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12/1/2025 - City Council - Regular - Agendas* The Consent Agenda lists those items of business which are routine, recommended for approval, and/or which need no discussion. The several separate items listed on the Consent Agenda are acted upon by one motion. There will be no separate discussion of these items unless a Council Member makes a request, in which event the item will be removed from the Consent Agenda and placed elsewhere on the regular agenda for Council discussion and action. ** Under Public Comment, individuals may address the City Council about any item not contained on the regular agenda. Each speaker should keep their statements to three minutes to allow sufficient time for others. The Council will take no official action on items discussed at the forum, except for referral to staff for future report. CITY OF SPRING PARK CITY COUNCIL AGENDA DECEMBER 1, 2025 – 6:00 PM SPRING PARK CITY HALL 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. APPROVAL OF AGENDA 4. TRUTH IN TAXATION a. Public Hearing Forum (3 minutes each) 5. PUBLIC COMMENT** Those wishing to speak must state their name and address for the record. Each person will have three (3) minutes to make their remarks unless Council allows more time. Speakers will address all comments to the City Council as a whole and not one individual councilmember. The Council may not take action on an item presented during the Public Comment period. When appropriate, the Council may refer inquiries and items brought up during the Public Comment period to the City Administrator for follow-up. 6. REQUESTS & PRESENTATIONS 7. CONSENT AGENDA* a. Regular City Council & Work Session Minutes – November 17, 2025 b. Approve Payroll, Expenditures, and Claims for Payment c. Resolution #25-13: Approving Termination Agreement Pres. Homes 8. ACTION AGENDA a. Music Event Ordinance Language Discussion b. Resolution #25-14: Approving 2026 Levy c. Resolution #25-15: Approving 2026 Final Budget 9. REPORTS a. Mayor & Council b. Staff 10. ANNOUNCEMENTS/MISCELLANEOUS (INFORMATION ONLY) a. December 10, 2025 – Planning Commission Meeting – 6:00PM b. December 15, 2025 – Regular City Council Meeting – 6:00PM c. December 15, 2025 – Council Work Session – 5:00PM d. December 24, 25, & 26, 2025 – Christmas Holiday - City Hall Closed 11. ADJOURNMENT All meetings of the Spring Park City Council are video recorded and available for viewing online at www.ci.spring-park.mn.us or Spring Park | Lake Minnetonka Cable Commission (lmcc-tv.org). Meeting minutes are intended to be a general synopsis of the meetings of the City Council. Additional detail regarding discussions and policy considerations is provided by watching the recording of the meeting. CITY OF SPRING PARK CITY COUNCIL MINUTES NOVEMBER 17, 2025 – 6:00 PM SPRING PARK CITY HALL 1. CALL TO ORDER The meeting was called to order at 6:00p.m. Council Present: Mayor Chase, Council Member’s Sippel, Suttle, and Turner were present. Council Member Horton was absent. Staff Present: City Administrator Anderson 2. PLEDGE OF ALLEGIANCE Mayor Chase led the audience to recite the Pledge of Allegiance. 3. APPROVAL OF AGENDA Council Member Sippel motioned, being seconded by Council Member Suttle, to approve the agenda as amended removing items 7 b. Resolution #25-13: PHS Lake Minnetonka -Approving Termination of Pilot Agreement and 7c. PHS Lake Minnetonka: Termination of Agreement for Payments in Lieu of Taxes from the agenda. On vote being taken, the motion was unanimously approved. 4. PUBLIC COMMENT: none 5. REQUESTS & PRESENTATIONS: none 6. CONSENT AGENDA* a. Regular City Council & Work Session Minutes – November 3, 2025 b. Approve Payroll, Expenditures, and Claims for Payment c. Special Event Permit #25-21: Back Channel Jingle Bar 12/2/25 -1/5/26 Council Member Sippel motioned, being seconded by Council Member Suttle, to approve the consent agenda as presented. On vote being taken, the motion was unanimously approved. 