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PLEASE SUBSTITUTE FOR ORDINANCE NO. 88-87,
<br />REFERRED TO THE FINANCE COMMITTEE ON 12-7-87.
<br />
<br />ORDINANCE NO. 88-87
<br />
<br />BY:Brown, Chlnnock, Gallagher, ~azzana, George
<br /> Graham, Wendling
<br />
<br />AN EMERGENCY O~DINANCE amending Ordinance No. 116-84 passed
<br />by this Council on December 3, 1984 which authorized the
<br />issuance of $1,780,000 Industrial Development Revenue Bonds
<br />(Detroit/Warren Building Project) to assist Lakewood-
<br />Warren-Detroit Partnership, Ltd. in financing costs of a
<br />"project" within the meaning of Chapter 165, Ohio Revised
<br />Code; authorizing the execution and delivery of a First
<br />~endment of Loan Agreement and First Supplemental Trust
<br />Indenture; and authorizing the execution and delivery of
<br />~mended Forms of Bonds.
<br />
<br /> WHEREAS, the City of Lakewood, Ohio (the "Issuer"), pursuant to Ordi-
<br />nance No. 116-84 passed on December 3, 1984 (the "Bond Legislation"), issued,
<br />sold and delivered to MFS Managed High-Yield Municipal Bond Trust (the "Origi-
<br />nal Purchaser"), its $1,780,000 City of Lakewood, Ohio, Industrial Development
<br />First Mortgage Revenue Bonds (Detroit/Warren Building Project) (the "Original
<br />Bonds"); and
<br />
<br /> WHEREAS, pursuant to and upon the terms and conditions of a Loan
<br />Agreement (the "Original Agreement"), dated as of December 1, 1984, between
<br />the Issuer and the Company, the Issuer loaned to the Company the proceeds
<br />received from the sale of the Original Bonds (the "Loan") to assist in the
<br />financing of the Project, as defined in the Original Agreement (the "Proj-
<br />ect''), to be undertaken by the Company. The Company agreed to repay the Loan
<br />by making certain payments ("Loan Payments") pursua~t to the Original Agree-
<br />ment and pursuant to a promissory note (the "Original Note") given by the
<br />Company, dated as of December 1, 1984, to Bank One, Akron, N.A., as Trustee
<br />(the "Trustee") under the Trust Indenture between the Issuer and the Trustee
<br />dated as of December l, 1984 (the "Original Indenture"); and
<br />
<br /> WHEREAS, as a result of certain economic difficulties encountered by
<br />the Company in connection with the operation of the Project, the Company has
<br />been unable to make Loan Paymen'ts in the amounts and at the times required by
<br />the Original Agreement and the Original Note; and
<br />
<br /> WHEREAS, the Company and the owners of the Original Bonds have
<br />requested that the Issuer (t) amend the Bond Legislation, (ii) authorize,
<br />execute and deliver a Ftrst Amendment of Loan Agreement dated as of December
<br />1, 1987 ("First Amendment") and a First Supplemental Trust Indenture dated as
<br />of December 1, 1987 ("Ftrst Supplement") and (tii) authorize, execute and
<br />deliver amended forms of the Original Bonds (the "Amended Bonds" or the
<br />"Project Bonds"); and
<br />
<br /> WHEREAS, pursuant to Section 8.6 of the Original Agreement and Sec-
<br />tions 8.05 and 11.02 of the Original Indenture, the Original Purchaser and MFS
<br />Municipal Income Trust, as the owners of the entire currently outstanding
<br />amount of the Original Bonds (co~lectlvely, the "Holders"), have given their
<br />written consents to the First Amendment and the First Supplement; and
<br />
<br />
<br />
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