HomeMy WebLinkAboutResolution # 3876COUNCIL RESOLUTION OF SUPPORT
Resolution No. ~R7h
WHEREAS, the City of Canton, Illinois is working to secure economic redevelopment at
the former International Harvester site in Canton, and
WHEREAS, the City of Canton is applying to the State of Illinois for a Community
Development Assistance Program Grant and an Illinois Department of Transportation
grant that will be used to assist with infrastructure costs, and
WHEREAS, the grantor agencies require that the City commit to funding for any portion
of the projects not covered by the grant; and
WHEREAS, it may be necessary that the City enter into an agreement with MidAmerica
National Bank for funding for the project cost not covered by the grant.
NOW, THEREFORE, BE IT RESOLVED as follows:
1. That the City of Canton, Illinois apply for funding under the terms and conditions
of MidAmerica National Bank and shall enter into and agree to the
understandings and assurances contained in said application.
2. That the Mayor and City Clerk on behalf of the City of Canton, Illinois execute
such documents and all other documents necessary for the carrying out of said
application.
3. That the Mayor and City Clerk are authorized to provide such additional
information as may be required to accomplish the obtaining of such funding.
Passed this 2nd day of December .2008.
(SEAL)
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December 2, 2008
Mr. Kevin Meade, Mayor
City of Canton
2 N. Main St.
Canton, IL 61520
Dear Kevin,
Please accept this letter as MidAmerica National Bank's willingness
to lend up to $1,900,000 to the City of Canton for infrastructure
improvements to the former International Harvester site which is now
owned by the City of Canton in conjunction with pending
development plans on that site. This loan would be written for an
amount not to exceed $1,900,000 with repayment based on quarterly
payments calculated with a 20 year amortization. The interest rate on
this loan will be at Wall Street Journal Prime plus 0.50%, floating,
making the initial rate of interest 4.50%. The loan will have a 3 year
balloon payment of all remaining unpaid principal and accrued
interest. The City of Canton will need to identify a repayment stream
to repay this loan which is satisfactory to MidAmerica National Bank.
MidAmerica National Bank reserves the right to complete its normal
underwriting and loan committee process once we have the 4/30/2008
audit numbers on the City of Canton prior to providing a final
commitment and the City's execution of loan documents satisfactory
to the Bank.
Please notify us as to when you anticipate the City will need to have
this loan funded and in what amount so we can work with the City to
finalize the loan documentation. If you should have any questions
regarding this letter, please contact me at (309)647-5000 right away.
Sincerely,
Bruce Edwards
Sr. Vice President
MidAmerica National Bank
100 W. Elm St.
Canton, IL 61520
(309)647-5000