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CITY OF FALCON HEIGHTS • RESOLUTION 2005-07 A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF UP TO $5,500,000 SENIOR HOUSING REVENUE BONDS PINES OF HUTCHINSON, LLC PROJECT, SERIES 2005A AND 2005B BE IT RESOLVED by the City Council of the City of Falcon Heights, Minnesota (the "City"), as follows: 1. Authori (a) The City of Falcon Heights, Minnesota (the "City"), is authorized by Chapter 462C, Minnesota Statutes, as amended (the "Act"), to issue revenue bonds for the purpose of financing or refmancing projects including any land, building or other improvement and real or personal property, whether or not in existence, to the end that more adequate residential housing facilities for seniors and low- and middle-income families and persons may be provided, to enter into financing agreements with others for the purpose of providing revenues to pay such bonds, and further to secure the payment of such bonds. (b) Minnesota Statutes, Section 471.59, as amended, provides that two or more governmental units, by an agreement entered into through action of their .governing bodies, may jointly or cooperatively exercise any • power common to the contracting parties, and may provide for the exercise of such power by one of the participating governmental units. 2. Description of Project. Pines of Hutchinson, LLC, a limited liability company (the "Borrower"), has requested that the City assist in fmancing the acquisition of a 50-unit independent senior housing facility located at 1015 Century Avenue in the City of Hutchinson, Minnesota (the "Project") more fully described in the housing program attached hereto. 3. Plan of Financing. In order to finance the Project, the Borrower has proposed to this Council that the City enter into a Joint Powers Agreement dated as of June 1, 2005 (the "Joint Powers Agreement") with the City of Hutchinson, Minnesota ("Hutchinson") to issue its Senior Housing Revenue Bonds (Pines of Hutchinson, LLC Project) Series 2005A and its taxable Senior Housing Revenue Bonds (Pines of Hutchinson, LLC Project) Series 2005B in an aggregate principal amount not to exceed $5,500,000 (collectively, the "Bonds"). The Bonds will be purchased by Oppenheimer & Co. Inc., (the "Underwriter") pursuant to a Bond Purchase Agreement among the City, the Underwriter and the Borrower (the "Bond Purchase Agreement"). The City and Wells Fargo Bank, National Association (the "Trustee") will enter into an Indenture of Trust dated as of June 1, 2005 (the "Indenture"). The proceeds of the Bonds will be loaned to the Borrower pursuant to a Loan Agreement dated as of June 1, 2005 between the City and the Borrower (the "Loan Agreement"). •