2010-79 PROVIDING FOR THE ISSUANCE OF FOUR SERIES OF GENERAL OBLIGATION BONDS

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Water Street and residential rehabilitation grants for properties on West Main Street (the "Notes"), all due and payable at the end of 2010 and bearing interest at variable rates; and WHEREAS, the Notes are callable prior to maturity at the option of the City on any date at a redemption price of par plus accrued interest to the date fixed for redemption; and WHEREAS,the City also has certain incentive obligations to pay the sum of$2,329,651 by December 31, 2010, in settlement of the City's obligations to pay Reynolds Development, LLC pursuant to an amendment to the Redevelopment Agreement with Reynolds Development, LLC 300 Block North Water Street, as long as Reynolds Development, LLC sells the property commonly known as 350 North Water Street to Archer Daniels Midland Company by said date (the "Incentive Obligation"); and WHEREAS, the Council has heretofore, and it hereby expressly is, determined that it is advisable, necessary and in the best interests of the City and its citizens that the amounts drawn on the Notes (being the "Refunded Notes") be refunded in advance of maturity and the Incentive Obligation be paid (collectively, the "TIF Project"); and WHEREAS, the Refunded Notes are presently outstanding and unpaid and are binding and subsisting legal obligations of the City; and WHEREAS, in accordance with the terms of the Refunded Notes, the Refunded Notes may be called for redemption in advance of their maturity, and it is necessary and desirable to make such call for the redemption of such Refunded Notes on their earliest possible call date, and provide for the giving of proper notice to the registered owners of such Refunded Notes; and WHEREAS, the cost of the TIF Project, including costs of issuance for the hereinafter defined Bonds, is not less than $8,715,000 plus investment earnings thereon; and WHEREAS, there are insufficient funds on hand and available to pay the costs of the TIF Project and such costs of issuance, and it is necessary that the City borrow to pay the same and in -2-