7. ACTION AGENDA a. Administrative Committee: Approve 2026 Merit and COLA increase for Staff b. Resolution #25-13: PHS Lake Minnetonka -Approving Termination of Pilot Agreement c. PHS Lake Minnetonka: Termination of Agreement for Payments in Lieu of Taxes Council Member Sippel motioned, being seconded by Council Member Horton, to approve item 7a. 2026 Merit and COLA increases for Staff. On vote being taken, the motion was unanimously approved. 8. REPORTS a. Mayor & Council: Council Member Suttle asked if she could be part of the decision on what date to book the holiday lighting for 2026. Council Member Sippel stated the obituary for Bruce Williamson has been posted in the paper. b. Staff: City Administrator Anderson brought up replacing the wreaths for the light poles along Shoreline Drive that are old and don’t light up. Anderson shared that we have money in the budget to replace this year. Council decided to wait and replace next year and start discussions for same in early January. All meetings of the Spring Park City Council are video recorded and available for viewing online at www.ci.spring-park.mn.us or Spring Park | Lake Minnetonka Cable Commission (lmcc-tv.org). Meeting minutes are intended to be a general synopsis of the meetings of the City Council. Additional detail regarding discussions and policy considerations is provided by watching the recording of the meeting. 9. ANNOUNCEMENTS/MISCELLANEOUS (INFORMATION ONLY) a. November 27 & 28 – City Hall Closed for Thanksgiving Holiday b. December 1, 2025 – Regular City Council Meeting – 6:00PM c. December 10, 2025 – Planning Commission Meeting – 6:00PM d. December 15, 2025 – Regular City Council Meeting – 6:00PM e. December 15, 2025 – Council Work Session – 5:00PM 10. ADJOURNMENT There being no further discussion, Council Member Suttle motioned, being seconded by Council Member Sippel, to adjourn the meeting at 7:19p.m. On vote being taken, the motion was unanimously approved. Respectfully submitted, Jamie Hoffman, City Clerk All meetings of the Spring Park City Council are video recorded and available for viewing online at www.ci.spring-park.mn.us or Spring Park | Lake Minnetonka Cable Commission (lmcc-tv.org). Work Session minutes are intended to be a general synopsis of the meeting of the City Council. Additional detail regarding discussions and policy considerations is provided by watching the recording of the meeting. CITY OF SPRING PARK WORK SESSION MINUTES NOVEMBER 17, 2025 – 5:00 PM SPRING PARK CITY HALL (Work Session discussion times are approximate) 1. 5:00: Special Events: a. Special Event Fees: Council agreed to remove the escrow requirements for special events on private property and establish annual permits for special events similar to the annual music permit. They also agreed with the recommendation to remain with the $1,600.00 annual fee for both music and special events. All agreed to add the administrative process to the regular council agenda to officially approve. b. Jingle Bar Event; Back Channel: Council approved the event and agreed to waive the fee. c. Fletchers Music: Council discussed limiting the number of musical events per venue and adding language to the current code to state as such. Mayor Chase and Council Member Turner voted to leave the ordinance language as is with no limit and Council Member’s Sippel and Suttle would like to change the ordinance language and limit the number of annual music events. After discussion, there was a 2-2 vote. Mayor Chase asked if there are any other cities that have restrictions on the number of annual musical events. City Administrator Anderson stated he will research and circle back. Council directed Anderson to add the subject to the next meeting agenda for a final vote. 2. 5:15: 2026 Budget/Finance Committee Update: City Administrator Anderson stated the preliminary levy was set at 9.0% but after finance committee review, it has been reduced to 6.93%. 3. 