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HomeMy WebLinkAboutResolution 92-51 Resolution No. 92-51 Date Adopted: December 14 992 CITY OF COLUMBIA HEIGHTS A RESOLUTION AUTHORIZING CERTAIN AMENDa~ITS RELATING TO CITY OF COLUMBIA HEIGHTS, MINNESOTA COMMERCIAL DEVELOPMENT REVENUE NOTE (RUVELSON & ASSOCIATES, INCORPORATED PROJECT) WHEREAS, pursuant to the provisions of the Municipal Industrial Development Act, Minnesota Statutes Chapter 474, the City of Columbia Heights, Minnesota (the "City") has issued its $810,000 Commercial Development Revenue Note (Ruvelson & Associates, Incorporated Project) dated March 4, 1982 (the "Note"); and WHEREAS, UNUM Life Insurance Company of America, formerly known as Unionmutual Stock Life Insurance Co. of America (the "Lender" ) purchased the Note from the City; and WHEREAS, the proceeds from the sale of the Note were loaned to Ruvelson & Associates, Incorporated (the "Borrower") pursuant to the terms of a Loan Agreement dated March 4, 1982 (the "Loan Agreement") between the City and the Borrower; and WHEREAS, the City assigned its interest in the Loan Agreement to the Lender pursuant to the terms of a Pledge Agreement dated March 4, 1982 (the "Pledge Agreement"); and WHEREAS, the Borrower is unable to pay the sums due under the Note at the interest rate currently payable thereunder and the Lender has agreed to reduce the interest rate payable under the Note; and WHEREAS, the Borrower and the Lender have requested that the Note, the Loan Agreement and the Pledge Agreement be revised to reflect the lowered interest rate; and WHEREAS, the City has been advised that pursuant to Minnesota Statutes, Section 469.152 through 469.165 (the "Act"), it has the authority to approve the requested change; and WHEREAS, there has been filed with the City a form of a First Amendment to Loan Agreement between the City and the Borrower to be dated on or about December 1, 1992 and a form of a First Amendment to Note and to Pledge Agreement to be dated on or about December 1, 1992 between the City and the Lender (collectively, the "Amendment Documents" ). NOW, THEREFORE, BE IT RESOLVED: 1. Amendment of Note, Loan Aqreement and Pledqe Agreement. The Note, the Loan Agreement and the Pledge Agreement shall be amended to reflect the change in the interest rate on the Note to seven percent (7%) per annum, effective December 1, 1992. 2. ADDroval of Amendment Documents. The terms and provisions of the Amendment Documents are hereby approved. The Mayor and City Manager of the City are hereby authorized for and in the name of the City to execute and deliver the Amendments Documents in substantially the forms presented herewith, or with such insertions, corrections, or non-substantive modifications or additions, or modifications or additions made as contemplated by Paragraph 1 of this Resolution, as shall be approved by them consistent with this Resolution and the terms of the Act, their execution thereof to constitute conclusive evidence of their approval of any such insertions and corrections. 3. Effective Date; Conformity. This Resolution shall be effective immediately upon its passage and approval. To the extent that any prior resolutions of this body are inconsistent with the provisions hereof, this Resolution shall control and such prior resolutions shall be deemed amended to such extent as may be necessary to bring them in conformity with this Resolution. Offered by: peterson Seconded by: Murzyn Roll call: All ayes (~-An~e Student, C~-uncil Secretary