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(b) The Proj ect will be owned by the Corporation. (c) As more fully described above, portions of the Project are located in the City, the City of Little Canada (the "Issuer"), and the Cities of Falcon Heights, Minneapolis and Bloomington, Minnesota (the "Host Cities"). Section 3. Recitals Relatin� to Joint Exercise of Powers. (a) Under the Act, the City, the Issuer and the Host Cities are each authorized and empowered to issue revenue bonds or a revenue note to finance or refinance all or any part of the costs of a project consisting of the refinancing of debt incurred with respect to, or acquisition and betterment of, health care facilities or revenue-producing facilities of organizations described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code") and to refund bonds previously issued under the Act. (b) The Corporation has requested that the City, the Issuer, and the Host Cities cooperate (as permitted by Minnesota Statutes, Section 471.59) through a joint powers agreement in authorizing the financing of the Project through the issuance of the Obligations by the Issuer, or one of the other Host Cities, pursuant to the Act. (c) A draft copy of the Joint Powers Agreement among the City, the Issuer and the Host Cities (the "Joint Powers Agreement") has been submitted to the Council and is on file in the offices of the City Manager. Section 4. Recital of Representations Made bv the Corporation. (a) The City has been advised by representatives of the Corporation that: (i) conventional financing is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Project would be significantly reduced; (ii) on the basis of information submitted to the Corporation and their discussions with representatives of area financial institutions and potential buyers of tax-exempt bonds, the Obligations could be issued and sold upon favorable rates and terms to fmanCe the Project; (iii) the Corporation will experience a significant debt service cost savings as a result of the Project; and (iv) the Project would not be undertaken but for the availability of financing under the Act. (b) The Corporation has agreed to pay any and a11 costs incurred by the City in connection with the issuance of the Obligations, whether or not such issuance is carried to completion. (c) The Corporation has represented to the City that no public official of the City has either a direct or indirect financial interest in the Proj ect nor will any public official either directly or indirectly benefit financially from the Project. 1435032-1 3