Laserfiche WebLink
L, 4AMERKM NATIONAL BANK <br /> OF MINNESOTA <br /> February 21, 2006 <br /> Ms. Sandy Peine, City Clerk <br /> City of Pequot Lakes <br /> 4638 County Road 11 <br /> Pequot Lakes, MN 56472 <br /> RE: City Hall Lease Purchase Financing Agreement dated February 27, 2004. <br /> Dear Ms. Peine: <br /> As we discussed on the phone Thursday, I have been able to obtain approval to offer the <br /> City of Pequot Lakes a reduction in the current interest rate plan in place on the Lease- <br /> Purchase Agreement originated to purchase the City Hall property. <br /> As you are aware, the agreement calls for an interest rate equal to the Wall Street Journal <br /> prime plus 19 basis points adjusted every two years on March I". Based on the current <br /> rate plan, the interest rate will adjust to 7.69%on March 1, 2006 (current prime= <br /> L► 7.50%). <br /> I have obtained authorization to modify the current rate plan to the Wall Street Journal <br /> prime minus 75 basis points. If accepted,this will result in the rate adjustment to 6.75% <br /> on March 1, 2006 rather than 7.69%. Additionally, the rate modification can be <br /> processed with no fees or outside costs. <br /> We appreciate the banking relationship we enjoy with the City of Pequot Lakes and hope <br /> you find our offer agreeable. If you or any members of the city council have any <br /> questions, please feel free to contact me. <br /> Respectfully, 7 <br /> C <br /> Patrick J. Smith <br /> President <br /> American National Bank of Minnesota <br /> PJS/plr <br /> cc: Bob Slagter CFO/ANB <br /> Bob Sefkow COO/A-NB <br /> Member 31279 Brunes Street • P.O.Box 147 • Pequot Lakes,MN 56472 - ■ — . <br /> FDIC Telephone:(218)568-4999 • Toll Free:(890)821-6876 • Fax:(218)568-5433 LENDER <br />