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<br />Subtotal $480,000 $892,000 $1,372,000 <br />Issuance costs $28,000 <br />TOTAL $1,400,000 <br /> <br />(b) The Project will be owned by the Corporation. <br /> <br />(c) As more fully described above, portions of the Project are located in the City, the City of <br />Little Canada (the "Issuer"), and the Cities of Falcon Heights, Minneapolis and Bloomington, Minnesota <br />(the "Host Cities"). <br /> <br />Section 3. <br /> <br />Recitals Relating to Joint Exercise of Powers. <br /> <br />(a) Under the Act, the City, the Issuer and the Host Cities are each authorized and <br />empowered to issue revenue bonds or a revenue note to finance or refinance all or any part of the costs <br />of a project consisting of the refmancing of debt incurred with respect to, or acquisition and betterment <br />of, health care facilities or revenue-producing facilities of organizations described in Section 501(c)(3) <br />of the Internal Revenue Code of 1986, as amended (the "Code") and to refund bonds previously issued <br />under the Act. <br /> <br />(b) The Corporation has requested that the City, the Issuer, and the Host Cities cooperate (as <br />permitted by Minnesota Statutes, Section 471.59) through a joint powers agreement in authorizing the <br />financing of the Project through the issuance of the Obligations by the Issuer, or one of the other Host <br />Cities, pursuant to the Act. <br /> <br />(c) A draft copy of the Joint Powers Agreement among the City, the Issuer and the Host <br />Cities (the "Joint Powers Agreement") has been submitted to the Council and is on file in the offices of <br />the City Manager. <br /> <br />Section 4. <br /> <br />Recital of Representations Made by the Corporation. <br /> <br />(a) The City has been advised by representatives of the Corporation that: (i) conventional <br />financing is available only on a limited basis and at such high costs of borrowing that the economic <br />feasibility of operating the Project would be significantly reduced; (ii) on the basis of information <br />submitted to the Corporation and their discussions with representatives of area financial institutions and <br />potential buyers of tax-exempt bonds, the Obligations could be issued and sold upon favorable rates and <br />terms to finance the Project; (m) the Corporation will experience a significant debt service cost savings <br />as a result of the Project; and (iv) the Project would not be undertaken but for the availability of <br />financing under the Act. <br /> <br />(b) The Corporation has agreed to pay any and all costs incurred by the City in connection <br />with the issuance of the Obligations, whether or not such issuance is carried to completion. <br /> <br />(c) The Corporation has represented to the City that no public official of the City has either a <br />direct or indirect financial interest in the Project nor will any public official either directly or indirectly <br />benefit financially from the Project. <br /> <br />1438032vl <br /> <br />3 <br />