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• JOINT POWERS AGREEMENT <br />PROVIDING FOR THE ISSUANCE OF SENIOR HOUSING REVENUE BONDS <br />(PINES OF HUTCHINSON, LLC PROJECT) <br />THIS AGREEMENT is entered into as of the 1st day of June, 2005, between the City of <br />Falcon Heights, Minnesota ("Falcon Heights") and the City of Hutchinson, Minnesota <br />("Hutchinson") (collectively, the "Municipalities," or individually, a "Municipality"). The <br />Municipalities are each a municipal corporation, duly organized under the laws of the State of <br />Minnesota. <br />RECITALS <br />A. Minnesota Statutes, Section 471.59, as amended (the "Joint Powers Act") provides that <br />two or more governmental units, by agreement entered into through action of their governing <br />bodies, may jointly or cooperatively exercise any power common to the contracting parties, and <br />may provide for the exercise of such power by one of the participating governmental units. <br />B. Pines of Hutchinson, LLC, a Minnesota limited liability company (the "Borrower") <br />proposes to acquire a 50-unit independent senior housing facility located at 1015 Century <br />Avenue SW in Hutchinson, known as the Pines of Hutchinson (the "Project"). <br />C. The Borrower has proposed that the Municipalities enter into this agreement pursuant to <br />the Joint Powers Act, pursuant to which Falcon Heights, on behalf of itself and Hutchinson, will <br />issue revenue bonds, in one or more series or issues (the. "Bonds") under Minnesota Statutes, <br />Section 462C (the "Act") in an aggregate amount not to exceed $5,500,000 and loan the proceeds <br />thereof to the Borrower to finance acquisition of the Project. <br />D. In order to assist in the marketing of the Bonds to investors at the lowest possible yield <br />thereby enhancing the financial feasibility of the Project, the Borrower wishes Falcon Heights to <br />facilitate the designation of the Bonds as "qualified tax-exempt obligations" within the meaning <br />of Section 265(b)(3)(B) of the Internal Revenue Code of 1986, as amended (the "Code"). <br />E. Falcon Heights has not issued during calendar year 2005 nor expects to issue during <br />calendar year 2005 any governmental bonds or qualified 501(c)(3) bonds within the meaning of <br />Section 265(b) of the Code or any other obligations that need to be taken into account in <br />determining whether Falcon Heights is a "qualified small issuer" within the meaning of 265(b) of <br />the Code in excess of $10,000,000. <br />ly <br />