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CITY OF LITTLE CANADA, MINNESOTA <br />RESOLUTION NO. <br />AUTHORIZING AMENDMENTS TO TIIE NOTES ISSUED IN <br />CALENDAR YEARS 2011 AND 2012 FOR THE BENEFIT OF <br />PRESBYTERIAN HOMES OF ARDEN HILLS, INC. <br />WHEREAS, the City of Little Canada, Minnesota (the "City") is a statutory city duly <br />organized and existing under the Constitution and laws of the State of Minnesota; and <br />WHEREAS, at the request of Presbyterian Homes of Arden Hills, Inc., a Minnesota <br />nonprofit corporation (the "Borrower"), in order to finance the costs of the demolition of an existing <br />senior housing facility and the acquisition, construction, and equipping of a multifamily housing <br />development consisting of a senior rental housing facility comprised of independent living units, <br />assisted living units, and memory -care units (a combined total of approximately 166 dwelling units) <br />(the "Phase I Project"), located at 3120 and 3220 Lake Johanna Boulevard in the City of Arden <br />Hills, Minnesota ("Arden Hills"), and to pay certain financing and issuance costs related thereto, <br />(a)in calendar years 2011 and 2012 Arden Hills issued the following revenue obligations of Arden <br />Hills: (1) Senior Housing Revenue Note (Presbyterian Homes of Arden Hills, Inc. Project), Series <br />2011A (the "Series 2011A Note"), issued on September 9, 2011, in the original aggregate principal <br />amount of $10,000,000; and (ii) Senior Housing Revenue Note (Presbyterian Homes of Arden Hills, <br />Inc. Project), Series 2012A (the "Series 2012A Note"), issued on January 3, 2012, in the original <br />aggregate principal amount of $10,000,000, and (b) in calendar years 2011 and 2012 the City issued <br />the following revenue obligations of the City: (i) Senior Housing Revenue Note (Presbyterian <br />Homes of Arden Hills, Inc. Project), Series 2011B (the "Series 2011B Note"), issued on September <br />30, 2011, in the original aggregate principal amount of $10,000,000; and (ii) Senior Housing <br />Revenue Note (Presbyterian Ilomes of Arden Hills, Inc. Project), Series 2012B (the "Series 2012B <br />Note"), issued on January 19, 2012, in the original aggregate principal amount of $2,000,000; and <br />WHEREAS, the Series 2011A Note, Series 2011B Note, Series 2012A Note, and Series <br />2012B Note (collectively, the "Prior Notes") were sold to Bremer Bank, National Association (the <br />"Lender"); and <br />WHEREAS, the proceeds derived from the sale of the Series 2011A Note were loaned to <br />the Borrower under the terms and conditions of a Loan Agreement, dated as of September 1, 2011 <br />(the "Series 2011A Loan Agreement"), between Arden Hills and the Borrower; the proceeds <br />derived from the sale of the Series 2011B Note were loaned to the Borrower under the terms and <br />conditions of a Loan Agreement, dated as of September 1, 2011 (the "Series 2011B Loan <br />Agreement"), between the City and the Borrower; the proceeds derived from the sale of the Series <br />2012A Note were loaned to the Borrower under the terms and conditions of a Loan Agreement, <br />dated as of January 1, 2012 (the "Series 2012A Loan Agreement"), between Arden Hills and the <br />Borrower; and the proceeds derived from the sale of the Series 2012B Note were loaned to the <br />Borrower under the terms and conditions of a Loan Agreement, dated as of January 1, 2012 (the <br />"Series 2012B Loan Agreement"), between the City and the Borrower; and <br />463257v2 SEL AR200-16 <br />