Laserfiche WebLink
<br />9. The City understands and agrees that, pursuant to the foregoing amendments of the <br />Agreement, (a) the Commission would be authorized to acquire the land and issue the <br />Bonds for the Project and to proceed with its completion and (b) the City would be <br />obligated to pay its share of the debt service on the Bonds and to continue to do so even if <br />the City might elect to withdraw from the Commission. <br /> <br />10. This paragraph is solely to allow the Bonds initially issued pursuant to Article VIII, <br />Section 13 of this Agreement to be designated as "qualified tax-exempt obligations" <br />within the meaning of Section 265(b)(3) of the Internal Revenue Code (the "Code") in <br />the hope and expectation of achieving thereby certain lower interest rates on the Bonds. <br />For this purpose, it is assumed that the full $2,500,000 of Bonds would be issued in 2003 <br />(though the actual amount of those Bonds may be less) and that each Member City of the <br />Commission would have an allocation of that total bond issue, based on the percentage <br />shares of the members for 2002, as follows: <br /> <br /> Percentage Allocated <br />Member Share Bond Amount <br />Blaine 52.347% $1,308,675 <br />Centerville 3.567 89,175 <br />Circle Pines 5.001 125,025 <br />Ham Lake 11.696 292,400 <br />Lexington 2.551 63,775 <br />Lino Lakes 16.391 409,775 <br />Spring Lake Park 8.447 211.175 <br /> 100.00% $2,500,000 <br /> <br />This City's allocated bond amount (as provided above) is hereinafter referred to as the <br />City's Bonds, and the City hereby makes the following factual statements and <br />representations: <br /> <br />(a) the City hereby designates the City's Bonds as "qualified tax-exempt <br />obligations" for purposes of Section 265(b )(3) of the Code; <br /> <br />(b) the sum of the City's Bonds plus the reasonably anticipated amount of all <br />other tax-exempt obligations (other than private activity bonds, treating qualified <br />501(c)(3) bonds as not being private activity bonds) which will be issued by the <br />City (and all entities subordinate to, or treated as one issuer with, the City) during <br />calendar year 2003 is not expected to exceed $10,000,000; and <br /> <br />(c) pursuant to Section 265(b)(3)(C)(iii) of the Code, the City states that it is <br />receiving the benefits from the issuance of the City's Bonds and the City hereby <br />