Resolution - #99-11-211 - 11/23/1999

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Council Member Connolly introduced the following resolution and moved for its adoption: RESOLUTION #99-11-211 RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF A GROUND LEASE AGREEMENT, LEASE AGREEMENT AND CONTINUING DISCLOSURE AGREEMENT; AND ALLOCATING SMALL ISSUER REBATE EXCEPTION AUTHORITY WHEREAS, the City of Ramsey, Minnesota (the "City"), is authorized, pursuant to Minnesota Statutes, Section 465.71, to enter into lease purchase agreements; WHEREAS, the Economic Development Authority of the City ofRamsey, a body corporate and politic (the "Authority") has agreed to enter into a lease purchase agreement (the "Lease") with the City pursuant to which the Authority will provide for construction of a fire station (the "Project") to be used by the City; WHEREAS, in order to carry out the transaction, (1) the City will ground lease the Project to the Authority pursuant to a ground lease agreement executed by the City (the "Ground Lease"), and (2) the Authority will lease back the Project to the City, pursuant to the Lease; WHEREAS, the Authority will issue its revenue bonds (the "Bonds) to provide funds to finance the Project pursuant to a Mortgage and Security Agreement and Indenture of Trust dated as of December 1, 1999 (the "Indenture") between the Authority and U.S. Bank Trust National Association, as mortgagee and Trustee, setting forth the form and details of the Bonds and their issuance, pledging the rental payments derived from the Lease to the payment of the Bonds and whereby the Authority grants to the Trustee a mortgage interest in the Project with certain reservations as security for the Bonds; WHEREAS, the City is an obligated person under the provisions of Rule 15c2-12 (the "Rule") promulgated by the Securities and Exchange Commission pursuant to the Securities and Exchange Act of 1934, as amended, and is therefore subject to continuing disclosure requirements under the Rule and accordingly, the City will enter into a Continuing Disclosure Agreement (the "Continuing Disclosure Agreement") with the Trustee; WHEREAS, unless an exception is available, bonds which are tax-exempt are subject to the federal arbitrage requirement of rebating earnings in excess of the bond yield on certain investments;