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Cmmc il Member introduced the following resolution and moved its adoption: <br /> <br />RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF <br />$3,810,000 VARIABLE RATE DEMAND INDUSTRIAL DEVELOPMENT <br />REVENUE BONDS, <br />(KILKENNY LIMITED LIABILITY COMPANY PROJECT) SERIES 2005 <br />TO FINANCE A PROJECT <br /> <br /> WHEREAS, the Council has receiVed a proposal from Kilkenny Limited <br />I,iability Company, a Minnesota limited liability company (the "Company,') that the City <br />undertake to finance a certain Project as herein described, pursuant to Minnesota Statutes, <br />Sections 469.152 through 469.165 (the "Act"), through issuance by the City of its $3,810,000 <br />Variable Rate Demand Industrial Development Revenue Bonds (Kilkenny Limited Liability <br />Company Project), Series 2005 (the "Bonds"); and <br /> <br />WHEREAS, it is proposed that, pursuant to a Loan Agreement dated as of June <br />l, 2005, between the City and the Company (the "Loan Agreement"), the City loan the proceeds <br />ol~ the Bonds to the Company to finance the acquisition, renovation and equipping of a <br />manufitcturing facility located at 6400 Bunker Lake Boulevard in the .City (the "Project") which <br />will be owned by the Company and leased to Sign-Zone, Inc., a Minnesota corporation. The <br />basic paymcnts to be made by the Company under the Loan Agreement are fixed so'as to <br />produce revenue sufficient to pay the principal of, premium, if any, and. interest on the Bonds <br />when due. It is further proposed that the City assign its rights to the basic payments and certain <br />other rights under the Loan Agreement to U.S. Bank National Association in St. Paul, Minnesota <br />(the "Trustee") as security for payment of the Bonds under an Indenture of Trust dated as of June <br />1, 2005 (thc "Indenture"). Payment of the Bonds is initially secured by an irrevocable Letter of <br />Credit to be issued by Associated Bank Minnesota, National Association in favor of the Trustee <br />in an mnount equal to the principal amount of the Bonds, plus certain additional interest thereon. <br />Thc Bonds will be purchased by Northland Securities, Inc. (the "Underwriter"), pursuant to a <br />Bond Purchase Agreement among the City, the Company and-the Underwriter (the "Purchase <br />Agreement") and an Official Statement (the "Official Statement"). <br /> <br /> WHEREAS} forms of the following documents have been presented to the City <br />and are proposed to be executed by the City in connection with issuance of the Bonds: <br /> <br />(a) <br /> <br />(c) <br /> <br />The Loan Agreement <br />The Indenture <br />The Purchase Agreement <br /> <br />The usc o~' the Official Statement is hereby authorized, but the City has not participated in the <br />preparation of or reviewed, and will not participate in the preparation of or review of, the Official <br />Statement and has not made and will not make any independent investigation of the facts and <br />statemctats provided therein; accordingly, the city assumes no responsibility with respect thereto, <br />including without limitation as to matters relating to the accuracy, completeness or sufficiency of <br />thc Official Statement. <br /> <br />WIIEREAS, it is hereby found, determined and declared that: <br /> <br />-189- <br /> <br /> <br />