RES 1985-52 - 00005168RESOLUTIO NO. 51 - 1985
RESOLUTION AU79ORIZItC THE ESTABLISHMENT OF AN ESCROW FUND
FOR THE PA)TM OF INDUSTRIAL DEVELOPMENT REVENUE BONDS
(FARMERS UNION GRAIN TERMINAi. ASSOCIATION PROTECT), SERIES
1980; AUTHORIZING THE EXECUTION OF AN ESCROW AGREEMENT
BE IT RESOLVED by the City Council of the City of Fridley, Minnesota, as
follows:
1. The City has heretofore issued its Industrial Development Revenue Bonds
(Farmers Union Grain Terminal Association Project), Series 1980, dated as of
October 1, 1980, in the original principal amount of $6,000,000 (the "Series
1980 Bonds "), of which $5,475,000 are currently outstanding. The Series 1980
Bonds were issued pursuant to an Indenture of Trust, dated as of October 1,
1980 (the "Indenture ") and the proceeds thereof were loaned by the City to
Farmers Union Grain Terminal Association, now known as Harvest States
Cooperatives (the "Borrower ") for the purpose of financing improvements to the
Borrower's Facility in the City (the "Project ").
2. The Borrower has now advised the City that all of the proceeds of the
Series 1980 Bonds were not expended for costs of the Project and that there is
now on hand with First Trust Company of Saint Paul, as Trustee, under the
Indenture (the "Trustee ") , an amount of bond proceeds, and interest earnings
thereon, in excess of $1,515,000 remaining after all costs of the Project have
been laid. The Borrower has further advised the City that, in compliance with
Revenue Procedures 79-5 and 81 -22, issued by the internal Revenue Service, the
excess amounts described in this paragraph are being held and invested at a
yield not greater than the yield on the Series 1980 Bonds.
3. The Borrower has advised the City that it desires to establish an escrow
which will comply with the provisions of Revenue Procedures 79 -5 and 81 -22,
which will be sufficient to lay and retire a portion of the Series 1980 Bonds
maturing in the years 1985 through 1992, and to call for redemption and pay on
October 1, 1996 a portion of the Series 1980 Bonds maturing in the year 2005.
Tb that end, the Borrower has caused to be prepared an Escrow Agreement, to be
dated as of May 29, 1985, to be entered into between the City and the Trustee,
as escrow bank, by which an Escrow Fund will be established to lay the Series
1980 Bonds as described in this paragraph. A draft of the Escrow Agreement
has been presented to this Council and a copy thereof is ordered to be placed
on file with the City Clerk.
4. The request of the Borrower to establish an escrow for the payment of a
portion of the Series 1980 Bonds is hereby approved. The Mayor and City
Manager are authorized and directed to execute the Escrow Agreement and to
forward the same to the Trustee for signature, and to take such other actions
and execute such other certificates as may be necessary to accomplish this
transaction. The Trustee is authorized and directed, on behalf of the City,
to subscribe for United States Treasury Obligations, State and Local
Government Series, for the escrow, and to cause notice of redemption of bonds
maturing in the year 2005 to be published.
11.
Page 2 — Resolution No. 51 — 1985 118
PASSED AND ADOPTED BY UiE CITY COUNCIL OF THE QTY OF FRIDLEY THIS 20TH DAY OF
NAY r 1985
WILLIAM J. NEE - R
ATTEST:
SIDNEY C. MAN -CITY CLE�2K