2003-03-26 CC Packet - Laserfiche WebLink

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, withdrawn Member will be paid, without interest, on a payment schedule established by the Commission, provided, however, the term of such payment schedule shall not exceed five (5) years. When calculating an equity repayment schedule, the Commission may deduct the withdrawn Member's proportionate share of outstanding indebtedness from the amount of any equity due to the withdrawn Member. Notwithstanding anything to the contrary, a withdrawipg Member shall have no claim to the franchise fee. the Grantee collected on its behalf for the year in which its withdrawal is effective, except for the reimbursement of cable-related expenses for that year. If no Bonds are outstandin& for the calendar year following withdrawal, and for all subsequent years, the entire franchise fee calculated upon gross revenues attributable to the system within the withdrawn Member shall be paid by Gnintee to the withdrawn Member in accordance with the Franchise. 8. That Article XII, Section 1 of the Agreement shall be amended to read as follows: . The Commission shall continue for an indefinite term unless the number of Members becomes less than five, and the Commission may also be terminated by mutual ~ment of all of the Members at any time; provided that the Commission shall continue to exist as long as any Bonds described in .Article vm, Section 13 of this agreement remain Outstanding. 9. The City understands and agrees that, pursuant to the foregoing amendments of the Agreement, (a) the Commission would be authorized to acquire the land and issue the Bonds for the Project and to proceed with its completion and (b) the City would be obligated to pay its share of the debt service on the Bonds from franchise fees and to co~ to dO so even if the City might elect to withdraw from the Commission. 10. This paragraph is solely to allow the Bonds initially issued pursuant to Article vm, Section 13 of the Agreement to be desigrasriM as "qualifie4 tax~empt obligations" within the mea.ning of Section 265(b)(3) of the IntemalRevenue Code (the "Code") in the hope and expectation of achieving thereby certain lower interest rates on the Bonds. For this purpose, it is assumed that the full $2,500,000 of Bonds would.be issued in 2003, although the actual amount of Bonds issued may be less, and that each Member. City of the Commission would have an allocation of that total bond issue, based on the percentage shares of the members for 2002, as follows: Percentage Allocated Member' Share Bond Amount Blaine 52.347% $1,308,675 Centerville 3.567 89,175 Circle Pines 5.001 125,025 Ham Lake 11.696 292,400 Lexington 2.551 63,775 ,