Loading...
10-03-1978 Extract of Minutes of Meeting of the City Council of the City of Hopkins , Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of. Hopkins, Minnesota, was duly held at the City Hall in said City on Tuesday, the 3rd day of October, 1978, at 7: 30 o' clock P.M. The following Councilmen were present: Jerre A. Miller, Mayor; Robert J. McDonald, Donald J. Milbert, Paul Slaton, and Paul W. Lohmann, Councilmen and the following were absent: None is * * is * * * * * €a II, Councilman Paul W. Lohmann introduced and read in full the following written resolution and moved its adoption: RESOLUTION NO. 78-2725, A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF REVENUE BONDS PURSUANT TO CHAPTER 474 , MINNESOTA STATUTES, TO PROVIDE FUNDS TO BE LOANED FOR AN INDUSTRIAL DEVELOPMENT PROJECT The motion for the adoption of the foregoing resolution was duly seconded by Councilman Paul. Slaton , and upon vote being taken thereon, the following voted in favor thereof: All of the above named Mayor and Councilmen 411, and the following voted against the same: None whereupon said resolution was declared duly passed and adopted. [Bond Resolution] Resolution No. 78-2725, 411 A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF REVENUE BONDS PURSUANT TO CHAPTER 474, MINNESOTA STATUTES, TO PROVIDE FUNDS TO BE LOANED FOR AN INDUSTRIAL DEVELOPMENT PROJECT BE IT RESOLVED by the City Council of the City of Hopkins, Minnesota, as follows: 1. Authority. The City is, by the Constitution and Laws of the State of Minnesota, including Chapter 474, Minnesota Statutes, as amended (the "Act" ) authorized to issue and sell its revenue bonds for the purpose of financing the cost of construc- tion of authorized projects, and to enter into contracts neces- sary or convenient in the exercise of the powers granted by the Act and to pledge revenues of the project and otherwise secure the revenue bonds . 2 . Authorization of Series of Bonds . The City Council hereby determines that it is necessary and expedient to authorize, ' and the City Council does hereby authorize, the issuance of revenue bonds of the City in the aggregate principal amount of Seven Hundred Thousand Dollars ( $700, 000 ) pursuant to the Act to provide money to be loaned to Donald F. Hagen and Herbert A. Mason, successors in interest to Reilly and Hagen, a co-partnership (the "Borrowers" ) , to finance costs of the acquisition of land in the City (the "Project Site" ) and constructing a supermarket building for the sale of food and related merchandise (the "Project Building" ) being leased to T & H Markets, Inc. , a Minnesota corporation (the "Lessee" ) under a lease (the "Lease) with an original term of 25 years, together with necessary building service equipment (the "Project Equipment" ) to be located perma- nently in and as part of the Project Building or the Project Site and necessary site improvements (the "Project" as more fully defined in the Loan Agreement hereinafter mentioned) . In order to provide financing for the Project, the City shall issue and sell its $700, 000 City of Hopkins Industrial Development Revenue Bond (Hagen & Mason Project - T & H Markets, Inc. , Lessee) , Series 1978 (the "Bond" ) . 3 . Documents Presented. Forms of the following docu- 410 ments relating to the Bond and the Project have been submitted to and examined by the City Council and are now on file in the office of the City Clerk: (a) Loan and Purchase Agreement (the "Loan Agreement" ) , dated as of August 1, 1978, by and among the City, the Borrowers and Merland C. Belden, a resident of Eden Prairie, Minnesota (the "Purchaser" ) whereby, among other things, the City agrees to sell and the Purchaser agrees to purchase the Bond, the City agrees to make a loan to the Borrowers of the proceeds of the sale of the Bond and the Borrowers covenant • to pay amounts sufficient to provide for the prompt payment of the principal of and interest on the Bond; (b) Conditional Assignment of Lease and Rentals (the "Assignment" ) dated as of August 1, 1978, by the Borrowers to the Purchaser, whereby the Borrowers assign the Lease and rentals thereunder to the Purchaser to secure the payment of the principal of and interest on the Bond (this document not to be executed by the City) ; and (c) Combination Mortgage and Security Agreement dated as of August 1, 1978 by and between the Borrowers and the Purchaser, whereby the Borrowers mortgage the Project Site, the Project Building and the Project Equipment (the "Project Facilities" ) as security for the Bond (this document not to be executed by the City) . 