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13098837v1 Chris Heineman January 27, 2021 Page 3 bank-qualified limit in 2021. So long as the bonds are not bank-qualified bonds (and there’s no anticipation to issue bank-qualified bonds), there is no limit on the amount that the City may issue in any calendar year. It is currently estimated that the Bonds issued b y Little Canada will be in an amount of approximately $6,750,000. The Bonds will not affect the bank-qualified status of tax- exempt obligations in future years. The Bonds will be issued in accordance with Minnesota Statutes, Chapter 462C. A city may not issue bonds for a project located outside of its jurisdiction, as is requested in this case. However, the city in which a project is located may give permission for the issuance of bonds by another city. This is commonly referred to as “host approval.” Under Minnesota Statutes, Section 471.656, subdivision 2(2), host approval may be given for a project located in the host city, by resolution of the host city. Maplewood, as the host city, will give permission to Little Canada (and the other Issuers) to issue its Bonds. In addition, the Issuers and Maplewood will enter into a joint powers agreement for the purpose of issuing the Bonds and Notes. Similarly, under the federal tax code, before a city can issue bonds for a project located outside of its jurisdiction, the host city must give its approval. Such approval can only be given following the holding of a public hearing. As noted above, under federal and State law, in order for the Bonds to be a tax exempt obligation, they must be issued by a political subdivision. This requires that the City hold a public hearing and approve issuance of the Bonds and approve the execution of related documents. If the City is willing to act as a conduit issuer for the Borrower, we propose that the City adopt a resolution at its February 24th meeting that calls for that public hearing. The resolution authorizes the City Administrator to set the actual date of the public hearing, but we are currently expecting that it would occur at the City Council’s March 15th meeting. We will also prepare and take care of submitting the public hearing notice to the City’s official newspaper. Following the public hearing, the City Council would then consider for adoption a resolution approving the issuance of the Bonds. It is expected that the City will receive an administrative fee of ¼ of 1%, paid by the Borrower. In addition, you should be aware that the Borrower is responsible for paying all costs of the transaction. There will be no costs paid by the City. Thank you for considering this request on behalf of Cassia. It is always a pleasure to work with the City of Little Canada. Please feel free to contact me if you have any questions or comments.