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CITY OF ARDEN HILLS,MINNESOTA - RESOLUTION NO.2010-081 RESOLUTION APPROVING CONTRACT FOR PRIVATE DEVELOPMENT AND AWARDING THE SALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF ITS $1,115,000 TAX INCREMENT REVENUE NOTE BE IT RESOLVED BY the City Council ("Council") of the City of Arden Hills, Minnesota(the "City")as follows: Section 1. Authorization,Award of Sale. 1.01. Authorization. The City has heretofore approved the establishment of Tax Increment Financing District No. 4(the"TIF District")within amended Development District No. 1 ("Project"),and has adopted a tax increment financing plan for the purpose of financing certain improvements within the - Project. Pursuant to Minnesota Statutes, Section 469.178, the City is authorized to issue and sell its bonds for the purpose of financing a portion of the public development costs of the Development District. Such bonds are payable from all or any portion of revenues derived from the TIF District and pledged to the payment of the bonds. The City hereby finds and determines that it is in the best interests of the City that it issue and sell its $1,115,000 Tax,Increment Revenue Note (the "Note") for the purpose of financing certain public costs of the Project. 1.02. Agreement Approved; Issuance, Sale, and Terms of the Note. The City hereby approves the Contract for Private Development between the City and the Owner(the "Agreement"), and authorizes the Mayor and City Administrator to execute such Agreement in substantially the form on file with City, subject to modifications that do not alter the substance of the transaction and are approved by such - officials, provided that execution of the Agreement by such officials is conclusive evidence of their approval. Pursuant to the Agreement, the Note shall be sold to PRESBYTERIAN HOMES OF ARDEN HILLS, INC. (the "Owner") and delivered at the time and subject to the conditions of Section 3.3 of the Agreement. The Note shall be dated as of the date of delivery and shall bear interest from the date of original issue to the earlier of maturity or prepayment, at the rate that is the lesser of 6.25 percent per annum, or the true interest cost on the first series of Housing Revenue Bonds issued to finance the Minimum Improvements in accordance with Article VII of the Agreement. The consideration for the sale of the Note is the payment by the Owner of the Public Development Costs as defined in the Agreement. Section 2. Form of Note. The Note shall 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. 379276v1 AR200-10 1