4. Findings. It is hereby found, determined and declared that: • (a) The Project, as described in the Loan Agreement, constitutes a project authorized by and described in Section 474.02, Subd. la of the Act. (b) The purpose of the Project is and the effect thereof will be to promote the public welfare by: prevent- ing the emergence of blighted and marginal lands and areas of chronic unemployment; preventing economic deterioration; the development of sound industry and commerce to use the available resources of the community, in order to retain the benefit of the community' s existing investment in educational and public service facilities; halting the movement of talented, educated personnel to other areas and thus pre- serving the economic and human resources needed as a base for providing governmental services and facilities; and adding to the tax base of the City and the County and School District in which the Project Facilities will be located. (c) The Project has been approved by a preliminary resolution of the Council duly adopted August 2 , 1977, and by the Commissioner of Securities of the State of Minnesota • as tending to further the purposes and policies of the Act. (d) The issuance and sale of the Bond, the execution and delivery of the Loan Agreement and the performance of all covenants and agreements of the City contained in the Bond and the Loan Agreement and of all other acts and things required under the Constitution and laws of the State of Minnesota and the City Charter to make the Bond and Loan Agreement valid and binding obligations of the City in accordance with their terms, are authorized by the Act. -2- (e) There is no litigation pending or, to the best of its knowledge threatened, against the City relating to the Project or to the Bond or Loan Agreement, or questioning the organization, powers or authority of the City. 411 (f) The execution, delivery and performance of the City' s obligations under the Bond and the Loan Agreement have been fully authorized by all requisite action and do not and will not violate any law, any charter provision, any order of any court or other agency of government, or any indenture, agreement or other instrument to which the City is a party or by which it or any of its property is bound, or be in conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any such indenture, agreement or other instrument. (g) The Loan Agreement provides for payments by the Borrowers to the Holder of the Bond for the account of the City of such amounts as will be sufficient to pay the prin- cipal of, premium (if any) and interest on the Bond when due. No reserve funds are deemed necessary for this purpose. The Loan Agreement obligates the Borrowers to provide for the operation and maintenance of the Project Facilities, including adequate insurance, taxes and special assessments. • (h) Under the provisions of Section 474.10 of the Act, and the Bond shall recite that, the Bond is not to be pay- able from nor charged upon any funds other than amounts payable by the Borrowers pursuant to the Loan Agreement which are pledged to the payment thereof, and in event of default, moneys derived from foreclosure or other enforce- ment of the Mortgage or Assignment; the City is not subject to any liability thereon; no Holder of the Bond shall ever have the right to compel the exercise of the taxing power of the City to pay the Bond or the interest thereon, nor to enforce payment thereof against any property of the City; and the Bond shall not constitute a charge, lien or encum- brance, legal or equitable, upon any property of the City; and such Bond does not constitute an indebtedness of the City within the meaning of any constitutional, statutory or charter limitation. (i ) No member of the City Council (i) has a direct or indirect interest in the Project, the Loan Agreement or Bond, (ii ) owns any capital stock of or other interest in S the Project or the Lessee, (iii ) is an officer or director of the Lessee, (iv) has been involved in supervising the completion of the Project on behalf of the Borrowers or (v) has received or will receive any commission, bonus or other remuneration for or in respect of the Project, the Loan Agreement, the Lease or the Bond. 5. Approval and Execution of Documents. The form of Loan Agreement referred to in paragraph 3 is approved. The Loan -3- Agreement shall be executed in the name and on behalf of the City by the Mayor, upon execution thereof by the Purchaser and the Borrowers, in substantially the form on file, but with all such changes therein, not inconsistent with the Act or other law, as may be approved by the Mayor, which approval shall be conclusive- ly evidenced by the execution thereof. The Mortgage and Assign- ment may contain such revisions as may be approved by the Purchaser and the parties executing the same. 6. Approval of Terms and Sale of Bond. The City shall proceed forthwith to issue its City of Hopkins Industrial Development Revenue Bond (Hagen & Mason Project - T & H Markets, Inc. , Lessee) , Series 1978 in the principal amount of $700, 000 substantially in the form and containing the provisions set forth in the form of Bond attached hereto as Exhibit 1, which provisions are hereby approved and incorporated in this Bond Resolution and made a part hereof. The terms of the Bond shall be as follows: Date The Bond shall be dated the date of delivery thereof. Interest The Bond shall bear interest at the rate of 7. 