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RESOLUTION AUTHORIZING FIRST AMENDMENT TO AGREEMENT AMENDING LINE OF CREDIT PROMISSORY NOTE FOR THE ARROWHEAD ZOOLOGICAL SOCIETY.
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CITY PROPOSAL:
WHEREAS, in 2013 pursuant to city council Resolution no. 13-0481, the Arrowhead Zoological Society (the "Zoo") executed a Line of Credit Promissory Note in favor of the city in substantially the form of that attached to said resolution, in the amount of not to exceed $300,000 to assist the Zoo in funding fees and expenses incurred by the Zoo in connection with the operation of the Duluth zoo; and,
WHEREAS, the term of said LOC was extended to October 1, 2020, by city council resolutions 16-0767, 17-0738, 18-0709 and 19-0850 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, because the COVID-19 pandemic has greatly impacted the Zoo's operations and severely impacted its net revenues, making it impossible for the Zoo to make the payments required under the LOC as amended; and
WHEREAS, because the city is willing to extend the term of the LOC to allow the Zoo to recover from the financial impacts of the pandemic and to make payment on its LOC obligations.
NOW THEREFORE, the proper city officials are authorized to enter into the First Amendment to Agreement Amending Line of Credit Promissory Note, a copy of which is attached hereto as Exhibit A, with the Arrowhead Zoological Society extending the maturity date of the LOC to October 1, 2021.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes an amendment to the Line of Credit extended by the city to the Arrowhead Zoological Society extending the maturity date for one year to October 1, 2021.
The city originally extended this line of credit in the amount of $300,000 to the Zoo in 2013 to provide flexibility to the Zoo in meeting its operating obligations. This LOC has been completely drawn down. Payments toward it have...
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