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CITY OF LINO LAKES RESOLUTION NO. 05-105 RESOLUTION APPROVING A BUSINESS SUBSIDY AGREEMENT BETWEEN THE CITY OF LINO LAKES AND YMCA OF GREATER SAINT PAUL BE IT RESOLVED By the City Council ( "Council ") of the City of Lino Lakes, Minnesota ( "City ") as follows: Section 1. Recitals. 1.01. Under Minnesota Statutes, Sections 471.15 to 471.191 (the "Recreation Act "), the City is authorized to acquire, equip and maintain recreational facilities, and also to cooperate with a nonprofit organization in the operation of such a recreational program in any manner in which the parties mutually agree. 1.02. In furtherance of a cooperative program under the Recreation Act the City and the YMCA have entered into a certain Development Agreement (the "Development Agreement "), which specifies the parties' anticipated responsibilities regarding the development and financing of a facility that includes a teen center, gym, indoor pool, cardiovascular /strength training area, aerobic studio, family program space and Kids Stuff (the "Facility "). 1.03. The Facility will be constructed by the YMCA on land currently owned by the City (the "Site "). 1.04. The Development Agreement contemplates, among other things, that the City will convey or lease the Site to the YMCA without cost to the YMCA, and further that the City will contribute $1,500,000 in funds toward construction of the Facility, all subject to the terms of definitive agreements to be entered into by the parties. 1.05. The City expects to finance its financial contribution through issuance of bonds (the "Abatement Bonds ") secured by property tax abatements under Minnesota Statutes, Sections 469.1812 to 469.1815 (the "Abatement Act "). 1.06. In connection with issuance of the Abatement Bonds, the City also intents to approve a resolution granting a property tax abatement under the Abatement Act (the "Abatement Resolution ") for certain property that is adjacent to and benefits from the Facility. 1.07. The City also expects to finance additional costs of the Facility through issuance of so- called qualified 501(c)(3) revenue bonds (the "Revenue Bonds "). 1.08. 'While the Facility will be operated in part as a cooperative effort with the City under the Recreation Act, the City has determined that its contribution of land and City funds to the YMCA constitutes a business subsidy within the meaning of Minnesota Statutes, Section 116J.993 to 116J.995 (the "Business Subsidy Act "). SJB- 265623v1 LN 140 -90 -31-