50% per annum, interest prior to 411 maturity payable November 1, 1978 and monthly thereafter on the 1st day of each month. If a Determination of Taxability shall be made, the Bond shall bear additional interest as provided in Section 5.05 of the Loan Agreement. Maturity October 1, 2003, but payable in installments of $5, 172 .94 each on November 1, 1978 and monthly thereafter on the 1st day of each month to and including September 1, 2003 and a final installment on October 1, 2003 . Prepayment The Bond shall be subject to Privilege prepayment at any time at the option of the City, at the • request of the Borrowers, as provided in Section 5.04 of the Loan Agreement, upon five (5) business days ' prior mailed notice to the last known Holder at par plus accrued interest. Partial prepayments shall be applied to the principal installments -4- last to become due, in inverse order of due date. If a Determination of Taxability shall be made, the Bond is 111 subject to optional redemption at par plus accrued interest as provided in Section 5 .05 of the Loan Agreement. A single Bond, substantially in the form of Exhibit 1 to this Bond Resolution, shall be issued to the Purchaser in the princi- pal amount of $700, 000 and principal of and interest on the Bond shall be payable by check or draft mailed to the address of the Purchaser or such other address as the Holder of the Bond shall furnish to the Borrowers by notice in writing. The proposal of the Purchaser to purchase such Bond at a price of $700, 000 (100% of par value) is hereby found and determined to be reasonable and is hereby accepted. 7. Execution and Delivery of Bond. The Bond may be in typewritten or printed form and shall be executed by the manual signatures of the Mayor and City Manager, and the official seal of the City shall be affixed thereto and attested by the City Clerk. When so prepared and executed, the Bond shall be deliver- ed to the Purchaser upon payment of the purchase price to the Borrowers for the account of the City, and upon receipt of the signed legal opinion of Messrs. Faegre & Benson, of Minneapolis, Minnesota, bond counsel, pursuant to the Loan Agreement. The Bond shall contain a recital that it is issued pursuant to the Act, and such recital shall be conclusive evidence of the valid- ity and regularity of the issuance thereof. 8. Registration Records. The City Clerk, as bond registrar, shall keep a bond register in which the City shall provide for the registration of the Bond and for transfers of the Bond. The City Clerk is authorized and directed to deliver a certified copy of this Bond Resolution to the Director of Finance and Records of Hennepin County, acting as County Auditor, together with such other information as the Director may require, and obtain his certificate as to entry of the Bond on his bond register as required by the Act and Section 475 .63, Minnesota Statutes . 9. Mutilated, Lost, Stolen or Destroyed Bond. If the Bond is mutilated, lost, stolen or destroyed, the City may execute and deliver to the Holder a new Bond of like amount, date, number • and tenor as that mutilated, lost, stolen or destroyed; provided that, in the case of mutilation, the mutilated Bond shall first be surrendered to the City, and in the case of a lost, stolen or destroyed Bond, there shall be first furnished to the City and the Borrowers evidence of such loss, theft or destruction satis- factory to the City and the Borrowers, together with indemnity satisfactory to them. The City and Borrowers may charge the Holder with their reasonable fees and expenses in replacing any mutilated, lost, stolen or destroyed Bond. -5- 10. Transfer of Bond; Person Treated as Holder. The Bond shall be transferable by the Purchaser or any successor Holder of the Bond on the bond register of the City, upon presen- tation of the Bond for notation of such transfer thereon at the 410 office of the City Clerk, as bond registrar, accompanied by a written instrument of transfer in form satisfactory to the City Clerk duly executed by the Holder or his attorney duly authorized in writing; provided that the Purchaser of the Series 1978 