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WHEREAS, in order to carry out the transaction, (1) the City will ground lease the
<br />Project to the Authority pursuant to a Ground Lease Agreement executed by the City (the
<br />"Ground Lease Agreement"), and (2) the Authority will lease back the Project to the City
<br />pursuant to the Lease.
<br />NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
<br />Economic Development Authority of the City of Hugo, Minnesota:
<br />1. Findings. That the Board of Commissioners acknowledges, finds, determines and
<br />declares that the Project will promote the welfare of the City and satisfies the purposes stated in
<br />the Act.
<br />2. Authorization of Financing. That pursuant to the Ground Lease Agreement and
<br />the Lease Agreement both entered into by the Authority, and both dated as of September 1, 2001
<br />(herein referred to as the "Ground Lease" and "Lease", respectively), the financing by the
<br />Authority of the acquisition, construction and installation of the Project, be and the same is
<br />hereby authorized.
<br />3. Acce2tance of Purchase. (the
<br />"Purchaser"), is purchasing $1,870,000 Public Facility Lease Revenue Bonds, Series 2001 (City
<br />of Hugo, Minnesota Lease Obligation) of the Authority (the 'Bonds", or individually a "Bond"),
<br />in accordance with the terns and at the rates of interest set forth in the Indenture, and to pay
<br />therefor the sum of $ *plus interest accrued to settlement, is hereby accepted.
<br />The Bonds shall bear interest at the rates, shall be in such denominations, shall be numbered,
<br />shall be dated, shall mature, shall be subject to redemption prior to maturity, shall be in such
<br />form and shall have such other details and provisions as are prescribed by the Mortgage and
<br />Security Agreement and Indenture of Trust between the Authority and U.S. Bank Trust National
<br />Association in St. Paul, Minnesota, as Trustee (the "Trustee"), dated as of September 1, 2001
<br />(more fully described in Section 4 hereof and hereinafter referred to as the "Indenture").
<br />4. Special Obligations,• Securi+y Authorization to Execute and Deliver Indenture
<br />and Bonds. That the Bonds shall be special obligations of the Authority payable solely from the
<br />revenues derived by the Authority from the Project, in the manner provided in the Indenture. As
<br />security for the payment of the principal of, premium, if any, and interest on the Bonds, pro rata
<br />and without preference of any one Bond over any other Bonds, the Board of Commissioners
<br />hereby authorizes and directs the President and Secretary to execute the Indenture between the
<br />Authority and the Trustee in substantially the form on file with the Secretary, and to deliver the
<br />Indenture to the Trustee, and does hereby authorize and direct the execution of the Bonds, and
<br />does hereby provide that the Indenture shall provide the terms and conditions, covenants, rights,
<br />obligations, duties and agreements of the Holders (as defined in the Indenture and hereinafter
<br />referred to as "Holders") of the Bonds, the Authority and the Trustee as set forth therein.
<br />All of the provisions of the Indenture, when executed as authorized herein, shall be
<br />deemed to be a part of this resolution as fully and to the same extent as if incorporated herein and
<br />shall be in full force and effect from the date of execution and delivery thereof.
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