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07-68Extract of Minutes of a Meeting of the City Council of the City of Otsego, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Otsego, Minnesota, was duly held at the City Hall in said City on Monday, the 24th day of September, 2007, at 6:30 P.M. The following members were present: Mayor Larry Fournier; Councilmembers: Vern Heidner, Jessica Stockamp, Mark Thorsted and Tom Darkenwald. and the following were absent: NONE Member Vern Heidner introduced the following resolution and moved its adoption: RESOLUTION NO. 2007-68 RESOLUTION GIVING HOST APPROVAL TO THE ISSUANCE OF LEASE REVENUE BONDS UNDER MINNESOTA STATUTES, SECTIONS 469.152 THROUGH 469.1651 (KALEIDOSCOPE CHARTER SCHOOL PROJECT) The motion for the adoption of the foregoing resolution was duly seconded by member Mark Thorsted, and after full discussion thereof and upon vote being taken thereon, the following voted in favor thereof- Mayor hereof Mayor Larry Fournier; Councilmembers: Vern Heidner, Jessica Stockamp, Mark Thorsted and Tom Darkenwald. and the following voted against the same: NONE whereupon said resolution was declared duly passed and adopted. 2061413v4 RESOLUTION GIVING HOST APPROVAL TO THE ISSUANCE OF LEASE REVENUE BONDS UNDER MINNESOTA STATUTES, SECTIONS 469.152 THROUGH 469.1651 (KALEIDOSCOPE CHARTER SCHOOL PROJECT) BE IT RESOLVED, by the City Council (the "Council") of the City of Otsego, Wright County, Minnesota (the "City") as follows: Section 1. General Recitals. The purpose of Minnesota Statutes, Sections 469.152 through 469.1651 as amended, (the "Act"), is, among other things, to promote the welfare of the State of Minnesota (the "State") by the active attraction and encouragement and development of economically sound industry and commerce by providing necessary educational facilities so that adequate educational services are available to residents of the State at reasonable cost. Section 2. Description of the Project. KCS Building Company (the 'Borrower"), a Minnesota nonprofit corporation and organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code") has proposed the issuance of revenue bonds or other obligations under the Act, in one or more series, in an amount not to exceed $9,000,000 (the 'Bonds") by the City of Falcon Heights, Minnesota (the "Issuer") to provide financing for the acquisition, construction and equipping of an approximately 40,000 square foot public elementary schoolhouse, to be located on Kalland Avenue west of County Road 19 in the City (the "Project"). The Project will be owned by the Borrower and leased to and operated by Kaleidoscope Charter School, a Minnesota non-profit corporation having federal income tax- exempt 501(c)(3) status as a public (charter) school. Section 3. Limited Liability. The liability of Falcon Heights and the City with respect to the Bonds shall be limited as provided in the Industrial Development Act and the Bond Resolution. Except to the extent specifically provided herein, Falcon Heights and the City shall not incur any obligations or liabilities to each other as a result of the issuance of the Bonds or the use of the Project by the Borrower. The Bonds shall be a special, limited obligation of Falcon Heights payable solely from proceeds, revenues and other amounts pledged thereto and more fully described in the Bond Resolution. The Bonds and the interest thereon shall neither constitute nor give rise to a pecuniary liability, general or moral obligation or a pledge of the full faith and credit of Falcon Heights, the City, the State of Minnesota or any political subdivision of the above, within the meaning of any constitutional or statutory provisions. Section 4. PUMent of Costs. All costs incurred by Falcon Heights and the City in the authorization, execution, delivery and performance of this Agreement shall be paid by the Borrower out of proceeds of the Bonds or other funds legally available to the Borrower. Section 5. Possession of Property. Any property acquired as a result of this Agreement shall be and remain the property of Falcon Heights, to be disposed of pursuant to the terms of the loan agreement and the Bond Resolution. Any surplus moneys remaining after the purpose of this Agreement has been completed, unless otherwise provided for in the agreements related to the Bonds shall belong to Falcon Heights. 2061413v4 2 Section 6. Recital of Representations Made by the Borrower. (a) The Borrower has agreed to pay any and all costs incurred by the City in connection with the issuance of the Bonds, whether or not such issuance is carried to completion. (b) The Borrower has represented to the City that no public official of the City has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project. Section 7. Public Hearing. (a) As required by the Act and Section 147(f) of the Code a Notice of Public Hearing was published in the City's official newspaper and newspaper of general circulation, for a public hearing on the proposed issuance of the Bonds and the proposal to undertake and finance the Project. (b) As required by the Act and Section 147(f) of the Code the City Council has on this same date held a public hearing on the issuance of the Bonds and the proposal to undertake and finance the portion of the Project located within the jurisdictional limits of the City, at which all those appearing who desired to speak were heard and written comments were accepted. Section 8. Host Approval. The City hereby gives the host approval required under the Internal Revenue Code to the issuance of the Bonds. ATTEST: 2061413v4 3 STATE OF MINNESOTA COUNTY OF WRIGHT CITY OF OTSEGO I, the undersigned, being the duly qualified and acting Clerk of the City of Otsego, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City duly called and held on the date therein indicated, insofar as such minutes relate to granting host approval to the issuance of revenue bonds for a project in the City. WITNESS my hand this 24th day of September, 2007. r _►_.�I • 2061413v4 4