HomeMy WebLinkAbout19480524_ADJOURNEDlXINUTES OF THE ADJOIJRNED PCETXOK
OF Mp9 24, 1948 REGULAR lEE"G OF
THE; EDINA VIma COUNCIL, HELD
TUESDAY, JUNE 1, 1948, AT 8t00 P,&
AT THE EDINA VILLAGE HALL,
Pursuant to due call and notice thereof, an Adjourned IJIeeting of the Village
Council of the Village of Edina, lllinnesdca, was held at the Village Hall, 4801 W.
50th Street, in said Village on June I, 194.8, at 8:OO P.M.
Pdth Palen arriving late as recorded below, and the following was absent: T.lillson,
Hawthorne read a release signed by Hay and Stenson Coqany, waiving any rights of
action against the Village in connection with the establishment of I4unicipal Xcpar
Store. Release was tendered with Bill of Sde covering various fMures, and sbock,
Hawbhorne moved approval of May 24kh Bill of, Sale cufering stock and fjx'~mes, and
May 26th release tendered by Hay and Stenson Company+ Seconded by Child and carried+
377. 1.IoiXi.S of the Liquor Control Cod&ion recornended that the Village enter
into lease for rental of the Hay and Stenson Company property at 3922 If, 501;h Street,
for operatian of 1.Iunicipal Liquor Store. P/lr. Bauers of the Liquor-Coptrol
Conmission concurred.
Cormnission?~ recommendation axid enter into lease for the above properby,
by Child ad carried,
The f ollowjng members were present =: Child, Cooper, Hathhorne, and Palen,
Hawthorne moved that Village Council accept Ijquor Control
Seconded
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Cooper reported thai; the lease previously entered into for rental of property at
5004 France Avenue, for Municipal Liquor Store, could be cancelled on papnent of
$100.00, Child moved to pay Business Properties, Inc,, $lOO,OO for cancellation
of lease at 5004 France Avenue. Seconded by Ea$&horne. and carried.
Trustee Palen entered the meeting at this times
The Clerk repori;ed to the Council that one sealed bid bad been received for the
purchase of the $75,000 Liquor Dispensary Revenue Bonds heretofore advertised for
sale, .and presented an affidavit showing publication of the notice of sale of said
bonds in accordance with the resolutisn adopted Nay 24, 19@. Said affidavit was
examined, approved, and ordered placed on file,
Said bids were thereupon opened, read and considered, and the highest and best
+ bid of each bidder was found to be as follmsr
Nme of Bidder
KaW et Co, IncI and
HaTold E. tllood
Interest Bate Purchase Frice
45% . $75,000
Clerk Hawthorne introduced the follo~dng resolution and moved its ad'optiont:
RESOWPION AIqmING SfUZ OF @"7,000
KCQUOEI DISmSBKY REXENUE mms
HF, IT aESam by the Village Council of the Village of Edina, Minnesota,
that it, is hereby found, determined and declared that the highest and best bid
received for the pwchase of $75,000 Liquor Dispensary Revenue Bonds of the Village
to be dated June 1, 1948, in accordance with the notice of sale heretofore duly
published, is the bid of Kalman & Go. kc., etc. of the City of Mbmeapolis, Mime-
sota, to purchase said bonds at a price of $75,000, bearing interest, at the rate of 4&?3 per annm, principal apd interest to be payable at First Nationaf Bank, 5x1 the
Tity of Minneapolis, Minnesotz1, and said bid shall be and is hereby accepted. The
President and Village Clerk are hereby authorized and directed to enter into a contract of sale in accordance with tb terns of said bid, and to ret&n the good
faith check of the successful bidder pending the payment of the'purchase price in:
accordance with sa5d contracte Checks of other bidders shall be returned fo&hvAthr
