Resolution - #03-12-318 - 12/09/2003

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and revenues sufficient to pay, when due, the principal and interest on the Bonds in an aggregate principal amount not to exceed $12,000,000 and the City hereby undertakes preliminarily to issue its Bonds in accordance with such terms and conditions. 2. At the option of the City, the financing may be structured so as to take advantage of whatever means are available and are permitted by law to enhance the security for, or marketability of, the Bonds; provided that any such financing structure must be consented to by the Borrower. 3. On the basis of information available to the City it appears, and the City hereby finds, that the Project constitutes properties, real and personal, used or useful in connection with a revenue producing enterprise within the meaning of Subdivision 2(b) of Section 469.153 of the Act; that the availability of financing under the Act and the willingness of the City to furnish the financing will be a substantial inducement to the Borrower to undertake the Project, and that the effect of the Project, if undertaken, will be to encourage the development of economically sound industry and commerce, to assist in the prevention of the emergence of blighted and marginal land, to help prevent chronic unemployment, to help the City retain and improve the tax base, to provide the range of services and employment opportunities required by the population and to help prevent the movement of talented and educated persons out of the state and to areas within the state where their services may not be as effectively used and to promote more intensive development and use of land within the City 4. The Project and the program to finance the Project by the issuance of the Bonds, are hcrcby given preliminary approval, subject to final approval by the City, the Borrower and- the purchaser of the Bonds as to ultimate details of financing the Project. 5. The Borrower has agreed and it is hereby determined that any and all costs incurred by the City in connection with financing the Project whether or not the Project is carded to co~npletion will be paid by the Borrower. In addition, the City will be reimbursed for any additional cost that the City incurs in connection with bonds issued by the City for municipal purposes after January 1, 2004 and prior to January 1, 2005 due to its inability to qualify such bonds under Section 265(b)(3) of the Internal Revenue Code because the City has exceeded or will exceed the $10,000,000 limitation set forth in such Code section due to the issuance of the Bonds. 6. Briggs and Morgan, Professional Association, acting as bond counsel, is authorized to assist in the preparation and review of necessary documents relating to the Project, to consult with the City Attorney, Borrower and the purchaser of the Bonds as to the maturities, interest rates and other terms and provisions of the Bonds and as to the covenants and other provisions of the necessary documents and submit such documents to the City for final approval. 7. Nothing in this resolution or the documents prepared pursuant hereto shall authorize the expenditure of any municipal funds on the Project other than the revenues derived fi'om the Project or otherwise granted to the City for this purpose. The Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City except the revenue and proceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon. The holders of the Bonds shall never have the right to compel any exercise of 1598059v2 3