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172994853v4 RESOLUTION NO. _______ RESOLUTION APPROVING THE ISSUANCE AND SALE OF AN EDUCATIONAL FACILITIES REVENUE NOTE, SERIES 2025 AND AUTHORIZING THE EXECUTION OF DOCUMENTS RELATING THERETO (LEGACY CHRISTIAN ACADEMY PROJECT) WHEREAS, (a) Minnesota Statutes, Sections 469.152 to 469.165, as amended (the "Act"), authorizes cities to issue revenue bonds to finance or refinance industrial development projects to promote the welfare of the state by the active development of economically sound industry and commerce to meet the needs of an increasing population and the need for development of land use which will provide an adequate tax base to finance the increasing cost of governmental services and access to employment opportunities for such population; (b) Factors necessitating the active promotion and development of economically sound industry and commerce are the increasing concentration of population in the metropolitan areas and the rapidly rising increase in the amount and cost of governmental services required to meet the needs of the increased population and the need for development of land use which will provide an adequate tax base to finance these increased costs and the need for access to employment opportunities for such population; (c) The City Council of the City of Hugo, Minnesota (the "City") has received from Legacy Christian Academy, a Minnesota nonprofit corporation organized under the laws of the State of Minnesota (the "Borrower"), a proposal that the City undertake a program to finance the Project (as defined below) through the issuance of revenue bonds or other obligations, in one or more series pursuant to the Act, and in connection therewith the following described note is to be issued: City of Hugo, Educational Facilities Revenue Note, Series 2025 (Legacy Christian Academy Project) (the "Note"), in the aggregate principal amount not to exceed $6,000,000; (d) The City desires to facilitate the selective development of the surrounding community, retain and improve the tax base and help to provide the range of services and employment opportunities required by the population, including educational services; and the Project will assist the City in achieving those objectives and will enhance the image and reputation of the City and the surrounding community; (e) The “Project” to be financed by the Note consists of financing, in part, the acquisition of land and the improvements thereon for the purpose of the expansion and continued operation of a private pre-k–12 school facility located at 3037 Bunker Lake Blvd NW in Andover, Minnesota, including classrooms, administrative offices, and other spaces; (f) The City has been advised by representatives of the Borrower that, with the aid of municipal financing, and its resulting lower borrowing cost, the Project is economically more feasible;