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HomeMy WebLinkAbout26-156 - Resolution - Lyngblomsten Housing NoteCITY OF LINO LAKES COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO.26-156 RESOLUTION AUTHORIZING A HOUSING PROGRAM AND PROVIDING FOR THE ISSUANCE AND SALE OF A SENIOR HOUSING REVENUE REFUNDING NOTE AT THE REQUEST OF LYNGBLOMSTEN AT LINO LAKES, LLC, AND APPROVING DOCUMENTS TO BE ENTERED INTO IN CONNECTION THEREWITH BE IT RESOLVED by the City Council (the "City Council") of the City of Lino Lakes, Minnesota (the "City"), as follows: Authority. Pursuant to Minnesota Statutes, Chapters 462C and 462A, as amended (the "Act"), the City is authorized to issue revenue notes and sell such notes at public or private sale as may be determined by its governing body to be most advantageous; and to loan the proceeds of such notes to provide for the refunding of any notes then outstanding with the consent of the original issuer, all as further provided in the Act. Such notes are authorized to be secured by a pledge of the revenues to be derived from loan agreements with the borrower of such proceeds, and by such other security devices as may be deemed advantageous. Under the provisions of the Act, such notes shall be special, limited obligations, and shall not constitute an indebtedness of the issuer thereof, within the meaning of any state constitutional provision or statutory limitation, nor give rise to a pecuniary liability of the issuer or a charge against its general credit or taxing powers. 2. The Note and the Project. Lyngblomsten at Lino Lakes, LLC, a Minnesota limited liability company organized and operated as an organization recognized under Section 501(c)(3) of the Internal Revenue Code of 1986 (the "Code") (the "Borrower"), has submitted a conduit financing application to the City and requisite application fees and requested that the City issue one or more series of tax-exempt or taxable revenue notes pursuant to the Act, on behalf of the Borrower, the sole member of which is Lyngblomsten Services, Inc., a Minnesota nonprofit corporation organized and operated as an organization recognized under Section 501(c)(3) of the Code ("Lyngblomsten"). The City now hereby authorizes the issuance and sale of its Senior Housing Revenue Refunding Note, Series 2026 (Lyngblomsten at Lino Lakes Project) (the "Note") in a principal amount not to exceed $60,000,000 to Old National Bank, a national banking association (the "Purchaser"), on the further terms and conditions set forth herein and subject to receipt by the City simultaneously with or immediately upon issuance of the Note of a fee of $60,000. Proceeds of the Note will be loaned to the Borrower (the "Loan"). The Borrower has represented to the City that the Loan will be used to (a) refund and refinance the outstanding amount of the tax-exempt Senior Housing Revenue Note (Lyngblomsten at Lino Lakes Project) Series 2021, issued by the City of Bethel, Minnesota (the "Prior Issuer"), on October 5, 2021, in the original principal amount of $42,700,000, the proceeds of which were loaned by the Prior Issuer to the Borrower (the "Bethel Note"), and discharge the liens originally granted in connection herewith; (b) refinance the outstanding amount of the taxable TIF Note issued by the Borrower on October 5, 2021, in favor of Choice Financial Group, in the original principal amount of $2,600,000 (the "TIF Note"), and discharge the liens originally granted in connection herewith; (c) refinance the outstanding principal amount of the taxable Promissory Note Secured By Real Estate issued by the Borrower on October 5, 2021, in favor of Mission Investment Fund of the Evangelical Lutheran Church in America, in the original principal amount of $12,000,000 (the "MIF Note," and together with the Bethel Note and the TIF Note, the "Refunded Notes"), and discharge the liens originally granted in connection herewith; and (d) pay certain costs of issuing the Note. Proceeds of the Refunded Notes financed the acquisition, construction, and equipping of a senior housing development, including the development of a four-story building of approximately 352,445 square feet, containing 96 independent living apartment units and 53 assisted living and memory care units, as well as a separate clubhouse, and 20 detached two - bedroom independent living rental townhomes with attached garages, all located at approximately 6050-6070 Blanchard Blvd, Lino Lakes, Minnesota 55104, and Hammerly Court adjacent thereto (the "Project"). The Borrower is the owner and operator of the Project. Lyngblomsten Care Center, Inc., a Minnesota nonprofit corporation organized and operated as an organization recognized under Section 501(c)(3) of the Code and an affiliate of the Borrower, manages the Project on behalf of the Borrower. 