HomeMy WebLinkAbout76-65CITY OF LAKEVILLE
Date 1 November, 1976 Resolution No. 76-65
Motion by Curry
Seconded by Mako
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LAKEVILLE, MINNESOTA,
AS FOLLOWS:
1. Pursuant to a resolution of the Village Council of the Village of
Lakeville duly adopted December 17, 1973, the Village made, entered into, executed,
delivered and accepted delivery of, the following documents:
(a) Lease (hereinafter called the "Lease") dated December 1,
1973, between the Village, as Lessor, and Laminated Products, Inc., a
Minnesota corporation (hereinafter called "Laminated"), as Lessee, filed
for record in the office of the Register of Deeds in and for the County
of Dakota, State of Minnesota, on January 3, 1974, as Document No. 428412.
(b) Mortgage and Indenture of Trust (hereinafter called the
"Indenture") dated December 1, 1973, filed for record in the office of the
Register of Deeds in and for the County of Dakota, State of Minnesota, on
January 3, 1974, as Document No. 428413 by which the Village, in order to
secure the payment of the principal of and interest on the Industrial
Development Revenue Bonds (Laminated Products, Inc.) (hereinafter called
the "Bonds") issued by the Village pursuant to the Indenture in the original
aggregate principal amount of Three Hundred Eighty Thousand and no/100ths
Dollars ($380,000.00) according to their tenor and effect, and the performance
and observance by the Village of all of the covenants expressed or implied in
the Indenture and in the Bonds granted, bargained, sold, conveyed, confirmed,
assigned, transferred in trust, mortgaged and pledged to the First National
Bank of Minneapolis, as Trustee, and to its successors in trust, and to them
and their assigns, forever, and granted as security interest in, for the
securing and performance of the obligations of the Village set forth in
the Indenture, the following (hereinafter collectively called the "Property"):
FIRST
The Village's estate and interest in real estate
described in Exhibit "A" attached hereto and made
a part hereof, situate in the County of Dakota and
State of Minnesota;
SECOND
The Village's entire interest in and to all buildings,
structures, additions and improvements now or here-
after located on the real estate described in Exhibit
"A" and all tenements, hereditaments, appurtenances,
rights, privileges and immunities thereunto belonging
or appertaining;
THIRD
The Village's entire interest in and to any items of
personal property made a part of the Project, herein-
after defined as Leased Equipment, but excluding
property installed by the Tenant pursuant to Section
5.12 of the Lease;
FOURTH
All rights, interest and privileges of the Village in,
to and under the Lease, including, but not limited to,
all rentals, revenues and income derived by the Village
from the Project, and all rentals received by the Village
from the leasing of said property, and in particular the
rentals and profits received under the Lease., which
rentals, and profits are hereby expressly assigned to
the Trustee for deposit by the Trustee in trust accounts
in accordance with Article Five of the Indenture; and
FIFTH
All proceeds from any property described in the Granting
Clauses of the Indenture, and any and all other property
of every name and nature from time to time hereafter by
delivery or by writing of any kind conveyed, mortgaged,
pledged, assigned or transferred, as and for additional
security hereunder by the Village or by anyone in its
behalf or with its written consent to the Trustee, which
is hereby authorized to receive any and all such property
at any and all times and to hold and apply the same
subject to the terms hereof;
2. It is hereby found, determined and declared that:
(a) Laminated has defaulted under the terms, covenants, conditions
and agreements of the Lease, including, but not limited to, the failure of
Laminated to pay the basic rent required under Section 4.02 thereof;
(b) As a consequence of Laminated's failure to pay the basic
rent required under Section 4.02 of the Lease, the City will be unable to
make the due and punctual payment of the principal of and interest on the
Bonds;
(c) The fair market value of the Property is less than the
currently outstanding principal of and accrued interest on the Bonds;
(d) First National Bank of Minneapolis, as Trustee under the
Indenture, has requested the City to convey to the Bank all of the City's
rights, title, interest and estate in and to (i) the property described on
Exhibit "A" attached hereto; and (ii) all machinery, equipment and other
personal property and fixtures included in the Property, and has submitted
to the City and the City Council for their review a suggested form of Quit
Claim Deed and Bill of Sale which are now on file in the office of the City
Clerk;
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(e) First National Bank of Minneapolis has not taken, or
attempted to take, unfair advantage of the City by intimidation, threats,
duress or otherwise;
(f) The City has been advised by the City Attorney as to the
business and legal aspects of the execution and delivery of the Quit Claim
Deed and Bill of Sale above described;
(g) Based upon such advice and after due deliberation, the City
is receiving adequate and fair consideration for their equity in the
Property; and
(h) There is no agreement, parole or otherwise, between First
National Bank of Minneapolis and the City that the Quit Claim Deed and
Bill of Sale above described are to be for security only and not absolute
conveyances.
3. The forms of Quit Claim Deed and Bill of Sale referred to in paragraph
2 are approved, subject to final approval by the City Attorney, who is also authorized
on behalf of the City to approve minor changes in the documents prior to their
execution. The Quit Claim Deed and Bill of Sale referred to in paragraph 2 are
directed to be executed in the name and on behalf of the City by the Mayor and
City Clerk and delivered to First National Bank of Minneapolis.
4. The Mayor, City Clerk, City Attorney and officers of the City are
hereby authorized and directed to prepare, furnish, execute and deliver certified
copies of this Resolution and such other affidavits, certificates, agreements and
other documents which may be required in order to carry out the transactions
contemplated by, and the intention of, this Resolution.
Adopted by the City Council of the City of Lakeville this 1st day of
November , 1976.
Attest:
t,C
City Clerk Mayor
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EXIIIBIT A
That part of the North::•est Quarter (NW 1/4)
of the Southeast Quarter (SE 1/4) of Section
Thirty Thrce (33) , Township One ilu::dred rour-
teen (114) , Range 'i'wcnty (20) , Dakota County,
Minnesota, described as - follox•:s :
Commencing at the Northeast corner of the
Northwest Quarter (:. 1/4) of the Southeast
Quarter (SE 1/4) of section; thence
Westerly along the North line of the North-
west Quarter 1/4) of the Southeast Quarter
(SE 1/4) of said section. 329.07 feet to a
point 990.05 feet East of toe :dorthaest corner
of the North,. -.-est Quarter (NST 1/4) of the South-
east Quarter (SE 1/4) of said section; thence
south, parallel with the west line of the
Northwest Quarter (MI 1/4) of the Southeast
Quarter (SE 1/4) of said section 848.82 feet
to the point of beginning of the tract to be
described; thence continuing SoutCh 442.20
feet; thence I.estcrly, parallel with the south
line of the Northwnst Quarter MW 1/4) of
the Southeast Quarter (SE 1/4) of said section
330.00 feet to the East line of the west 660.00
feet of the Northwest QuE:rter (N 1/4) of the
Southeast Quarter (SE 1/4) of said section;
thence Horth along the East line of the ::est
660.00 feet of the 2:ortrewest Quarter (Z' --'U- 1/4)
of the Southeast Quarter (SE 1/4) of said
section 442.20 feet; thence Easterly parallel
t:,ith the said south line 330.00 feet to the
point of beginning. Said tract being subject
to Road Ease -men -t- for Hannover Avenue and 218th.
Street,
according to the Government survey thereof, Dakota County, Minnesota.