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City Council Resolution 1977-06Issuer: CERTIFICATIOPI OF MINUTES RELATING TO $410,000 Commercial Development Revenue Nate City of Monticello, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular, meeting, held on Monday, June 27, 1977, at 7;30 o'clock P.M., at the City Hall ~: Members present: Con Johnson, Arve Grimsmo, Dan Blonigen, Gene Walters. One seat vacant. Aiembers absent: None. Documents Attached: Minutes of said meeting (pages): RESOLUTION AUTHORIZING THE CONSTRUCTION + OF A PROJECT UNDER THE MINNESOTA MUNICIPAL. INDUSTRIAL DEVELOPMENT ACT AND THE SALE AND ISSUANCE OF A COMMERCIAL DEVELOPMENT REVENUE NOTE TO FINANCE THE PROJECT I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the bonds re- ferred to in the title of this certificate, certify that the docu- ments attached hereto, as described above, have- been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all docu- ments approved by the governing body at said meeting, so far as they relate to said bonds; and that said. meeting was duly held by the governing body at the time and place and was attended through- out by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such`recarding officer this 1 ~+. day of July , _].9 77 . S xgn ~ture Gary Wieber,.Cty Rdministrator Naive and Title Councilmember Gene Walters introduced the following resolution and moved its adoption: RESOLUTION AGTHORIZING THE CONSTRUCTION OF A PROJECT UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMEIJT ACT AND THE SALE AND ISSUANCE OF A COMMERCIAL DEVELOPMENT REVENUE NOTE TO FINANCE THE PROJECT.' BE IT RESOLVED by the City Council of the City of Monticello, Minnesota as follows: 1. It has been proposed that the City issue its Commercial Development Revenue Nate (Hoglund and Larson Project), Series 1977, (the Note), to finance the cost of constructing and equipping a motel facility in the City (the Project). The Council gave preliminary approval to the Project by resolution duly adopted November 3, 1976, and pursuant to that resolution, the following documents relating to the Project have been submitted to the Council and are now, or shall be placed, on file in the office of the City Administrator: (a) Loan Agreement, proposed to be made and entered into between the City and the Partnership; (b) Assignment of Loan Agreement (the Assign- ment), proposed to be made and entered into between the City and The First American National Bank of St. Cloud (the Bank); (c} i~iortgage (the Mortgage), proposed to be made and entered into between the Partnership and Sank; and (d) Form of Note. 2. It is hereby found, determined and declared that: (a) the Project is authorized by Ehe t~iunicipal Industrial Development Act; (b) the Project will promote the public interest by providing an increased tax base for the City and adai.- tional employment opportunities for residents of the City and surrounding area; (c) it is desirable that the Note in the prin- cipal amount of $410,000 be issued by the City to the Sank, and that the City's interest in the Loan Agreement a.nd the payments thereunder be pledged to the Bank as security for the payment of principal and interest on the Note; (d) the payments required by the Loan Agreement are fixed, and required to be revised fromtme to time as necessary, so as to produce income and revenue sufficient to provide for prompt payment of principal of and interest on the Note, and the Loan Agreement and Mortgage also provide that the Partnership is required to pay all expenses of the operation and maintenance of the Project including, but without limitation, adequate insurance thereon dT~d insurance against all liability for injury to persons or`"`property arising from the operation thereof and ali taxes and special assessments, if any, levied upon or with respect to the Project and payable during the term of the Loan Agr~,ement; and (e} under the provisions. of Minnesota Statutes, Section 474.10, and as provided in the Loan Agreement and Note, the Note is not to be payable from .nor charged upon any funds other than the revenue pledged to the payment thereof; the City and officers thereof are not subject to any liability thereon; the Note shall not Constitute a charge, lien or encumbrance, legal-or equitable, upon any property of the City; the Note shall recite that it is payable solely from the revenues pledged to the payment thereof; and the Note shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. 3. 'The form of the Loan Agreement, Assignment and Note referred to in paragraph l are approved. Each such document, with such variations, insertions and additions as the City Attorney may hereafter deem appropriate, is directed to be executed in the name of and on behalf of the City by the P~layor and City Administrator.. The form of the Mortgage is also approved and the issuance of the Note is hereby conditioned upon execution and delivery of the Mortgage by the Partnership. 4. The City shall proceed forthwith to issue the Note to the Bank, which is hereby authorized to disburse the proceeds to the parties entitled. .thereto in~gayment or reinbursement for Project costs. ' I~ r/ Approved : ";~~ ;~~~~~` C,-~`' ayor ,. Attest : ~'~. t+~<C.~..~u --~ ity Administrator Councilmember Dan Blonigen seconded the above resolution and upon vote being taken thereon the following voted in favor: Con Johnson, ~rve Grimsmo Dan BLongen, Gene. Walters. and the following voted against the same; None. whereupon the resolution was declared duly passed and adopted.