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3 <br /> <br />Housing or another name selected by the Borrower (the “Project”); (ii) the funding of one or more reserve <br />funds to secure the timely payment of the Bonds, if necessary; (iii) the payment of interest on the Bonds <br />during the construction of the Project, if necessary; and (iv) the payment of the costs of issuing the Bonds, <br />if necessary. The Project will be owned and operated by the Borrower. <br /> <br />NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Little Canada, <br />Minnesota, as follows: <br /> <br />1. Preliminary Findings, Determinations, and Declarations. Based on representations made <br />by the Borrower to the City to date, the Council hereby makes the following preliminary findings, <br />determinations, and declarations: <br /> <br />(a) The Project consists of a multifamily rental senior housing development designed <br />and intended to be used for rental occupancy. <br /> <br />(b) The Project furthers the purposes set forth in the Housing Act and the Project <br />constitutes a “multifamily housing development” within the meaning of Section 462C.02, <br />subdivision 5 of the Housing Act. <br /> <br />(c) The City hereby grants preliminary approval to the issuance of the Bonds for the <br />purposes referenced in this resolution, in an aggregate principal amount not to exceed $17,250,000, <br />subject to the public hearing referred to in Section 1 and subject to final approval by the City of the <br />Bonds and the documents providing for the purchase and sale of the Bonds and the loan of the <br />proceeds of the Bonds to the Borrower. In all events, it is understood, however, that the Bonds <br />shall not constitute a pecuniary liability or charge, lien, or encumbrance, legal or equitable, upon <br />any funds, assets, taxing powers, or any other property of the City except the City’s interest in the <br />Loan Agreement (as hereinafter defined); and the Bonds, when, as, and if issued shall recite in <br />substance that the Bonds, including interest thereon, are payable solely from the revenues received <br />from the Loan Agreement and other property pledged to the payment thereof, and shall not <br />constitute a general or moral obligation of the City. The Bonds shall not constitute a debt of the <br />City within the meaning of any constitutional or statutory limitation. The owners of the Bonds <br />shall never have the right to compel any exercise of the taxing powers of the City to pay the <br />outstanding principal of the Bonds, or the interest thereon or to enforce payment thereof against <br />any property of the City. <br /> <br />(d) The proceeds of the Bonds will be loaned to the Borrower and the proceeds of the <br />loan will be applied to the purposes referenced in this resolution. The City will enter into a loan <br />agreement (or other revenue agreement) with the Borrower (the “Loan Agreement”) requiring loan <br />repayments from the Borrower in amounts sufficient to repay the loan when due and requiring the <br />Borrower to pay all costs of maintaining and insuring the Project, including taxes thereon. <br /> <br />(e) In preliminarily authorizing the issuance of the Bonds and the financing of the <br />acquisition, construction, and equipping of the Project and related costs, the City’s purpose is and <br />the effect thereof will be to promote the public welfare of the City and its residents by retaining <br />and improving multifamily housing developments and otherwise furthering the purposes and <br />policies of the Housing Act. <br /> <br />2. Council to Conduct a Public Hearing. The Council shall conduct a public hearing with <br />respect to the proposal to undertake and finance the Project under the terms of a housing program and the <br />issuance of the Bonds, as requested by the Borrower. The City Administrator of the City, or any other <br />official of the City delegated the duties of the City Administrator (the “City Administrator”) is hereby