3. Public Hearing. At a public hearing, duly noticed and held on the date hereof, in accordance with the Act and Section 147(f) of the Code, on the proposal to issue the Note and approve a housing program prepared in accordance with Section 462C.03 of the Act (the "Housing Program") and presented to the City Council on the date hereof, all parties who appeared at the hearing were given an opportunity to express their views with respect to such proposal to issue the Note and approval of the Housing Program, and all interested persons were given the opportunity to submit written comments before the date of said public hearing. Approval of Housing Program. The Housing Program attached as Exhibit A hereto was on file in the office of the City Administrator and available for public review in advance of the hearing on the -date hereof and is hereby approved by the City. Dorsey & Whitney LLP, serving as bond counsel with respect to the Note, has submitted the Housing Program to the Metropolitan Council on behalf of the City for review and comment as required by the Act. 5. Documents Presented. The City Council hereby approves the issuance of the Note in the principal amount estimated not to exceed $60,000,000, for the purposes described herein. The Note shall be issued pursuant to this resolution and the proceeds thereof shall be loaned to the Borrower under a Loan Agreement between the City and the Borrower (the "Loan Agreement"), the interest of the City in which, subject to certain reserved rights of the City, will be assigned to the Purchaser pursuant to a Pledge Agreement between the City and the Purchaser (the "Pledge Agreement"). The payments to be made by the Borrower under the Loan Agreement shall be established so as to produce revenues sufficient to pay the principal of, premium, if any, and interest on the Note when due. A Regulatory Agreement (the "Regulatory Agreement") between the City, the Purchaser, and the Borrower may be required to impose affordability requirements on the Project and the Borrower. Forms of the Note, the Loan Agreement, the Pledge Agreement, and the Regulatory Agreement, and any documents and certificates included therein (collectively, to the extent executed, the "Issuer Documents"), all relating to the Project and the issuance of the Note have been submitted to the City and are now on file in the office of the City Administrator. 2 6. Findings. It is hereby found, determined and declared that: a. Based on representations to the City, the Project constitutes a project authorized by and described in the Act as a refunding of any notes then outstanding. b. A public hearing on the Project and the Housing Program was held on this date after notice substantially in the form attached hereto as Exhibit B was published in the official newspaper of the City not less than 10 days in advance of said public hearing, and materials were made available for public inspection at City Hall, all as required by the Act and Section 147(f of the Code, at which public hearing all those appearing who desired to speak were heard and written comments were accepted. The publication of such notice of public hearing and all related actions are hereby ratified and approved in full. c. Pursuant to Section 462C.04 of the Act, Dorsey & Whitney LLP, serving as bond counsel with respect to the Note, made a timely submission of the Housing Program on behalf of the City to the Metropolitan Council for its review and comment. d. On August 20, 2026, the Prior Issuer consented to the refunding of the Bethel Note in accordance with the Act. The City and the Prior Issuer each agree that the Cooperative Agreement entered into between them as of October 1, 2021, in connection with the issuance of the Bethel Note, shall automatically terminate upon issuance of the Note and refinancing of the Bethel Note. e. No public official of the City has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project. f. To the actual knowledge of the City Council and the officers and employees of the City, there is no litigation pending or, to the knowledge of the City, threatened against the City relating to the Housing Program or the Issuer Documents, or questioning the due organization, powers or authority of the City to issue the Note or execute the Issuer Documents or undertake the transactions contemplated hereby. g. It is desirable that the Note be issued by the City upon the terms set forth in the Issuer Documents under the provisions of which the City's interests in certain of the Issuer Documents, subject to certain reserved rights of the City, will be pledged to the Purchaser as security for the payment of principal of, premium, if any, and interest on the Note. h. To the actual knowledge of the City Council and the officers and employees of the City, the execution and delivery of and the performance of the City's obligations under the Issuer Documents do not and will not violate any order of any court or any agency of government or in any proceeding to which the