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needed as a base for providing governmental services and facilities and more intensive development of land avail- able in the community; (c) the financing of the Project, the issuance and sale of the Note, the execution and delivery of the Agreement, the Pledge Agreement, and the Construction Loan Agreement, and the performance of all covenants and agreements of the City contained in the Note, the Agree- ment, the Pledge Agreement, and the Construction Loan Agreement and of all other acts and things required under the Constitution and laws of the State of Minne- sota to make the Note, the Agreement, the Pledge Agree- ment, and the Construction Loan Agreement valid and binding obligations of the City in accordance with their terms are authorized by the Act; (d) it is desirable that the Note in the principal amount of $1,700,000 be issued by the Ci ty upon the terms set forth herein and that the Ci ty pledge its interest in the Agreement and grant a security interest therein to the Lender as security for the payment of the principal of, premium, if any, and interest on the Note; (e) the Loan Repayments provided in the Agreement are fixed and are required to be revised from time to time as necessary, so as to produce income and revenue sufficient to provide for prompt payment of the princi- pal of, premium, if any, and interest on the Note when due, and the Agreement also provides that the Borrower is required to pay all expenses of the operation and maintenance of the Land and the Project, including, but not limited to, adequate insurance thereon and all taxes and special assessments levied upon or with respect to the Land and payable during the term of the Agreement; (f) under the provisions of Minnesota Statutes, Section 474.10, the Note is not to be payable from nor charged upon any funds of the City other than the reve- nue pledged to the payment thereof; the City is not subject to any liability thereon; no Holder of the Note shall ever have the right to compel any exercise of the taxing power of the City to pay the Note or the interest thereon nor to enforce payment thereof against any pro- perty of the City; the Note, premium, if any, and in- terest thereon shall not constitute an indebtedness of the City within the meaning of any constitutional or statutory limitation and shall not constitute or give rise to a pecuniary liabili ty of the Ci ty or a charge against its general credi t or taxing powers and shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the City other than its interest in the Project; - 3 -