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Resolution 9575 WHEREAS, a public hearing on the Housing Program and the Project was held by the City on this same date, following duly published notice in the Shoreview Press, a newspaper of general circulation in the City, with respect to: (i) the required public hearing under Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"); (ii) the required public hearing under Section 462C.04, subdivision 2, of the Act; (iii) the Housing Program; and (iv) approval of the issuance of the Note; WHEREAS, during said public hearing a reasonable opportunity was provided for interested individuals to express their views, both orally and in writing; and WHEREAS, the City received Certificate of Allocation No. 417, dated January 11, 2022, from Minnesota Management and Budget allocating volume cap bonding authority to the City in the amount of $14,500,000 for the Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mounds View, Minnesota (the "Council"), as follows: SECTION 1. LEGAL AUTHORIZATION AND FINDINGS. 1.1 Findings. The City hereby finds, determines and declares as follows: (a) The issuance and sale of the Note by the City, pursuant to the Act, is in the best interest of the City, and the City hereby determines to issue the Note and to sell the Note to Bridgewater Investment Management, Inc., a Minnesota corporation, or another financial institution selected by the Borrower (the "Lender"). The City will loan the proceeds of the Note (the "Loan") to the Borrower in order to finance the Project. (b) Pursuant to a Loan Agreement (the "Loan Agreement") to be entered into between the City and the Borrower, the Borrower will agree to repay the Loan in specified amounts and at specified times sufficient to pay in full when due the principal of, premium, if any, and interest on the Note. In addition, the Loan Agreement contains provisions relating to the construction, maintenance and operation of the Project, indemnification, insurance, and other agreements and covenants which are required or permitted by the Act and which the City and Borrower deem necessary or desirable for the financing of the Project. (c) Pursuant to an Assignment of Loan Agreement between the City, the Borrower and the Lender, (the "Assignment of Loan Agreement"), the City will pledge and grant a security interest in all of its rights, title, and interest in the Loan Agreement to the Lender (except for certain rights of indemnification and to reimbursement for certain costs and expenses). (d) The obligations of the Borrower under the Loan Agreement and payment of amounts due under the Note will be secured by certain security instruments required by the Lender and in forms authorized by the Borrower to be executed by or on behalf of the Borrower in favor of the Lender, which may include: (i) a mortgage or security agreement granting a mortgage lien or security interest with respect to the Project or any portion thereof to the Lender or to the City and assigned to the Lender pursuant to an Assignment MU210-289-787665.v1 2