91-057 RES - Laserfiche WebLink

Home Browse Search

e RESOLUTION 91 - 57 RESOLUTION FOR THE CITY OF ELK RIVER A RESOLUTION APPROVING THE LEASE PURCHASE AGREEMENT BETWEEN THE CITY OF ELK RIVER AND ITS ECONOMIC DEVELOPMENT AUTHORITY AND MAKING AN IRREVOCABLE ALLOCATION FOR PURPOSES OF THE SMALL ISSUER EXCEPTION TO REBATE WHEREAS, the city hall and law enforcement facility currently leased and operated by the City of Elk River (the City) is inadequate to meet the present and future needs of the City; and, WHEREAS, the City Council of the City has determined that the construction of a new city hall and law enforcement facility (the Facility) is necessary to meet the governmenta~ purposes of the City; and, WHEREAS, the Authority will issue its $2,740,000 aggregate principal amount of City Hall and Law Enforcement Facility Revenue Bonds (City of Elk River Lease Purchase Obligation) Series 1991 (the Bonds), to finance the construction, equipping, and furnishing of the Facility; and, WHEREAS, the Authority proposes to lease the Facility to the City pursuant to a Lease Purchase Agreement dated as of November 1, 1991 (the Lease); and, tit WHEREAS, earnings on the investment of the proceeds of the Bonds will not be subject to the arbitrage rebate requirement of Section 148(f)(I) of Internal Revenue Code of 1986, as amended (the Code), if the Bonds qualify for the small issuer exception to rebate pursuant to section 148(f)(4)(D) of the Code; and, WHEREAS, the small issuer exception to rebate is available only to governmental units with general taxing powers, Section 148(f)(4)(D)(i)(I) of the Code, and subordinate entities of such governmental units, Section 148 (f)(4)(D)(iv) of the Code. An issuer issuing bonds on hehalf of a governmental unit with general taxing powers is treated as a subordinate entity of that governmental unit, Section 148(f)(4)(D)(iv) of the Code. The Authority is issuing the Bonds and advancing the proceeds to the City to construct the Facility. The Facility will be leased to the City and the City will have the option to purchase the Facility at the end of the lease term; and, WHEREAS, the proceeds of the Bonds will finance a facility for governmental use, payment of the principal of and interest on the Bonds will be secured by payments derived from property used for a governmental use, and the proceeds of the Bonds will not finance loans to persons other than governmental units, such that no Bond which is part of the Bond issue is considered a private activity bond within the meaning of Section 141(a)(1) of the Code; and, -