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RESOLUTION NO. 86-151
RESOLUTION RELATING TO $3,500,000 COMMERCIAL DEVELOPMENT
REVENUE BONDS (MILLS-PROPERTIES., INC. PROJECT); APPROV-
ING FIRST"AMENDMENT TO MORTGAGE LOAN AGREEMENT AND FIRST`
SUPPLEMENTAL INDENTURE OF TRUST
WHEREAS, the City is authorized and empowered to issue
:revenue bonds to ffinance, in whole or in part, thecost of
acquisition, construction, reconstruction,:.improvement, better-
menu or extension of any"properties, real or personal,. used or
useful in eonnecticrn with a revenue-producing. enterprise and to
enter into a revenue agreement with any Person in such manner that
payments required thereby to be made by such' Person shall be
fixed, and revised from time to time as necessary, so as to
produce income and revenue sufficient. to provide for the prompt
payment of: principal of and interest on such revenue bonds when
due.,
AREAS, the City and Marquette Bank Minneapolis,. N.A.,
in Minneapolis, Minnesota, as .Trustee, have executed and delivered..
an Indenture of Trust, dated as of December 15, 1985 (the Original.
.Indenture.), `pursuant to which the City issued. $3,500,.000 in
aggregate -principal amount of its Commercial Development Revenue
-Bonds (Mills Properties, Inc. Project), dated December 15, 1985
tthe.Bonds); and
WHEREAS, the City loaned the roceeds of the Bonds to
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Mills. Properties, Inc. (the_Obligor) pursuant`to the terms. of a
Mortgage loan Agreement, dated December 15, 1985: (the Original.
Agreement) between the City and the Obligor;... and
i~IEREAS, prior to the issuance of the Bonds it was
agreed that certain amendments were neces ary to the Original
Agreement and Original Indenture. to clarify the payments' due. to
Bondholders upon the occurrence of certain events affecting the
tax status 'of the Bonds-and/or Bondholders.; and
'i~IHEREAS, it is now appropriate to undertake such
amendm:erits, and: draft copies of a First Amendment to .Mortgage-Loan
Agreement and First. Supplemental Indenture of Trust have been
presented,t"o the Council.
-1~OW, THEREFORE, BE IT RESOLVED by the City Council of_
the City of Lakeville, Minnesota, as follows:
1. The drafts of the .First Amendment to Mortgage Loan
Agreement` and First.:Supplemental Indenture of Trust are hereby
approved, and he .Mayor and City Clerk-Administrator are author-
i~ed and directed to execute copies thereof on behalf of the City`.:
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2. The Mayor and City Clerk-Administrator are further
authorized"and directed to execute .such closing. certificates. and
other documents as may' be necessary to accomplish the:. transaction
described in the First Amendment to. Mortgage Loan Agreement and
First Supplemental .Indenture of Trust.
3. The City .elects to apply the provisions of Section
103 (b){6)(D) of the 1954 Code and Section 144ta}(4} of the 198b _
Code to :thee Bonds, as said Bonds are amended by the provisions of
the First Amendment. o Mortgage Loan Agreement and First
Supplemental. Indenture of Trust.
Adopted this day of December, 1986.
...~(.~(;~t1M.C.
~ Ma r
Attest-
C erk-Adman s rator
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