City is a party, or any indenture, agreement or other instrument to which the City is a party or by which it or any of its property is bound, or be in conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any such indenture, agreement or other instrument. i. The Note shall be a special, limited obligation of the City. Under the provisions of the Act, the Note is not and shall not be payable from or charged upon any funds other than amounts payable pursuant to the Loan Agreement and any and all other security of any kind or nature provided by the Borrower to the Purchaser, and otherwise pledged pursuant to the Issuer Documents; the City is not subject to any liability thereon; no owner or holder of the Note shall ever have the right to compel the exercise of the taxing power of the City to pay the Note or the interest thereon, nor to enforce payment thereof against any property of the City; neither the Note, the Issuer Documents, nor any document executed or approved in connection with the issuance of the Note shall constitute a pecuniary liability, general or moral obligation, charge, lien or encumbrance, legal or equitable, upon any property of the City; the Note shall not constitute a debt of the City within the meaning of any constitutional, charter, or statutory limitation; and the Note shall not constitute or give rise to a charge against the general credit or taxing powers of the City. Approval and Execution of Issuer Documents; Further Action. The forms of the Issuer Documents presented to the City Council and on file as of the date hereof are hereby approved. The Issuer Documents and such other agreements, documents, instruments, certificates and forms as may be required in connection with the issuance and sale of the Note are hereby authorized to be executed and delivered on behalf of the City individually by any one, or together by any two, of the Mayor, the City Clerk, or the Finance Director, as applicable, substantially in the forms on file, with such necessary and appropriate variations, omissions, and insertions as do not materially change the substance thereof with respect to the City, and with all such changes therein as may be approved by the officers executing the same, which approval shall conclusively be evidenced by the execution thereof. In the event any officer of the City authorized to execute and deliver the Issuer Documents shall be unavailable or for any reason be unable to execute the Issuer Documents or such other agreements, documents, instruments, certificates and forms to be entered into by the City in connection with the transactions contemplated hereby, any other officer of the City is hereby authorized to act on behalf of such officer and undertake the execution as provided above. All such City officers named above, or another acting on their behalf as provided above, individually by any one, or together by any two, are hereby further authorized to take any and all other actions which may be deemed necessary to carry out the intent of this resolution or which are required to consummate the transactions contemplated hereby and the issuance of the Note. All actions heretofore taken by any officer or employee of the City in connection with the transactions contemplated hereby are hereby ratified and confirmed in all respects. Approval, Issuance and Delivery of Note. As provided above, one or more officers of the City' are hereby authorized and directed to execute and issue the Note, and the Note shall be issued substantially in such form, mature, bear interest, and be payable according to such terms, and shall otherwise contain such terms and provisions, as are set forth in the Note and the other Issuer Documents, which terms are for this purpose incorporated in this resolution by reference and made a part hereof. The aggregate principal amount of the Note, the interest rate or rates thereon, the arnount and dates of the principal payments required to be made with respect thereto., and the rights of optional and mandatory redemption with respect thereto set forth in the Note are subject to the final approval of the officers of the City who execute and deliver the Note in accordance with the provisions of this resolution, such approval to be conclusively evidenced by the execution thereof. The Note shall recite that it is issued pursuant to the Act and such recital shall, to the fullest extent permitted by law, conclusively establish the legality and validity thereof. 4 Certificates. The officers and employees of the City are authorized to prepare and furnish to Dorsey & Whitney LLP, Minneapolis, Minnesota, the Purchaser, any loan participant, any placement agent and any other party, certified copies of all proceedings and records of the City relating to the Note, and such other affidavits and certificates as may be required to show the facts appearing from the books and records in the officers' custody and control or as otherwise known to them, including agreements and certificates relating to the reasonable expectations of the City with respect to the Project, the use of the proceeds of the Note and other tax related matters; and all such certified copies, certificates, agreements and affidavits, including any heretofore furnished, shall constitute representations of the City as to the truth of all statements of fact contained therein. 