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ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF MOUNDS VIEW RESOLUTION NO.23-EDA-368 RESOLUTION APPROVING THE ISSUANCE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF ITS TAXABLE TAX INCREMENT REVENUE NOTE, SERIES 2023 IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $1,770,000 BE IT RESOLVED BY the Economic Development Authority of the City of Mounds View (`EDA"), as follows: Section 1. Authorization; Award of Sale. 1.01. Authorization. The EDA has heretofore approved the establishment of Tax Increment Financing District No. 1-7: Villas of Mounds View (the "TIF District") within the Mounds View Economic Development Authority Project ("Redevelopment Project") and has adopted a tax increment financing plan for the purpose of financing certain improvements within the Redevelopment Project. Pursuant to Minnesota Statutes, Section 469.178, the EDA is authorized to issue and sell its bonds for the purpose of financing a portion of the public development costs of the Redevelopment Project. The bonds are payable from all or any portion of revenues derived from the TIF District and pledged to the payment of the bonds. The EDA hereby finds and determines that it is in the best interests of EDA that it issue and sell its taxable Tax Increment Revenue Note, Series 2023 (the "Note"), in the aggregate principal amount of $1,770,000, for the purpose of financing certain public costs of the Redevelopment Project. 1.02. Agreement Approved; Issuance, Sale and Terms of the Note. The EDA has previously approved the Contract for Private Redevelopment (the "Agreement") between the EDA and Villas of Mounds View, Limited Partnership, a Minnesota limited partnership, formed under the laws of the State of Minnesota (the "Owner"), and has authorized the Executive Director and President to execute the Agreement. Pursuant to the Agreement, the Note will be sold to the Owner. The Note will be dated as of the date of delivery and will bear interest at the rate of 4.00% per annum to the earlier of maturity or prepayment. In exchange for the EDA's issuance of the Note to the Owner, the Owner will pay certain costs related to the Minimum Improvements (the Qualifying Costs, as defined in the Agreement) pursuant to Section 3.2 of the Agreement. The Note will be delivered in the principal amount of $1,770,000 for reimbursement of the Owner's costs in accordance with the terms of Section 3.3 of the Agreement. Section 2. Form of Note. The Note will be in substantially the following form, with the blanks to be properly filled in and the principal amount and payment schedule adjusted as of the date of issue: MU205\52\914349.v 1