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Resolution No. 91- 43 e A RESOLUTION OF THE CITY OF ELK RIVER, SHERBURNE COUNTY, MINNESOTA, DECLARING THE INTENTION OF THE CITY TO REIMBURSE CERTAIN EXPENDITURES MADE BY THE CITY IN CONNECTION WITH THE CONSTRUCTION OF A CITY HALL AND LAW ENFORCEMENT FACILITY FROM THE PROCEEDS OF AN ISSUE OF TAX-EXEMPT BONDS. BE IT RESOLVED by the City Council of the City of Elk River (the City), as follows: Section 1. Findings. It is hereby found and declared that: 1.1) The Elk River Economic Development Authority (the "Authority") intends to issue its City Hall and Law Enforcement Facility Revenue Bonds (City of Elk River, Minnesota, Lease Purchase Obligation) Series 1991 (the "Bonds"), in the approximate amount of $2,400,000. The Bonds will be issued on or after September 8, 1991. 1.2) The proceeds of the Bonds will be used to fund the construction of a city hall and law enforcement facility (the "Facility") in the City, to pay a portion of the cost of issuing the Bonds, and to reimburse the City for certain expenditures made by the City in connection with the Facility before the Bonds were issued (the "Expenditures"). e 1.3) The Authority will own the Facility and the land on which it is located. The City will lease the facility from the Authority pursuant to a lease purchase agreement (the "Lease"). The Authority will pledge Lease revenues to the repayment of the Bonds. 1.4) The United States Treasury has published Proposed Treasury Regulations S 1.103-17 (the "Regulations") limiting the types of expenditures that can be reimbursed with bond proceeds and specifying the procedure that must be followed to qualify expenditures for reimbursement from bond proceeds. 1.5) The Regulations apply to issuers of reimbursement bonds. The Regulations define the term "issuer" to include conduit borrowers to whom the actual issuer of the reimbursement bonds has loaned the bond proceeds. The Authority, as the issuer of the Bonds, will loan the Bond proceeds to the City. e 1.6) According to the Regulations, an expenditure made before bond issuance may not be reimbursed from bond proceeds unless the issuer officially declares its intention to reimburse the expenditure with the proceeds of a borrowing. The declaration must be made in writing and may be made by the the governing body of the issuer.