10. Nature of CitObligations. All covenants, stipulations, obligations, representations, and agreements of the City contained in this resolution or contained in the Issuer Documents or other agreements, documents, instruments, certificates and forms to which the City is a party shall be deemed to be the covenants, stipulations, obligations, representations, and agreements of the City to the full extent authorized or permitted by law, and all such covenants, stipulations, obligations, representations, and agreements shall be binding upon the City. Except as otherwise provided in this resolution, all rights, powers, and privileges conferred, and duties and liabilities imposed upon the City by the provisions of this resolution or the Issuer Documents or other documents to which the City is a party shall be exercised or performed by such officers or agents as may be required or authorized by law to exercise such powers and to perform such duties. No covenant, stipulation, obligation, representation, or agreement herein contained or contained in any document shall be deemed to be a covenant, stipulation, obligation, representation, or agreement of any member of the City Council, or any officer, agent, or employee of the City in that person's individual capacity, and neither shall any member of the City Council nor any officer or employee executing the Note or such documents be liable personally -on the Note or be subject to any representation, personal liability or accountability by reason of the issuance thereof. No provision, representation, covenant or agreement contained in the Note, this resolution or in any other document related to the Note, and no obligation therein or herein imposed upon the City or the breach thereof, shall constitute or, give rise to a general or moral obligation, or indebtedness or pecuniary liability of the City or any charge upon its general credit or taxing powers. In making the agreements, provisions, covenants and representations set forth in the Note or in any other document related to the Note, the City is not obligated to pay or remit any funds or revenues, except for revenues derived from the Loan Agreement that are pledged to the payment of the Note, as provided therein. Except as herein otherwise expressly provided, nothing in this resolution or in the aforementioned documents expressed or implied, is intended or shall be construed to confer upon any person or firm or corporation, other than the City or any holder of the Note, any right, remedy, or claim, legal or equitable, under and by reason of this resolution or any provisions hereof, the aforementioned documents and all of their provisions being intended to be and being for the sole and exclusive benefit of the City and any holders from time to time of the Note. 11. Definitions and Interpretation. Terms not otherwise defined in this resolution but defined in the forms of the Issuer Documents now on file shall have the same meanings in this resolution and shall be interpreted herein as provided therein. Notices may be given as provided in the Issuer Documents. In case any provision of this resolution is for any reason illegal or invalid or inoperable, such illegality, invalidity, or inoperability shall not affect the remaining provisions of this resolution, which shall be construed or enforced as if such illegal or invalid. or inoperable provision were not contained herein. 12. Costs, The Borrower has agreed to pay directly or through the City any and all costs paid or incurred by the City in connection with the transactions authorized by this resolution, whether or not the Note is issued, including but not limited to the administrative fee of the City in the amount of $60,000 and fees of Kutak Rock LLP, Minneapolis, Minnesota, as issuer's counsel to the City. Further, it is understood and agreed by the Borrower that the Borrower shall indemnify the City against all liabilities, losses, damages, costs, and expenses (including attorneys' fees and expenses incurred by the City) arising with respect to the Project and the Note as provided for and agreed to by and between the Borrower and the City in the Issuer Documents. Adopted by the City Council of the City of Lino Lakes, Minnesota, this 24th day of August, 2026. Attest: Roberta Colotti, CMC, City Cleric 6 , Mayor EXHIBIT A PROGRAM FOR SENIOR MULTIFAMILY HOUSING DEVELOPMENT UNDER MINNESOTA STATUTES, CHAPTER 462C LYNGBLOMSTEN AT LINO LAKES, LLC Proposal; Authority. The City