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HomeMy WebLinkAbout88-154 • CITY OF LAKEVILLE, MINNESOTA RESOLUTION NO. 88-154 , A RESOLUTION RELATING TO THE APPROVAL OF AND EXECUTION OF DOCUMENT AMENDMENTS IN CONNECTION WITH $4,650,000 MULTIFAMILY RENTAL HOUSING REVENUE BONDS (SOUTHFORK VILLAGE APARTMENTS PROJECT) SERIES 1985 WHEREAS, the City has heretofore issued its Multifamily Rental Housing Revenue Bonds (SouthFork Village Apartments Project) Series 1985 in the original aggregate principal amount of $15,000,000, of which $4,650,000 remains outstanding as of the date hereof (the "Bonds") pursuant to an Indenture of Trust dated as of December 1, 1985, as amended by a First Supplemental Indenture of Trust dated January 5, 1988 (collectively, the "Indenture"); and WHEREAS, Southfork Apartments Limited Partnership - II (the "Company") has advised the City that pursuant to the Indenture the Bonds are subject to redemption on December 1, 1988 and has requested that the City amend the Indenture and certain other collateral documents to cancel such redemption date and extend such redemption date to no later than July 1, 1989; and WHEREAS, to effect the foregoing extension, the City desires to amend the Indenture, the Loan Agreement dated as of Decem- ber 1, 1985 as amended by a First Amendment to Loan Agreement and Second Amendment to Loan Agreement, both dated January 5, 1988 (collectively, the "Loan Agreement") and certain other collateral documents; and WHEREAS, the amendments to the Loan Agreement and Indenture will cause the Bonds to be deemed reissued under the Internal Revenue Code of 1986, as amended (the "Code"); NOW, THEREFORE, be it resolved by the City Council of the City of Lakeville, Minnesota, as follows: 1. The form of Second Supplemental Indenture of Trust, dated as of November 30, 1988 between the City and Sovran Bank/ Maryland on file with the Clerk-Administrator (the "Supplemental Indenture") is hereby approved; the form of Third Amendment to Loan Agreement, dated as of November 30, 1988 between the City and the Company on file with the Clerk-Administrator (the "Third Loan Agreement Amendment") is hereby approved; and the form of Second Amendment to Regulatory Agreement, dated as of Novem- ber 30, 1988 which is on file with the Clerk-Administrator on the date hereof (the "Regulatory Agreement Amendment") is hereby approved.. ~r • 2. The City hereby approves the reissuance of the Bonds with such terms and in the maturity and in the form and denominations originally set forth in the Indenture as amended by the Supplemental Indenture hereby authorized, with such terms and provisions as therein provided. From and after December 1, 1988 until the Conversion Date (as defined in the Indenture), the Bonds shall bear interest at a rate not in excess of eleven percent (11~) per annum. The Bonds shall be a limited obligation of the City in accordance with the Indenture and shall not constitute a general obligation of the City. 3. The Mayor and Clerk-Administrator are hereby authorized and directed, upon the request of the Company, to execute and deliver the Supplemental Indenture, the Third Loan Agreement Amendment and the Regulatory Agreement Amendment on behalf of the City with such modifications thereto, deletions therefrom and additions thereto as may be necessary and appropriate and not otherwise materially adverse to the City. The execution of the Supplemental Indenture, Third Loan .Agreement Amendment and Regu- latory Agreement Amendment shall be conclusive evidence as to the approval of such documents in accordance with their terms. 4. The Mayor, Clerk-Administrator and other officers of the City are hereby authorized and directed upon the request of the Company to execute on behalf of the City such other consents, instruments and certificates and take such further actions as may be reasonably requested by the Company to give effect to the transactions contemplated herein and in the foregoing instru- ments. 5. In the absence of any official hereby authorized to execute any instrument or to take an action, such instrument may be executed or such action may be taken by such other person who is otherwise permitted by law to undertake the same. Adopted: November 21, 1988. Approved: Mayor Duane Z ATTEST: r , s s~ Patrick E. McGarvey, City Cle f~` -2-