Bond shall not transfer the Series 1978 Bond to any person as initial transferee, and the City Clerk shall not register any transfer on his bond register or make a notation as to transfer of the transfer, unless the City, the Borrowers and the Purchaser shall have received an opinion of counsel employed by the Purchaser stating that the proposed transfer may be made without registration of the Series 1978 Bond and transfer thereof under the federal Securities Act of 1933 and any applicable state securities laws . The Holder seeking to transfer ownership of the Bond shall also give written notice thereof to the Borrowers. The Bond shall continue to be subject to successive transfers at the option of the Holder of the Bond. No service charge shall be made for any such transfer, but the City Clerk may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. The City Clerk shall give written notice to the Borrowers, the Purchaser and the Lessee of any • transfer of ownership recorded on the bond register immediately. The person in whose name the Bond shall be issued or, if trans- ferred, shall be registered from time to time shall be deemed and regarded as the absolute Holder thereof for all purposes, and payment of or on account of the principal of and interest on the Bond shall be made only to or upon the order of the Holder thereof, or his attorney duly authorized in writing, and neither the City, the City Clerk, the Borrowers, the Purchaser, nor the Lessee shall be affected by any notice to the contrary. All such payments shall be valid and effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or sums so paid. 11. Amendments, Changes and Modifications to Loan Agreement and Bond Resolution. Except pursuant to Section 9.03 of the Loan Agreement, the City shall not enter into or make any change, modification, alteration or termination of the Loan Agreement or this Bond Resolution. 12 . Pledge to Holders. The City does hereby pledge and assign to the Purchaser and his successor Holders of the Bond all interest of the City in the revenues of the Project and the Project Facilities, including all Loan Repayments to be made by the Borrowers under the Loan Agreement and moneys derived from enforcement of the Assignment or Mortgage. All such revenues and moneys and all proceeds thereof, and any collections of moneys by the City in any proceeding for enforcement of the obligations of the Company under the Loan Agreement shall be received, held and applied by the City for the benefit of the Holder of the Bond. -6- 13 . Covenants with Holders; Enforceability. All provisions of the Bond and of this Bond Resolution, and all representations and undertakings by the City in the Loan Agree- ment are hereby declared to be covenants between the City and the 411 Purchaser and his successor Holders of the Bond and shall be enforceable by the Purchaser or any Holder in a proceeding brought for that purpose. 14. Definitions and Interpretation. Terms not other- wise defined in this Bond Resolution but defined in the Loan Agreement shall have the same meanings in this Bond Resolution and shall be interpreted herein as provided therein. Notices may be given as provided in Section 9 .01 of the Loan Agreement. In case any provision of this Bond Resolution is for any reason illegal or invalid or inoperable, such illegality or invalidity or inoperability shall not affect the remaining provisions of this Bond Resolution, which shall be construed or enforced as if such illegal or invalid or inoperable provision were not contained herein. 15. Election under Internal Revenue Code. The City hereby elects that the provisions of Section 103(b) (6) (D) of the Internal Revenue Code of 1954 and Reg. §1 .103-10(b) (2 ) (vi) there- under, permitting the issuance of tax exempt industrial development • bonds in amounts up to $5, 000, 000 under certain conditions, shall apply to the Bond, and the Mayor, City Manager and City Clerk or any of them are authorized to execute and file the appropriate form of election under the Code and Regulations with the Internal Revenue Service. 