5:45: Administrative Committee Update: Council Member Suttle explained the performance review process for staff and the agreed upon increases for 2026. 4. 5:55: Miscellaneous: none 5. 6:00: Adjourn After no further discussion, the work session was adjourned at 5:59pm. All meetings of the Spring Park City Council are video recorded and available for viewing online at www.ci.spring-park.mn.us or Spring Park | Lake Minnetonka Cable Commission (lmcc-tv.org). Work Session minutes are intended to be a general synopsis of the meeting of the City Council. Additional detail regarding discussions and policy considerations is provided by watching the recording of the meeting. *Check Summary Register© CITY OF SPRING PARK 11/24/25 2:14 PM Page 1 Batch: 120125PAY Name Check Date Check Amt 10100 Wells Fargo Bank NA 34494 CITY OF BLOOMINGTON 11/24/2025 $28.00 Oct. 25' Water Testing Fees 34495 HAWKINS, INC.11/24/2025 $20.00 Purchased Chemicals for WTP 34496 LOFFLER COMPANIES, INC.11/24/2025 $39.03 Oct. 2025 Copier Usage 34497 MNSPECT, LLC 11/24/2025 $2,573.36 Oct. 25' Code Enforcement Services 34498 NORLINGS LAKE MTKA LANDSC 11/24/2025 $4,421.25 Oct. 25' Landscaping Services 34499 CITY OF ORONO 11/24/2025 $44,211.91 Nov. 25' Contracted Services - Police 34500 CITY OF ORONO 11/24/2025 $18,449.05 Nov. 25' Contracted Services - Public Works 34501 US BANK 11/24/2025 $965.79 Oct. 25' Credit Card Purchases 34502 WASTE MANAGEMENT 11/24/2025 $372.27 Oct. 25' Spring Park Resident Yard Waste Disp 34503 XCEL ENERGY 11/24/2025 $4,852.44 Electric Usage 09/24/25-10/20/25 - LS #1 Total Checks $75,933.10 Batch: 120125PAY Page 1 11/24/25 2:16 PMCITY OF SPRING PARK *Check Detail Register© Amount CommentInvoiceCheck #Check Date Vendor Name 10100 Wells Fargo Bank NA 34494 11/24/25 CITY OF BLOOMINGTON $28.00 Oct. 25' Water Testing FeesTesting Fees 25707E 601-49400-306 $28.00Total 34495 11/24/25 HAWKINS, INC. $20.00 Purchased Chemicals for WTPChemicals and Chem Pro 7225526E 601-49400-216 $20.00Total 34496 11/24/25 LOFFLER COMPANIES, INC. $13.01 Oct. 2025 Copier UsageOffice Equipment/Rental 5171392E 101-41500-413 $13.01 Oct. 2025 Copier UsageOffice Equipment/Rental 5171392E 601-49400-413 $13.01 Oct. 2025 Copier UsageOffice Equipment/Rental 5171392E 602-49450-413 $39.03Total 34497 11/24/25 MNSPECT, LLC $399.00 Oct. 25' Code Enforcement ServicesContracted Services 2689577E 101-42400-310 $775.54 Oct. 25' Residential & Commercial Inspections/Permit Fees/General Fees Plan Check Fees 2689962E 101-42400-305 $1,398.82 Oct. 25' Residential & Commercial Inspections/Permit Fees/General Fees Contracted Services 2689962E 101-42400-310 $2,573.36Total 34498 11/24/25 NORLINGS LAKE MTKA LANDSCAPE $4,421.25 Oct. 25' Landscaping ServicesLandscaping/Gardens/Mai 45506E 101-41940-432 $4,421.25Total 34499 11/24/25 CITY OF ORONO $44,211.91 Nov. 25' Contracted Services - PoliceContracted Services 20142702AE 101-42000-310 $44,211.91Total 34500 11/24/25 CITY OF ORONO $12,914.35 Nov. 25' Contracted Services - Public WorksContracted Services 20142702BE 101-41510-310 $2,767.35 Nov. 25' Contracted Services - Public WorksOrono PW 20142702BE 601-49400-103 $2,767.35 Nov. 25' Contracted Services - Public WorksOrono PW 20142702BE 602-49450-103 $18,449.05Total 34501 11/24/25 US BANK $264.00 Oct. 25' Credit Card PurchasesContracted ServicesE 101-41900-310 $107.45 Oct. 25' Credit Card PurchasesOffice SuppliesE 101-41500-200 $107.46 Oct. 25' Credit Card PurchasesOffice SuppliesE 601-49400-200 $107.46 Oct. 25' Credit Card PurchasesOffice SuppliesE 602-49450-200 $14.99 Oct. 25' Credit Card PurchasesComputer Support/SupplieE 101-41500-207 $49.01 Oct. 25' Credit Card PurchasesOther MiscellaneousE 101-41500-437 $315.42 Oct. 25' Credit Card PurchasesPostage & MeterE 101-41500-322 $965.79Total 34502 11/24/25 WASTE MANAGEMENT $372.27 Oct. 25' Spring Park Resident Yard Waste Disposal at Mulch Store Contracted Services 0001107-465E 101-42800-310 $372.27Total Batch: 120125PAY Page 2 11/24/25 2:16 PMCITY OF SPRING PARK *Check Detail Register© Amount CommentInvoiceCheck #Check Date Vendor Name 34503 