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