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the "Series 2002A Bonds"}, pursuant to a IVlortgage and Security Agreement and
<br />Trust Indenture, dated September 1, 2002, between the EDA and U.S. Bank
<br />National Association, as trustee the "Trustee"} the "2002A Indenture"} and a
<br />resolution adopted by the EDA on August 12, 2002 the "Series 2002A Bond
<br />Resolution"}. The proceeds of the Series 2DD2A Bands were used for construction
<br />and furnishing of a certain public safety facility the "Safety Facility"}. The City
<br />currently leases the Safety Facility pursuant to a Lease Agreement, dated
<br />September 1, 20D2 the "Lease Agreement"}, between the EDA, as lessor, and the
<br />City, as lessee. The City has determined to terminate the Lease Agreement and
<br />purchase the Safety Facility from the EDA by refunding the Series 2002A Bonds,
<br />which are currently outstanding in the principal amount of ~5,5~0,000.
<br />1.02 The EDA also previously issued its City Hall Expansion Revenue
<br />Bands, Series 2002B City of Elk River Lease Purchase Obligation}, dated
<br />September 1, 2002 the "Series 20D2B Bonds"}, pursuant to a Trust Indenture,
<br />dated November 1, 1991, as supplemented by a Supplement to Trust Indenture
<br />dated December 1, 1997, and further supplemented by a Supplement to Trust
<br />Indenture dated September ~., 2002, between the EDA and U.S. Bank National
<br />Association formerly First Trust National Association}, as trustee the "Trustee"}
<br />~~collectively the "20028 Indenture"} and a resolution adopted by the EDA on August
<br />12, 2002 the "Series 20o2B Bond Resolution"}, The proceeds of the Series 2o02B
<br />Bonds were used for the expansion of the City Hall, including related furnishings,
<br />equipment and site improvements the "City Hall Facility"}. The City currently
<br />leases the City Facility pursuant to a Lease Purchase Agreement, dated November
<br />1, 1991, as supplemented by a Supplement to Lease Purchase Agreement dated
<br />December 1, 1997, as further supplemented by a Supplement to Lease Purchase
<br />Agreement dated September 1, 2002 collectively the "Lease Purchase Agreement"},
<br />between the EDA, as lessor, and the City, as lessee. The City subleases a portion of
<br />the City Hail Facility to the Commission. The City has determined to terminate the
<br />Lease Purchase Agreement and purchase the City Hall Facility from the EDA by
<br />refunding the Series 2002B Bonds, which are currently outstanding in the principal
<br />amount of ~ 1, 270, 000.
<br />1,03 Pursuant to a resolution adopted by the City Council of the City on March 15,
<br />2D1D, the City has determined to issue its General obligation Capital improvement Plan Bonds,
<br />Series 20 i OA the "Bonds"} in the aggregate principal amount of $7,37D,000, and use a portion
<br />of the proceeds of such bonds to finance the acquisition of the Safety Facility and the City Hall
<br />Facility and refund the outstanding Series 2002A Bonds and Series 2002B Bonds issued by the
<br />EDA.
<br />Section 2. Acknowledgment and Consent. The Commission hereby acknowledges and
<br />consents to the acquisition of the Safety Facility and the City Hall Facility and the refunding of
<br />the outstanding Series 20D2A Bonds and Series 2002B Bands by the City. The Commission will
<br />continue to leases a portion of the City Hall Facility from the City.
<br />366923v2 JSB ELl$5-11
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