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} - A RESOLUTION PROVIDING FOR. THE ISSUANCE AND SALE OF EDUCATIONAL DEVELOPMENT REVENUE NOTE TO PROVIDE FUNDS TO BE LOANED TO WHITE BEAR M014TESSORI SCHOOL; INC. IN CONNECTION WITH THE ACQUISITION AND CONSTRUCTION OF A:SCHOOL PROJECT n l (a) White Bear Montessori School, Inc., a Minnesota:nonproft corporation. (the "Borrower") proposes to acquire an existing churchbuilding, remodel the building for use as.a school and construct an approximately 6,900 'square foot addition thereto (ft "Project"); (b)' The Borrower has requesied.that the City issue its educationa development revenue note and lend the poaeeds thereof to the Borrower. to fmance the.Project; (c) The City Council has .given preliminary approval to the Project. NOW, THEREFORE, BE IT RESOLVED by the City Council ofthe City of Gem Lake, as follows: 1: Authority: The City is, by the Constitution :arid laws of the State of Minnesota, including Minnesota Statutes,.. Sections-469.1-52 to.46.9,165, as amended (the "Act") authorized to issue: and sell its revenue obligations for the putpose of financing projects stick as the Project. The City Council has. held a public hearing on. the Project and an application for approval has been submitted. to the Minnesota.Commission. of Trade and Ecoiiomic Deyelopment. 2. Proposal. It is proposed that the -City, for purposes of f naiacitig the Project, issue its Educational Development Revenue Note (White Bear Montessori Project), Series 1998 (the "Note") in the principal amoun.t.408%000 to Premier Bank (the "Lender") and loan the proceeds of the Note to the Borrower pursuant to a Loan and Purchase Agreement dated as of July 1, 1.998(the. "Loan. Agreement"), between the City, the Lender and the Borrower. It is proposed. that. the Note be secured:by(i).an assignment of the Loan Agreement (except for certain rights for payment of fees and reimbursement) pursuant to- a Loan Agreement.Assignment.dated as of July L. 1998 from the City to the .Lender (the "Loan Agreement Assignment"% (ii) a. -first mortgage lien bn and security interest. in the Project pursuant to a.Combination 11 ortgage, Security Agreement and Fixture Financing Statement dated as of July 1, 1998 from the Borrower -to the Lender (the" Mort -gage") and (iii) ari assignment of leases and rents of the Project pursuant to a Assignment of Leases and Rents