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LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 21-02 RESOLUTION APPROVING ASSIGNMENT OF CONTRACT FOR TIF NOTE AND PRIVATE DEVELOPMENT WITH LYNGBLOMSTEN AT LINO LAKES, LLC WHEREAS, the City of Lino Lakes (the “City”) and the Lino Lakes Economic Development Authority (the “Authority”) previously approved the creation of Tax Increment Financing (Housing) District No. 1-5 and Tax Increment Financing (Housing) District No. 1-13 (the “TIF District”) within Development District No. 1 in the City, all in accordance with Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”); and WHEREAS, the Authority and Lyngblomsten at Lino Lakes, LLC, a Minnesota limited liability company (the “Developer”), entered into an Amended and Restated Contract for Private Development, dated September 7, 2021 (the “Agreement”) and pursuant to such Agreement, the Developer agreed to construct a senior rental housing facility with approximately 167 units, comprised of (i) approximately 96 independent living apartments, 35 assisted living units, and 16 assisted memory care units, with at least twenty percent (20%) of such units to be available to persons of low and moderate income, as described herein and (ii) 20 detached independent living townhomes upon a portion of the property in the TIF District (collectively, the “Minimum Improvements”); and WHEREAS, pursuant to the Agreement, if certain conditions set forth in Section 3.6 of the Agreement are met, the Authority agreed to issue a Tax Increment Revenue Note in the principal amount of up to $3,656,000 (the “TIF Note”) to the Developer; and WHEREAS, the City of Bethel Minnesota has agreed to issue its Senior Housing Revenue Note (Lyngblomsten at Lino Lakes Project), Series 2021 (the “Note”) to finance a portion of the Minimum Improvements and Choice Financial Group (the “Lender”) has agreed to purchase the Note; and WHEREAS, the Lender has also agreed to provide a loan to the Developer in the amount of $2,600,000 to finance a portion of the Minimum Improvements secured by the TIF Note (the “TIF Loan”); and WHEREAS, in order to provide security for the Note and the TIF Loan, the Lender requires that the Developer assign all of its rights under the Agreement and the TIF Note to the Lender pursuant to an Assignment of Contract for Private Development, between the Developer, the Lender, and the Authority (the “Assignment”); and WHEREAS, the Assignment also subordinates the Authority’s rights with respect to certain provisions of the Agreement, including the commencement and completion of construction and the application of insurance proceeds; and BE IT RESOLVED by the Board of Commissioners of the Lino Lakes Economic Development Authority as follows: Section 1. Approval of the Assignment Agreement. The Authority hereby authorizes and directs the President and Executive Director to execute and deliver the Assignment Agreement. All of the provisions of the Assignment Agreement, when executed and delivered as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery thereof. The Assignment Agreement shall be substantially in the form on file with the Authority, which is hereby approved, with such omissions and insertions as do not materially change the substance thereof, or as the President and the Executive Director, in