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<br />BRIGGS AND MORGAN <br /> <br />. The bonds can be isslled for any purposes in sections 469.090 to 469.108. <br />. The bonds must be in the amount and form and bear interest at the rate set by the City <br />Council. <br />. The last maturity of the bonds can not be more than 30 years from the date of their <br />Issuance. <br /> <br />. The bonds must be secured by the pledge of the full faith, credit, and resources of the <br />City if the City specifically authorizes the EDA to do so. <br /> <br />. The City must decide whether the issuance of the bonds by the EDA is proper and the <br />amount of bonds to be issued. <br /> <br />. The City shall give specific consent in an ordinance to the pledge of the City's full faith, <br />credit, and resources. <br /> <br />. The City can pledge the City's full faith, credit and resources only if approved by the <br />voters voting on the question of the City pledging it's full faith, credit and resources to the <br />EDA bonds. <br /> <br />. The taxes levied for the payment of the bonds are levied by the EDA rather than the City. <br /> <br />Assuming that the foregoing can be complied with, I see no reason why the City wouldn't <br />determine that the YMCA project should be undertaken by the EDA as opposed to the City. The <br />law applicable to econolnic development authorities gives the EDA the flexibility that was <br />missing in the laws that govern City recreational facilities. <br /> <br />I have prepared a resolution which is attached hereto which authorizes the EDA to issue <br />ge11eral obligation bonds in an amount not to exceed $12,000,000, authorizes the pledge of the <br />City's full faith, credit and resources to the EDA's bonds, determines that the issuance of the <br />b011ds by the EDA is proper and calls for an election on pledging the City's full faith credit and <br />resources to the payment of the EDA's bonds. I understand that there may be some changes <br />made to the description of the facility described in the ballot question. The City may want to <br />describe the project in the ballot question as the acquisition and betterment of a YMCA and <br />related recreational facilities. Please let me know the final determination as to the description of <br />the project and I will revise the ballot question accordingly. <br /> <br />tfy <br /> <br />2 <br />