16. Certifications. The Mayor, City Manager and City Clerk and other officers of the City are authorized and directed to prepare and furnish to Messrs. Faegre & Benson as bond counsel, to the Borrowers, to the Purchaser and to counsel for the Borrowers and the Purchaser, certified copies of all proceedings and records of the City relating to the Project and the Bond, and such other affidavits and certificates as may be required to show the facts appearing from the books and records in the officers' custody and control or as otherwise known to them; and all such certified copies, certificates and affidavits, including any heretofore furnished, shall constitute representations of the City as to the truth of all statements contained therein. Approved Mayor 110 Attest City Clerk -7- • EXHIBIT 1 TO BOND RESOLUTION (Form of Bond) UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF HOPKINS Industrial Development Revenue Bond (Hagen & Mason Project - T & H Markets, Inc. , Lessee) Series 1978 No. 1 $700, 000 The City of Hopkins, a municipal corporation in the County of Hennepin and State of Minnesota (the "City" ) , for value received, hereby promises to pay, but solely from the revenues and funds pledged thereto, to Merland C. Belden or registered • assigns, the principal sum of Seven Hundred Thousand Dollars ($700, 000) , on October 1, 2003 , upon the presentation and surren- der hereof, and to make prepayments of said principal sum in installments as hereinafter provided, and to pay to the owner hereof interest on the unpaid balance of such principal sum from the date hereof until said principal sum is paid at the rate of Seven and fifty-hundredths percent (7. 50%) per annum. Principal of and interest on this Bond shall be paid in 299 installments of Five Thousand One Hundred Seventy-Two and Ninety-Four Hundredths Dollars ($5, 172 . 94) each on November 1, 1978 and on the 1st day of each month thereafter, to and including September 1, 2003, and a final installment on October 1, 2003, at which time the unpaid principal of this Bond and interest theron shall become due and payable. Payments of installments prior to maturity shall be applied, first, to accrued and unpaid interest and, second, to unpaid principal. Principal and interest shall be paid in Federal or other immediately available funds by check or draft mailed to the registered owner at 6927 Rosemary Road, Eden Prairie, Minnesota 55343 or such other address as the registered owner shall specify by notice pursuant to the Loan Agreement hereinafter mentioned. • This Bond is issued pursuant to the Minnesota Municipal Industrial Development Act, Chapter 474, Minnesota Statutes, as amended (the "Act" ) , and in conformity with the provisions, restrictions and limitations thereof. This Bond does not consti- tute a charge against the general credit or taxing powers of the • City and does not grant to the owner or holder of this Bond any right to have the City levy any taxes or appropriate any funds for the payment of the principal hereof or interest hereon, nor is this Bond a general obligation of the City or the individual officers or agents thereof. This Bond and interest hereon are payable solely and only from the moneys received under the Loan Agreement, Assignment or Mortgage hereinafter mentioned, includ- illing loan repayments to be made by Donald F. Hagen and Herbert A. Mason (the "Borrowers" ) . This Bond represents an authorized series of special obligation Bonds of an aggregate principal amount of $700, 000, which have been authorized by law to be issued and have been issued for the purpose of funding a loan from the City to the Borrowers to finance costs of a project for the acquisition of land and constructing and equipping a supermarket building in the City (the "Project" ) for lease by the Borrowers to T & H Markets, Inc. (the "Lessee" ) . This Bond is issued pursuant to a Loan and Purchase Agreement (the "Loan Agreement" ) by and among the City, the Borrowers and the Purchaser named therein dated as of August 1, 1978, and a Bond Resolution of the City duly adopted October 3, 1978. This Bond is secured by the Loan Agreement, the Bond Resolution, a Combination Mortgage and Security Agreement (the "Mortgage" ) dated as of August 1, 1978 by the Borrowers to the Purchaser, and a Conditional Assignment of Lease and Rentals (the "Assignment" ) dated as of August 1, 1978 executed by the Borrowers to the Purchaser, to which Loan Agreement, Bond Resolution, Mort- ", gage and Assignment and lease and lease guaranty agreements therein referred to, and amendments thereof, reference is hereby made for a description and limitation of the revenues and funds pledged and appropriated to the payment of the Bond, the nature and extent of the security thereby created, the rights of the Holder of the Bond, the rights, duties and immunities of the Purchaser, and the rights, immunities and obligations of the City thereunder. Certified copies of the Bond Resolution and executed counterparts of the Loan Agreement, Mortgage and Assignment are on file at the office of the City Clerk. Upon a Determination of Taxability, as defined in the Loan Agreement, that interest upon this Bond is subject to federal income taxation when held by a person other than a substantial user or related person, under Section 103 of the Internal Revenue Code as in effect at