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CHARTERED Offices in 470 U.S. Bank Plaza Minneapolis 200 South Sixth Street Minneapolis MN 55402-1458 Saint Paul (612) 337-9300 telephone (612) 337-9310 fax St. Cloud www.kennedy-graven.com Affirmative Action, Equal Opportunity Employer GINA A. FIORINI Attomey at Law Direct Dial (612) 337-9210 Email: gfiorini@kennedy-graven.com May 23, 2018 Sarah Cotton, Finance Director City of Lino Lakes 600 Town Center Parkway Lino Lakes, MN 55014 Re: Resolution providing host approval for a project to be financed with the proceeds a revenue obligation to be issued by the City of Columbia Heights Dear Sarah, As you know, Love To Grow On, a Minnesota nonprofit corporation (the "Borrower"), operates early childhood education centers in the City of Lexington and the City of Circle Pines and has proposed to consolidate both centers into a new facility consisting of approximately 13,000 square feet (the "Project") located at 6499 Lakota Trail in the City of Lino Lakes (the "City"). The Borrower has requested that the City of Columbia Heights issue a revenue obligation, in one or more series, as a taxable or tax-exempt obligation (the "Note"), in the maximum principal amount of $3,8000,000 in order to (i) finance the acquisition, construction, and equipping of the Project; (ii) finance capitalized interest during construction of the Project, if necessary; (iii) fund required reserves, if any; and (iv) pay costs of issuance of the Note. In order for the City of Columbia Heights to issue the Note, the City must grant "host approval" to the issuance of the Note, following a duly noticed public hearing, under Minnesota Statutes, Section 471.656, and the Internal Revenue Code of 1986, as amended (the "Code"). The City Council adopted a resolution calling a public hearing on providing host approval on April 23, 2018. Enclosed is a resolution for consideration by the City Council on Tuesday, May 29, 2018 following the public hearing, which grants host approval to the issuance of the Note by the City of Columbia Heights to finance the Project, which is located in the City. If the City Council authorizes the City of Columbia Heights to issue the Note, the Note will be issued as a conduit revenue obligation of the City of Columbia Heights secured solely by the revenues derived from the loan or other revenue agreements executed by the Borrower and from other security provided by the Borrower. The Note will not constitute a general or moral obligation of the City or the City of Columbia Heights, will not be secured by or payable from any property or assets of the City or the City of Columbia Heights, and will not be secured by any taxing power of the City or the City of Columbia Heights. The Note will not be subject to any debt limitation imposed on the City or the City of Columbia Heights and the issuance of the Note will not have any adverse impact on the credit rating of the City or the City of Columbia Heights, even in the event that the Borrower encounters financial difficulties with respect to the Project. The issuance of the Note by the City of Columbia Heights to finance the Project will not affect the City's ability to issue general obligation or conduit revenue bonds in calendar year 2018. Furthermore, as 524498v1 GAF CL162-55