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447996v2 JAE MN475-38 3
<br /> Section 3. Public Hearing.
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<br /> 3.01. The City Council shall meet at 7:00 p.m. on Monday, September 8, 2014, to conduct a
<br />public hearing as requested by the Borrower, notice of which hearing (the “Public Notice”) will be
<br />published as required by Section 469.154, subdivision 4 of the Industrial Development Act,
<br />Section 462C.04, subdivision 2 of the Housing Act, and Section 147(f) of the Code.
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<br /> 3.02. The City Administrator is hereby authorized and directed to publish the Public Notice, in
<br />substantially the form attached hereto as EXHIBIT A, in the Sun Focus, the official newspaper of the City
<br />and a newspaper of general circulation in the City. The Public Notice shall be published at least once, at
<br />least fifteen (15) days prior to the date of the public hearing. At the public hearing, reasonable
<br />opportunity will be provided for interested individuals to express their views, both orally and in writing,
<br />on the proposed issuance of the City Note and the Project.
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<br />3.03. Pursuant to Section 469.154 of the Industrial Development Act, prior to the issuance of
<br />the City Note by the City, the Commissioner of the Minnesota Department of Employment and Economic
<br />Development (“DEED”) must approve the new costs of the Project to be funded by the City Note on the
<br />basis of an application submitted by the City with all required attachments and exhibits (the “DEED
<br />Application”).
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<br /> 3.04. In accordance with Section 469.154 of the Industrial Development Act, the City
<br />Administrator is hereby authorized and directed to cause a draft copy of the DEED Application, together
<br />with drafts of all required attachments and exhibits, to be prepared by Kennedy & Graven, Chartered, as
<br />bond counsel. The DEED Application, together with all attachments and exhibits, shall be made available
<br />for public inspection in the office of the City Administrator during regular business hours of the City.
<br />The City Administrator and other officers, employees, attorneys, and agents of the City are hereby
<br />authorized to provide DEED with any information needed for this purpose, and the City Administrator is
<br />authorized to initiate and assist in the preparation of such documents as may be appropriate to the Project.
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<br /> Section 4. Preliminary Approvals.
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<br />4.01. The City Council hereby states its preliminary intention to issue the City Note in the
<br />maximum aggregate principal amount of $4,000,000 to (i) finance a portion of the costs of acquiring,
<br />constructing, and equipping the TCU Facility; (ii) refund the outstanding principal amount of the 2002
<br />Assisted Living Bonds and the 2002 Nursing Home Bonds; (iii) fund capitalized interest on the City
<br />Note; (iv) fund required reserves for the City Note, if any; and (v) pay the costs of issuing the City Note;
<br />provided, however, that the new costs of the Project are approved by DEED. The issuance of the City
<br />Note is also subject to the mutual agreement of the City, the Borrower, and the initial purchaser of the
<br />City Note as to the details of the City Note and provisions for its payment.
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<br />4.02. The Note shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any
<br />property of the City except the City’s interest in the loan or revenue agreement with respect to the City
<br />Note and the Project, and the City Note, when, as, and if issued, shall recite in substance that the City
<br />Note, including interest thereon, is payable solely from the revenues received from the Project and
<br />property pledged to the payment thereof, and shall not constitute a general or moral obligation of the City.
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<br /> 4.03. The law firm of Kennedy & Graven, Chartered, is authorized to act as Bond Counsel and
<br />to assist in the preparation and review of necessary documents relating to the Project and the City Note
<br />issued in connection therewith. The Mayor, the City Administrator, and other officers, employees, and
<br />agents of the City are hereby authorized to assist Bond Counsel in the preparation of such documents.
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