the date hereof and regulations thereunder, the Borrowers have agreed under Section 5.05 of the Loan Agreement to pay for the account of the City to the Holder from the Date of Taxability additional interest at the rate of 2 .00% per annum for an aggregate interest rate to the Holder of 9 .50% per annum. • The Bond is subject to prepayment at any time at the option of the City, at the request of the Borrowers, at par plus accrued interest, in whole or in part. Partial prepayments shall be applied to principal installments of this Bond last to become due, in inverse order of due date. Notice of any such prepayment shall be given to the original owner or registered assigns of this Bond by certified or registered mail, addressed to him at his registered address, not -2- later than five (5) business days prior to the date fixed for prepayment, and shall be published, if required by law, in a financial journal circulated in the English language in Minne- apolis and St. Paul, Minnesota, at least once, not less than five 411 (5) days before the date so fixed for prepayment. At least five (5) days before date fixed for prepayment, a certified check or draft shall be mailed registered mail to the Holder at the last address of the Holder established by or under the Loan Agreement sufficient to pay the Bond, or the principal amount thereof to be prepaid, and accrued interest thereon. Upon the happening of the above conditions, the Bond thus called or the principal portions thereof prepaid shall not bear interest after the date specified for prepayment. This Bond is transferable, as provided in the Bond Resolution, only upon the bond register of the City Clerk, as bond registrar, by the owner hereof in person or by his duly authorized attorney, only upon the conditions and in the manner provided in the Bond Resolution. In case an Event of Default as defined in the Loan Agreement occurs, the Bond and the Loan Repayments thereafter to become due under the Loan Agreement may become immediately due and payable, in the manner and with the effect and subject to the • conditions provided in the Loan Agreement. The Holder of the Bond shall have the right to enforce the provisions of the Bond Resolution, Loan Agreement, Mortgage and Assignment. The terms and provisions of the Bond Resolution, Loan Agreement, Mortgage and Assignment, or of any instrument supple- mental thereto, may be modified or altered pursuant to Section 9.03 of the Loan Agreement. It is hereby certified and recited and the City Council has found: That the Project is an eligible "project" defined in Section 474. 02, Subd. la of the Act; that the issuance of the Bond and the acquisition and construction of the Project will promote the public welfare and carry out the purposes of the Act; that the Project has been approved by the Commissioner of Securi- ties of the State of Minnesota as tending to further the purposes and policies of the Act; that all acts, conditions and things required to be done precedent to and in the issuance of this Bond have been properly done, have happened and have been performed in regular and due time, form and manner as required by law; and that this Bond does not constitute a debt of the City within the • meaning of any constitutional, statutory or charter limitation. IN WITNESS WHEREOF, the City of Hopkins, by its City Council, has caused this Bond to be signed in its behalf by the -3- (Form of Transfer) For value received, the undersigned owner does hereby assign and transfer the foregoing Bond to the named Assignee, and the undersigned City Clerk of the City of Hopkins as bond registrar hereby certifies that the foregoing Bond has been transferred and registered on the bond register in the name of such Assignee. Date of Name of Signature of Signature of Transfer on Assignee Owner City Clerk Bond Register I -5- manual signatures of the Mayor and the City Manager, and sealed with the corporate seal of the City, attested by the City Clerk, all as of the day of , 1978 . IPCITY OF HOPKINS By Mayor (SEAL) and by City Manager Attest City Clerk • • -4- ROBERT J,CHRISTIANSON FRANK B.BUTLER F AEG R E 8, BENSON J.B.FAEG RE IAETIREo) GEORGE D.MCCLINTOCK GORDON B.CONN,JR, EVERETT A.DRAKE BRUCE A.ACKERMAN DONALD(.ROBERTSON MICHAEL H.HARPER,JR, PORN C.BENSON WRIGHTDW. BROOKS JOSEPH L vI' E 1300 NORTHWESTERN BANK BUILDING ATNER N.LARSOHRsoN GEORGE E.HARDING W.SMITH SHARPE,JR. JOHN B.FAEGRE,JR, JOHN S.HOLTEN PHILIP S.GARON GOONSEL R.W.OELKE CUNNINGHAM WALTER JJ EUKEMA OUFFYJR. MINNEAPOLIS, MINNESOTA 55402 ERWIN MITCH GOLDSTEIN JAMES P.STEPHENSON JAMES A.HALLS F.REID CARRON GERALD T.FLOM A,DAVID KELLY OHARLES L.HORN,JR, JOHN K. N FE F BTE ACK D.GAGE CHARLES TE.EFEEN,J R, 612X371-5300 ETER W ANSON JOHN B.GORDON MES FI 0.BUSRICE M.MORGAN E JOHN OHN D,FRENCH CnER --`,,','.