The motion for the adoption of the. foregoing resolution was deuly seconded by
Trustee Child, and upon vote being dxdcen. thereon, the following. voted in favor
thereof= Child, Palen, Cooper and Haithome; and the follOt&lg voted against
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the same: None; whereupon said resolubion was declared duLy passed and adorked,
t *r
Clerk Havrbhorne then introdue6d the follorhg Resolution and moved its adoptionr
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1 Rl3sdoL;LTTIC%J AUTHORZING AID IITRSCmtG THE,
ISSUANCE (2 FEVEBluE IjD1\JDS TO PROVIDE
UOiWS FOR ESTABLTSBBET OF' THE IXIXICLPAL I3Q.m D1SPE;NSm AND PTZESCELBRG TEITL.IS
AND l3OVISIWS FOR REPAXI*iEX?T OF THE T*lGHFXS
SO BO%OI?ED,
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I-, by Ordinance adopted April 5, 1948, entitled 1lAn Ordinance Estab7i.Sh-
ing a Umicipal Liquor Dispensary't, the Village of Edim has established an exclusive
liquor store for the off-sale of intoxicating kiquor, as therek defined, purszwnt
to the stztufies and laws of the State of Hrmesota thereunto enabling, including
Sections 340.07, s&di,sion 5, and 3&0.ll.3 subdivision 10, IEnnesota Statutes as
mended, to be owned and operated by the Village under the control and supervision
or this Gonncil, and suitzble premises have been rented at 3922 I?. 5OkhTStreet in
the Village of Edina for the operation of said dispensary, and
Ti-, i-b is necessary that an adequate irii.%ial stock of mercharldise and
suiLable ecpipent and furniture be-provided for sarid dispensaq, and the cost of
such merchandise, equipment and furniture .1.lill be apprccchately, but not &ss,Lhan
$75,000, and it"is feasible and proper and in the best interests of the Village
and its inhabitants and taxpayers that said sum bz borrowed for said purpose by the
issuance and sale of the Equor Dispensary Revenue Bonds herein described, and
I*-, The income of said dispensary thich is reasonably anticipated to boy
received dw5q the period for trhich such bonds shall remzin outstanding t;zill be
nore than sufficient to pay all costs of operation, sent, mintenance, and repairs
of Xqgor dispensary premises and the ecpipment and j3.mxLs-s thereof, and Ghe
cost of merchandise sold, and to meet the payments of prkcipaLand jnterest on
the revenue bmds herein authorized, as such papents fall due:
NQY, THEEEFCBE, 33E IT RESOLVED by the Village Council. of the Village of Zdim,
IEmesota, as follows::
__ &, Each and all of the recLtjls set forth in the premie Qereto are
hereby f md and declared to be true and correct, and said preamble is he;F.eb;y. mde
a part bereof.
dispensary is hereby ordered and directed to be eskablished by the purchase of the
merchandise, equipnent ad furnishings referred to in said preamble, aad Lo provide
moneys for such purpose there shall forthvkth be prepared, executed, sold and
de35kered an issue of Liquor Dispensary Revenue Bonds in -&e aggregake principal
amomt of $75,000, said bods to be 75 in nwer and nmbzred 1 to 75, inclusive,
each in the denoninatLon of $3. 000, and all dated. June 1, 19@* Said bonds shall
bear 5nteres.t; at the rate of 4.k per annum, payable December I,. 19@, and semi-
annually thereafter on June 1 and *December 1 -of each year, and' shall mgwe serLally,
in Fder of serial numbers, lov~st .numbers first, on June 1 5.n the amoun'i, of $&OOO
in .ea& 'of the ;Peas 194-9 tbceowh 1953. Bonds numbered 1 tlhrough 45 shU bz
paya6l.e at their respeckik skated m%uxi't;y d&es xithou% pption of prior papnt.
