Resolution 4492 - Notice of PH - Amendment of Industrial Revenue Note for Kalispell Center Mall9 7 RESOLUTION NO. 4 4 9 2
RESOLUTION RELATING TO THE PROPOSED AMENDMENT OF .
TERMS OF THE INDUSTRIAL DEVELOPMENT REVENUE NOTE
(KALISPELL CENTER LIMITED PARTNERSHIP PROJECT) OF THE
CITY; CALLING FOR A PUBLIC HEARING THEREON
BE IT RESOLVED by the City Council of the City of Kalispell, Montana (the "City"),
as follows:
Section 1. Recitals
1.1. Pursuant to Montana Code Annotated, Title 90, Chapter 5, Part 1, as amended (the
"Act"), the City issued its $10,000,000 Industrial Development Revenue Note (Kalispell Center
Limited Partnership Project) (the "Note"), on December 17, 1984, on behalf of Kalispell Center
Limited Partnership, a Washington limited partnership (the "Original Borrower"), in order to
finance the acquisition of certain land in the City and the acquisition, construction and equipping
thereon of an approximately 171,000 square foot commercial shopping mall, a 134-room motor
inn, restaurant, cocktail lounge, banquet facility and related facilities (collectively, the "Project').
The Project is located in an area bounded by Main Street on the east, Center Street on the south,
Railroad Street on the north and Fifth Avenue West on the west in the City. The Project is
currently owned by Cavanaughs Hospitality Limited Partnership, a Delaware limited partnership
and successor to the Original Borrower (the `Borrower").
1.2. The Borrower and Washington Trust Bank, holder of the Note, outstanding as of
the date hereof in the approximate principal amount of $7,027,917, have proposed that the terms
of the Note be amended to fix and, initially reduce, the interest rate thereon and to eliminate
provisions of the Note that require its purchase from the holder by the Borrower. In order to
effectuate the proposed changes, the City would issue an amended and restated note embodying
the proposed changes in exchange for the Note.
Section 2. Public Hearin
2.1. As required by the internal Revenue Code of 1986, as amended, in order to
preserve the tax exemption of interest on the Note, the City Council must approve the proposed
amendment of terms of the Note, after conducting a public hearing thereon. A public hearing on
the proposal to amend the terms of the Note is hereby called and shall be held on August 16,
1999, at 7:00 p.m., in the City Council Chamber Room, City Hall. The Finance Officer shall
cause notice of the public hearing to be published in Daily Inter Lake, the official newspaper of
the City -and a newspaper of general circulation in the City, at least once not less than 14 nor
more than 30 days prior to the date fixed for the public hearing. The notice to be published shall
be in substantially the following form:
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, THIS 19TH DAY OF JULY, 1999.
Wm. E. Boharski
Mayor
ATTEST:
Theresa White
City Clerk