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91-043 RES Resolution No. 91- 43 e A RESOLUTION OF THE CITY OF ELK RIVER, SHERBURNE COUNTY, MINNESOTA, DECLARING THE INTENTION OF THE CITY TO REIMBURSE CERTAIN EXPENDITURES MADE BY THE CITY IN CONNECTION WITH THE CONSTRUCTION OF A CITY HALL AND LAW ENFORCEMENT FACILITY FROM THE PROCEEDS OF AN ISSUE OF TAX-EXEMPT BONDS. BE IT RESOLVED by the City Council of the City of Elk River (the City), as follows: Section 1. Findings. It is hereby found and declared that: 1.1) The Elk River Economic Development Authority (the "Authority") intends to issue its City Hall and Law Enforcement Facility Revenue Bonds (City of Elk River, Minnesota, Lease Purchase Obligation) Series 1991 (the "Bonds"), in the approximate amount of $2,400,000. The Bonds will be issued on or after September 8, 1991. 1.2) The proceeds of the Bonds will be used to fund the construction of a city hall and law enforcement facility (the "Facility") in the City, to pay a portion of the cost of issuing the Bonds, and to reimburse the City for certain expenditures made by the City in connection with the Facility before the Bonds were issued (the "Expenditures"). e 1.3) The Authority will own the Facility and the land on which it is located. The City will lease the facility from the Authority pursuant to a lease purchase agreement (the "Lease"). The Authority will pledge Lease revenues to the repayment of the Bonds. 1.4) The United States Treasury has published Proposed Treasury Regulations S 1.103-17 (the "Regulations") limiting the types of expenditures that can be reimbursed with bond proceeds and specifying the procedure that must be followed to qualify expenditures for reimbursement from bond proceeds. 1.5) The Regulations apply to issuers of reimbursement bonds. The Regulations define the term "issuer" to include conduit borrowers to whom the actual issuer of the reimbursement bonds has loaned the bond proceeds. The Authority, as the issuer of the Bonds, will loan the Bond proceeds to the City. e 1.6) According to the Regulations, an expenditure made before bond issuance may not be reimbursed from bond proceeds unless the issuer officially declares its intention to reimburse the expenditure with the proceeds of a borrowing. The declaration must be made in writing and may be made by the the governing body of the issuer. '.', :\.. i'l " Section 2. Declaration of Intent. The City declares, as of the date of this resolution: e 2.1) The Facility will be a 22,000 square foot city hall and law enforcement building. 2.2) The City expects to advance revenues from its general fund or other reserves for certain expenditures to be made in connection with the Facility. 2.3) The City intends to reimburse itself, from the proceeds of debt the interest on which is excludable from gross income under section 103 of the Internal Revenue Code of 1986, for expenditures made by the City before issuance of the Bonds in connection with the construction of the Facility. 2.4) Revenues received by the Authority from the City pursuant to the Lease are the expected source of funds for payment of debt service on the Bonds. Section 3. Miscellaneous. e 3.1) Availability of This Resolution. This resolution will be reasonably available for inspection by the general public. It will be available for inspection at the Elk River City Hall continuously during the City's normal business hours on every business day of the period beginning the earlier of ten (10) days after the date of enactment of this resolution or the date of issue of the Bonds, and ending on, and including, the date of issue of the Bonds. Section 4. Execution Date of Resolution. This Resolution shall be in full force and effect from and after its passage. Adopted by the City Council on ~ 4- ~a: ~,) /1 / ,1 . / / /" [SEAL] //;L-1iftJ/-;:? tft~d- " / Mayor ATTEST: s4~ a ~"~1 City Clerk e LAS:B09a 2. [SEAL] J~4~~ City Clerk ~ STATE OF MINNESOTA COUNTY OF SHERBURNE CITY OF ELK RIVER e I, the undersigned, being the duly qualified and acting City Clerk of the City of Elk River, Minnesota, or an appropriate official of said City authorized to execute documents on behalf of said City Clerk, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true, and complete transcript of the minutes of a meeting of the City Council of said City duly called and held on the date therein indicated, insofar as such minutes relate to the declaration of the intention of the City to reimburse certain expenditures made by the City in connection with the construction of a city hall and law enforcement facility from tit the proceeds of the Elk River Economic Development Authority's City Hall and Law Enforcement Facility Revenue Bonds (City of Elk River, Minnesota, Lease Purchase Obligation) Series 1991. WITNESS my hand and seal this -if day of /4-' 1991. e LAS:B09a 3.