HomeMy WebLinkAboutResolution - 95-206 - Municipal Industrial Development Bonds for Challenge Printing (Robert Lothenbach Project) - 12/05/1995 RESOLUTION NO 95 -20 6
RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF
$1,450, 000 VARIABLE RATE DEMAND INDUSTRIAL DEVELOPMENT
REVENUE BONDS, SERIES 1995 (ROBERT LOTHENBACH PROJECT) TO
FINANCE A PROJECT
BE IT RESOLVED by the City Council of the City of Eden
Prairie, Minnesota (the "Issuer") , as follows:
1. The Issuer has received a proposal from the Robert
Lothenbach (the "Company") that the Issuer undertake to finance a
certain Project as herein described, and pursuant to Minnesota
Statutes, Sections 469 .152 through 469 .1651 (the "Act") , through
issuance by the Issuer of its $1,450, 000 Variable Rate Demand
Industrial Development Revenue Bonds, Series 1995 (Robert
Lothenbach Project) (the "Bonds") .
2 . It is proposed that, pursuant to a Loan Agreement
dated as of December 1, 1995, between the Issuer and the Company
(the "Loan Agreement") , the Issuer loan the proceeds of the Bonds
to the Company to finance the acquisition and construction of an
approximately 48, 160 sq. ft. addition to the existing manufacturing
facility located at 7500 Golden Triangle Drive, Eden Prairie,
Minnesota (the "Project") which is leased by the Company to
Challenge Printing, Inc. The basic payments to be made by the
Company under the Loan Agreement are fixed so as to produce revenue
sufficient to pay the principal of, premium, if any, and interest
on the Bonds when due. It is further proposed that the Issuer
assign its rights to the basic payments and certain other rights
under the Loan Agreement to First Trust National Association, in
St. Paul, Minnesota (the "Trustee") as security for payment of the
Bonds under an Indenture of Trust dated as of December 1, 1995 (the
11 Indenture") . Payment of the Bonds is initially secured by an
irrevocable Letter of Credit to be issued by Norwest Bank
Minnesota, National Association in favor of the Trustee in an
amount equal to the principal amount of the Bonds plus a certain
amount of interest thereon. The Bonds are intended tb be privately
placed with accredited investors by Norwest Bank Minnesota,
National Association (the "Placement Agent") in accordance with a
Bond Placement Agreement dated as of closing among the Issuer, the
Company and the Placement Agent (the "Placement Agreement") and
pursuant to a Private Placement Memorandum dated as of the date of
closing (the "Memorandum") .
3 . Pursuant to the preliminary approval of the Issuer,
forms of the following documents have been submitted to the Issuer
for approval:
736772.2
of the Mayor or City Manager, any of the documents authorized by
this resolution to be executed may be executed by the acting Mayor
or designee of the City Manager, .respectively.
Adopted: December 5, 199
Mayor
Attest
�Clerk
(SEAL)
r
736772.2 4