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. RESOLUTION 85-85 A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF A REVENUE BOND PURSUANT TO CHAPTER 474, MINNESOTA STATUTES, TO PROVIDE FUNDS TO BE LOANED TO SCHERER LIMITED PARTNERSHIP FOR INDUSTRIAL DEVELOPMENT PROJECT BE IT RESOLVED by the City Council of the City of Elk River, Minnesota, as follows: 1. Authority. The City is, by the Constitution and Laws of the State of Minnesota, including Chapter 474, Minnesota Statutes, as amended (the "Act") authorized to issue and sell its revenue bonds for the purpose of financing the cost of construc- tion of authorized projects and to enter into contracts necessary or convenient in the exercise of the powers granted by the Act and to pledge revenues of the project and otherwise secure the bonds. .'. 2. Authorization of Bond. The City Council hereby determines that it is necessary and expedient to authorize, and the City Council does hereby authorize, the issuance of the revenue bond of the City in the principal amount of One Million Four Hundred Thousapd Dollars ($1,400,000) pursuant to the Act to provide money to be loaned to Scherer Limited Partnership, a Minnesota limited partnership (the "Partnership") to finance costs of acquiring, constructing and equipping an approximately 40,000 square foot retail facility on Lots 5, 6 and 7, Block 2, Elk River Plaza, in the City (the "Project Building"), to be owned by the Partnership and leased to Pamida, Inc., a Delaware corporation, together with necessary equipment (the "Project Equipment") to be located permanently in and become a part of the Project Building or the site thereof (the "Project Site") and necessary site improvements (collectively the "Project" as more fully defined in the Loan Agreement hereinafter mentioned). In order to provide financing for the Project, the City shall issue and sell its $1,400,000 City of Elk River Industrial Development Revenue Bond (Scherer Limited Partnership Project) (the "Bond"). 3. Documents Presented. Forms of the following docu- ments relating to the Bond and the Project have been submitted to and examined by the City Council and are now on file in the office of the City Clerk-Administrator: . (a) Loan and Purchase Agreement (the "Loan Agree- ment"), dated as of December 1, 1985, by and among the City, the Partnership and Security State Bank of St. Michael (the "Bank") whereby, among other things, the City agrees to sell and the Bank agrees to purchase the Bond, the City agrees to make a loan to the Partnership of the proceeds of the sale of the Bond and the Partnership covenants to complete the