01-0104R

RESOLUTION AUTHORIZING THE REDEMPTION OF $4,700,000 GROSS REVENUE RECREATION FACILITY BONDS (SPIRIT MOUNTAIN RECREATION AREA), SERIES 1992, OF THE CITY OF DULUTH, MINNESOTA.

BY COUNCILOR HOGG:

        BE IT RESOLVED, by the city council (the "city council") of the city of Duluth, St. Louis County, Minnesota (the "city"), as follows:

                Section 1.    Under and pursuant to Minnesota Statutes, Sections 471.191 and Chapter 475, the city previously issued its $4,700,000 gross revenue recreation facility bonds (Spirit Mountain recreation area), Series 1992, dated August 1, 1992 (the "1992 bonds"). The 1992 bonds were authorized by Resolution 92-0609 duly adopted by the city council on July 23, 1992 (hereinafter referred to as the "1992 bond resolution"), and the 1992 bonds were issued pursuant to an indenture of trust (the "indenture") between the city and First Trust National Association, now U.S. Bank Trust National Association (the "trustee").

                Section 2.    The Spirit Mountain recreation area authority has requested that the city redeem the outstanding 1992 bonds. The city council hereby determines that it is necessary and expedient, in order to reduce debt service costs to the city and the Spirit Mountain recreation area authority, that the city redeem the 1992 bonds maturing on and after February 1, 2002 (the "redeemed bonds"), of which $2,490,000 in principal amount are outstanding and shall be prepaid on April 2, 2001.

                Section 3.    The director of finance is hereby authorized and directed to send written notice of call to the trustee and direct the trustee to notify the bondholders of such call as required by the indenture. Such notice shall be in the form attached hereto as Attachment A.


STATEMENT OF PURPOSE:  Spirit Mountain recreation area authority has solicited proposals to refund the city's $4,700,000 gross revenue recreation facility bonds (Spirit Mountain recreation area), Series 1992, which is payable from Spirit Mountain recreation area revenues. The refunding will be accomplished through a lease/lease back financing arrangement which will provide debt service savings in the estimated amount of $_________ to the authority. This resolution authorizes the call for the redemption of the 1992 bonds.