RES 91-3 - Laserfiche WebLink

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• 1 .4) The Authority is the owner of certain land legally described in the Lease Purchase Agreement (as hereinafter defined) , on which land (the Land) the Authority proposes to construct a city hall and law enforcement facility (the Facility) . 1.5) The Authority proposes to finance the construction, furnishing, and equipping of the Facility by the issuance of its $2,740,000 City Hall and Law Enforcement Facility Revenue Bonds (City of Elk River Lease Purchase Obligation) Series 1991 (the Bonds) . 1 .6) The Authority proposes to lease the Land and the Facility (the Project) to the City pursuant to a Lease Purchase Agreement dated as of November 1, 1991 (the Lease) , and the Authority desires to finance the Project upon the terms and conditions as required by the Act and as set forth in the Lease. 1.7) Under the Lease, the City is to pay to the Authority Basic Rent (as defined in the Lease) sufficient to pay the principal of, premium, if any, and interest on the Bonds as they become due, subject to the City's right to terminate the Lease at the end of any fiscal year of the City, and the City is to pay the cost of maintaining the Project in good repair, pay the cost of keeping the Project properly insured, and make • any payments required for taxes and any expenses incurred by the Authority in connection with the Project. 1. 8) The Authority proposes that the Bonds be issued under a Trust Indenture dated as of November 1, 1991 (the Indenture) , between the Authority and First Trust National Association (the Trustee) , and that the Bonds be secured by a pledge and assignment of the Lease and of the revenues derived by the Authority from the Project. 1. 9) The Authority proposes that the Bonds be further secured by a Combination Mortgage, Security Agreement, Assignment of Rents and Fixture Financing Statement (the Mortgage) , dated as of November 1, 1991, from the Authority to the Trustee. 1. 10) The Authority proposes that the Bonds and the interest on the Bonds be payable solely from the revenue pledged therefor and that no such Bonds constitute a debt of the Authority within the meaning of any constitutional or statutory limitation nor constitute or give rise to a pecuniary liability of the Authority or a charge against its general credit or taxing powers nor constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the Authority other than its interest in the Project. • 1 . 11) The public interest will be served if the Authority designates the Bonds -as Qualified Tax-exempt Obligations within 2 .