10-08-2001 Council Packet - Laserfiche WebLink

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SEP-24-2001 ie>38 MTSK INUESTTENT BRN<ERS 7630477320 P. 04/00 OptraltaiDcfidtt Gor—tt: Debt S«nr|ct lUsenre Fud: Scevity for tbt Bobdi (SorlMAJkB): Land Acquiiitiaa DcwalopoMat Fee Aiehiteeti^ and Eatineerinc Furniture, Fixtures St EqiufmeBi Management 50103 Orgnizatiooal Costs RoundiBg Amount 122,000.00 235.000 00 164300.00 73311.00 70.000 00 50,000.00 2,305.72 Total Uses:51Q70.000 00 The Borrower daU provide an Operating Deficit Ouarantee in the form of cash or a Letter of Credit in an amount equal lo S250,000. The Trustee may draw on this Ouarantee after the Frqjeet Stabilixation Account has been exhausted and, in the evant that the revenue firom operatians of the Project are insufficient to pay operatioDal expenses and debt service on the Bonds. This Guarantee will expire upon twenty*four months of continuous operations of the Project at a debt service coverage taboof l.lSx. A Debt Service Reserve Fuod will be created and fundad from Bond proceeds m so amount equal to avenge one year principal and interest payment on the Bonds. The DdH Service Reserve Fuad will be held by the Trustee for the benefit of the Bondholders and invested to the benefit of the Borrower. The Bonds will be secured u follows: First security interest snd nortgage oo the property iaeludtng the land, building and peraooal propwty associated vriih the Project. The City of Orono will hold title to the land and ground lease the property to the borrower for 99 years. The annual ground lease payment shall be SI .00. City of Orono Tax Incrsment aasisianco. Debt Service Reserve Fuod as described above. Operating Deficits Ouirantee as described above An assignment of the Msnagement Contract and any and all operating licenses and peimiu which may be assigned undo Minnesota State Law, MiFer Johnson Stdehen Kinnaid, Inc.