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<br />CITY OF ELK RIVER <br /> <br />RESOLUTION NO. <br /> <br />RESOLUTION APPROVING LEASE AGREEMENT BETWEEN THE <br />ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ELK <br />RIVER AND THE YOUNG MEN'S CHRISTIAN ASSOCIATION OF <br />METROPOLITAN MINNEAPOLIS AND THE GROUND LEASE <br />BETWEEN THE CITY OF ELK RIVER AND THE ECONOMIC <br />DEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER <br /> <br />BE IT RESOLVED By the City Council ("Council") of the City of Elk River, Minnesota <br />("City") as follows: <br /> <br />Section 1. Recitals. <br /> <br />1.01. The City and the Economic Development Authority of the City of Elk River <br />("Authority") have determined that it is in the best interests of the health, welfare, and safety of the <br />City and its residents that the Authority acquire and construct a facility (the "Project") to be owned <br />by the Authority and leased to The Young Men's Christian Association of Metropolitan <br />Minneapolis ("YMCA"). <br /> <br />1.02. The Authority is authorized by the provisions of Minnesota Statutes, Section <br />469.102 to issue its obligations to finance the Project in whole or in part and to pledge the City's full <br />faith, credit and taxing powers together with revenues of the Project to the payment of such <br />obligations. <br /> <br />1.03. At a special election held on September 12, 2007, the voters of the City approved a <br />pledge of the City's full faith and credit to bonds in the maximum principal amount of $12,000,000 <br />issued by the Authority to finance the acquisition and betterment of the Project. <br /> <br />1.04. To implement the Project, the Authority has caused to be prepared a Lease <br />Agreement between the Authority and the YMCA (the "Lease"), under which the YMCA will lease <br />the Project from the Authority. <br /> <br />1.05. The Authority has also caused to be prepared a Ground Lease between the City and <br />the Authority (the "Ground Lease"), under which the City will lease to the Authority the land on <br />which the Project will be constructed. <br /> <br />1.06. The Council has reviewed the Lease and the Ground Lease, and has determined that <br />it is in the best interest of the City to approve such agreements. <br /> <br />Section 2. City Approval; Further Proceedings. <br /> <br />2.01. The Lease and the Ground Lease as presented to the Council are hereby in all <br />respects approved, subject to modifications that do not alter the substance of the transaction and that <br />are approved by the Mayor and City Administrator, provided that execution of the documents by <br />such officials shall be conclusive evidence of approval. <br /> <br />2.02. The Mayor and City Administrator are hereby authorized to execute on behalf ofthe <br />City the Ground Lease and the consent to the Lease, and any documents referenced therein <br />988240v2 <br />