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~ (2) The City has received a proposal that it issue its revenue note in the principal amount of $1,400,000 (the "Note") to provide funds to be loaned to Wingspan Life Resources, a nonprofit corporation organized under the laws of the State of Minnesota (the "Borrower") to finance (i) the acquisition and equipping of a four-bed facility located at 85 West Congress Street and a 6-bed facility located at 2134 Marshall Avenue in Saint Paul, Milmesota, including related vehicles and furnishings (the "Saint Paul Project"), (ii) refinancing the acquisition and renovation ofa 6-bed facility located at 2209 West 91-112 Street in Bloomington, Minnesota, including related vehicles and furnishings (the "Bloomington Project"), and (iii) the improvement and equipping of a 4-bed facility located at 2949 Woodbridge Street in Roseville, Minnesota, including related vehicles and furnishings (the "Roseville Project", and together with the Bloomington Project and the Saint Paul Project, the "Project"), which facilities are to be owned and operated by the Borrower (the "Project"). (3) As required by the Act and Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), the City has, on this date, held a public hearing on the issuance of one or more revenue notes to finance the Project. (4) On the basis of information available to the City it appears, and the City hereby finds, that the Project constitutes properties, real and personal, used or useful in connection with a revenue producing enterprise within the meaning of Subdivision 2(d) of Section 469.153 of the Act; that the availability of the financing under the Act and the willingness of the City to furnish such financing will be a substantial inducement to the Company to undertake the Project; and that the effect of the Project, if undertaken, will be to provide necessary health care facilities so that adequate health care services are available to residents of the state at reasonable cost, to provide the range of services and employment opportunities required by the population, and to help prevent the movement of talented and educated persons out of the state and to areas within the State where their services may not be as effectively used. (5) The issuance and sale of the $1,400,000 Health Care Facilities Revenue Note, Series 2006 (Wingspan Project) (the "Note") by the City, pursuant to the Act, is in the best interest of the City, and the City hereby determines to issue the Note and to sell the Note to Anchor Bank Heritage, N.A., or another local bank (the "Lender"), as provided herein. The City will loan the proceeds of the Note (the "Loan") to the Borrower in order to finance the Project. (6) Pursuant to a Loan Agreement (the "Loan Agreement") to be entered into between the City and the Borrower, the Borrower has agreed to repay the Note in specified amounts and at specified times sufficient to pay in full when due the principal of, premium, if any, and interest on the Note. In addition, the Loan Agreement contains provisions relating to the expenditure of proceeds of the Note, the maintenance and operation of the Project, indemnification, insurance, and other agreements and covenants which are required or permitted by the Act and which the City and the Borrower deem necessary or desirable for the financing of the Project. A draft of the Loan Agreement has been submitted to the City Council. 1909189v1 2