°,",%1D. G.IV LV .HEMS JOHNEDWARDD.BMIV HEILM NORMA B. CARPENTERPTAD G.NDERAKER N NORMAN E, BROWN JOHN T.L. CHNELL, LAWRENCEMARTI N N. URKEROBERT L.IS NELSON JR. KE BBRIAN B.D N O'NEILLL JOHNPAUL T,(E RKELAARRIS WILLIAMLB. .BUSC D R.FLEMIN JR. DAVIDRICHARD D EADIEM BONNIE .FRISCING September 25, 1978 RICHARD C.SCHMOKER HENRY F FRISCH HO MAS M.CROSBY,JR, LORENRANDY F ART LUD I T ALE RANDY L,PILL ER JAMB. LOKENB. ER,J R, WINTHROP P A.ROCKWELL JAMES L.DOTER PATRICK R BAUER ARTHUR .,DOYEN JACK Y DUANE W.KROHNKE JOHN S.JAGIELABORGE GEORGE w HORN U.FORGER JAMES AV. HEIDIM HOARDE HUGEST M. AMPLEFORCIER DAVIDG PEARSON JAMES E. BSAMPLES JAMES G.RAY E E.. HOPPER JA D. R.ANDERSON PEDALE R TCHAn JAY D, S FERN EL BRUE R.CEF.BURT CHARLESID . I LERRELL BRUCE F BURTON DAVID B.MILLER GREGORY R HOWARD JERRY W.SD ER HENDRIK e JON STEPHEN ROSHO LT Mr. William P. Craig City Manager City of Hopkins 1010 First Street South Hopkins, MN 55343 Mr. Joseph Vesely • City Attorney Vesely, Otto, Miller, Keefe & LaBore Suite 203 Northwestern Bank Building 1011 First Street South Hopkins, MN 55343 Re: $700, 000 City of Hopkins Industrial Development Revenue Bond (Hagen & Mason Project - T & H Markets, Inc. , Lessee) , Series 1978 Gentlemen: The City Council took preliminary action approving the project on August 2, 1977. Mr. Reilly' s interest in the project has since been assigned to Mr. Herbert Mason. Just now, Mr. Hagen and Mr. Mason are concluding arrangements with Mr. Merland Belden to purchase the bond and finance the project. I enclose a draft dated 9/12/78 of a Loan and Purchase Agreement which would be executed by the City of Hopkins as issuer, by Mr. Belden as • purchaser and by Mr. Hagen and Mr. Mason as borrowers. Attached to the Loan and Purchase Agreement as exhibits are the form of Bond Resolution (including the form of bond) , form of Combination Mortgage and Security Agreement, form of Assignment of Lease and Rents, form of opinion of bond counsel and form of investor' s letter. Mr. Hagen, Mr. Belden and their attorneys will be Mr. William P. Craig Mr. Joseph Vesely Page 2 September 25, 1978 • meeting tomorrow to negotiate open items and changes in the documentation which they respectively will want. In the meantime, however, we wanted you to have an opportunity to look at this draft and to get whatever comments you have to incorporate in the final draft and execution documents. Hopefully, comments can be obtained and incorporated into the documents in time to present to the meeting of the City Council scheduled for October 3. We would like to appear on the agenda for that meeting. In advance of the meeting, we will prepare multiple copies of the form of Bond Resolution (which is Exhibit A to the Loan and Purchase Agreement) , so that each member of the City Council will have a copy at the meeting. Please let me know if there will be any difficulty in including us on the agenda or in obtaining the several signatures which will be needed from the Mayor, City Manager and City Clerk before the tentative closing date of October 6. I would also appreciate it if you could forward to us a copy of the City Charter so we can incorporate any changes or additions that may be required by the City Charter before the meeting on October 3. If you have any questions or comments, please call me or Richard Helde in our office. Alternatively, you could contact Mr. Donald Hagen, Mr. Robert Silverman or Mr. Dennis Buratti, Dorsey, Windhorst, Hannaford, Whitney & Halladay, representing the borrowers, or Mr. Nelson Berg who represents Mr. Belden. Cordially yours, "4",-;i17‘45-2.77:---- ohn S . Holten cc: Mr. Nelson Berg Mr. Dennis Buratti Mr. Donald Hagen • GENERAL ELECTION November 7, 1978 41,1 Zion Lutheran Church #5 United Methodist Christine Drahos Adelyn Luther Barb Nelson Marilyn Young Vera Ver Steeg Mildred Seim Madeline Kerr Bertha Resnick Mollie Sundberg Ada Elster Jane Warren Nancy Lindahl #2 Harley Hopkins School #6 Alice Smith School Jeannie Husnik Julie Mason Trudy Dwyer Mitzie Erdmann Jane Sellner Elaine Anderson Marilyn Oliver Louise Hemker Claire Frank Ann Whelan Martha Thurn Mary Shirley #3 City Hall #7 Library Mary Brubacker Nancy Damerow . Dorothy Bren Kathy Lorentzen Dora Hendrickson Dorothy Shaw Edith Beecher Gen Winter Jean Walsh Geneva Maas Fran Lofthus William Elster #4 Katherine Curren #8 Westbrooke Joan DeCosse Barb DeFore Solveig Anderson Grace Zerban Margaret Heinen Delores Zipoy 011ie Severson Pat Ronayne Marion Heidorn Laura McLean Mary Maetzold Margaret Reinhardt Ruth Hazuka #9 Oakes Park Pat Anderson Betty Fleming Gloria Johnson Betty Davis Joyce Fargo City Hall : Roz Gilliam Ethel Payne Mary Sundby