Bonds nmibered &' through 75, being those bonds having stated mtmity dates later
than June 1, 1951, shall be each subject to redention and prepayment at the
option of the Village at Fa?? and accrued Werest, in inverse order of serial
numbers, on said date and any hterest ppnt date,ther,eaf%er, ' Notice of cd.1
for redemption of any of said bonds shall be miled at least Ltlirby (30) days prior
to the date fixed for redemgion to %he bmk at vbich prhcipal and inkerest are
then payable and to the holder, if known, of each bond so to be redeeaed, The
VLIlage Clerk shall mhtain a register of the names, addresses and bond numbers,
of the holders of redeemable bonds of said issue, so far as such hfomLion is
available to him+ Both principd. of and hterest on said bonds shall be papble at
the main office of First National Bank in the City of E.Iinneapoli.s, Ninnesob, and
the Village shall pay the reasonable and customary charges of sa5.d pa-g agent far
the receLpt and disbursement thereof, as a31 expense of the opration of said
dispensaxy*
2. Fkwsuant to the proVrisions 6f said Ordinance, said municipal liquor
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3. Said bonds and the interest coupons to be thereto attached shall be in substantially the following form, with suitable variations fcr maturity
dates: *,
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UNITED STUBS OF AMEXUCA
COW OF HEN.iXPIX VImm OF EDINA 'I No.
KNOW AI& >EX EIY THESE PF?ESE3TS That the Village of Edinal, Hennepin
County, Ninnesota, tJiU pay to the bearer hereof, but only out of the Sinking
Fund Account of its Municipal Ziquor Dispensary Fund, the principal sum of
ONE THCILTSABD DOIUW on the 1st day of June, 19,, or, if this bond is pre,my-
able as stated below, on a date prior thereto on which it shall have been duly
caJ.led for redemption and prepayment, and will. pay interest thereon out of said
account from the date hereof until said principal sum be paid, or until this
bond, if prepayable, has been duly called for redemption, at the rate of 4%
percent (&@] per annum, payable December 1, 1948, and semiannually thereafter
on June I and December 1 of each gem, interest to maturity being represented
by and payable in accordance with and upon presentation and surrender of the
interest coupons hereto attached. Both principal and interest are payable at
the maim office of First National Bank in tbe City of I$inneapolis, Nimesota,
in any,coin or currency of the United States of America which-on the respective
dates of payment is legal tender for public and private debts.
This bond is one of an issue in the aggregate principal amount of
$753000, all of like date and tenor except as to serial number, maturity date, ad
redemption privilege, all. issued for the purpose of providing moneys to pay for
the establishment of the municipal liquor dispensary ovmed and qerated by the
V&llage of Edina, and is issued pursuant to and in full conformity vdth the
Constitution and Laws of the State of Unnesota and ordinaces and resolutions
duly adopted by the Council of- said Village, including an authorizing resolution
adopted June 1, 1948, to which resolution reference 5s made as fully as though
the sams were incorporated herein+
Bonds of said issue bearing serial numbers 1 through 45 are each
payable a'c their respective stated maturity dates without option of prior
pzyment. Bonds of sa5.d issue bearing- serial numbers 46 through 75, being those
redemption and prepayment at the option of the Village at par and accrued
interest, in inverse order of serialnwnbers, on said date and any interest
payment date thereafber, upon notice of cd1 for redemption mailed at least
thirty (30) days prior to the date specified for redempEon, to the bank at
t.J.i.lich principal and interest are then payable and to the holder, if knotsn, of
each bond so to be redeemed. Holders of redeemable bonds desiring to receive
such notice mu& register their names, addresses and bond number u&th the
Village Clerk
conditions and things required by the Constitution and laws of the State of Xinne-
sota and the ordinances and resolutions of the Village of Edina to be done, to
happen, to exist and to be performed precedent to and in the issuance of this bond,
in order to make it a valid and binding special obligation according to its terms,
have bee-n done, have bappened, do exist, and have been performed in due form, kSme
and manner as so requLmd; that until full payment of the principal 09' and interest
on the bonds of this issue the Village. will continue, so far as permitted by law
and subject to the local option'povisions of Sections 340,ZO and 3LiO.21, &Iinne-
