1997-116
CITY OF HO?KINS, MINNESOTA
Hennepin County, Minnesota
RESOLUTION NO. 97-116
A RESOLUTION AUTHORIZING THE NOTIFICATION OF THE
TRUSTEE FOR THE BONDS ISSUED TO FlNANCE THE OAKS
OF MAINSTREET PROJECT THAT EXERCISE OF REMEDIES
AS A RESULT OF A SPECIFIC DEFAULT UNDER THE BOND
DOCUMENTS IS NOT NECESSARY AT TIDS TIME
WHEREAS, the Housing and Redevelopment Authority In and For the City of Hopkins,
Minnesota (the "Authority") and the City of Hopkins, Minnesota (the "City")
issued the $3,975,000 Housing Development Gross Revenue Bonds (Oaks of
Mainstreet Project) Taxable Series 1996A ofHRA and $3,975,000 Unlimited Tax
General Obligation Bonds (Oaks of Mainstreet Project) Taxable Series 1996B of
City, respectively (collectively, the "Bonds") to finance the development by Oaks
of Mainstreet, LLC, (the ''Developer'') of a townhouse development (the
"Project") within the City; and
.
WHEREAS, the Developer has requested that the Authority and City notify First Trust
National Association, the Tt:1lStee for the Bonds, that the Authority and City have
no objection if the Trustee does not exercise its remedies under the Bond
docwnents as a result of a default by the Developer in completing the Project
within one year from commencem.ent of construction as required by the Bond
documents; and
WHEREAS, the City believes that the Developer's request is reasonable and that the granting
of such request would be in the best interest ofthe City.
NOW, THEREFORE, be it hereby resolved by the City Council of the City that staff of
the City are hereby authorized to notify First Trust National Association that it is acceptable and
desirable to the City if the Trustee refrains from exercising at this time its remedies under the
Bond documents due to the default existing under section 3.1(3) of the Loan Agreement related
to the Developer's failure to complete construction of the Project when required. Nothing in this
Resolution shall waive any other default or preclude the City from notifying the Trustee at any
time in the future that it desires the Trustee to exercise remedies on account of the existing
default or any other default that may arise under the Bond documents.
of Hopkins, Minnesota, this .l!aJ?day of
'"" _ ..~?~pted by the City Council of the
~, 1997.
.