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Specific Request <br />1. Passage of an Inducement Resolution for the issuance of up to $20,000,000 of tax <br />exempt multifamily Revenue Bonds for the Acquisition and Renovation of Montreal <br />Courts Apartments by Housing Alternatives Development Company. <br />2. In conjunction with the issuance set forth above, Housing alternatives Development <br />Company and Montreal Courts will make an additional payment to the City of Little <br />Canada in an amount equal to ten percent (10 %) of the decreased real estate taxes <br />from the base year of 1997. This payment is intended to compensate the City for lost <br />revenue if and when the Montreal Courts is assessed a lower real estate tax as a result <br />of changes in the classification laws passed by the Minnesota Legislature. This <br />payment would continue until the bonds are redeemed in full. <br />3. In recognition that Montreal Courts will invest approximately $1,100,000 in capital <br />improvements, approximately $620,000 in fire suppression and life and safety <br />upgrades and approximately $450,000 in funded capital reserves, the City of Little <br />Canada will agree to waive it's bond issuance fee. <br />All of the above assumes that Montreal Courts will receive all necessary approvals by <br />year end, 1997 and that current interest rates remain relatively constant through the sale <br />of the bonds. <br />Page 10 <br />