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HomeMy WebLinkAbout1998-018 CCRMember Kathleen Carmody introduced the following resolution and moved its adoption: RESOLUTION NO. 99-18 RESOLUTION PROVIDING FOR RATIFICATION OF EXECUTION OF DOCUMENTS IN CONNECTION WITH DEFEASANCE OF THE CITY'S $4,600,000 ELDERLY HOUSING REVENUE BONDS, SERIES 1996 (THE PRESBYTERIAN HOMES OF MINNESOTA, INC. PROJECT) BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota (the "City"), as follows: 1. ' On January 15, 1998, Presbyterian Homes Housing and Assisted Living, Minnesota, Inc. (the "Corporation") entered into an agreement to sell its facility financed by the City's $4,600,000 Elderly Housing Revenue Bonds (The Presbyterian Homes of Minnesota, Inc. Project), Series 1996 (the "Bonds") to Earle Brown LaNel Limited Partnership, a Minnesota limited partnership (the "Purchaser"), and in connection with such sale, defease the Bonds under the Indenture of Trust pursuant to which the Bonds were issued (the "Indenture"). 2. In connection with the sale, the Corporation has established a defeasance escrow for the Bonds with Firstar Bank of Minnesota N. A., as successor to the Trustee under the Indenture pursuant to an Escrow Agreement dated January 20, 1998, by and between the Corporation and the Trustee (the "Escrow Agreement'. 3. In connection with defeasance of the Bonds and the transactions contemplated under the Indenture and Escrow Agreement, the Corporation and the Purchaser have entered into an Assumption Agreement ("Assumption Agreement') with respect to obligations of the Corporation and purchaser under that certain Regulatory Agreement dated as of February 1, .1996, by and between the Trustee, the City and the Corporation, and the City and the Trustee have executed such Assumption Agreement thereby acknowledging and recognizing the assumption of obligations by the Purchaser from the Corporation under such Agreement. 4. Pursuant to new "change-in-use regulations" promulgated under the Internal Revenue Code of 1986, as amended, the transfer of the Project and the defeasance of the Bonds in connection therewith require (a) execution by the governmental issuer (in this case, the City), of a certificate containing certain representations with respect to the transfer and defeasance (the "Remedial Action Certificate") and (b) written notice to the Commissioner of the Internal Revenue Service of the defe-asance escrow within 90 days of the date of the defeasance escrow being established (the "IRS Notice"). 5. FINDINGS. It is hereby found, determined, and declared that: a. Execution and delivery of the Assumption Agreement, Remedial Action Certificate and Notice of Defeasance, previously executed by the Mayor and City Manager in connection with such defeasance, are hereby ratified and approved. RESOLUTION NO. 98-18 _ _ Ja.rniary 26, 1998 Date ATTEST: City Clerk Mayor The motion for the adoption of the foregoing resolution was duly seconded by member Robert Peppe and upon vote being taken thereon, the following voted in favor thereof Myrna Kragness, Kathleen Carmody, Debra HLlstrom, Kay Lasman, and Robert Peppe; and the following voted against the same: . none, whereupon said resolution was declared duly passed and adopted.