sota Statutes, to own and operate its municipal licpoi. dispensary, and w5l.l- mah-
ten the same free from competition by any other establishmen% within the Village
for the on-sale or off-sale of intoldcating liquors at retail, except private
clubs of the type mentioned in said authorizing resolukion; that the proceeds of
said bonds will be used exclusively for the purchase of merchandise, equipment
and furnishings necessary for .the establishmnt of said dispensary; that the
Village and its officers and employees tdll, to best of their ability, establish
and maintain oper&ing policies and do all things necessary to assure that the
gross receipts of said dispns'ary will at all times be adequqte to pay all costs:
of operation and maintenance thereof, and to produce excess or net jncome and
revenues in amounts and at times sufficient to bay the full principal of and
interest on said bonds of this issue as such principal and interest become due;
bonds haviw stated maturity dates later than June 1, 1951, are each subject to
IT IS =BY CERTIFIED, 3RECITEI3, CmWm AND AGm: That all acts,
,
that all incone and revenues received from sdd dispensary, including all receipts
frcnn the sale of inloxicating liquor and other merchandise and services on the
premises thereof and any other premises where said dispensary mag be relocated
or additianal or branch liquor stores established, over and above reasonable
and current costs of operation and maintenance thereof, including rent and cost
of merchandise purchased for resale, shall constitu%e the net revenues of s&d
dispensary; that out of said net revenues there shall be credited and pid
monthly into the specid sLnkbg fund accoun% for the bonds of this issue a%
least one-twelfth of the anomt necessary to meet all pqynents of principal and
interest due on said bonds within the ne& succeeding twelve months; that the
bonds of this issue do and v&ll ad all thes constitute a first lien ar-d chargq
on such net revenues to the extent necessary to meet such payments; that moneys
in said shking fund account T.rill be used only to pay prslcipal of and inkerest
on sa5.d bards as such paymnts b6cme due; that net revenues Lri excess of mounts
so repired to be paid into said sinking fund account my be used to redeem bonds
of this issue when and as the same shall become prepayable according Pto their
terms, or to pay the cost of necessasy capital hprovemen"ca, ineluding purchase
or construction of *a Equor dispensary building but shall nab be transferred
from the liquor dispensaqy fund to any other fund of the Village so long as any
of the bonds of this issue are outstanding, unless there shall have been applro-
priated Lo said suing fund acf;omt sufficient noneys tospay the principal of
all such auts%anding bonds and interest to accrue thereon to wtwity; and that
no additiond. obligations will be incurred payable from said net Pevenues on a:
parity with tho bonds of this issue except to refund, if necessary, mturihg
bonds of this issue, and except that additional obligations payable from said
net revenues on a p,arity herewith my be issued for necessary &nprovements.,
including purchase or construction of a Xqucr dispensary building, provided
that the net revenues for the then next, preceding twelve montihs shall have been
a% least one and one-quarter times the average annual principal sad interest
requirements for all bonds and &her obligations so payable or to be made. pay?
able during the period between the date of issuance and the date of final
mturity of such additiond. obligations; all as more fully set forth in said
atfthorizing resolut Lons
by its Village Council, has caused this bond to be signed intits behalf by the
President of said Council and the Village Clerk? and countersigned by the Village
Treasurer, and its corporate seal to be hereto affixed, aml %he attached h'ceres%
coupons to be executed and a&hen%ica%ed by %he facsimile signatures of sdd
Fresident and Clerk, all as of June 1, l9@,
3X WTlESS 'r3.FFREOF, The Tillage of Edina, Hennepin County, Ihesota,
President.
Countersigned:
Village Clerk
t VLUage Treasurer - P
(sal
C
C (Form of Coupon)
r. NO, Q .
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fund and account de€ined in the attached bond, the sum of
DOLLARS l.ax€ul money- of the United 3Gates of herica, at
for interest "&en due on its Equor Dispensarg Revenue Bond dated June 1,
(~acsjai1-2 Signatwe)
@I the 1st gay of June (December), L9-, the Village of Edim,
-Hennepb Cm.nty3 f.keso-Ea, vkll pay to bearer, out of the special .
1 - -
19424 NO..
(Fazsimile Signa%ure)
President of Village Council
Coupons nmibered 7 and upwards shall also contain %he clauser
Wnless the attached bond is called for earlier redemptiontt.
