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would cause the Bonds not to constitute "qualified 501(c)(3)bonds,"within the meaning of Section 145 and related Sections of the Code, and any service contract to be entered into with respect to the Project(unless entered into with an organization described in Section 501(c)(3)of the Code) shall constitute a"qualified management agreement"within the meaning of all pertinent provisions of law, including all relevant provisions of the Code and regulations,rulings and revenue procedures thereunder, including Revenue Procedure 97-13. (e) Not more than two percent of the proceeds of the Bonds will be applied to the payment of costs of issuance of the Bonds and all costs of issuance in excess of that amount will be paid by the City from funds other than proceeds of the Bonds. (f) It has not leased, sold, assigned, granted or conveyed and will not lease, sell, assign, grant or convey all or any portion of the Project or any interest therein to the United States or any agency or instrumentality thereof within the meaning of Section 149(b)of the Code. (g) No portion of the proceeds of the Bonds will be used to provide any of the following facilities or facilities related or incidental thereto: any airplane, skybox or other private luxury box, facility used primarily for gambling, or store the principal business of which is the sale of alcoholic beverages for consumption off premises. (h) As of the date hereof,the Authority and The Young Men's Christian Association of Metropolitan Minneapolis (the "YMCA")are the only"principal users" of the Project and it will not permit any person to become a"principal user" of the Project if such action would cause • the interest on the Bonds to become includable in federal gross income in the hands of the Bondholders. (i) The average maturity of the Bonds does not exceed one hundred twenty percent of the average reasonably expected economic life of the Project as determined in accordance with Section 147(b)of the Code. (j) No obligations have been or will be issued which are described in Section 141, 142, 143, 144 or 145 of the Code and that are(i) sold at substantially the same time as the Bonds, (ii) sold pursuant to a common plan of marketing and(iii)payable in whole or in part by the YMCA or otherwise have any common or pooled security for the payment of debt service thereon with the Bonds. (k) It will not use the proceeds of the Bonds in such a manner as to cause the Bonds to be "arbitrage bonds"within the meaning of Section 148 of the Code and applicable Treasury Regulations. (1) It reasonably expects that eighty-five percent of the spendable proceeds of the Bonds will be used to carry out the governmental purpose of the Bonds within three years of the date the Bonds are issued. Not more than fifty percent of the proceeds of the Bonds will be invested in nonpurpose investments (as defined in Section 148(f)(6)(A)of the Code)having a substantially guaranteed yield for four years or more. • 2114906v1 15