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CITY OF LINO LAKES <br />ECONOMIC DEVELOPMENT AUTHORITY <br />MINUTES <br />DATE: May 26, 1998 <br />MEMBERS <br />PRESENT: K. Sullivan, C. Lyden, J. Bergeson, A. Neal, C. Dahl <br />MEMBERS <br />ABSENT: None <br />OTHERS <br />PRESENT: B. Wessel, R. Batty, M. Divine, J. Shannon, D. Pecchia <br />CONSIDERATION OF MINUTES <br />EDA Member Bergeson moved to approve the minutes of March 9, 1998. EDA Member <br />Neal seconded the motion. Motion passed unanimously. <br />CONSIDERATION OF RESOLUTION NO. 98-01 PROVIDING FOR THE <br />ISSUANCE AND SALE OF $5,350,000 LEASE REVENUE BONDS <br />Mr. Wessel explained to the board that the 20-year Lease Revenue Bonds were to assist in <br />the financing of the construction of the public facilities complex. Revenues from the lease <br />of the Early Childhood Center to the school district at $1.2 million for 10 years will be <br />used to pay that portion of the bond. Mr. Batty explained these bonds were not general <br />obligation bonds of either the EDA or the city, but "conduit financing" at no risk to the <br />EDA. <br />EDA President Sullivan asked if the bond takes into account the interest on the $1.2 <br />million for the early childhood center. Mr. Batty responded it did, but the city's lease <br />payments are what pays the bonds and that the school district has no obligation regarding <br />the bonds. They do have a contractual agreement with the lease. <br />EDA Member Neal moved to approve Resolution No. 98-01. EDA Member Bergeson <br />seconded the motion. Motion passed unanimously. <br />CONSIDERATION OF SUBORDINATION AGREEMENT TO THE CONTRACT <br />FOR PRIVATE DEVELOPMENT BETWEEN LINO LAKES EDA AND NOL-TEC <br />LLC <br />Mr. Batty explained that this agreement was requested by the bank for the refinancing of <br />Nol-Tec to expand. This is a typical request and the EDA is generally willing to <br />accommodate to a degree. The assessment agreement will not be subordinated, and the <br />