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Resolution No. 85-47 . A RESOLUTION OF THE CITY OF ELK RIVER AUTHORIZING THE ISSUANCE OF $300,000 PRINCIPAL AMOUNT CITY OF ELK RIVER, MINNESOTA, RECREATIONAL FACILITY REVENUE NOTE (ELK RIVER ICE ARENA PROJECT), SERIES 1985, AND APPROVING THE FORM THEREOF AND AUTHORIZING THE EXECUTION OF NECESSARY DOCUMENTS RELATING THERETO. BE IT RESOLVED by the City Council of the City of Elk River, Minnesota (the City), as follows: Section 1. Findinqs. that: It is hereby found and declared . 1.1) The City is authorized, under Minnesota Statutes, Chapter 471 (the Act) to operate a program of public recreation; to acquire, equip, and maintain land, buildings, and other recreational facilities, including skating rinks and arenas; and to expend funds in the operation of such program. The City is further authorized by the Act to carry out such a recreational program in cooperation with a nonprofit organization and, in that connection, to lease the recreational facilities to the nonprofit corporation upon terms provided in the Act. The Act further authorizes the City to issue bonds for the acquisition and betterment of land, buildings, and facilities for the purpose of carrying out the recreational program and for such bonds to be payable from the income of the land, buildings, and facilities used for the operation of the program, and for such bonds to be secured by a pledge to the bondholders of all income and revenues of whatsoever nature derived from any such land, buildings, and facilities, as a first charge on the gross revenues thereof. 1.2) The Elk River Youth Hockey Association, a Minnesota nonprofit corporation (the Association), is currently the owner of an ice arena (the Facility) located at 1000 School St. (Adjacent to Sr. High Parking Lot)in the City. The Facility is currently subject to a mortgage loan obligation of approximately Ninety- five Thousand Five Hundred Dollars ($95,500). The Association desires to construct and install certain improvements and betterments in the Facility. It is proposed that the City issue revenue bonds under the Act (the Note) and lend the proceeds of the sale of the Note to the Association to finance the repayment of the existing mortgage loan, the improvements and betterments to be constructed and installed in the Facility and the costs of the issuance of the bonds. The First National Bank of Elk River (the Lender) is willing to purchase ~he Note upon the terms and conditions described in this resolution and the other documents to be described herein. . 2 .