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ORDINANCE NO. I2-19 • CITY OF ELK RIVER AN ORDINANCE AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $10,000,000 GENERAL OBLIGATION REFUNDING BONDS BY THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER, MINNESOTA; PROVIDING FOR THE FORM AND DETAILS THEREOF; AND AUTHORIZING THE ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF ELK RIVER, MINNESOTA, TO PLEDGE THE FULL FAITH, CREDIT AND RESOURCES OF THE CITY OF ELK RIVER, MINNESOTA, FOR THE SECURITY AND PAYMENT OF THE BONDS THE CITY OF ELK RIVER,MINNESOTA,DOES ORDAIN: SECTION 1. Recitals. (a) The Economic Development Authority for the City of Elk River (the "EDA") has the powers described in Minnesota Statutes, Sections 469.001 through 469.047, and Minnesota Statutes,Section 469.090 to 469.108. (b) The EDA proposes to refund its General Obligation Bonds, Series 2007B (the "Prior Bonds"), the proceeds of which were used to finance the acquisition and betterment of a recreational facility owned by the EDA and leased to YMCA of the Greater Twin Cities (formerly known as The Young Men's Christian Association of Metropolitan Minneapolis, collectively, the "YMCA")) (the • "Project"). The City and the EDA believe that it is desirable and necessary that there be issued general obligation refunding bonds to refund the Prior Bonds to achieve debt service cost savings. (c) A public hearing on the issuance of the Bonds and the use of the Project by the YMCA was held by the EDA on December 10,2012 following duly published notice, at which time all persons that desired to speak were heard. SECTION 2.Bonding Authorization. (a) Pursuant to and in accordance with the provisions of this Ordinance and the provisions of Minnesota Statutes, Section 469.102 and Chapter 475 and Section 147(f) of the Internal Revenue Code of 1986, as amended (the"Code"), the consent of the City Council is hereby given to the EDA to issue and sell the EDA's general obligation bond or bonds to which the full faith, credit and resources of the City may and shall be pledged as payment and security.therefor, in one or more series, in fully registered form, and in an aggregate principal amount not to exceed $10,000,000 (the "Bonds"), for the purpose of providing funds to assist in refunding the Prior Bonds,together with such costs of issuance and related costs as may be incidental to the issuance of the Bonds. The EDA shall set the date, denominations, place of payment, form, content, interest rates and details of the Bonds, and the City Council hereby consents to the issuance and details of the Bonds, as so determined by the EDA.The City Council hereby gives specific consent to the pledge of the City's full faith, credit, and resources to the payment and security of the Bonds. (b) The Mayor and City Clerk, or any other officers of the City authorized to act in their • place, (the"City Officials") are authorized and directed to execute on behalf of the City,as the obligated 415279v2 JSB EL185-21