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program to refinance the Project (as defined below) through the issuance of revenue notes or
<br />other obligations, in one or more series pursuant to the Act and in connection therewith the
<br />following described notes are to be issued: (i) City of Little Canada, Minnesota Health Care
<br />Facility Revenue Note, Series 2014A (Maranatha Care Center Project) (the "I..ittle Canada
<br />Note"), (ii) City of Osseo, Minnesota Health Care Facility Revenue Note, Series 201413
<br />(Maranatha Care Center Project) (the "Osseo Note"); and (iii) City of North Oaks, Minnesota
<br />Health Care Facility Revenue Note, Series 2014C (Maranatha Care Center Project) (the "North
<br />Oaks Note") and, together with the Little Canada Note and the Osseo Note, the "Notes"). The
<br />Little Canada Note shall be in an aggregate principal amount not to exceed $3,000,000;
<br />(d) The project consists of refinancing, in part, outstanding taxable debt of the
<br />Borrower (the "Prior Obligations"), the proceeds of which were used for (i) the refinancing of the
<br />acquisition and demolition of an existing care center, (ii) the acquisition, construction, and
<br />equipping of an approximately 83,960 square foot 97 bed skilled care center facility consisting of
<br />13 double rooms and 71 single rooms, of which 32 beds are allocated for transitional care (the
<br />"Care Center"), located at 5409 69th Avenue North in the City of Brooklyn Center, Minnesota
<br />("Brooklyn Center"), including the addition of community space, consisting of a community
<br />room, activity room, food services, enlargement of therapy areas, and related amenities, with the
<br />construction of a new entrance to the Care Center, and the expansion of parking facilities, (iii)
<br />construction of a "town center" connecting the Care Center to an existing assisted living facility
<br />located at 5415 69th Avenue North in Brooklyn Center (the "Town Center"), and (iv) refinancing
<br />the acquisition of an approximately 88,000 square foot 63-unit assisted living facility consisting
<br />of 5 studio, 39 one-bedroom and 19 two-bedroom units located at 5415 69th Avenue North in
<br />Brooklyn Center (the "Assisted Living Facility" and, with the Care Center and the Town Center,
<br />the "Project"). The Project is owned by the Borrower, the Care Center is operated by MCBH,
<br />and the Assisted Living Facility is operated by CPSA;
<br />(e) The City has been advised by representatives of the Borrower that
<br />conventional, commercial financing to pay the capital cost of the Project is available only on a
<br />limited basis and at such high costs of borrowing that the economic feasibility of operating the
<br />Project would be significantly reduced;
<br />(0 Based on representations of the Borrower, no public official of the City
<br />has either a direct or indirect financial interest in the Project nor will any public official either
<br />directly or indirectly benefit financially from the Project;
<br />(g) The Notes, as and when issued, will not constitute a charge, lien or
<br />encumbrance upon any property of the City, Osseo, or North Oaks and will not he a charge
<br />against the general credit or taxing powers of the City, Osseo, or North Oaks;
<br />(h) As required by the Act and Section 147(0 of the Code, a notice of public
<br />hearing was published in the City's official newspaper and newspaper of general circulation, for
<br />a public hearing on the proposed issuance of the Little Canada Note by the City and the proposal
<br />of the Borrower to undertake and refinance the Project; and
<br />(i) As required by the Act and Section 147(0 of the Code, the City Council
<br />has on this same date held a public hearing on the issuance of the Little Canada Note by the City
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