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PURPOSE & PARTICIPANTS <br /> <br />The Bonds are being issued pursuant to Minnesota Statutes, Section 469.034, for the <br />purpose of financing the cost of constructing a 50 unit senior housing rental facility <br />to be located in the City of Ramsey, Minnesota. The HRAwill own and operate the <br />facility, in conjunction with a private management company. The HRA will also <br />provide approximately $80,000 of its annual levy which is attributable to the City <br />of Ramsey. <br /> <br />The City will purchase the land for the facility with its own funds and will be <br />transferring title to the HRA at the closing of the financing. The City will be the <br />ultimate guarantor of the payment of the principal and interest for the Bonds by <br />pledging its general obligation. The City will also be loaning appr. oximately <br />$ I, 150,000 of its own funds to be repaid through project revenues. <br /> <br />The commencement of construction for the facility is expected to begin in the middle <br />of December, 1998 with construction completed by the end of September, 1999. <br />Interest on the Bonds will be capitalized .through January 1, 2000. <br /> <br />Based upon the assumptions listed in this report, the facility revenues, together with <br />the HRA levy, are expected to produce a net revenue of at least 110% of anticipated <br />debt service. <br /> <br />Page 2 <br /> <br /> <br />