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. . . RESOLUTION NO. ~-22 RESOLUTION APPROVING THE ISSUANCE AND SALE OF THE CITY OF ELK RIVER, MINNESOTA EDUCATIONAL FACILITIES REVENUE NOTE, SERIES 2005A (ST. ANDREW SCHOOL PROJECT) AND AUTHORIZING THE EXECUTION OF DOCUMENTS RELATING THERETO BE IT RESOLVED by the City Council (the "City Council") of the City of Elk River, Minnesota (the "City"), as follows: SECTION 1. LEGAL AUTHORIZATION AND FINDINGS. 1.1 Findings. The City hereby finds, determines and declares as follows: (a) The City is authorized under Minnesota Statutes, Section 469.152 to 469.1651, as amended (the "Act") to assist the revenue producing proj ect herein referred to, and to issue and sell the City's Educational Facilities Revenue Note, Series 2005A (St Andrew School Project) (the "Note") as hereinafter defined, for the purpose, in the manner and upon the terms and conditions set forth in the Act and in this Resolution. (b) The City has received a proposal that it issue its revenue Note in the aggregate principal amount of up to $2,500,000 to provide funds to be loaned to The Church of St. Andrew, a religious corporation organized under the laws of the State of Minnesota (the "Borrower") to finance or refinance the completion of the non-religious portions of the renovation and equipping of, and construction of additions to, a school for grades preschool through 6th grade known as St. Andrew School, owned and operated by the Borrower and located at 428 Irving Avenue in the City (the "Project"). (c) As required by the Act and Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), the City has, on Tuesday, February 22, 2005, and Monday, March 21,2005 held public hearings on the issuance of the Note to finance the Project. (d) The issuance and sale of the Note by the City, pursuant to the Act, is in the best interest of the City, and the City hereby determines to issue the Note and to sell the Note to The Bank of Elk River, a Minnesota corporation (the "Lender"), as provided herein. The City will loan the proceeds of the Note (the "Loan") to the Borrower to finance the Project. (e) Pursuant to a Loan Agreement (the "Loan Agreement") to be entered into between the City and the Borrower, the Borrower has agreed to repay the Note in specified amounts and at specified times sufficient to pay in full when due the principal of, premium, if any, and interest on the Note. In addition, the Loan Agreement contains provisions relating to the completion, maintenance and operation of the Project, indemnification, insurance, and other agreements and covenants which are required or permitted by the Act and which the City and the Borrower deem necessary or desirable 1743229v4