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. . . RESOLUTION NO. 73 RESOLUTION AUTHORIZING LEASE-PURCHASE TRANSACTION RELATING TO FIRE STATION BE IT RESOLVED by the City Council of the City of Elk River, Minnesota as follows: section 1. Findings It is hereby found and declared as follows: 1.1) This Council has previously authorized the construction of an addition to the City's Fire Station located at 415 Jackson Avenue in the City. The total costs incurred and to be incurred by the City in connection with the construction of that addition are expected to be approximately Three Hundred Forty Thousand Dollars ($340,000). 1.2) Approximately One Hundred Seventy-five Thousand Dollars ($175,000) of the total costs will be financed out of funds on hand in the City fund to which are allocated the revenues from the operation of the City'S liquor store. This Council hereby determines that it is advisable and in the best interests of the City to finance the balance of such costs by means of a lease-purchase arrangement under which a financing source will advance to the City the sum of One Hundred Sixty- five Thousand Dollars ($165,000) to be applied by the City to pay a portion of the costs of construction, or, to reimburse the City for expenditures previously made in payment of the costs of construction. Under such lease-purchase arrangement, the City will enter into a so called ground lease with the party providing the financing, under which the party providing the financing will be granted possession of the land which is the site of the fire station for sufficient period of time to enable that party to recover the amount of its advance, together with interest, out of rental payments to be made by the City under a lease between the lender, as lessor, and the City, as tenant. At the time of the expiration of such ground lease and lease, and payment in full to such lessor of the rentals and other obligations existing under such lease, the City will have the right to reacquire exclusive ownership and possession of the fire station property by payment of the nominal purchase price of One Dollar ($1.00). 1.3) The staff of the City has sought proposals from several potential financing sources regarding the terms of such a lease-purchase arrangement. The City staff has recommended, and this Council hereby finds, that the terms of the proposal submitted by Norwest Investment Services, Inc. (Norwest) represent the proposal containing the most desirable terms. This Council hereby determines that it is in the best interest of the City to enter into a lease-purchase arrangement with Norwest with respect to the fire station property. 2.