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WHEREAS, the Borrowers have represented to the City that in connection with revenue bonds issued under the Industrial Development Act, Section 469.155, Subd. 9 provides for intergovernmental agreements between municipalities, redevelopment agencies and political subdivisions relating to the financing of projects under the Industrial Development Act, and in connection with revenue bonds issued under the Housing Programs Act, Section 462C. 14, Subd. 3 provides for joint action between cities and housing and redevelopment authorities pursuant to the Joint Powers Act, and contracts for housing programs and development of financial services for housing between a city and another city or other political subdivision or state agency; WHEREAS, the Borrowers have represented to the City that the City and the Participating Jurisdictions are "govemmental units" under the Joint Powers Act and "municipalities" or "redevelopment agencies" under the Industrial Development Act and each has the power to issue bonds under the Industrial Development Act; WHEREAS, the Borrowers have represented to the City that the City, is a "city" under the Housing Programs Act with power to issue bonds under the Housing Programs Act; WHEREAS, the Borrowers have represented to the City that pursuant to Section 147(0 of the Internal Revenue Code of 1986, as amended, it is necessary for the City to conduct a public hearing before the City issues the Bonds'; WHEREAS, the Borrowers have agreed to reimburse the City for the cost of publication of notice of the hearing in the official newspaper of the City, together with any legal fees to be incurred by the City and any loss or expense of the City for its inability (due to the issuance of the Bonds) to designate the City's bonds in 1998 as "qualified tax-exempt" obligations, as well as any other costs incurred by the City related to the Joint Powers Agreement; and NOW, THEREFORE, be it resolved by the City Council of the CiB' of Elk River, Minnesota, that: 1. The City Council shall hold a public hearing on the issuance of the Bonds on Monday, July 27, at 7:00 o'clock P.M., at the City Hall, 13065 Orono Parkway, Elk River, Minnesota. The City Clerk or any employee of the City shall publish or cause to be published a legal notice in connection therewith, substantially in the form attached hereto as Exhibit D. 2. The proposal to finance and refinance the Guardian Angels Projects is hereby given preliminary approval, subject to holding a public hearing thereon and the Council's adoption in its sole and absolute discretion of a definitive Bond Resolution. 2