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market value of the Facilities; that the Lease Payments and Additional Lease Payments hereunder during the Term of Lease represent the fair value of the use of the improved Facilities; and that the Purchase Price represents the fair purchase price of the Facilities. The City hereby determines that the Lease Payments and Additional Lease Payments do not exceed a reasonable amount so as to place the City under an economic compulsion to renew this Lease or to exercise its option to purchase the Facilities hereunder. In making such determinations the City has given consideration to the costs of the Facilities, the uses and purposes for which the Facilities will be employed by the City, the benefit to the City by reason of the acquisition of the Facilities pursuant to the terms and provisions of this Lease and the City's option to purchase the Facilities. The City hereby determines and declares that the acquisition, construction and equipping of the Facilities and the leasing of the Facilities pursuant to this Lease will result in facilities of comparable quality and meeting the same requirements and standards as would be necessary if the acquisition of the Facilities were performed by the City other than pursuant to this Lease. The City hereby determines and declares that the period during which the City has an option to purchase the Facilities (i.e., the Term of Lease) does not exceed the anticipated useful life of the Facilities. Section 2.2. Representations, Covenants and Warranties of the Authority. The Authority represents, covenants, and warrants as follows: (a) The Authority is a public body corporate and politic and political subdivision of the State of Minnesota; has power to enter into this Lease; is possessed of full power to own and hold real and personal property, and to sell the same; and has duly authorized the execution and delivery of this Lease. (b) Neither the execution and delivery of this Lease, nor the fulfillment of or compliance with the terms and conditions thereof, nor the consummation of the transactions contemplated thereby, conflicts with or results in a breach of the terms, conditions or provisions of any restriction or any agreement or instrument to which the Authority is now a party or by which the Authority is bound, constitutes a default under any of the foregoing, or results in the creation or imposition of any lien, charge or encumbrance whatsoever upon any of the property or assets of the Authority, or upon the Site and the Facilities except Permitted Encumbrances. (c) This Lease is entered into under authority of and pursuant to Minnesota Statutes, Sections 469.090 through 469.1082. (d) The Authority declares and finds that the Facilities promote economic development generally by ensuring a modern and efficient fire hall in the City. (e) The officers of the Authority executing this Lease have been duly authorized to do so. 460515v2 JAE LN140-112 (The remainder of this page is intentionally left blank.) 7