Authorizing the execution and delivery of a memorandum of agreement between the City and Diversified Group, and Indiana Partnership

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WHEREAS, it is now deemed advisable to express formally and in writing the understanding heretofore informally dis- cussed by the parties hereto, NOW THEREFORE, in consideration of the premises and of the mutual undertakings herein expressed, the parties herto recognize and intend as follows: A. The City represents and intends: 1. That the City is authorized by the provisions of the Act to finance the acquisition and construction of the Project and for the purpose of paying the cost of such ac- quisition and construction, including expenses incidental thereto, is authorized as aforesaid to issue its revenue bonds payable from the revenues and income derived by the City from the Project. 2. That the City intends, subject in all respects to the provisions and requirements of the Act and to a sale of the bonds on terms satisfactory to Diversified, to authorize, issue, sell and deliver its revenue bonds, to be issued in one or more series (in an aggregate prin- cipal amount of approximately $350,000, which amount will be fixed by ordinance of the City at a later date and agreed to by Diversified, but not to exceed the cost of acquiring and constructing the Project and expenses inci- dental thereto as estimated at the time of the issuance of the bonds) and apply the proceeds therefrom to the payment of the cost of acquiring and constructing the Project, provided that prior to the issuance and delivery of such revenue bonds there shall have been entered into between Diversified and the City appropriate financing agreements upon terms which will comply with the provisions of the Act and which will provide for the payment by Diver- sified of amounts which will be sufficient to enable the City to pay the principal of and interest on such revenue bonds. - 2 -