HomeMy WebLinkAboutResolution - 91-87 - Interest Rate Reduction - Tri-Cor MIDB - 04/16/1991 w
CITY OF EDEN PRAIRIE
• HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO.
A RESOLUTION OF THE CITY OF EDEN PRAIRIE, MINNESOTA TO AMEND THAT
CERTAIN COMMERCIAL DEVELOPMENT REVENUE NOTE (TRICOR PROPERTIES
PROJECT) DATED DECEMBER 22, 1983 , IN THE AMOUNT OF $1,500,000 AND
THE LOAN AGREEMENT DATED DECEMBER 22, 1983.
WHEREAS , the City of Eden Prairie executed that certain
Commercial Development Revenue Note (TriCor Properties project)
dated December 22, 1983 , in the amount of $1,500,000 (the
"Note" ) , as Maker , to the order of Norwest Bank Minneapolis ,
National Association, which has been assigned to Nationwide Life
Insurance Company, an Ohio corporation ( "Holder") ; and
WHEREAS, the City of Eden Prairie and TriCor Properties
• entered into a Loan Agreement dated December 22, 1983 , with
respect to the Note; and
WHEREAS , the unpaid principal balance of the Note currently
earns interest at the rate of 11% per annum; and
WHEREAS , the City of Eden Prairie and Nationwide are
agreeable to a reduction in the interest rate set forth in the
Note.
NOW, THEREFORE , BE IT RESOLVED, the City of Eden Prairie
does hereby approve the Allonge to the Note and the Amendment to
the Loan Agreement as follows:
1. That the remaining principal balance on the Note as of
the date hereof, is $1,500,000 and shall bear interest at the
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rate of (a) 7% per annum from and after June 1, 1991 until
November 30 , 1992 and (b) 8% per annum from and after December 1,
1992 until maturity on February 1, 1995. Interest only shall be
payable, at such place as Holder may designate, in the amount of
$8,750, on the first day of July, 1991, and on the same day of
each and every month thereafter until and including December 1,
1992; and thereafter , in the amount of $10,000 on January 1, 1993
and on the same day of each and every month until maturity.
2. In addition to the foregoing, if the Net Operating
Income, as hereinafter defined, generated by the real property
owned by TriCor Properties and encumbered by the Mortgage
securing the Note ( "Property" ) exceeds $121,367.00 in any one
calendar year , Maker shall pay Holder 50% of such excess as addi-
tional interest. On or before March 31 of each year, Maker shall
cause TriCor Properties to provide Holder with (i) an operating
statement from the Property for the calendar year just ended,
certified by a general partner of TriCor Properties , and (ii ) any
amount due pursuant to the preceding sentence. Net Operating
Income is hereby defined as an amount of money equal to the dif-
ference obtained by subtracting (a) all operating expenses of
every kind, nature and description paid for or on behalf of
TriCor Properties related to the Property (excluding capital
improvements, tenant improvements and leasing commissions ) from
(b) gross operating income generated by the Property owned by
TriCor Properties.
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