6A, Presbyterian Homes Conduit Debt – Public Hearing and Prelim

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Projec# and other property pledged to the payment thereof, and shalI no� consiitute general or �nnoral obligations of the City. The Revenue ObIigations shalI not constitute a debt af the City within the meaning of any co;�stztutional or statutory limitation. Th� holder or holders of the Revenue Obligations shall never have the right to compel any exercise of the taxing power of the City to pay the autstanding principal o� the Revenue Obligations, or the mterest ther�on, or to enforce payment �hereof against any property of #he City. Section �F. Compliance wi�th tha Housing Act. Based on :representations of the Company set forth in a Contract for Private Development, daied December 20, 2010 (the "Development Contract"), beiween the City and the Company, it is hereby found and determined that the Project furthers the purpases set forth in the Housing Act and the Project constitutes a"rr�ultifazx�.ily laousing development" within the meaning of the Housing Act. Section 5. Bond Counsel. The law firm of Kennedy & Graven, Chartered is authorized to act as bond caunseI and to assist in the preparation and review of necessa.�y documents relating to the Revenue Obligations. The Mayor, the Administrator, and ather officers, employees, azzd agents of the City are hareby authorized to assist bond counsel in the preparation of such documents. Saction 6. D�cuments Furnished to Bond CounseL The Mayor, the Administrator, and ot.her officers af the City are autiaorized and directed to furnish to Kennedy & Graven, Chartered, as bond counsel, cer�ified copies of all proceedings and records of the City relating to the Housing Frogram, the Project, and the Revenue Obligations, and such other affidavits, certi�icates, and other dacuments as may be reyuired by bond counsel to show the facts relating to the legality of the Housing Progam, the Project, and the Revenue Obligations and related documents, as such facts appear from the books and records in the custody and control of such afficers ar as otherwise k�nown to t�aezrz; ar�d all such certified copies, certificates, �davits, and other documents, including any heretofore furnished, shall constitute representations af the City as ta the truth of all stateaaents contazned therein. Section 7. Costs. The Campany shalI pay or reizx�.burse any and all costs incurred by the City ir� connection the issuance o#'the Revenue Obligations, whether or not th� Revenue Obligations are iss�ed and the operative insti-urr�ents are executed and delivered. The Company shall pay the administrative fees of the City in the event the Revenue Obligations are issued in accordance with the �erms of the DeveIopment Contract. Section S. R�imbursement. The United States Department of the Treasury has pramulgated final regulations governing the use af the proceeds of tax-exempt abligations, all or a portion of which are to be used to reimburse a conduit borrower for project expenditures paid prior to the date of issuanca of such taa�-exennpt obligations. Thase regulations, Treasury Regulations, �ectian I.150-2 {the "Treasury Regulations"), require tha� the City or a conduit borrower adapt a statement of official intent to reimburs� an original expenditure not later than sixty (60} days after payment of the original expenditure. The Treasury Regulations also generally require that the tax-exez�pt obligations ba issued and the reimbursement allocation made from the proceeds of the tax-exempt obligations occur within eighteen {18} months after the later of: {i) the date the expenditure is paid; or (ii) th� date the project is placed in service or abandoned, but in no event more than three {3} years after the date the expenditure is pazd. The Treasury Regulations general�y permit reimbursement of capital expenditures and costs of issuance of the tax-exempt obligations. The Company has adopted a reiznbu;rsenr�ent resaiution with zespect to the Project that satisfies the requirements of the Treas�zry Regulations. Section 9. Expiration. All commitments of the City expressed herein are sub�ect to the condition that by June 30, 2012, the City, the Company, and the initial purchaser of tlae Revenue Obligatio�s shall have agreed to mutually acceptable terms and conditions o�the loan or revenue agreement, the Revenue -3-