RES 07-02 ECONOMIC DEVELOPMENT AUTHORITY
• OF THE CITY OF ELK RIVER
RESOLUTION NO. 07-02
RESOLUTION APPROVING LEASE AGREEMENT BETWEEN THE
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ELK
RIVER AND THE YOUNG MEN'S CHRISTIAN ASSOCIATION OF
METROPOLITAN MINNEAPOLIS AND THE GROUND LEASE
BETWEEN THE CITY OF ELK RIVER AND THE ECONOMIC
DEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER
BE IT RESOLVED By the Board of Commissioners ("Board") of the Economic
Development Authority of the City of Elk River,Minnesota("Authority") as follows:
Section 1. Recitals.
1.01. The City of Elk River(the"City") and the Authority have determined that it is in the
best interests of the health,welfare, and safety of the City and its residents that the Authority acquire
and construct a facility (the "Project") to be owned by the Authority and leased to The Young
Men's Christian Association of Metropolitan Minneapolis ("YMCA").
1.02. The Authority is authorized by the provisions of Minnesota Statutes, Section
469.102 to issue its obligations to finance the Project in whole or in part and to pledge the City's full
• faith, credit and taxing powers together with revenues of the Project to the payment of such
obligations.
1.03. At a special election held on September 12, 2006, the voters of the City approved a
pledge of the City's full faith and credit to bonds in the maximum principal amount of$12,000,000
issued by the Authority to finance the acquisition and betterment of the Project.
1.04. To implement the Project, the Authority has caused to be prepared a Lease
Agreement between the Authority and the YMCA(the"Lease"), under which the YMCA will lease
the Project from the Authority.
1.05. The Authority has also caused to be prepared a Ground Lease between the City and
the Authority (the "Ground Lease"), under which the City will lease to the Authority the land on
which the Project will be constructed.
1.06. The Board has reviewed the Lease and the Ground Lease, and has determined that it
is in the best interest of the Authority to approve such agreements.
Section 2. Authority Approval; Further Proceedings.
2.01. The Lease and the Ground Lease as presented to the Board are hereby in all respects
approved, subject to modifications that do not alter the substance of the transaction and that are
approved by the President and Executive Director, provided that execution of the documents by
such officials shall be conclusive evidence of approval.
• 2.02. The President and Executive Director are hereby authorized to execute on behalf of
the Authority the Ground Lease and the Lease, and any documents referenced therein requiring
execution by the Authority, and to carry out on behalf of the Authority its obligations thereunder.
•
Approved by the Board of Commissioners of the City of Elk River, Minnesota this 14t'day
of May, 2007.
ATTEST:
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Secreta,y
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