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<br />449410v1 JAE MN475-38
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<br />Offices in
<br /> Minneapolis
<br />
<br />Saint Paul
<br /> St. Cloud
<br />470 U.S. Bank Plaza
<br />200 South Sixth Street
<br />Minneapolis, MN 55402
<br />(612) 337-9300 telephone
<br />(612) 337-9310 fax
<br />www.kennedy-graven.com
<br />Affirmative Action, Equal Opportunity Employer
<br /> JENNY S. BOULTON
<br /> Attorney at Law
<br /> Direct Dial (612) 337-9202 Email: jboulton@kennedy-graven.com
<br />
<br />September 3, 2014
<br />
<br />Mark Beer
<br />Finance Director, City of Mounds View
<br />2401 Highway 10
<br />Mounds View, MN 55112
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<br />Re: Resolution providing preliminary approval for the issuance of the revenue obligation proposed to be
<br />issued by the City of Mounds View for the benefit of Catholic Eldercare
<br />
<br />Dear Mark,
<br />
<br />Catholic Eldercare, a Minnesota nonprofit corporation, or any of its affiliates (the “Borrower”), has requested
<br />that the City of Mounds View (the “City”) issue its revenue obligation in the maximum principal amount of
<br />$4,000,000 (the “Mounds View Note”), pursuant to Minnesota Statutes, Sections 469.152 through 469.1655,
<br />as amended, and Minnesota Statutes, Chapter 462C, as amended. In addition to requesting that the City issue
<br />the Mounds View Note, the Borrower has proposed that the City of Minneapolis (the “City of Minneapolis”)
<br />issue a revenue obligation in the maximum principal amount of $5,000,000 (the “MCDA Note”) and that the
<br />City of Lauderdale, Minnesota (the “City of Lauderdale”) issue a revenue obligation in the maximum
<br />principal amount of $10,000,000 (the “Lauderdale Note”). The City Council is being asked to adopt the
<br />attached resolution on Monday, September 8, 2014, following the public hearing, which provides preliminary
<br />approval for the issuance of the Mounds View Note.
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<br />If the City agrees to issue the Mounds View Note, the Borrower will use the proceeds of the Mounds View
<br />Note, along with the proceeds of the MCDA Note and the Lauderdale 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 Mounds View Note, the MCDA
<br />Note, and the Lauderdale 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 />of the Borrower, to finance the acquisition, construction, and equipping of a 71-unit assisted living facility
<br />located at 2919 Randolph Street NE (commonly known as RiverVillage East) in the City of Minneapolis.
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