of Lino Lakes, Minnesota (the "City"), proposes to (a) adopt a Housing Program pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act"), (b) issue one or more series of tax-exempt or taxable revenue notes thereunder, and (c) pursuant to applicable authority conferred upon the City by the laws of the State of Minnesota, including, without limitation, the Act, take such other actions as may be necessary or desirable in furtherance of the objective to (1) refund and refinance the outstanding principal amount of, and any accrued interest and prepayment premium on, the tax-exempt Senior Housing Revenue Note (Lyngblomsten at Lino Lakes Project) Series 2021, issued by the City of Bethel, Minnesota (the "Prior Issuer"), on October 5, 2021, in the original principal amount of $42,700,000, the proceeds of which were loaned by the Prior Issuer to the Borrower (the "Bethel Note"), and discharge the liens originally granted in connection herewith; (2) refinance the outstanding principal amount of, and any accrued interest and prepayment premium on, the taxable TIF Note issued by the Borrower on October 5, 2021, in favor of Choice Financial Group, in the original principal amount of $2,600,000 (the "TIF Note"), and discharge the liens originally granted in connection herewith; (3) refinance the outstanding principal amount of, and any accrued interest and prepayment premium on, the taxable Promissory Note Secured By Real Estate issued by the Borrower on October 5, 2021, in favor of Mission Investment Fund of the Evangelical Lutheran Church in America, in the original principal amount of $12,000,000 (the "MIF Note," and together with the Bethel Note and the TIF Note, the "Refunded Notes"), and discharge the liens originally granted in connection herewith; and (4) pay certain costs of issuing the Note. Proceeds of the Refunded Notes financed the acquisition, construction, and equipping of a senior housing campus, including the development of a four-story building of approximately 352,445 Square feet, containing 96 independent living apartment units and 53 assisted living and memory care units, as well as a separate clubhouse, and 20 detached two -bedroom independent living rental townhomes with attached garages, all located at approximately 6070 Blanchard Blvd, Lino Lakes, Minnesota 55104 (the "Project"). The Project specifically includes all of the following street addresses in Lino Lakes, Minnesota: 6050-6070 Blanchard Blvd, 258 Hammerly Court, 262 Hammerly Court, 247 Hammerly Court, 267 Hammerly Court, 250 Hammerly Court, 254 Hammerly Court, 211 Hammerly Court, 259 Hammerly Court, 263 Hammerly Court, 275 Hammerly Court, 266 Hammerly Court, 270 Hammerly Court, 283 Hammerly Court, 274 Hammerly Court, 279 Hammerly Court, 295 Hammerly Court, 278 Hammerly Court, 282 Hammerly Court, 287 Hammerly Court, and 291 Hammerly Court. The owner and operator of the Project is Lyngblomsten at Lino Lakes, LLC, a Minnesota limited liability company organized and operated as an organization recognized under Section 501(c)(3) of the Internal Revenue Code of 1986 (the "Code") (the `Borrower"). The sole member 7 of the Borrower is Lyngblomsten Services, Inc., a Minnesota nonprofit corporation organized and operated as a Section 501(c)(3) public charity under the Code. This Housing Program is subject to amendment or waiver by the City. Purposes. In creating this Housing Program, the City is acting in furtherance of its findings that that the preservation of the quality of life in the City is in part dependent upon the maintenance and provision of adequate, decent, safe, sanitary, and affordable housing stock, including housing for the elderly, within the meaning of the Act; that accomplishing the goals of this Housing Program is a public purpose and will benefit the residents of the City; that the need exists within the City to continue to provide affordable housing facilities to and for the benefit of elderly persons; that there exist or are expected to exist elderly persons and families within the City who are and will be able to benefit fiom and are in need of this Housing Program; that this Housing Program is necessary in view of the limited resources that may be available to such persons relative to the expenses involved in accomplishing the type of objectives outlined in this Housing Program in the absence of one or more of the forms of assistance described herein or otherwise available pursuant to the Act; and that, the City hereby finds that such forms of assistance are often necessary for the benefit of such persons, families, and goals and that, furthermore, the successful implementation of the objectives of the kind described in this Housing Program has been found to provide impetus for the development of other housing and health care facilities, as well as the general development of the City, by other persons who are not the beneficiaries of such governmentally