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2 <br />WHEREAS, Lake Johanna Fire Department’s Board of Directors authorized the Fire <br />Chief to negotiate and execute a letter of intent to purchase the property from Bethel University; <br />and <br />WHEREAS, in early April 2020, Lake Johanna Fire Department and Bethel University <br />executed a letter of intent to purchase the Property for a purchase price of $1.35 million; and <br />WHEREAS, the letter of intent also requires Lake Johanna Fire Department to <br />contribute one third of the cost, up to a maximum of $325,000, to relocate an access road on the <br />Property; <br />WHEREAS, the purpose of this agreement is to define each City’s responsibilities for <br />the Lake Johanna Fire Department’s purchase of the Property and the construction of <br />improvements on the Property (“the Project”); and <br />WHEREAS, the new fire station would be owned and operated by the Lake Johanna Fire <br />Department to serve the three contract cities of Arden Hills, North Oaks, and Shoreview, the <br />Parties. <br />AGREEMENT <br />NOW, THEREFORE, in consideration of the mutual undertakings herein expressed, the <br />City of Shoreview, the City of Arden Hills, and the City of North Oaks agree as follows: <br /> <br />1 Term of Agreement <br /> 1.1 Effective date: This Agreement and any amendments thereto shall be in full force and <br />effect upon the filing of a certified copy of the resolution approving this Agreement by <br />each City. Said resolutions shall be filed with the Shoreview City Attorney who shall <br />notify each City in writing of its effective date. <br /> <br />1.2 Expiration date: This Agreement expires upon the Bond, issued pursuant to <br />paragraph 2.3, being repaid in full. <br /> <br />2 Agreement between the Parties <br />2.1 Cost. The cost of the land purchase, access road relocation, and property <br />improvements of the Property will be funded by a $300,000 contribution from the Lake <br />Johanna Fire Department and by contributions from each City allocated proportionally <br />through the current cost share agreement for fire department operations and capital costs. <br /> <br />2.2 Cost share formula. The cost share formula will be used to allocate each City’s <br />contribution for the land acquisition, and is currently defined as 25% population, 25% <br />households,40% fire calls, and 10% assessed value. <br /> <br />2.3 Bond issuance. At the time financing is needed for the construction of a new station, <br />the financing will be provided by one of the two following methods: <br />