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(d) The issuance and sale of the $7,000,000 Educational Facilities Revenue Note, <br />Series 2008 (Concordia Academy Association of Schools Project) (the "Note") by the City, <br />pursuant to the Act, is in the best interest of the City, and the City hereby determines to issue the <br />Note and to sell the Note to Premier Bank in Maplewood, Mirmesota (the "Lender"), as <br />provided herein. The City will loan the proceeds of the Note (the "Loan") to the Borrower to <br />provide long term financing for the Project. <br />(e) Pursuant to an Amended and Restated Loan Agreement (the "Loan Agreement") <br />among the City, the Borrower and the Lender, the Borrower has agreed to repay the Note in <br />specified amounts and at specified times sufficient to pay in full when due the principal of, <br />premium, if any, and interest on the Note. In addition, the Loan Agreement contains provisions <br />relating to the completion, maintenance and operation of the Project, indemnification, insurance, <br />and other agreements and covenants which are required or permitted by the Act and which the <br />City and the Borrower deem necessary or desirable for the financing of the Project. A draft of <br />the Loan Agreement has been submitted to the City. <br />(f) Pursuant to a Pledge Agreement (the "Pledge Agreement") between the City and <br />the Lender, the City has pledged and granted a security interest in all of its rights, title, and <br />interest in the Loan Agreement to the Lender (except for certain rights of indemnification and to <br />reimbursement for certain costs and expenses). A draft of the Pledge Agreement has been <br />submitted to the City. <br />(g) Pursuant to an Amended and Restated Mortgage, Security Agreement and <br />Fixture Financing Statement and a Security Agreement each to be executed by the Borrower in <br />favor of the Lender, the Borrower has secured payment of amounts due under the Loan <br />Agreement and Note by granting to the Lender a mortgage lien on and security interest in the <br />property described therein. <br />(h) The Note will be a special limited obligation of the City. The Note shall not be <br />payable from or charged upon any funds other than the revenues pledged to the payment <br />thereof, nor shall the City be subject to any liability thereon. No holder of the Note shall ever <br />have the right to compel any exercise of the taxing power of the City to pay the Note or the <br />interest thereon, nor to enforce payment thereof against any property of the City. The Note shall <br />not constitute a debt of the City within the meaning of any constitutional or statutory limitation. <br />(i) It is desirable, feasible and consistent with the objects and purposes of the Act to <br />issue the Note, for the purpose of providing long term financing for the costs of the Project. <br />1.2 Authorization and Ratification of Project. The City has heretofore and does hereby <br />authorize the Borrower, in accordance with the provisions of the Act and subject to the terms and <br />conditions imposed by the Lender, to provide for the construction and equipping of the Project by such <br />means as shall be available to the Borrower and in the manner determined by the Borrower, and without <br />advertisement for bids as may be required for the construction and acquisition of other municipal <br />facilities; and the City hereby ratifies, affirms, and approves all actions heretofore taken by the <br />Borrower consistent with and in anticipation of such authority. <br />Page 4 of 9 <br />