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City, with respect to: (i) the required public hearing under Section 147(0 of the Internal Revenue Code of
<br />1986, as amended (the "Code (ii) the required public hearing under Section 462C.04, subdivision 2, of
<br />the Act; (iii) the Housing Program; and (iv) approval of the issuance of the Bonds, as hereinafter defined;
<br />and
<br />WHEREAS, the Public Notice was published at least 15 days before the regularly scheduled
<br />meeting of the City Council of the City (the "City Council and on August 9, 2010, the City Council
<br />conducted a public hearing at which a reasonable opportunity was provided for interested individuals to
<br />express their views, both orally and in writing; and
<br />WHEREAS, the Borrower has requested that the City issue, sell, and deliver its Multifamily
<br />Housing Revenue Bonds (Select Senior Living of Mounds View, L.L.C. Project), Series 2010, in one or
<br />more series some portion of which may be taxable obligations (collectively, the "Bonds in the original
<br />aggregate principal amount not to exceed $15,000,000; and
<br />WHEREAS, on July 12, 2010, the City Council adopted Resolution No. 7641, authorizing the
<br />submission of an application to the office of Minnesota Management Budget for an allocation of
<br />bonding authority with respect to the Bonds to fmance the Project in accordance with the requirements of
<br />Minnesota Statutes, Chapter 474A, as amended (the "Allocation Act and
<br />WHEREAS, the proceeds derived from the sale of the Bonds will be loaned by the City to the
<br />Borrower pursuant to the terms of a Loan Agreement, dated on or after October 1, 2010 (the "Loan
<br />Agreement between the City and the Borrower, whereby the City will apply the proceeds derived from
<br />the sale of the Bonds to fund a loan to the Borrower; and
<br />WHEREAS, as further security for the repayment of principal and interest on the Bonds, the
<br />Borrower will execute a Combination Mortgage, Security Agreement, Assignment of Leases and Rents
<br />and Fixture Financing Statement, dated on or after October 1, 2010 (the "Mortgage for the benefit of the
<br />City and assigned to the Trustee; and
<br />WHEREAS, the Bonds will be issued pursuant to this resolution and an Indenture of Trust, dated
<br />on or after October 1, 2010 (the "Indenture between the City and a bond trustee (the "Trustee and the
<br />Bonds and the interest on the Bonds: (i) shall be payable solely from the revenues pledged therefor under
<br />the Loan Agreement; (ii) shall not constitute a debt of the City within the meaning of any constitutional or
<br />statutory limitation; (iii) shall not constitute nor give rise to a pecuniary liability of the City or a charge
<br />against its general credit or taxing powers; (iv) shall not constitute a charge, lien, or encumbrance, legal or
<br />equitable, upon any property of the City other than the City's interest in the Loan Agreement; and
<br />(v) shall not constitute a general or moral obligation of the City; and
<br />NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
<br />MOUNDS VIEW, MINNESOTA, AS FOLLOWS:
<br />1. The City acknowledges, finds, determines, and declares that the issuance of the Bonds is
<br />authorized by the Act and is consistent with the purposes of the Act and that the issuance of the Bonds,
<br />and the other actions of the City under the Indenture, the Loan Agreement, and this resolution constitute a
<br />public purpose and are in the interests of the City. In authorizing the issuance of the Bonds for the
<br />financing of the Project and the related costs, the City's purpose is and the effect thereof will be to
<br />promote the public welfare of the City and its residents by providing multifamily housing developments
<br />for low or moderate income senior residents of the City and otherwise furthering the purposes and
<br />policies of the Act.
<br />372206v2 JSB MU2I0 -192
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