HomeMy WebLinkAbout88-171 - ADMIN Resolution - City Council - 1988/11/07i
RESOLUTION NO.
88-171
RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF AMENDMENT
NO. 1 TO THE $1,000,000 INDUSTRIAL DEVELOPMENT REVENUE BOND
(K K CORPORATION PROJECT).
WHEREAS, the City issued its $1,000,000 Industrial Develop-
ment Revenue Bond (K K Corporation Project) dated as of Septem-
ber 1, 1981 (the "Bond") to provide permanent financing for
a project undertaken by K K Corporation, a Minnesota corporation
(the "Company") consisting of the acquisition, construction
and equipping of a commercial building located at 1200 Vernon
Avenue (the "Project) to be owned by the Company and leased
to various tenants. The proceeds of the Bond were loaned
to the Company pursuant to a Loan and Purchase Agreement dated
as of September 1, 1981 (the "Loan Agreement"). The Bond
was purchased by First Edina National Bank, now known as First
Bank National Association (the "Bank") and as of November
17, 1988, the principal outstanding on the Bond will be
$ 930,176.00 Pursuant to a Loan Agreement Assignment
dated as of September 1, 1981 (the "Loan Assignment"), the
City has assigned the Loan Agreement to the Bank. The obliga-
tions of the Company under the Loan Agreement, including the
obligation to repay the Bond, have been secured by a Combination
Mortgage, Security Agreement and Fixture Financing Statement
dated as of September 1, 1981 (the "Mortgage"), a Guaranty
Agreement of Paul Klodt dated as of September 1, 1981 (the
"Guaranty") and an Assignment of Rents and Leases dated as
of September 1, 1981 (the "Assignment");
WHEREAS, the Bank has agreed to sell the Bond and transfer
and assign all of its right, title and interest in and to
the Bond, the Mortgage, the Loan Agreement, the Guaranty and
the Assignment to Hanson & Co. (the
"Purchaser"); and
WHEREAS, the Purchaser and the Company have agreed to
reduce the interest rate on the Bond and to amend certain
of the terms of repayment of the Bond, as set forth in Amendment
No. 1 to Industrial Development Revenue Bond (K K Corporation
Project), which has been submitted to the Council for approval
(the "Amendment").
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF ST. LOUIS PARK, MINNESOTA:
1. The City shall proceed forthwith to execute the
Amendment to Bond in the form and upon the terms set forth.
The Mayor, City Manager and City Clerk are authorized and
directed to execute the Amendment and deliver it to the Pur-
chaser.
2. The Mayor, City Manager and City Clerk 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 Bond and such other
affidavits and certificates as may be required to show the
facts relating to the legality of the 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 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 addi-
tions 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 said 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 accord-
ance with the terms hereof. In the absence of the Mayor,
City Manager or City Clerk, any of the documents authorized
by this Resolution to be executed may be executed by such
other officer of the City as in the opinion of the City Attorney
may properly execute such documents. The City Clerk is hereby
authorized to register the transfer of the Bond from the Bank
to the Purchaser as provided in the original form of the Bond.
Adopted by the City Council of November 7,
1988.
Reviewed for Administration: Approved as to
1.-
City Manager City A.`orney
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