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BRIGGS MORGAN May 22, 2014 BY E-MAIL Joel Hanson City of Little Canada 515 Little Canada Rd. B. Little Canada, MN 55117-1633 2200 IDS Center 80 South 8th Street Minneapolis MN 55402-2157 tel 612.977.8400 fax 612.977.8650 Catherine J. Courtney (612) 977-8765 ccourtney@briggs.com Re: Issuance of Conduit Revenue Bonds by the City of St. Little Canada for Presbyterian Homes Dear Mr. Hanson and Councilmembers: This letter is to follow-up on discussions that we have had regarding consideration by the City of Little Canada, with the consent of the City of Brooklyn Center, to act as issuer, in 2014, of 501(c)(3), bank -qualified revenue bonds (the "Bonds"), the proceeds of which would be loaned to Maranatha Conservative Baptist Homes, Inc. ("MCBH") and Center Park Senior Apartments, Inc. ("CPSA"), affiliates of Presbyterian Homes and Services (jointly and severally, the "Borrower"), to be used to refinance a project located in Brooklyn Center related to its charitable purposes. Briggs and Morgan, P.A. would act as bond counsel on the issuance of such Bonds. It is anticipated that the Bonds will be directly purchased by Anchor Bank, N.A. The Bonds will be used for the purpose of refinancing, in part, outstanding taxable debt of the Borrower (the "Prior Obligations"), the proceeds of which were used for (i) the refinancing of the acquisition and demolition of an existing care center, (ii) the acquisition, construction, and equipping of an approximately 83,960 square foot 97 bed skilled care center facility consisting of 13 double rooms and 71 single rooms, of which 32 beds are allocated for transitional care (the "Care Center"), located at 5409 69th Avenue North in the City of Brooklyn Center, Minnesota ("Brooklyn Center"), including the addition of community space, consisting of a community room, activity room, food services, enlargement of therapy areas, and related amenities, the construction of a new entrance to the Care Center, and the expansion of parking facilities, (iii) construction of a "town center" connecting the Care Center to an existing assisted living facility located at 5415 69th Avenue North in Brooklyn Center (the "Town Center"), and (iv) refinancing the acquisition of an approximately 88,000 square foot 63 -unit assisted living facility consisting of 5 studio, 39 one bedroom and 19 two bedroom units located at 5415 69th Avenue North in Brooklyn Center (the "Assisted Living Facility" and, with the Care Center and the Town Center, the "Project"). The Project is owned by the Borrower, the Care Center is operated by MCBH, and the Assisted Living Facility is operated by CPSA. The purpose of the Briggs and Morgan, Professional Association Minneapolis I St, Paul I wwwbriggs.com Member - Lex Mundi, a Global Association of Independent Law Firms 6269743v1