HomeMy WebLinkAbout7679 (Res.)
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RESOLUTION NO. 7679
RESOLUTION RELATING TO $350,000
CITY OF STILLWATER, MINNESOTA
COMMERCIAL/INDUSTRIAL DEVELOPMENT REVENUE BOND
(VALLEY DENTAL ARTS OFFICE BUILDING PROJECT)
Series 1981
WHEREAS, the City of Stillwater, Minnesota (the "Municipality")
issued its $350,000 Commercial/Industrial Development Revenue
Bond (Valley Dental Arts Office Building Project) Series 1981,
dated as of December 1, 1981 (the "Bond"), pursuant to a
Resolution dated December 15, 1981 (the "Resolution") (a copy
of which is attached hereto as Exhibit A) and loaned the proceeds
thereof pursuant to the terms of a Loan and Purchase Agreement,
o dated as of December 1, 1981 (the "Loan Agreement"), by and
between the Municipality, Charles N. and Angeline Maragos (the
"Borrowers") and Norwest Bank Stillwater, N.A. (formerly
Northwestern State Bank of Stillwater) (the "Bank") to finance
the construction and equipping by the Borrowers of a light
manufacturing and office building in the Municipality (the
"Project") which is leased to Valley Dental Arts, Inc. (the
"Guarantor"); and
WHEREAS, the Bank is the owner and holder of Bond No. R-l issued
pursuant to the Resolution with an original principal face amount
of $350,000, which
principal amount of
on December 1, 1986);
Bond represents the entire
the Bond (which was equal to
and
outstanding
$333,682.80
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WHEREAS, the
Municipality
of the Bond
Borrowers and Guarantor have requested that the
and the Bank moo.ify the interest rate provisions
and the Loan Agreement to ref lect certain changes
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in the commercial lending practices, financial markets and
economic conditions which were not anticipated when the Loan
Agreement was entered into and the Bond was issued; and
WHEREAS, the Municipality and the Bank are willing to modify
the interest rate provisions of the Bond and the Loan Agreement
upon the terms and subject to the conditions of an Amendment
Agreement, dated as of December 1, 1986, between the Municipality,
the Borrowers and the Bank (the "Amendment Agreement"); and
WHEREAS, the Bank will surrender Bond No. R-l pursuant to the
Amendment Agreement and accept in full payment therefor the
amended Bond (No. R-2) (a copy of which is attached hereto as
Exhibit B); and
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WHEREAS, the Municipality is authorized to issue, sell, refund,
redeem and otherwise modify the terms of the Bond and the Loan
Agreement pursuant to, and consistent with, the provisions of
Minnesota Statutes, Chapters 474 and 475, and pursuant to, and
consistent with, the terms of the Resolution, the Bond and the
Loan Agreement; and
WHEREAS, forms of the Amendment Agreement, the amended Bond,
a Certificate of Officials of the Municipality, a Non-Arbitrage
Certificate of the Municipality and an Internal Revenue Service
Form 8038 have been submitted to and reviewed by the City Council
and are on file in the office of the City Clerk;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF STILLWATER, MINNESOTA AS FOLLOWS:
1. Approval and Execution of Documents. The forms of the
Documents referred to above are approved and shall be executed
in the name and on behalf of the Municipality by the Mayor and
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the City Clerk, in substantially the form on file, but with
all such changes therein, not inconsistent with applicable law,
as may be approved by the Mayor, City Clerk or City Attorney,
which approval shall be conclusively evidenced by the execution
thereof.
2. Resolution to Remain in Effect. Except to the extent
explicitly and implicitly modified by the terms hereof or the
transactions contemplated hereby, the Resolution shall remain
in full force and effect with respect to the amended Bond and,
to that extent, the Resolution is hereby incorporated herein
by reference with the same force and effect as if fully restated
and set forth herein.
Adopted by Council December 2, 1986.
Published:
December 12, 1986
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ATTEST, ~ ~~
C TY CLERK
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