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(the "Series'2002A Bonds"), pursuant to a Mortgage 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 2002A Bonds 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, 2002 (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 $5,840,000.
<br />1.02 The EDA also previously issued its City Hall Expansion Revenue
<br />Bonds, Series 2002B (City of Elk River Lease Purchase Obligation), dated
<br />September 1, 2002 (the "Series 2002B 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 1, 2002, between the EDA and U.S. Bank National
<br />Association (formerly First Trust National Association), as trustee (the "Trustee)
<br />(collectively the "2002B Indenture") and a resolution adopted by the EDA on August
<br />12, 2002 (the "Series 2002B Bond Resolution'). The proceeds of the Series 2002B
<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 Hall 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 />2010, the City has determined to issue its General Obligation Capital Improvement Plan Bonds,
<br />Series 2010A (the "Bonds') in the aggregate principal amount of $7,370,000, 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. Acknowledgement 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 2002A Bonds and Series 2002B Bonds by the City. The Commission will
<br />continue to leases a portion of the City Hall Facility from the City.
<br />36692M JSB EL195-I I
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