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<br />RESOLUTION NO. 8732
<br />
<br />RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF AMENDMENT AND
<br />RESTATEMENT OF THE $1,500,000 COMMERCIAL DEVELOPMENT REVENUE NOTE
<br />OF 1982, SERIES A (HECO, INC. PROJECT) AND $1,500,000 COMMERCIAL
<br />DEVELOPMENT NOTE OF 1982, SERIES B (HECO, INC. PROJECT) AND RELATED
<br />DOCUMENTS.
<br />
<br />WHEREAS, the City issued its $1,500,000 Commercial Development
<br />Revenue Note of 1982, Series A (Heco, Inc. Project) and its
<br />$1,500,000 Commercial Development Revenue Note of 1982, Series B
<br />(Heco, Inc. Project) both dated as of August 30, 1982 (the "Notes")
<br />to provide financing for a project undertaken by Heco, Inc., a
<br />Minnesota corporation (the "Company") consisting of the
<br />acquisition, construction and equipping of an office/warehouse
<br />building located in the City (the "Project") to be owned by the
<br />Company and leased to Hoffman Electric, Inc. and other tenants.
<br />The proceeds of the Notes were loaned to the Company pursuant to a
<br />Loan Agreement dated as of August 30, 1982 (the "Loan Agreement").
<br />The Notes were purchased by First National Bank of Minneapolis, now
<br />known as First Bank National Association (the "Bank"). Pursuant
<br />to a Pledge Agreement dated as of August 30, 1982 (the "Pledge
<br />Agreement"), the City assigned its interest in the Loan Agreement
<br />to the Bank. The obligations of the Company under the Loan
<br />Agreement, including the obligation to repay the Notes, were
<br />secured by a Combination Mortgage, Security Agreement and Fixture
<br />Financing Statement dated as of August 30, 1982 (the "Mortgage"),
<br />a Guaranty Agreement by Hoffman Electric, Inc., the Company and Nu
<br />Comp Systems, Inc. dated as of August 30, 1982 (the "Guaranty") and
<br />an Assignment of Rents and Leases dated as of August 30, 1982 (the
<br />"Assignment") The principal remaining outstanding on the Notes is
<br />$3,000,000.
<br />
<br />WHEREAS, the Company has been liquidated pursuant to the u.S.
<br />Bankruptcy Code and Lutheran Brotherhood has acquired title to the
<br />Proj ect pursuant to foreclosure of its second mortgage on the
<br />Project; and
<br />
<br />WHEREAS, the Bank and Lutheran Brotherhood have agreed to
<br />reduce the principal amount of the Notes, fix and reduce the
<br />interest rate on the Notes and amend certain of the terms of
<br />repayment of the Notes, as set forth in the Amendment and
<br />Restatement of $1,500,000 Commercial Development Revenue Note of
<br />1982, Series A (Heco, Inc. Project) and Amendment and Restatement
<br />of $1,500,000 Commercial Development Revenue Note of 1982, Series
<br />B (Heco, Inc. Project), forms which have been submitted to the
<br />Council for approval (the "Amendments").
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<br />422017
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