5.11. SR 12-18-1995 - Laserfiche WebLink

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ity of ' lk RiverTO: • FROM: DATE: MEMORANDUM Mayor & City Council Lori Johnson Assistant City Administrator December 18, 1995 ITEM 5.11. SUBJECT: Resolution of Improving Extension Agreement for Industrial Revenue Bond (Scherer Limited Partnership Project) In 1985 the City authorized the issuance of an industrial development revenue bond for the Scherer Limited Partnership Project which includes the Pamida and Theater buildings. The bond documents called for a 20 year amortization scheduled to be paid over 10 years with a balloon due on January 1, 1996. The bank and developer are requesting an extension of the industrial development revenue bond. iAttached is a resolution which, when approved, would extent the IDRB for a 10 year period with a final maturity date of January 1, 2006. As paragraph 4 of the extension agreement states, the city is merely accommodating a request from the bank and the partnership and "that the city assumes no responsibility or liability, expressed or implied, as to the validity of this Extension Agreement or any continued exemption of the interest on the Bond from State of Minnesota and or federal income taxation or other taxation." The extension of this bond issue does not adversely affect the city's bond rating, and this is not an issue which is included in our outstanding indebtedness. The only time an industrial revenue bond is reported is on an annual debt report to the state of Minnesota. Action Requested The Council is asked to take action on the attached resolution which extends the Scherer Brothers Limited Partnership Project Industrial Development Revenue Bond in the original issue amount of $1,400,000 for 10 years to the year 2006. • s: \council \scherer.doe 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441 -7420 • Fax: (612) 441 -7425