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CITY OF LINO LAKES <br />RESOLUTION NO. 04-42 <br />RESOLUTION RELATING TO FINANCING OF CERTAIN PROPOSED PROJECTS <br />TO BE UNDERTAKEN BY THE CITY OF LINO LAKES; ESTABLISHING <br />COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE <br />INTERNAL REVENUE CODE <br />(LEGACY AT WOODS EDGE) <br />WHEREAS, the City of Lino Lakes is in the practice of constructing certain <br />improvements and in some instances reimbursing itself for the cost of any portion of the <br />improvements with bond proceeds, and <br />WHEREAS, the Internal Revenue Service has issued proposed Treasury <br />Regulations Section 1.103 -17 (as proposed and /or finally adopted, the "Regulations") <br />dealing with the issuance of bonds where all or a portion of the proceeds are to be <br />used to reimburse the City for any project costs paid by the City prior to the time of the <br />issuance of the bonds, and <br />WHEREAS, the Regulations generally required that the City make a prior <br />declaration of its official intent to reimburse itself for such prior expenditures out of the <br />proceeds of a subsequently issued taxable or tax exempt borrowing, that such <br />declaration generally be made prior to but not more than two years before the time the <br />expenditure is actually paid, that the borrowing occur and the reimbursement allocation <br />be made from the proceeds of such borrowing within one year of the payment of the <br />expenditure or, if longer, within one year of the date the project is placed in service, <br />and the expenditures relate to property having a reasonably expected economic life of <br />at least one year <br />NOW THEREFORE BE IT RESOLVED by the City Council of the City of Lino Lakes, <br />Anoka County, Minnesota, that: <br />1. Official Intent - The City desires to comply with requirements of the Regulations with <br />respect to certain projects hereinafter identified. <br />a. The City proposes to undertake road and utility improvements in conjunction with <br />the Legacy at Woods Edge and YMCA Development projects. <br />b. Other than costs to be paid or reimbursed from sources other than a tax - exempt <br />borrowing or costs permitted to be reimbursed pursuant to the transaction <br />provision of section 1.103 -17(1) of the Regulations, none of the costs of the <br />foregoing projects has heretofore been paid by the City and none of the costs <br />will be paid by the City until after the date to this Resolution. Each of the <br />