11/24/25 XCEL ENERGY $64.24 Electric Usage 09/24/25-10/20/25 - Traffic LightsUtilities/Electric/Gas 1227679927E 101-41900-381 $160.08 Electric Usage 09/24/25-10/20/25 - City HallUtilities/Electric/Gas 1227680306E 101-41900-381 $223.89 Electric Usage 09/24/25-10/20/25 - LS #2Utilities/Electric/Gas 1227680508E 602-49450-381 $98.31 Electric Usage 09/24/25-10/20/25 - LS #3Utilities/Electric/Gas 1227681056E 602-49450-381 $765.62 Electric Usage 09/24/25-10/20/25 - CoOwned Lights Utilities/Electric/Gas 1227682992E 101-41900-381 $74.62 Electric Usage 09/24/25-10/20/25 - LS #5Utilities/Electric/Gas 1227683014E 602-49450-381 $2,408.88 Electric Usage 09/24/25-10/20/25 - WTPUtilities/Electric/Gas 1227683383E 601-49400-381 $18.20 Electric Usage 09/24/25-10/20/25 - LS #4Utilities/Electric/Gas 1227683396E 602-49450-381 $469.67 Electric Usage 09/24/25-10/20/25 - LS #6Utilities/Electric/Gas 1227684131E 602-49450-381 $156.33 Electric Usage 09/24/25-10/20/25 - East LightsUtilities/Electric/Gas 1227684798E 101-41900-381 $221.00 Electric Usage 09/24/25-10/20/25 - North LightsUtilities/Electric/Gas 1227685620E 101-41900-381 $139.95 Electric Usage 09/24/25-10/20/25 - LS #1Utilities/Electric/Gas 1227685765E 602-49450-381 $51.65 Electric Usage 09/24/25-10/20/25 - West LightsUtilities/Electric/Gas 1277680491E 101-41900-381 $4,852.44Total 10100 $75,933.10 Fund Summary 10100 Wells Fargo Bank NA 101 GENERAL FUND $66,675.94 601 WATER FUND $5,344.70 602 SEWER FUND $3,912.46 $75,933.10 Taft Stettinius & Hollister LLP / Taftlaw.com / The Modern Law Firm 2200 IDS Center, 80 South 8th Street Minneapolis, MN 55402-2210 Tel: 612.977.8400 | Fax: 612.977.8650 taftlaw.com MEMORANDUM TO: Spring Park, Minnesota City Council FROM: Catherine J. Courtney Adam Niblick DATE: November 24, 2025 RE: Termination of PILOT and Regulatory Agreements for PHS/Lake Minnetonka, LLC In 2007, the City of Spring Park, Minnesota (the “City”) issued Multifamily Housing Revenue Bonds, (the “2007 Bonds”) to, among other purposes, assist Presbyterian Homes Housing and Assisted Living, Inc. (“Presbyterian Homes”) with the financing of residential rental housing units located at 4601/09 Shoreline Drive and 2380 Island Drive (collectively, the “Property”), in the City. In 2010, Presbyterian Homes assigned and conveyed all of its right, title, and interest in and to the Property to PHS/Lake Minnetonka, LLC (“PHS”). At the same time, the 2007 Bonds were refinanced by the City’s Housing and Health Care Revenue Note, Series 2010 (PHS/Lake Minnetonka Campus Project) (the “2010 Note”), which was subsequently refinanced by the City’s Housing and Health Care Revenue Refunding Note, Series 2014C (PHS/Lake Minnetonka Campus Project) (the “2014C Note”). The 2014C Note currently remains outstanding The City has been advised by representatives of Presbyterian Homes and PHS, that PHS intends to sell the Property and, with the proceeds of the sale, pay back the portion of the 2014C Note that relates to the Property. In connection with the issuance of the 2007 Bonds, the City and Presbyterian Homes entered into an Agreement for Payment in Lieu of Taxes (the “PILOT Agreement”), dated December 27, 2007, which was assigned to PHS in 2010. The PILOT Agreement has remained in place through the refinancing of the 2007 Bonds and the 2010 Note and remains an obligation on the 2014C Note. Since the City bears the expense of providing police, fire, sanitation services, and road maintenance costs throughout the City, the PILOT Agreement served as a form of funding backstop should the use of the Property ever directly result in reduced real estate tax revenues. Under the terms of the PILOT Agreement, the owner of the Property is required to make certain payments to the City if the Property ever generated less in real estate taxes (through either exemption or reclassification) than it would have if the Property were classified for taxation purposes as it was on January 2, 2007. Notably, payments are only possible under the PILOT Agreement while