sponsored or assisted activities. Housing. Purposes. More particularly, the City finds that there exists a need for senior housing facilities for elderly persons, due to a variety of factors, including that the cost of acquisition and construction may in many cases prove economically unfeasible, given- the high costs of acquisition and construction and prevailing area rental levels, and that therefore appropriate levels of public assistance may be helpful and necessary in bridging that gap. General Description of the Program. The Borrower is the owner and operator of the Project and an affiliate of the Borrower, Lyngblomsten Care Center, Inc., a Minnesota nonprofit corporation organized and operated as an organization recognized under Section 501(c)(3) of the Code, manages the facility on behalf of the Borrower. The Project is for residency solely by elderly and disabled persons, and consequently, no income limits apply under the Act. A tax increment financing agreement, development agreement, and, if entered into for federal income tax purposes, a regulatory agreement, impose affordability requirements on the Project and the Borrower. Revenue Note. Financing for the refunding and refinancing of the Refunded Notes will be obtained through the issuance of one or more series of tax-exempt or taxable revenue notes by the City pursuant to the Act (the "Note"). The maximum principal amount of the Note to be issued by the City is expected not to exceed $60,000,000. The proceeds of the Note will be loaned to the Borrower under a loan agreement between the City and the Borrower. Loan repayments made by the Borrower under the loan agreement will be applied to payments of principal of and interest and premium, if any, owing on the Note. The proceeds of the Note will be loaned to the Borrower to, among other things, refund and refinance the Refunded Notes and pay costs of issuance of the Note. The Note is expected to be sold and issued prior to the end of calendar year 2026. Monitoring Methods. It is believed the oversight exercised by the purchaser of the Note and certain other parties will be adequate to ensure the Housing Program as presented is in fact carried out. The Project must be operated by the Borrower in accordance with various operating covenants (relating to such things as maintenance, insurance, etc.) to be contained in the loan agreement and related documents to be entered into by the City, the Borrower and certain other parties, including the purchaser of the Note, which loan agreement and related documents will be assigned by the City, to the extent of the City's interests therein, to the purchaser of the Note as security for the holders of the Note. Meeting Needs. The City believes that this Housing Program will meet the need identified by the City for ongoing availability of senior housing facilities. The specific methods anticipated to be used include the issuance of the Note under the Act to provide feasible refinancing for the Project. Authorization. This Housing Program is undertaken pursuant to the Act. Costs. The costs of the Project and the refunding and refinancing of the Refunded Notes and this Housing Program, including specifically the costs of the City generally, will be paid or reimbursed by the Borrower. 9 NOTICE OF PUBLIC HEARING ON THE ISSUANCE OF SENIOR HOUSING REVENUE REFUNDING NOTE AND ADOPTION OF A HOUSING PROGRAM RELATED THERETO PURSUANT TO MINNESOTA STATUTES, CHAPTERS 462C AND 462A NOTICE IS HEREBY GIVEN that a public hearing shall be conducted by the City Council of the City of Lino Lakes, Minnesota (the "City"), on a housing program to be adopted by the City (the "Program") and the proposal that the City issue one or more series of tax-exempt or taxable revenue notes in an aggregate principal amount not to exceed $60,000,000 (the "Note") on behalf of Lyngblomsten at Lino Lakes, LLC, a Minnesota limited liability company organized and operated as an organization recognized under Section 501(c)(3) of the Internal Revenue Code of 1986 (the "Borrower"), all pursuant to Minnesota Statutes, Chapters 462C and 462A, as amended (the "Act"). The sole member of the Borrower is Lyngblomsten Services, Inc., a Minnesota nonprofit corporation organized and operated as an organization recognized under Section 501(c)(3) of the Internal Revenue Code of 1986 (the "Code"). The Note will be issued by the City at the request of the Borrower. The proceeds of the Note will be loaned to the Borrower to (1) refund and refinance the outstanding principal amount of, and any accrued interest and prepayment premium on, the tax-exempt Senior Housing Revenue Note (Lyngblomsten at Lino Lakes Project) Series 2021, issued by the City of Bethel, Minnesota (the "Prior Issuer"), on October 5, 2021, in the original principal amount of $42,700,000, the proceeds of which were loaned by the Prior Issuer to the Borrower (the "Bethel Note"), and discharge