Title
RESOLUTION AUTHORIZING AGREEMENT AMENDMENT TO THE LINE OF CREDIT PROMISSORY NOTE FOR THE ARROWHEAD ZOOLOGICAL SOCIETY
Body
CITY PROPOSAL:
The proper city officials approve the agreement amendment to the line of credit promissory note for the Arrowhead Zoological Society.
WHEREAS, in 2013 pursuant to City Council Resolution No. 13-0481, the Maker executed a Line of Credit Promissory Note in favor of the Lender in substantially the form of that attached to said resolution, in the amount of not to exceed $300,000 to assist Maker in funding fees and expenses incurred by Maker in connection with the operation of the Duluth zoo; and,
WHEREAS, the Maker has drawn down the entire amount it was authorized to draw against as set forth above; and
WHEREAS, the Term of said LOC was extended to October 1, 2020 by City Council resolutions 16-0767, 17-0738 and 18-07-9 and by amendments to the LOC authorized thereby, which Line of Credit Promissory Note as so extended and amended is hereinafter referred to as the "LOC"; and
WHEREAS, the amount outstanding and currently owed to the Lender under the LOC is currently $300,000 plus accrued, unpaid interest in the amount of $12,694.63 as of October 16, 2019; and
WHEREAS, between May 1, 2009 and November 1, 2018, in the course of performing its services pursuant to the Zoo Management Agreement between the parties, the Lender erroneously paid sales tax to the State of Minnesota on the sales made by Maker in the amount of $129,702, which taxes had been properly paid by Maker, causing a double payment to have been made to the State; and
WHEREAS, because of the statute of limitations applicable to tax payment, Lender was only able to recover $52,603 of the overpayment amount which the Lender has received and currently holds.
NOW THEREFORE, the proper city officials are authorized to execute an agreement amendment and the parties hereto hereby agree that the LOC is hereby modified as referenced in Exhibit A.
Statement of Purpo...
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