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RESOLUTION NO.8155 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION GIVING PRELIMINARY APPROVAL TO THE PROPOSED ISSUANCE OF A SUBORDINATE HEALTHCARE FACILITIES REVENUE NOTE UNDER MINNESOTA STATUTES, SECTIONS 469.152 THROUGH 469.1655, AS AMENDED; AUTHORIZING THE PUBLICATION OF A NOTICE OF PUBLIC HEARING; AND ESTABLISHING THE DATE FOR A PUBLIC HEARING BE IT RESOLVED by the City Council of the City of Mounds View, Minnesota(the "City"), as follows: Section 1. Recitals. 1.01. Statutory Authorization. Minnesota Statutes, Sections 469.152 through 469.1655, as amended (the "Act"), authorizes a municipality to issue revenue obligations to finance, in whole or in part, the cost of the acquisition, construction, reconstruction, improvement, betterment, or extension of a "project,"defined in the Act, in part, as any properties,real or personal,used or useful in connection with a revenue producing enterprise, whether or not operated for profit, engaged in providing health care services, including hospitals,nursing homes,and related medical facilities. 1.02. Subordinate Note. Benedictine Living Center of Fridley, LLC, a Minnesota nonprofit limited liability company (the "Borrower"), which will be controlled by Benedictine Health System ("BHS"), either as its sole member or as a joint member with Allina Health System ("Allina") or any affiliate of BHS or Allina,has proposed that the City issue its Subordinate Health Care Facilities Revenue Note (BHS/Allina TCU Project), Series 2013 (the "Subordinate Note"), in an aggregate principal amount not to exceed$3,000,000. 1.03. Project. The Borrower has proposed to apply the proceeds of the Subordinate Note, along with the proceeds of a senior revenue note (the "Series 2013 Note") proposed to be issued by the City of Fridley, Minnesota (the "City of Fridley") in the aggregate principal amount not to exceed $10,000,000 and equity of the Borrower, to (i)finance the acquisition, construction, and equipping of a 45-bed transitional care facility and 5 care suites located on the Unity Hospital/Allina campus at 550 Osborne Road in the City of Fridley(the "Project"); (ii)fund capitalized interest on the Series 2013 Note and the Subordinate Note (together, the "Notes"); (iii) fund any necessary reserves; and(iv)pay costs of issuance of the Notes and other costs related to the Project. The Project will be owned and operated by the Borrower. 1.04. Public Hearing Required. Prior to the issuance of the Subordinate Note,the City Council of the City must conduct a public hearing to (i) approve the issuance of the Subordinate Note pursuant to the requirements of Section 147(f) of the Internal Revenue Code of 1986, as amended, and regulations promulgated thereunder (the "Code"); and (ii) approve the Project pursuant to Section 469.154, subdivision 4 of the Act. 431774v2 JAE NR380-1