Agenda - Council - 02/10/2004 - Laserfiche WebLink

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RESOLUTION AUTHORIZING THE ISSUANCE OF LEASE REVENUE BONDS TO FINANCE A PUBLIC (CHARTER) SCHOOL PROJECT PURSUANT TO MINNESOTA LAW, AND AUTHORIZING THE EXECUTION OF VARIOUS DOCUMENTS IN CONNECTION THEREWITH (PACT CHARTER SCHOOL PROJECT) 1. Authority. The City is, by the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.152 to 469.1651, as amended (the "Act"), authorized to issue and sell its revenue bonds for the purpose of financing industrial development within the boundaries of the city and to enter into agreements necessary or convenient in the exercise of the powers grantedby the Act. 2. Authorization of Project; Documems Presented. PCS Building Company (the "Company"),: ai Minnesota nonprofit corporation and an organization described under Section 501(c)(3) of thc Internal Revenue Code of 1986, as amended, has proposed to this Council that the City issue and sell its Lease Revenue Bonds (PACT Charter School Project) Series 2004A (the "Series A Bonds") and its taxable Lease Revenue Bonds (PACT Charter School Project) Series 2004B (the "Series B Bonds," and together with the Series A Bonds, the "Bonds") in an aggregate amount not to exceed $11,800,000, in substantially the form set forth in the hereinafter-mentioned Indenture, pursuant to the Act and loan the proceeds thereof to the Company, in order to finance the acquisition, construction and equipping of an approximately 72,004 square foot kindergarten through grade twelve education facility (the "Project") to be owned by the ..':Company and leased to the PACT Charter School, a Minnesota nonprofit corporation andi an organization described under Section 501 (c)(3) of the Imemal Revenue Code of 1986, as amended, (the "School"). Forms of the following documents relating to the Bonds have been submitted to the City: (.a) Loan Agreement (the "Loan Agreement") between the City and the Company, whereby the City agrees to make a loan to the Company of the gross proceeds of sale of the Bonds and the Company agrees to operate the Project and to pay amounts in repayment of the loan sufficient to provide for the full and prompt payment of the principal of, premium, if any, and interest on the Bonds, and compensate the City for its inability to designate its bonds as bank qualified in 2004; and (b) Indenture of Trust (the "Indenture") between the City and Wells Fargo Bank Minnesota, National Association, as trustee (the "Trustee"), authorizing the issuance of and pledging certain revenues, including those to be derived from the Loan Agreement, as security for the Bonds, attd setting forth proposed recitals, covenants and agreements relating thereto; and (C) Mortgage, Security Agreemem and Assignment of Rents (the "Mortgage"), from the Company to the Trustee, by which the Company grants a mortgage lien on and securit7 interest in certain mortgaged property, as described therein, as further security for the payment of the Bonds and assigns its interests in all rents with respect to the mortgaged property; and 1612446vl 2