10-11-2021 EDA Packet - Laserfiche WebLink

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1 INVESTMENT LETTER To the Lino Lakes Economic Development Authority Attention: Executive Director Dated: October 11, 2021 Re: Tax Increment Revenue Note, Series 2021 The undersigned, on behalf of Choice Financial Group, a North Dakota banking corporation, as purchaser (the “Purchaser”) of $3,656,000 in principal amount of the above-captioned Tax Increment Revenue Note, Series 2021 (the “Note”), approved pursuant to Resolution No. 21-01, adopted by the Board of Commissioners of the Lino Lakes Economic Development Authority (the “Authority”) on September 7, 2021 (the “Resolution”), hereby represent to you and to Kennedy & Graven, Chartered, Minneapolis, Minnesota, as special counsel to the Authority, as follows: 1. We understand and acknowledge that the TIF Note is delivered to the Purchaser on this date pursuant to the Resolution and the Amended and Restated Contract for Private Development, dated September 7, 2021, between the Authority and the Developer. 2. The TIF Note is payable as to principal solely from Available Tax Increment pledged to the TIF Note, as defined therein. No interest accrues on the TIF Note. 3. We have sufficient knowledge and experience in financial and business matters, including purchase and ownership of municipal obligations, to be able to evaluate the risks and merits of the investment represented by the purchase of the above-stated principal amount of the TIF Note. 4. We acknowledge that no offering statement, prospectus, offering circular or other comprehensive offering statement containing material information with respect to the Authority and the TIF Note has been issued or prepared by the Authority, and that, in due diligence, we have made our own inquiry and analysis with respect to the Authority, the TIF Note and the security therefor, and other material factors affecting the security and payment of the TIF Note. 5. We acknowledge that we have either been supplied with or have access to information, including financial statements and other financial information, to which a reasonable investor would attach significance in making investment decisions, and we have had the opportunity to ask questions and receive answers from knowledgeable individuals concerning the Authority, the TIF Note and the security therefor, and that as reasonable investors we have been able to make our decision to purchase the above-stated principal amount of the TIF Note. 6. We have been informed that the TIF Note (i) is not being registered or otherwise qualified for sale under the “Blue Sky” laws and regulations of any state, or under federal securities laws or regulations, (ii) will not be listed on any stock or other securities exchange, and (iii) will carry no rating from any rating service.