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<br />452381v1 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 />November 5, 2014
<br />
<br />Mark Beer
<br />Finance Director, City of Mounds View
<br />2401 Highway 10
<br />Mounds View, MN 55112
<br />
<br />Re: Resolution providing final approval for the issuance of the revenue obligation proposed to be issued
<br />by the City of Mounds View for the benefit of Catholic Eldercare
<br />
<br />Dear Mark,
<br />
<br />As you know, Catholic Eldercare, a Minnesota nonprofit corporation (the “Borrower”), has requested that the
<br />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, Minnesota Statutes, Chapter 462C, as amended, and Minnesota Statutes, Section 471.656, as
<br />amended. In addition to requesting that the City issue the Mounds View Note, the Borrower has proposed
<br />that the Minneapolis Community Development Agency (the “MCDA”) issue a revenue obligation in the
<br />maximum principal amount of $5,000,000 (the “MCDA Note”) and that the City of Lauderdale, Minnesota
<br />(the “City of Lauderdale”) issue a revenue obligation in the maximum principal amount of $10,000,000 (the
<br />“Lauderdale Note”). The City Council is being asked to adopt the attached resolution on Monday,
<br />November 10, 2014, providing final approval to the issuance of the Mounds View Note and approving the
<br />execution and delivery of related loan documents, including a cooperative agreement with the City of
<br />Lauderdale and the City of Minneapolis.
<br />
<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 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; (ii) fund capitalized interest on the Lauderdale Note, the MCDA Note, and the Mounds View
<br />Note (collectively, the “Notes”) during construction of the TCU Facility; (iii) refund the outstanding Variable
<br />Rate Demand Multifamily Housing Revenue Bonds (St. Hedwig’s Assisted Living Project), Series 2002,
<br />issued by the City of Minneapolis on December 23, 2002, in the original aggregate principal amount of
<br />$7,570,000, which financed the assisted living facility located at 2919 Randolph Street NE (commonly
<br />known as RiverVillage East) in the City of Minneapolis; (iv) refund the outstanding Variable Rate Demand
<br />Nursing Home Revenue Refunding Bonds (Catholic Eldercare Project), Series 2002, issued by the City of
<br />Minneapolis on December 23, 2002, in the original aggregate principal amount of $9,580,000, which
<br />refinanced the skilled nursing facility located at 900 2nd Street NE (commonly known as Catholic Eldercare
<br />on Main) in the City of Minneapolis and the assisted living multifamily rental housing facility located at 909
<br />Main Street NE (commonly known as MainStreet Lodge) in the City of Minneapolis; (v) refinance certain
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