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~
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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.