the 2014C Note remains outstanding. November 24, 2025 Page 2 To date, no payments have been made under the PILOT Agreement because the Property is neither exempt from taxation nor in a tax classification that generates less in real estate taxes than the Property would generate if it were classified for taxation purposes as it was on January 2, 2007. Also in connection with the issuance of the 2007 Bonds a regulatory agreement providing for rental restrictions on the Property was entered into. As a result of the refinancings by the 2010 Note and the 2014C Note, that regulatory agreement has been revised to now consist of the Amended and Restated Regulatory Agreement (Park Hill, Park Hill North and Shoreview Apartments), as amended by that certain First Amendment to Amended and Restated Regulatory Agreement (Park Hill, Park Hil North and Shoreview Apartments), between PHS, the City, the City of Chanhassen, Minnesota, the City of St. Bonifacius, Minnesota, and Northeast Bank, which is the holder of the 2014C Note (the “Regulatory Agreement”). The Regulatory Agreement imposes rental restrictions on the property as long as there are tax-exempt obligations outstanding on the Property. Currently the Regulatory Agreement requires that at least 20% of the units be leased to tenants at or below 50% of area median income. As with the PILOT Agreement, the term of the Regulatory Agreement is based, in part, on whether there are outstanding tax-exempt obligations. By its terms, the Regulatory Agreement terminates upon the payment of any such obligations applicable to the Property. Since that portion of the 2014C Note relating to the Property is to be paid off and the provisions of the PILOT Agreement and the Regulatory Agreement will no longer be applicable to the Property, PHS and Presbyterian Homes have requested that the PILOT Agreement and the Regulatory Agreement be terminated to allow for a transfer of clean title to the purchaser of the Property. With respect to the Regulatory Agreement, the Cities of Chanhassen and St. Bonifacius, as issuers of other debt related to the Property, have agreed to the termination, and it is expected that Northeast Bank, the holder of the 2014C Note, will also agree to the termination. Upon the partial prepayment of 2014C Note, these agreements will no longer provide a benefit to the City. As bond counsel to the City, Taft has reviewed the proposed partial prepayment of the 2014 Note and prepared the respective termination documents. 195385312v2 Extract of Minutes of a Meeting of the City Council of the City of Spring Park Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Spring Park was duly held in the City of Spring Park, Minnesota, on December 1, 2025, at 6:00 o’clock P.M. The following members were present: and the following were absent: During said meeting _________ introduced the following resolution and moved its adoption: RESOLUTION NO. 25-13 RESOLUTION APPROVING: (i) THE TERMINATION OF A REGULATORY AGREEMENT AND AUTHORIZING THE EXECUTION THEREOF RELATED TO THE HOUSING AND HEALTH CARE REVENUE REFUNDING NOTE, SERIES 2014C (PHS/LAKE MINNETONKA CAMPUS PROJECT); AND (ii) THE TERMINATION OF AGREEMENT FOR PAYMENTS IN LIEU OF TAXES WHEREAS, (a) The City of Spring Park, Minnesota (the “City”) has previously issued its Housing and Health Care Revenue Refunding Note, Series 2014C (PHS/Lake Minnetonka Campus Project) (the “Note”), which, at the request of PHS/Lake Minnetonka, LLC, a Minnesota limited liability company (the “Borrower”), the sole member of which is Presbyterian Homes Housing and Assisted Living, Inc., a Minnesota nonprofit corporation (“Presbyterian Homes”), and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), refinanced, in part, the outstanding principal amount of the $28,000,000 Housing and Health Care Revenue Note, Series 2010 (PHS/Lake Minnetonka Campus Project) issued by the City of Spring Park, Minnesota (the “Series 2010 Note”), which was issued to finance, in part, the acquisition, construction, and