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_ � °� � o o - ��b. - . CITY of ORONO � � � . �� '�' RESOLUTION OF THE CITY COUNCIL � ��kESHOg'� NO. [� � � � �:� . WHEREAS, all bonds issued under the Indenture will be secured by a pledge and assignment of the Lease-Purchase Contract, dated as of December 1, 1991 (the "Original Lease"), as supplemented and amended by a First Amendment to Lease-Purchase Contract, dated as of April 1, 1998 (the "First Amendment to Lease";the Original Lease, as so supplemented and amended, is hereinafter referred to as the "Lease") all by and between the Authority and the City, and of the revenues derived by the Authority from the Project, and the bonds and the interest thereon shall be payable solely from the revenues pledged thereto and no bonds shall constitute a debt of the Authority within the meaning of any constitutional or statutory limitation nor shall the full faith, credit and taxing powers of the Authority be pledged thereto; and WHEREAS, under the Lease,the City is to pay to the Authority sufficient money each year to pay the principal of,premium,if any, and interest on the bonds issued to refinance the ' Project, and Ciiy is to provide the cost of maintaining the Project in good repair,the cost of keeping the Project properly insured,and any payments required for taxes and any expenses incurred by the Authority in connection with the Project; and . � WHEREAS, forms of the First Supplemental Indenture and the First Amendment to Lease and a form of the Official Statement, dated March 12, 1998 (together with the Addendum thereto to be prepared and distributed prior to delivery of the Bonds,the "Official Statement"),have been presented to this Board and are hereby ordered to be placed on file in the office of the Secretary; and WHEREAS,the Authority's financial consultant, Ehlers and Associates, Inc., as an independent fmancial advisor pursuant to Minnesota Statutes, Section 475.60, subdivision 2, paragraph (9), has solicited bids for the Bonds on behalf of the City, and,pursuant to the Official Statement, a bid for the purchase of the Bonds has been received, opened,read and considered, and the purchase price,interest rates and net interest cost under the terms of such bid are found to be as set forth in Exhibit A attached hereto. NOW,TIiEREFORE,BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Orono,Minnesota, as follows: � Section 1. This Board acknowledges, finds, determines and declares that it is in the best interests of the Authority to refinance the Project in that the Authority will realize a substantial interest rate reduction, a gross savings of approximately and a present value � Page 2 of 7