5.2. A & B SR 08-12-2002 - Laserfiche WebLink

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Item 5.2. A&B River MEMORANDUM TO: Economic Development Authority City Council FROM: Lori Johnson, Finance Director DATE: August 12,2002 SUBJECT: EDA Re Consider Resolution Authorizing the issuance of Public Safety Building Lease Revenue Bonds, Series 2002A Resolution Authorizing the Issuance of City Hall Expansion Revenue Bonds, Series 2002B City Council A. Consider Resolution Authorizing the Execution and Delivery of a Lease Agreement and Continuing Disclosure Undertaking Consider Resolution Authorizing the Execution and Delivery of a Supplement to Lease Agreement and Continuing Disclosure Undertaking Attached are two resolutions to be approved by the EDA and two resolutions to be approved by the City Council that respectfully will authorize the issuance of bonds for the public safety building and the addition to city hall (Elk River Municipal Utilities addition) and execute the lease agreements between the EDA and City. The EDA is the issuer of, the bonds, but the City will be bound by a lease to make ail debt payments. An internal agreement of understanding or lease will be drafted to confirm the Elk River Municipal Utilities' obligation to make debt payments to the City for the 2002B bonds. Also attached is a bond sale report for each of the issues. As you may recall, when the EDA set the sale date for this financing there was discussion regarding the possibility of insuring the debt service reserve for the public safety portion of the financing in order to increase the proceeds available for the project. We have received confirmation from the insurer, MBIA, that the public safety building lease revenue bonds will carry insurance in lieu of a cash reserve. For that reason, there are now two bond issues