7.4. SR 12-17-2007 - Laserfiche WebLink

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ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY AND CITY OF ELK RIVER, MINNE30TA PRE-SALE REPORT DECEMBER, 2007 Proposed Issue: $2,000,000 G.O. Bonds, Series 2008, to be issued by the Economic Development Authority (EDA) and secured by the general obligation of the taxpayers of the City of Elk River. The EDA is the issuer because of the legal authority necessary to utilize bond proceeds for a recreational facility leased to anon-profit. Purpose: The Bonds will finance a 55,000 s.f. recreational facility to be leased to the YMCA of Metropolitan Minneapolis pursuant to an election held on September 12, 2006. The ballot language was: "Shall the City of Elk River, Minnesota, be authorized to pledge its full faith, credit and resources to bonds to be issued by the Economic Development Authority of the City of Elk River in an amount not to exceed $12,000,000 to defray the expense of the acquisition and betterment of a recreational facility owned by the Authority and leased to the YMCA? The maximum amount of increased levy as a percentage of market value is .052%. The maximum amount that would be raised by the new referendum tax rate in first year if it were to be levied is $902,982. NOTICE: BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING FOR A PROPERTY TAX INCREASE. The Economic Development Authority of the City of Elk River anticipates entering into a lease with The Young Men's Christian Association of Metropolitan Minneapolis (the "YMCA") pursuant to which the YMCA will pay one-third of the debt service of the bonds to be issued by the Economic Development Authority of the City of Elk River." The EDA sold the first $10,000,000 authorized under the referendum in 2007.