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Section 5.01: Grant Application and Grant Agreement <br /> Clay County previously received a grant on behalf of the Member Counties for grant <br /> proceeds from the State of Minnesota for the development, design and construction of <br /> the Facility to serve the Member Counties as authorized by 1994 Minn. Laws 643, & <br /> 79. Clay County, on behalf of the Member Counties, has entered into a Grant <br /> Agreement with the Minnesota Commissioner of Corrections for the development, <br /> design, and construction of the Facility. Clay County has the authority to apply for <br /> additional grants to benefit the Facility. <br /> Section 5.02: Construction Costs <br /> Clay County used grant monies received from the State of Minnesota to pay for up to <br /> 75% of the costs to develop, design, and construct the Facility and has financed the <br /> balance of said costs with the issuance of Lease Revenue Bonds. Clay County is solely <br /> responsible for the repayment of bond funds, Clay County agrees to abide by all <br /> applicable provisions of Federal, State and local laws and ordinances. <br /> Section 5.03: Financing of Balance of Construction Costs <br /> Clay County has issued Law Enforcement Lease Revenue bonds in an amount of <br /> S2,467,468 to finance the balance of the cost for development, design and <br /> construction of the Facility. Clay County is solely responsible for the repayment <br /> of bond funds. The last bond payment is scheduled to be made in 2017. <br /> Section 5.04: Design, Construction and Ownership of the Facility <br /> Clay County developed, designed and constructed the Facility in accordance with the <br /> requirements of the initial Agreement and the Grant Agreement. The Facility is owned <br /> by Clay County and constructed on property owned by Clay County at 919 8th Avenue <br /> North, Moorhead, Minnesota. The Facility was designed and constructed with three <br /> living units for a total of 24 beds. <br /> Section 5.05: Operation of the Facility <br /> Clay County shall provide all labor, equipment, tools, supplies and other materials <br /> necessary to operate the Facility. Clay County shall operate the Facility in accordance <br /> with State and Federal law and rules promulgated pursuant thereunder. Clay County <br /> shall maintain the Facility as necessary to ensure continued compliance with the <br /> requirements of law and other obligations as set out in this Agreement. <br /> -4 - <br />