07-049 RES
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CITY OF ELK RIVER
RESOLUTION NO. 07-49
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 City Council ("Council") of the City of Elk River, Minnesota
("City") as follows:
Section 1. Recitals.
1.01. The City and the Economic Development Authority of the City of Elk River
("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 ofthe 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 Council has reviewed the Lease and the Ground Lease, and has determined that
it is in the best interest ofthe City to approve such agreements.
Section 2. City Approval: Further Proceedings.
2.01. The Lease and the Ground Lease as presented to the Council are hereby in all
respects approved, subject to modifications that do not alter the substance ofthe transaction and that
are approved by the Mayor and City Administrator, provided that execution of the documents by
such officials shall be conclusive evidence of approval.
2.02. The Mayor and City Administrator are hereby authorized to execute on behalf of the
City the Ground Lease and the consent to the Lease, and any documents referenced therein
requiring execution by the City, and to carry out on behalf ofthe City its obligations thereunder.
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2007.
Approved by the City Council of the City of Elk River, Minnesota this 14th day of May,
ATTEST:
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City Clerk
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Mayor
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