equipping of affordable multifamily housing facilities located at 4599 Shoreline, 4601/09 Shoreline Drive, and 2380 Island Drive in the City of Spring Park, Minnesota (collectively, for the purposes of this Resolution, the “Project”); (b) The City has been advised by representatives of the Borrower that it intends to sell the Project and to partially prepay and redeem that portion of the Note applicable to the Project; (c) Pursuant to an Amended and Restated Regulatory Agreement (Park Hill, Park Hill North and Shoreview Apartments), as amended by that certain First Amendment to 195385312v2 2 Amended and Restated Regulatory Agreement (Park Hill, Park Hill North and Shoreview Apartments), between the Borrower, the City, the City of Chanhassen, Minnesota, the City of St. Bonifacius, Minnesota, and Northeast Bank (together, the “Regulatory Agreement “), certain rental restrictions are imposed on the Project; (d) Pursuant to an Agreement for Payments in Lieu of Taxes between Presbyterian Homes and the City (the “PILOT Agreement”) certain amounts would become payable to the City during each calendar year in which sums remain due under the Note if, in such year, the Property generated less in real estate taxes (through either exemption or reclassification) than it would have if the Property were classified for taxation purposes as it was on January 2, 2007. (e) Presbyterian Homes assigned and conveyed to Borrower all of its right, title, and interest in and to the PILOT Agreement pursuant to that certain Assignment and Assumption of Agreement for Payments in Lieu of Taxes (the “Assignment”). (f) In connection with the sale of the Project and the partial prepayment of the Note, the rental restrictions imposed under the Regulatory Agreement will no longer be applicable. Moreover, the Property is neither exempt from taxation nor in a tax classification that generates less in real estate taxes than the Property would generate if it were classified for taxation purposes as it was on January 2, 2007. (g) Borrower and Presbyterian Homes have requested that the Regulatory Agreement, the PILOT Agreement, and the Assignment be terminated; and (h) Copies of the proposed form of the Termination of Regulatory Agreement and Termination of Agreement for Payments in Lieu of Taxes have been presented to the City Council in connection with its consideration of this Resolution, and have been submitted to the City Council. NOW, THEREFORE, IT IS HEREBY RESOLVED, by the City Council of the City of Spring Park, as follows: 1. The proposed Termination of Regulatory Agreement and Termination of Agreement for Payments in Lieu of Taxes are hereby approved in substantially the form presented to the City Council, together with such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom, and additions thereto as may be necessary and appropriate and approved by Taft Stettinius & Hollister LLP, Bond Counsel to the City, prior to the execution thereof. The Mayor and the City Administrator of the City are authorized to execute the Termination of Regulatory Agreement and Termination of Agreement for Payments in Lieu of Taxes in the name of and on behalf of the City. In the event of the absence or disability of the Mayor or the City Administrator such officers of the City as, in the opinion of the City Attorney, may act on their behalf, shall without further act or authorization of the City Council do all things and execute all instruments and documents required to be done or executed by such absent or disabled officers. The execution of any instrument by the appropriate officer or officers of the City herein authorized shall be conclusive evidence of the approval of such documents in accordance with the terms hereof. 195385312v2 3 Adopted by the City Council of the City of Spring Park, Minnesota, this 1st day of December, 2025. _______________________________________ Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by Member ________________________, and after full discussion thereof and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. 