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, . . . , e e - . .; . .. . ~ A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF REVENUE NOTE IN TAX EXEMPT MORTGAGE TRANSACTION PURSUANT TO CHAPTER 474, MINNESOTA STATUTES, TO PROVIDE FUNDS TO BE LOANED TO S-H REALTY FOR AN INDUSTRIAL DEVELOPMENT PROJECT BE IT RESOLVED by the City Council of the City of New Brighton, Minnesota, as follows: 1. Authority. The City is, by the Constitution and Laws of the State of Minnesota, including Chapter 474, Minnesota Statutes, as amended (the "Act") authorized to issue and sell its revenue bonds or notes for the purpose of financing the cost of construction of authorized projects, and to enter into contracts necessary or convenient in the exercise of the powers granted by the Act and to pledge revenues of the project and otherwise secure the obligations. 2. Authorization of Note. The City Council hereby determines that it is necessary and expedient to authorize, and the City Council does hereby authorize, the issuance of a revenue note of the City in the aggregate principal amount of Seven Hundred Twelve Thousand Dollars ($712,000) pursuant to the Act to provide money to be loaned to S-H Realty, a Minnesota general partnership (the "Company"), to finance costs of constructing an office-manufacturing facility (the "Project") to be leased to Scarp-Heilman (the "Lessee") for use by the Lessee in its business, as more fully defined in the Loan Agreement hereinafter mentioned. In order to provide financing for the Project, the City shall issue and sell its $712,000 City of New Brighton Industrial Development Revenue Note (S-H Realty Project) (the "Note") in the form of Exhibit A attached hereto. 3. Documents Presented. Forms of the following docu- ments relating to the Note and the Project have been submitted to and examined by the City Council and are now on file in the office of the City Clerk: (a) Loan and Purchase Agreement (the "Loan Agree- ment"), dated as of June 1, 1979, by and among the City, the Company and First State Bank of New Brighton (the "Lender") whereby, among other things, the City agrees to sell and the Lender agrees to purchase the Note, the City agrees to make a loan to the Company of the proceeds of the sale of ' the Note and the Company covenants to complete the Project and to pay amounts sufficient to provide for the prompt payment of the principal of and interest on the Note.