the liens originally granted in connection herewith; (2) refinance the outstanding principal amount of, and any accrued interest and prepayment premium on, the taxable TIF Note issued by the Borrower on October 5, 2021, in favor of Choice Financial .Group, in the original principal amount of $2,600,000 (the "TIF Note"), and discharge the liens originally granted in connection herewith; (3) refinance the outstanding principal amount of, and any accrued interest and prepayment premium on, the taxable Promissory Note Secured By Real Estate issued by the Borrower on October 5, 2021, in favor of Mission Investment Fund of the Evangelical Lutheran Church in America, in the original principal amount of $12,000,000 (the "MIF Note," and together with the Bethel Note and the TIF Note, the "Refunded Notes"), and discharge the liens originally granted in connection herewith; and (4) pay certain costs of issuing the Note. Proceeds of the Refunded Notes financed the acquisition, construction, and equipping of a senior housing campus, including the development of a four-story building of approximately 352,445 square feet, containing 96 independent living apartment units and 53 assisted living and memory care units, as well as a separate clubhouse, and 20 detached two -bedroom independent living rental townhomes with attached garages, all located at approximately 6070 Blanchard Blvd, Lino Lakes, Minnesota 55104 (the "Project"). The Project specifically includes all of the following street addresses in Lino Lakes, Minnesota: 6050-6070 Blanchard Blvd, 258 Hammerly Court, 262 Hammerly Court, 247 Hammerly Court, 267 Hamrrierly Court, 250 Hammerly Court, 254 Hammerly Court, 271 Hammerly Court, 259 Hammerly Court, 263 Hammerly Court, 275 Hammerly Court, 266 Hammerly Court, 270 Hammerly Court, 283 Hammerly Court, 274 Hammerly Court, 279 Hammerly Court, 295 Hammerly Court, 278 Hammerly Court, 282 Hammerly Court, 287 Hammerly Court, and 291 Hammerly Court. 10 The Borrower is the owner and operator of the Project. An affiliate of the Borrower, Lyngblomsten Care Center, Inc., a Minnesota nonprofit corporation organized and operated as an organization recognized under Section 501(c)(3) of the Code, manages the Project on behalf of the Borrower. The Note, as and when issued, will be a special, limited revenue obligation of the City payable solely from the revenues expressly pledged to the payment thereof and will not constitute a charge, lien, or encumbrance upon any property of the City, except the revenues of the City derived from the Project pursuant to a loan agreement with the Borrower (the "Loan Agreement"). The Note will not be a charge against the City's general credit or taxing powers and will not constitute a general or moral obligation of the City, but will be payable from sums to be paid by the Borrower pursuant to the Loan Agreement. The public hearing will be held at the City Council meeting in the City Council Chambers at Lino Lakes City Hall, 600 Town Center Parkway in the City on Monday, August 24, 2026, at 6:30 P.M. or as soon thereafter as reasonable. At said time and place the City Council shall give all parties who appear an opportunity to express their views with respect to the Program, proposed issuance of the Note, and/or the refunding and refinancing of the Refunded Notes to be accomplished with proceeds of the Note. Copies of the Program are available at the offices of the City. Written comments may be submitted to the City Clerk by interested persons prior to the hearing by mail or in -person submission. The Project provides assistance for housing and, accordingly, the issuance of the Note is not a business subsidy, within the meaning of Minnesota Statutes, Sections 116J.993 to 116J.995, as amended. Dated: August 11, 2026 CITY OF LINO LAKES, MINNESOTA By: /s/ Roberta Colotti City Clerk CERTIFICATE CITY OF LINO LAKES, MINNESOTA I, the undersigned being a duly qualified and acting officer of the City of Lino Lakes, Minnesota, hereby attest and certify that: 1. As such officer, I have the legal custody of the original record from which the attached resolution was transcribed. 2. 1 have carefully compared the attached resolution with the original record of the meeting at which the resolution was acted upon. I find the attached resolution to be a true, correct and complete copy of the original: RESOLUTION AUTHORIZING A HOUSING PROGRAM AND PROVIDING FOR THE ISSUANCE AND SALE OF A SENIOR HOUSING REVENUE REFUNDING NOTE AT THE REQUEST OF LYNGBLOMSTEN AT LINO LAKES, LLC, AND APPROVING DOCUMENTS TO BE ENTERED INTO IN CONNECTION THEREWITH 4. I further certify that the affirmative vote on said resolution was y ayes, O nays, and I absent/abstention. 5. Said meeting was duly held, pursuant to call and notice thereof, as required by law, and a quorum was present. WITNESS my hand officially as such officer this A- day of August, 2026. City Clerk 4923-3057-3497\7