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41 <br /> Section 2. Preliminaa Approval of Bond Financing <br /> 2.1 On the basis of the information given the City to date,but subject to the <br /> adoption of a housing program following a public hearing as required by the Act; <br /> preliminary approval is hereby given to the issuance of the Bonds, in an amount not to <br /> exceed$37,500,000, to provide financing for the Development. The adoption of this <br /> resolution shall not be deemed, however, to establish a legal obligation on the part of the <br /> City or its Council to issue or to cause the issuance of the Bonds. All details of the Bonds <br /> and the provisions for payment thereof shall be subject to final approval of this Council <br /> prior to their issuance. The Bonds, if issued, shall not constitute a charge, lien or <br /> encumbrance, legal or equitable, upon any property of the City, except the revenues to be <br /> received from the operation of the Development and owner thereof specifically pledged <br /> to the payment thereof, and each Bond, when, as and if issued, shall recite in substance <br /> that the Bond, including interest thereon, is payable solely from said revenues and funds <br /> specifically pledged to the payment thereof, and shall not constitute a debt or pecuniary <br /> liability of the City within the meaning of any constitutional or statutory limitation. <br /> 2.2 At such time as the Borrower is prepared to proceed with the issuance of <br /> the Bonds, the City Clerk-Treasurer, in consultation with the Borrower and bond counsel <br /> for the City, is authorized to prepare the housing program required by the Act and prepare <br /> and publish a notice of hearing on the adoption of the housing program and the issuance <br /> of the Bonds as required by the Act and Section 147(f)of the Internal Revenue Code of <br /> 1986, as amended. <br /> Section 3. Application for Bond Issuance Allocation. The Mayor and City Clerk <br /> Treasurer, in consultation with the Borrower, are authorized to execute the necessary <br /> documents on behalf of the City to apply for an allocation of bonding authority for the <br /> Development pursuant to the provisions of Minnesota Statutes, Chapter 474A. <br /> Adopted this 22nd day of June, 2004. <br /> Mayor <br /> Attest: <br /> City Clerk <br />