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<br />Economic Development Authority Minutes <br />September 9, 1991 <br /> <br />Page 2 <br /> <br />. <br /> <br />allow drainage of the water. It was the consensus of the City Council <br />that the device be removed. <br /> <br />5. Financial Update <br /> <br />Bill Rubin indicated that all loans are current and that further <br />information will be sent to the EDA at a later date. <br /> <br />6. City Hall and Law Enforcement Facility Project <br /> <br />6.1. Accept Transfer of Land from the City of Elk River <br /> <br />Lori Johnson indicated that the City Council recently voted to <br />transfer land from the City to the EDA so that a lease/purchase <br />agreement may be made between the City and the 'EDA for the new <br />City Hall and Law Enforcement Facility. <br /> <br />COMMISSIONER KROPUENSKE MOVED TO ACCEPT THE TRANSFER OF LAND FROM <br />THE CITY OF ELK RIVER TO THE ECONOMIC DEVELOPMENT AUTHORITY. <br />COMMISSIONER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 7-0. <br /> <br />. <br /> <br />Lori Johnson indicated that the City staff has reviewed the lease <br />agreement. Lori Johnson answered questions regarding the lease <br />agreement. President Gongoll requested periodic updates during <br />construction. <br /> <br />COMMISSIONER HOLMGREN MOVED TO APPROVE THE LEASE/PURCHASE <br />AGREEMENT BETWEEN THE ECONOMIC DEVELOPMENT AUTHORITY AND THE CITY <br />OF ELK RIVER. COMMISSIONER TRALLE SECONDED THE MOTION. THE <br />MOTION CARRIED 7-0. <br /> <br />Rusty Fifield of Springsted, Inc., reviewed the recommendations <br />for the sale of $2,740,000 in Public Project Revenue Bonds for the <br />Ci ty Hall project. Rusty Fifield explained that the bonds being <br />issued by the EDA will allow the City to enter into a <br />lease/purchase agreement with the EDA. Payments made by the City <br />under the. lease/purchase agreement will be sufficient to pay <br />principal and interest on the bonds. Rusty proceeded to identify <br />the six revenue sources that are expected to be used to make the <br />lease/purchase payments to the EDA. <br /> <br />. <br /> <br />Commissioner Holmgren questioned the risk of using funds from NSP, <br />the Landfill and Liquor Store reserves. He indicated that there <br />could be a time when money in these funds is not available. Rusty <br />explained that if this were to happen, the City has the option of <br />falling back on taxes through a special levy. Pat Klaers also <br />indicated that the City does have other options in which to pay <br />for the lease and Lori Johnson indicated that the City was very <br />conservative in the numbers projected in the lease/purchase <br />agreement. <br /> <br />Rusty Fifield suggest that the EDA consider the sale of the bonds <br />for the City Hall/Police Station construction so as to avoid other <br />