7.3. SR 08-21-2017 - Laserfiche WebLink

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AGREEMENT 2017-22 AGREEMENT FOR PAYMENT IN LIEU OF FEES BETWEEN THE CITY OF ELK RIVER, MINNESOTA AND SPECTRUM BUILDING COMPANY This Agreement for Payment in Lieu of Fees ("Agreement") is made this day of 2017 between the City of Elk River, Minnesota, a Minnesota municipal corporation ("City") and Spectrum Building Company, a Minnesota non-profit corporation ("SBC"). The City and SBC are jointly hereinafter referred to as the "Parties." RECITALS: SBC has requested that the City of Bethel, Minnesota (the "City of Bethel") provide conduit debt financing by issuing 501(c)(3) tax-exempt or taxable charter school lease revenue bonds in an aggregate principal amount not to exceed Twenty Seven Million Five Hundred Thousand and No/100 Dollars ($27,500,000.00) (the "Bonds"). The proceeds from the sale of the Bonds shall be used to (i) defease, redeem, and prepay certain outstanding bonds issued by Anoka County, Minnesota in 2012 to finance the acquisition and equipping of an existing school facility located at 17796 Industrial Circle Northwest in the City of approximately 60,000 square feet, and approximately 37 acres for athletic fields located at 10189 181st Avenue NW in the City; (ii) defease, redeem, and prepay certain outstanding bonds issued by Anoka County, Minnesota in 2014 to finance the acquisition, renovation, and equipping of certain units within a common interest condominium complex located at 11044 Industrial Circle in the City for use as a sixth grade educational center and gymnasium; (iii) finance the acquisition of ten (10) acres of undeveloped land located north of 181st Avenue NW in the City adjacent to the existing athletic fields of SBC and the acquisition of four (4) acres of land at 17823 Industrial Circle NW in the City on which an existing building is located and the renovation of the existing building and the addition of a gymnasium and field for use as a school building for 7th and 8th grade students (the "Series 2017 Project"); (iv) fund a debt service reserve fund to secure the timely payment of the Bonds; (v) pay a portion of the interest on the Bonds; and (vi) pay a portion of the costs of issuing the Bonds. The Series 2017 Project is located on property legally described on Exhibit A attached hereto and incorporated herein(the "Property"). The City has agreed, in accordance with applicable federal and Minnesota law, to give local host approval to permit the Bonds to be issued by the City of Bethel or another issuer in the event that the City of Bethel declines. By granting said host approval, the City will not be eligible to receive funds paid to issuers in these circumstances. The Parties have agreed that, as consideration for providing host approval, the SBC shall pay the City $42,462.46 not later than 10 days following a determination by the City that the Property is real estate tax exempt according to Sherburne County records. Further, Parties agree and acknowledge that the amount to be paid by SBC to the City is fair and reasonable notwithstanding that Spectrum High School, tenant of the SBC Project (the "Tenant"), is a public charter school funded by the State of Minnesota. 505745v2 ELI 85-19