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BRIGGS AND 1VI®RGAN <br />2400 IRS CENTER <br />80 SOUTH EIGIITH STREET <br />MINNEAPOLIS. MINNESOTA 55402 <br />TELEPHONE (612) 334 -8400 <br />FACSIMILE (612) 334 -8650 <br />ROFESSIONAL. ASSOCIATION <br />May 23, 2003 <br />Joel Hanson <br />City Administrator <br />City of Little Canada <br />515 Little Canada Road E <br />Little Canada, MN 55117 -1633 <br />WRITERS DIRECT DIAL <br />(612) 334 -8513 <br />WRITERS E -MAIL <br />thalla@briggs.com <br />Re: City of Little Canada $1,965,000 Commercial Development Revenue Refunding <br />Bonds, Series 1993 (RLF of Minnesota Project) (the "Bonds ") <br />Dear Joel: <br />The above- referenced Bonds were issued by the City in March 1993 to refund the outstanding <br />principal balance of prior bonds issued by the City in 1985 to finance the acquisition, installation and <br />construction of an office /warehouse facility at 100 South Owasso Boulevard now leased to Slumberland, <br />Inc. <br />The Bonds currently bear interest at 7.1% per annum which is well above the market rate for tax - <br />exempt bonds of this type. All of the Bonds are currently held by First American Minnesota Tax -Free <br />Fund which is managed by U.S. Bancorp Asset Management in Minneapolis. The holder realizes that the <br />interest rate is above market and has agreed to reduce the rate to 5% until the Bonds are paid in full on <br />April 1, 2013. <br />Since the City is the named obligor on the Bonds, it is necessary for the City to agree with the <br />trustee on behalf of the holder to reduce the interest rate on the Bonds. Enclosed are a Supplemental <br />Indenture of Trust which provides for the interest rate reduction and a resolution of the City authorizing <br />execution of such Supplemental Indenture of Trust. <br />The parties respectfully request that the City consider adoption of the Resolution and execution of <br />the Supplemental Indenture of Trust at the next appropriate City Council meeting. Please let me know <br />whether you would like a representative from the Company to be in attendance at that meeting to answer <br />questions from the council or whether these materials are self - explanatory. <br />Verytruly yours, <br />" <br />i <br />L. 1 ,& t <br />Trudy J. Hall'a <br />TJH /ed <br />Enclosure <br />cc: Joe Shaw (w /encl.) <br />Ben Woo (w /encl.) <br />1533501v 1 SAINT PAUL OFFICE ^ FIRST NATIONAL BANK BUILDING ,t WWWBRIGGS.COM <br />MEMBER - LEN MUNDI. .A GLOBAL A; - 1 - ION OF INDEPENDENT LAW FIRMS <br />