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~ RESOLUTION AUTHORIZING THE ISSUANCE OF <br /> LEASE REVENUE BONDS TO FINANCE A <br /> pUBLIC (CHARTER) SCHOOL PROJECT PURSUANT TO <br /> MINNESOTA LAW, AND AUTHORIZING THE EXECUTION OF VARIOUS <br /> DOCUMENTS IN CONNECTION THEREWITH <br /> (PACT CHARTER SCHOOL PROJECT) <br /> <br /> 1. .Aut.horit¥. The City is, by the Constitution and laws of the State of Minnesota, <br />including Mir~es6ia Statutes, Sections 469.152 to 469.1651, as amended (the "Act"), authorized <br />to issue and sell its[revenue bonds for the purpose of financing industrial development within the <br />boundaries of ~he c!ty and to enter into agreements necessary or convenient in the exercise of the <br />powers granted bY ~the Act. <br /> <br /> 2. ~ut~orization of Project; Documents Presented. PCS Building Company (the <br />"Company"), a7 Minnesota nonprofit corporation and an organization described under Section <br />501(c)(3) of tl~e Infernal Revenue Code of 1986, as amended, has proposed to this Council that <br />the City issue ~nd kell its Lease Revenue Bonds (PACT Charter School Project) Series 2004A <br />(the "Series A![B°rids'') and its taxable Lease Revenue Bonds (PACT Charter School Project) <br />Series 2004B ithe~ l'Series B Bonds," and together with the Series A Bonds, the "Bonds") in an <br />aggregate amOunt!not to exceed $11,800,000, in substantially the form set forth in the <br />hereinafter-me,flti0ned Indenture, pursuant to the Act and loan the proceeds thereof to the <br />Company, in 6,rder[ to finance the acquisition, construction and equipping of an approximately <br />72,004 square ifoo~ kindergarten through grade twelve education facility (the "Project") to be <br />owned by the! Co[npany and leased to the PACT Charter School, a Minnesota nonprofit <br />corporation andan ~organization described under Section 501(c)(3) of the Internal Revenue Code <br />of 1986, as anlend~d, (the "School"). Forms of the following documents relating to the Bonds <br />have been subrhitte~t to the City: <br /> <br />(a) Loan Agreement (the "Loan Agreement") between the City and the <br />Company, wh~eb~ the City agrees to make a loan to the Company of the gross proceeds of sale <br />of the Bonds a~d the Company agrees to operate the Project and to pay amounts in repayment of <br /> ~ 'r . <br />the loan sufficient to provide for the full and prompt payment of the principal of, premium, if <br />any, and intere§t o~ the Bonds, and compensate the City for its inability to designate its bonds as <br />bank qualified in 2004; and <br /> <br /> (b):. Indenture of Trust (the "Indenture") between the City and Wells Fargo <br />Bank Minnesol~a, National Association, as trustee (the "Trustee"), authorizing the issuance of and <br />pledging certa'.~, r¢~fenues, including those to be derived from the Loan Agreement, as security <br />for the Bonds, ~nd'Sietting. . .: forth proposed recitals, covenants and agreements relating thereto; and <br /> <br /> (c) : Mortgage, Security Agreement and Assignment of Rents (the <br />"Mortgage"), from ~[he Company to the Trustee, by which the Company grants a mortgage lien <br />on and security, interest in certain mortgaged property, as described therein, as further security <br />for the paymen! of,the Bonds and assigns its interests in all rents with respect to the mortgaged <br />property; and <br /> <br />1612446v1 2 <br /> <br /> <br />