Amendment, the Loan Agreement Amendment and the Resolution Amendment in the form and upon the terms set forth in the forms on file with the City. The Mayor and Acting City Manager are authorized and directed to execute the Notes, Loan Agreement and Resolution Amendment and deliver them to the Purchaser. 2. The Mayor and Acting City Manager and other officers of the City are authorized and directed to prepare and furnish to the Purchaser certified copies of all proceedings and records of the City relating to the Notes and such other affidavits and cettdicates as may be required to show the facts relating to the legality of the Notes, Loam Agreement Amendment and Resolution Amendment as such facts appear from the books and records in the officer's custody and control or as otherwise known to them. 3. The approval hereby given to the Notes, Loan Agreement Amendment and Resolution Amendment and other various documents referred to above includes approval of such additional details therein, as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by the City Attorney and the City officials authorized herein to execute said documents prior to their execution; and said City officials are authorized to approve such changes on behalf of the City. The execution of any instrument by the appropriate officer or officers of the City herein authorized shall be conclusive evidence of the approval of such documents in accordance with the terms hereof. In the absence of the Mayor or Acting City Manager, any of the documents authorized by this Resolution to be executed may be executed by any other City Council member or officer of the City. The City Clerk is hereby authorized to register the transfer of the original Note from the Bank to the Purchaser as provided on the Note, as amended and the Resolution, as amended, and to register each of the Notes in the name of the appropriate Purchaser. Adopted by the City Council November 16, 1992. RESOLUTION NO. 92-731 Pal,,-. 3 Mayor ATTEST: City Clerk STATE OF hEWNFSOTA) COUNTY OF HENNEPIN) SS. The undersigned, being the duly qualified and appointed City Clerk of the City of Plymouth, Minnesota, certifies that I compared the foregoing resolution adopted at a meeting of the Plymouth City Council on November 16, 1992, with the original thereof on file in my office, and the same is a correct transcription thereof. VMNM my hand officially as such City Clerk and the Corporate seal of the City this 201h day of November, 1992. City Clerk