2012-05H HRA ResolutionMOUND HOUSING AND REDEVELOPMENT AUTHORITY
RESOLUTION NO. 12 -05H
RESOLUTION AUTHORIZING TERMINATION OF A LEASE AGREEMENT
RELATING TO THE ISSUANCE BY THE CITY OF MOUND, MINNESOTA,
OF ITS $5,505,000 GENERAL OBLIGATION REFUNDING BONDS, SERIES 2012B
A. WHEREAS, the City of Mound, Minnesota (the "City ") proposes to issue its
$5,505,000 General Obligation Refunding Bonds, Series 2012B (the "Bonds ") a portion of which
will be used to finance the acquisition of the Public Safety Building (the "Facility ") from the
Housing and Redevelopment Authority of the City of Mound, Minnesota (the "Authority "); and
B. WHEREAS, the proposed purchase price for the Facility is an amount equal to the
outstanding principal of and interest on the Authority's $6,860,000 original principal amount
Public Safety Building Lease Revenue Bonds, Series 2002 (City of Mound, Minnesota Lease
Obligation), dated July 1, 2002 (the "Prior Bonds ") issued pursuant to a Mortgage and Security
Agreement and Indenture of Trust between the Authority and U.S. Bank National Association, as
Trustee, dated as of July 1, 2002 (the "Indenture ").
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS
OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF MOUND,
MINNESOTA, as follows:
1. Callable Prior Bonds $4,790,000 aggregate principal amount of the Prior Bonds
which matures or is subject to mandatory redemption on and after February 1, 2013 is callable on
August 1, 2012 (the "Refunded Bonds "), the refunding of the Prior Bonds is consistent with
covenants made with the holders of the Prior Bonds, and is necessary and desirable for the
reduction of debt service cost to the City and shall be redeemed and paid in accordance with the
resolution adopted by the City on June 12, 2012.
2. Prepayment of Purchase Option Price As provided in Section 4.6 of the Lease
Agreement between the City and the Authority, dated as of July 1, 2002 (the "Lease ") to prepay
the Purchase Option Price (as defined in the Lease), the Authority hereby determines and
declares that upon the issuance of the Bonds, the Lease shall be terminated and the Authority
shall have no further right, title or interest in and to the Facility.
Adopted by the Housing and Redevelopment Authority in and for the City of Mound on this 26
day of June, 2012.
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Attest: Bonnie Ritter, City Clerk
Chair Mark Hanus
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