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2 The City is authorized and empowered, pursuant to the Act, to carry out the public purposes described therein by financing, in whole or in part, the cost of the demolition of such existing multifamily housing development and the acquisition, construction and equipping of the Project through the issuance of revenue bonds or obligations. In accordance with the requirements of Section 462C.04 of the Act, as a condition to the issuance of revenue bonds or obligations under the Act to finance the Project, a housing program must be prepared and approved with respect to the Project and the revenue bonds or obligations proposed to be issued to finance the Project and the housing program must be submitted to the Metropolitan Council for review and comment. In accordance with the requirements of Section 462C.04, subdivision 2, of the Act, the City must: (i) establish a date for a public hearing with respect to the housing program a nd the proposal to issue revenue bonds or obligations pursuant to the terms of the housing program; (ii) publish a notice of a public hearing in a newspaper of general circulation in the City at least fifteen (15) days prior to the date established for the public hearing; and (iii) conduct the public hearing with respect to the housing program and the proposal to issue revenue bonds or obligations pursuant to the terms of the housing program and the Act. This Housing Program for a Multifamily Housing Development, Presbyterian Homes of Arden Hills, Inc. (the “Housing Program”), is proposed to be undertaken by the City at the request of the Company with respect to the Project in accordance with the terms of the Act. The Project will be owned by the Company and will be initially managed by PHS Management, LLC, a Minnesota limited liability company whose sole member is a Minnesota nonprofit corporation, or another management entity selected by the Company. The representations herein are based entirely on repr esentations or other information provided to the City by or on behalf of the Company, and the City has not independently investigated the accuracy thereof. The total cost of the Project will be approximately $12,000,000. The revenue bonds or obligation proposed to be issued by the City under the Act (the “Bonds”) are expected to be issued in one or more series in a principal amount of approximately $10,000,000. The Bonds are expected to be issued on or before December 31, 2015. The proceeds derived from the sale of the Bonds are proposed to be loaned by the City to the Company under a loan agreement (the “Loan Agreement”) and the proceeds of the loan will be applied to the payment of the costs of the Project , including the funding of one or more reserves, the payment of a portion of the interest on the Bonds, and the payment of the costs of issuing the Bonds. The Company will agree to make loan repayments under the terms of such Loan Agreement in amounts sufficient to pay the principal of, premium, if a ny, and interest on the Bonds when due. The estimated cost of financing the Project may change between the date of approval of this Housing Program and the date of issuance of the Bonds. In determining to undertake and finance the Project, the City has considered the information available, including information concerning the population, housing stock and economic climate of the City, and the City has determined that undertaking the issuance of the Bonds, and the financing of the Project are in the best interests of the public health, safety, and welfare of the people of the City. Section B. Housing Program. The City is establishing this Housing Program to assist in financing the Project at a cost and upon such other terms and conditions as may be determined by the City in accordance with the Act. The Bonds will be secured by the loan repayments to be made by the Company under the terms of the Loan Agreement. The obligations of the Company to make the loan repayments under the Loan Agreement are to be secured by a mortgage lien on the land and buildings comprising the Project, by a