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RESOLUTION NO. [~[ A resolution of the City Council of the City of Elk River, Minnesota, authorizing the issuance, sale, and delivery of Multifamily Housing Revenue Bonds (Dove Tree Apartments Project), Series 2010, in the original aggregate principal amount of up to $4,000,000 (the "Bonds"), as well as the Subordinate Multifamily Housing Revenue Note (Dove Tree Apartments Project) Series 2010, in the original principal amount of up to $3,000,000 (the "Note"); and approving the form of and authorizing the execution and delivery of documents relating to the Bonds and Note WHEREAS, the City of Elk River, Minnesota (the "Issuer"), is a municipal corporation duly organized and existing under the Constitution and laws of the State of Minnesota; and WHEREAS, pursuant to the Constitution and laws of the State of Minnesota, particularly Minnesota Statutes, Chapter 462C, as amended (the "Act"), the Issuer is authorized to issue its revenue bonds or obligations in such principal amount as, in the opinion of the Issuer, is necessary to provide sufficient funds for financing a "development" as defined in the Act; and WHEREAS, Elk River Leased Housing Associates III, Limited Partnership, a Minnesota . limited liability partnership (the "Borrower"), intends to acquire, renovate and equip a 68-unit multifamily rental housing facility located at 1105 Lions Park Drive in the City of Elk River (the "Project"); and WHEREAS, the Issuer proposes to finance the Project pursuant to the Act and this Resolution by the issuance of the Bonds and Note; and WHEREAS, the Bonds will be issued under the Indenture, as hereinafter defined, and the Note will be issued in a direct placement to Elk River Leased Housing Associates Limited Partnership (the "Subordinate Lender"), and the Bonds and the Note and the interest thereon shall be payable solely from the revenues pledged therefor and the Bonds and Note shall not constitute a debt of the Issuer within the meaning of any constitutional or statutory limitation, nor shall the Bonds or Note constitute or give rise to a pecuniary liability of the Issuer or a charge against its general credit or taxing powers and the Bonds and Note shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the Issuer; and WHEREAS, the Issuer on June 28, 2010 held a public hearing relating to the issuance of the Bonds and Note with respect to the Project and the housing program therefor in accordance with the requirements of the Act and Section 147(f) of the Internal Revenue Code of 1986, as amended; •