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4* Said revenue bonds shall be forthwith prepared for execution on -
behalf of the Village by the signature of the President and Village Clerk, counter-
signed by the Village Treasurer, and sealed with the corporate seal, and the-interest
coupons attachedto each and all of said bonds shall be executed and authenticated
by the printed, engraved or lithographed facsimile signatures of $he President and
Clerk.
of the City of Minneapolis, Minnesota, as purchaser thereof, upon payment of the
purchase price heretofore agreed upon. Said purchaser shall not be obligated to
see to the application of the pmchase price beyond its papent to the Treasurer,
but such purchase price shall b paid into the Iiiwor Dispensary Fun3 and expended
and accounted for in the manner hereinafter prwided,
Said bonds shall then be delivered by the Treasurer to K&an & Co,, Inc. 1
5 The Village of Edina hereby covenants and agrees with the purchasers
and holders from time to time of said bonds as: follows::
(a) It T.Si3.l. continuously oun'and operate the municipal liquor dispensam
heretofore established as a public convenience and enterprise, jxt the manner autho-
rized and subject to the resbrictions imposed by the statutes and laws of IiIinnesota,
including Minnesota Statutes sections 340,20 and 340.21, relating to elections on
the licensing of sale of intoxicating liquors, and will main-bajn the same free from
competition by any private establishment for the on-sale or off-sale of int;o@catkg
liquors at retail, except that duly organized clubs licensed prior to Januaq? 1,
1940, my be licensed to continue such sales pursuant to Ibesota Statutes,
Section 340,U, subdivisions 6 and l3*
(b) 1% vLli Use the proceeds of sale-of said revenue bonds only to pay
the cost of the initial stock of merchandise and the equipment and furnishings and
to provide the working capital necessaq for the establishment of said dispensarylb
sary Rmd heretcfore created by the ordinance adopted April 5, 19.48, entitled,
Ith Ordinance Establishing a Municipal Liquor Dispensaryzz, at least until fuLb
paymenti, of the principal of and interest on said bonds, and trill credrit and pay
into said fund all income and revenues received from the operation of the mdcipd-
liquor dispensary as defined in the foregoing fomn of bond, and except as therein
specified ~.rjfJ, transfer no noneys.ou5 of sed fund,
items as br sound accounting practices constitute noml, reasonable and current
costs of operation of said dispensary, iincluding rent, cmpensation of the liquor
store mnager and other necessary employees, irmsuyance, utility services, and
merchandise purchased fur resale. The remaining amounts in said fund from time to
time shall constitute and ere herein referred to as net revenuesI
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(e) It r.dU maintah the separate and special NunicipaJ- Liquor Dispen-
(dl Out of said income and revenues it pay all, but only, such
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(9) It trill. forthp&th create in said fund and thereafter maintain the
special s5Adrig fund account described in said form of+ bond ana trill credit and
pay thereto out of said ne% revenues the amounts specified in said form of bond at
the times therein agreed,
1% tkU at all times hold the assets of said dispensary free from all' gens thereon or on the income therefrom other than the liens herein grmted,
provided that purchase money liem may be created on merchandise hereafter acquired
fosr resale, or such merchamiise may be acquired subject, to liens existing at the
time of acquisition, "
(f)
(g) It will operate the municip.1 liquor dispensary in accordance with the provisions of the ordinance establishing %he same, and will not sell or dispose
of any of the merchandise thereof except ?or reasonable vLue received, or of any of
the equipment or furnishings thereof unless replaced by a substitute of equal
utility, and id11 do all things'necessaxy -Lo assure so far as possible tha% the
net revenues of said dispensary will, be suf'ficient for the p.ent of said bonds
and interest thereon as provided in the foregoing form of bond,
. (h) It v~5.I-l at all times keep said dispensary and the equipment, furnish-
ings and nwchandise therein insured by reputable carriers jrl amoun-bs and against all
risks for r$.?ich like groperties are customarily insured by prudent ovmers of
conpasable properties, and will use and apply the proceeds of any such insurance to
resbore %he loss or damzge or to py and redeem revenue bonds issued hereunder,
according to their ternI
(i) It r.dU at all t5ms keep persons handling moneys of the Liquor Dispensary Fund and the accounts therein adequately bonded for the faituul per-
fomce of their duties and to account for and pay Over such moneys to the
