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ORices in 470 UrS., Bank Plaza <br />200 5autEi Sixth 5treet <br />M[nneaPolis Minneapolis, MN 55442 <br />Sairit Paszl {G12) 337•93F1D srfephone <br />(G 12) 337-93I a fax <br />St. Clovd www.kennedy-graven.cnm <br />AfEitmar'svcAction, Equal Oppoc[uniry Employcr <br />JULTE A. EDbuvG'�oH <br />Attorn.eyaf T�w <br />DiiecE Dial .(51Zj`337=9213 <br />Emuil: jeddingtou�kennedy-gtaiven.com <br />Septem�er 8, 2011 . <br />Sue Iversan <br />Finance DireetorlTreas�arer <br />Ciiy of Arden Hills <br />1245 West Highway 9b <br />ArdenHills.,.MN SSI.12 � <br />Re: $B,��O,OOQ City of Arden Hills, Minnesota.Adjustalile I�ate Revenue Boncis {Northwestern <br />College Prnject), Series 2D10 <br />Dear Sue, <br />E�cl�sed please find #he fis�a.l resoluti�n (tlie "Resoiution") propased ta be oansidered by the <br />Cii,y Council (tlie "Counail") af the City of Arde:n Hills, 1Vlinnesota (tt�e "City"} at iis r.egu[ariy <br />sehednleclmeeting onMonday, Septeznber 12, 2�1.1, iri corinection with an inierestrate inpd� Glian�e <br />for the xbove x�%renced bonds {the "Bonds"), The:Resolufio�. pro�ides approval. for the in#erest ra#e <br />mode cl�ange and authorizes the Mayar and City Ad�ninistrafor to execute certain documents reia#ed <br />to �e ohange in the interest�rate mode of tlie Bonds and �he seoffering of`the Borids. to .tkie publia, A <br />brief explanation ofthe financing and the interest rate mode ehange fallnws. <br />In Nflvember 2010, tk�e Ciiy issued the Bands for the benefit of Narthwestern Gollege; a <br />Minnesota nonprofit corpara#ian {tl�e "$orrower"� to finance a portian af t�e costs oi the <br />eo�►s4rue�ion and equipping of an approxiinately 7U,004 square faot student c.entsz, w�uch incl.udes <br />new dining facilities, an expanded campus stare,: sludent Tounges, study areas, of�ee :space for <br />student organiza�ians, classroorns, aud meeting .spaees, ta �e located at on the gortion. af �he <br />`Northwesferra Campus lo�atad within the City (the "�'rojec�"). <br />'I`he Bonds were vriginaily issued in a shrn�t-#errn fxed interest ra�t-e rriode anei pri�ately <br />pIaced with M&I Marshali & T1s1ey Bank: The Project has been oompl�t�d and the Barrawer now � <br />praposes to conYert the inierest rate an the Bonds to a var�able rat�: o� intere•st with an interest rate <br />t13a� reseks on a vvee%ly basis. P�suant tn the Trr�st Indenture �eauted sn conjtmctinn. with. the <br />issuance of the.Bonds, in arder to convert the int�rest ra�e on tlze. Bonds to a variable in#erest �:t�, fihe <br />Borrower must deiiver a le#�er of credit to the Trustee for the $onds azxd ari the date the interest.rate <br />mode co�versian takes place, all the Bonds ar� subject to mandatary purc�ase (aIl bondhol��rs �nust <br />tender their i�onds to ihe.Trustee). The Borrower has arranged for BMO. Hamis Bank, N.A to i"s.siie a <br />ietter of credit to secure fihe Borrower's obIigations #o. pay fihe principal of and in.f�rest on the Bonds, <br />The progosed interest rate conversion is .expe.cted to occur on September 29, 2011 (the "Canversion <br />Date"), and on such date hondholders v�rili ba requir�;d to:#ender their Bands to the Trustee. Orice the <br />mandatory ten.de�r af all Bonds occurs, the:Borrower l�as arranged for M&I �'inanciai Advisors, Tnc. <br />to reoffex'fhe Bonris for sale to �e pulilic. <br />The provision of the l�tter of ar�dit as security far the paymen,t. of debt service on the Bonds <br />wili cause a"reissuance" of d�e Sonds for t� pui�poses puisuanf to �ecti�n 1.1OQ1-3 af tl�e Treasi�ry <br />Regtilations gro�ulgated under the InternaI Rev�nue Goc�e of 198b, as amez�ded, and #herefore, for <br />