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Offices in 470 U.S. Bank Plaza
<br />200 South Sixth Street
<br />K`Minneapolis Minneapolis, MN 55402
<br />(612) 337-9300 telephone
<br />Saint Paul (6 12) 337-9310 fax
<br />www.kennedy-graven.com
<br />C 44 A R St. Cloud Affirmative Action, Equal Opportunity Employer
<br />JULIE A. EDDINGTON
<br />Attorney at Law
<br />Direct Dial (612) 337-9213
<br />Email: jeddington@kennedy-graven.com
<br />September 4, 2014
<br />Heather Butkowski
<br />City Administrator, City of Lauderdale
<br />1891 Walnut Street
<br />Lauderdale, MN 55113
<br />Re: Resolution providing preliminary approval for the issuance of the revenue obligation proposed to be
<br />issued by the City of Lauderdale for the benefit of Catholic Eldercare
<br />Dear Heather,
<br />As you know, Catholic Eldercare, a Minnesota nonprofit corporation (the "Borrower"), has requested that the
<br />City of Lauderdale (the "City") issue its revenue obligation in the maximum principal amount of $10,000,000
<br />(the "Lauderdale Note"), pursuant to Minnesota Statutes, Sections 469.152 through 469.1655, as amended,
<br />and Minnesota Statutes, Chapter 462C, as amended. In addition to requesting that the City issue the
<br />Lauderdale Note, the Borrower has proposed that the Minneapolis Community Development Agency (the
<br />"MCRA") issue a revenue obligation in the maximum principal amount of $5,000,000 (the "MCRA Note")
<br />and that the City of Mounds View, Minnesota (the "City of Mounds View") issue a revenue obligation in the
<br />maximum principal amount of $4,000,000 (the "Mounds View Note"). The City Council is being asked to
<br />adopt the attached resolution on Tuesday, September 9, 2014, following the public hearing, which provides
<br />preliminary approval for the issuance of the Lauderdale Note. The attached resolution also approves the
<br />submission of an application to the Minnesota Department of Employment and Economic Development for
<br />approval of the new costs of the Proj ect described below.
<br />If the City agrees to issue the Lauderdale Note, the Borrower will use the proceeds of the Lauderdale Note,
<br />along with the proceeds of the MCDA Note and the Mounds View Note, to (i) finance the acquisition,
<br />construction, and equipping of a transitional care unit consisting of the addition of 24 skilled nursing beds to
<br />the existing 150 -bed skilled nursing facility (the "TCU Facility") located at 900 2nd Street NE in the City of
<br />Minneapolis (the "City of Minneapolis"); (ii) fund capitalized interest on the Lauderdale Note, the MCDA
<br />Note, and the Mounds View Note (collectively, the "Notes") during construction of the TCU Facility;
<br />(iii refund the outstanding Variable Rate Demand Multifamily Housing Revenue Bonds (St. Hedwig's
<br />Assisted Living Project), Series 2002 (the "2002 Assisted Living Bonds"), issued by the City of Minneapolis
<br />on December 23, 2002, in the original aggregate principal amount of $7,,570,000; (iv) refund the outstanding
<br />Variable Rate Demand Nursing Home Revenue Refunding Bonds (Catholic Eldercare Project), Series 2002
<br />(the "2002 Nursing Home Bonds"), issued by the City of Minneapolis on December 23, 2002, in the original
<br />aggregate principal amount of $9,580,000; (v) refinance certain outstanding taxable indebtedness of the
<br />Borrower; (vi) fund required reserves for the Notes, if any; and (vii) pay the costs of issuing the Notes
<br />(collectively, the "Project"). The City of Minneapolis loaned the proceeds of the 2002 Assisted Living Bonds
<br />to Catholic Eldercare Community Services Corporation II, a Minnesota nonprofit corporation and an affiliate
<br />449408vl JAE MN475-38
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