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Item 5 & 6 <br /> • � <br /> City of <br /> Elk -�-� <br /> River <br /> MEMORANDUM <br /> TO: Economic Development Authority <br /> City Council <br /> FROM: Lori Johnson, Finance Director <br /> DATE: August 12, 2002 <br /> SUBJECT: EDA <br /> A. Consider Resolution Authorizing the issuance of Public <br /> Safety Building Lease Revenue Bonds, Series 2002A <br /> B. Resolution Authorizing the Issuance of City Hall <br /> Expansion Revenue Bonds, Series 2002B <br /> 4111 City Council <br /> A. Consider Resolution Authorizing the Execution and <br /> Delivery of a Lease Agreement and Continuing <br /> Disclosure Undertaking <br /> B. Consider Resolution Authorizing the Execution and <br /> Delivery of a Supplement to Lease Agreement and <br /> Continuing Disclosure Undertaking <br /> Attached are two resolutions to be approved by the EDA and two resolutions to be <br /> approved by the City Council that respectfully will authorize the issuance of bonds for the <br /> public safety building and the addition to city hall (Elk River Municipal Utilities addition) <br /> and execute the lease agreements between the EDA and City. The EDA is the issuer of the <br /> bonds, but the City will be bound by a lease to make all debt payments. An internal <br /> agreement of understanding or lease will be drafted to confirm the Elk River Municipal <br /> Utilities' obligation to make debt payments to the City for the 2002B bonds. Also attached <br /> is a bond sale report for each of the issues. <br /> As you may recall,when the EDA set the sale date for this financing there was discussion <br /> regarding the possibility of insuring the debt service reserve for the public safety portion of <br /> • the financing in order to increase the proceeds available for the project. We have received <br /> confirmation from the insurer,MBIA, that the public safety building lease revenue bonds <br /> will carry insurance in lieu of a cash reserve. For that reason, there are now two bond issues <br />