VEUage*
(j) It .r.rill at all timss keep proper and adequate books of account
showing an receipts and disbursements of moneys of said dispensary, which boo?p
shall be open to inspecbion and copying during all reasonable business hours, by
the holder of any revenue bond issued hereunder, or his agent or attorney, ad
~fiXl mintain E perpztual daily inventorg of merchandise, and said accounts ShZU
be exhed annually by the State Public Exminer, and a copy of the report of
said examiner &all be furnished mually to the purchaser of said bonds,
,
(k) In the event that moneys in said sinking fund account shabl at my the be insufficient to pay principal of and interest on the revenue bonds
issued hereunder Which paymsn-ks -re %lien dm, said moneys shall be first applied
to pay the accrEd interesb, and the balance shall be applied in papent of matur-
ing principal in mder of serial nunhers of the bonds, lowest nunbers first, wdch
are then due and payable, ad the Village reserves the right and privilege to
refund any such mtured revenue,bods for pymnt of Yhich funds are not, at the
the available, by issuing refunding revenue bonds payable from said sinking fund
account, vMch shall'be on a parity with th bonds theretofore issued as to interest
charges thereon, but %he maturity of which shall be subsequent to %he maturity of
all revenue bonds payable from said account and then oubstanqp,
(1) Except BS authorized %n subpara&aph (k) hereof, the Tillige
2.rill not incur any obligation payable from the net revenues of said dispensary
which shall have a priority over or be on a parity vith the lien and charge
thereon in favor of the revenue bonds issued under this resolution, unless such
additional obligations are issued for necessary capital expenditures in connection
with said dispensary, including purchase of consplruction of a liquor dispenszry
building, and unless the total net revenues of said dispensary for the twelve
months ne& preceding the issuance of such additions1 obligations sW have been
at; least one and onequarter %bes the average of tha annual principl and
interest requirements for all bonds and other obligations so payable or to be
mde pap,ble from said net revenues during the period between the date of issuance
and the data of Ziml maturity of6such obl&&ions; provided that nothing herein
skll prevent the Village fromissuing additional obligations pyzble out of ne%
revenues of. said dispensary which are expressly made junior and subject to the
prior lien and charge in favor of the bonds issued hereunder.
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(m) The holders of.20 per cent or more aggregate principal moun%
of the revenue bonds herein guthoriaed and at a3ly time outstanding my, either at
law or in equity, by suit, action, mandamus, at? other proceedings, protect and
enforce the rights of all holders of revenue bonds outstan- hereunder or enforce
and compel the performance of any or all. covenants and duties herein specified of
the ViUage and its officials.,
(n) Each and all of the terns and provisions of %his resolution and -
the form of bond herein contained v&ll be punctually and faithfully complied with
and shall constitute the covenants and agreements of the Village with ad for the
benbfit; of the holders from time to Cime of the revenue bonds herein authorized.
to the purchaser of said bonds and to the attorneys approviq the sane certified
copies of all proceedings and records of the Village 16th reference to the
establishment of said Licpor di,spensaryand the lssuance of said bonds and the
pledge of revenues for the paynent thereof, and such other affidavits and cer-bi-
ficates as my be necessary bo" show the facts relating to %he legalitJr and market-
ability of said bonds, and an such certified copies, certificates and affihvits,
including any thereof heretofore furnished, shall constitute representations. on
the part of the Village as to The truth of the matters therein stated,
The motion for the adoption of the foregoing resolution was duly seconded by Trust;ee
Child, and upon vote being ;I;&& thereon, the folloxing voted in favor thereof: Child, Palen, Cooper, and &wbhorne; and the follodng voted agaspl the sane: None;
thereupon said resolution vas Fclawd duly passed and adopted,
6, The officers of k in e Village are authorized and directed to furnish
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Preadent of the ts4J-J-
Ben Voehler reported to the Council the need for emplopnent of additional
water meter readersr Child moved,authorizing Woehler to hire Sidney Gunn
and one other man to read meters at six cents (G.06) pr meter, with limit
of one call back. Motion seconded by Hawbhorne and.carrfedr
Child nuved to adjourn. Hotion seconded by Palen and carried,
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