195385312v2 4 STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF SPRING PARK I, the undersigned, being the duly qualified and acting City Clerk of the City of Spring Park, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council duly called and held on the date therein indicated, insofar as such minutes relate to a resolution authorizing the termination of a regulatory agreement. WITNESS my hand this _____day of December, 2025. _______________________________________ Jamie Hoffman, City Clerk 195365710v2 1 TERMINATION OF AGREEMENT FOR PAYMENTS IN LIEU OF TAXES THIS TERMINATION OF AGREEMENT FOR PAYMENTS IN LIEU OF TAXES (the “Termination”) is effective as of _________, 2025 (the “Effective Date”) by and between the CITY OF SPRING PARK, MINNESOTA, a municipal corporation duly organized and existing under the Constitution and laws of the State of Minnesota ( the “City”), PRESBYTERIAN HOMES HOUSING AND ASSISTED LIVING, INC., a Minnesota nonprofit corporation (“Presbyterian Homes”), and PHS/LAKE MINNETONKA, LLC, a Minnesota limited liability company (the “Owner”). The City, Presbyterian Homes, and Owner may be referred to herein as the “Parties.” RECITALS: A. Owner is the fee owner of the real property located at 4601/09 Shoreline Drive and 2380 Island Drive, City of Spring Lake, Hennepin County, Minnesota, as more fully described on the attached Exhibit A (the “Property”) B. Presbyterian Homes, Owner’s predecessor in interest to the Property, and the City entered into that certain Agreement for Payments in Lieu of Taxes (the “PILOT Agreement”) dated December 27, 2007, filed January 28, 2008 as Document No. 4464814 in the Office of the Registrar of Titles, Hennepin County, Minnesota, as an inducement to the City for the issuance of Multifamily Housing Revenue Bonds (the “Bonds”). The Bonds were issued to finance, in part, the acquisition, construction, and equipping of affordable multifamily housing facilities located upon the Property. C. Presbyterian Homes assigned and conveyed to Owner all of its right, title, and interest in and to the PILOT Agreement pursuant to that certain Assignment and Assumption of Agreement for Payments in Lieu of Taxes (the “Assignment”) dated June 2, 2010, filed June 15, 2010 as Document No. T4762978 in the Office of the Registrar of Titles, Hennepin County, Minnesota. D. The PILOT Agreement provides for certain amounts to be paid to the City during each calendar year in which sums due under the Bonds, or any renewal or replacement thereof, are outstanding if, in such year, the Property generated less in real estate taxes (through either exemption or reclassification) than it would have if the Property were classified for taxation purposes as it was on January 2, 2007. E. The Owner intends to sell the Property and repay the portion of the Bonds, as renewed and replaced, that were issued in connection with the Property. Moreover, the Property is neither exempt from taxation nor in a tax classification that generates less in real estate taxes than the Property would generate if it were classified for taxation purposes as it was on January 2, 2007. 195365710v2 2 F. Presbyterian Homes and the Owner have requested, and the City has agreed, to terminate, discharge, and release the PILOT Agreement and the Assignment. AGREEMENT: NOW THEREFORE, in consideration of good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows: 1. Termination and Release. The Owner, Presbyterian Homes, and the City, for themselves and their successors and assigns, hereby terminate and discharge the PILOT Agreement and Assignment in their entirety. The PILOT Agreement and Assignment are of no further force and effect, and the Owner, Presbyterian Homes, and the City no longer have any rights or obligations under the PILOT Agreement or Assignment. The Property is hereby released in all respects from the PILOT Agreement and Assignment. 2. Recording. This Termination may be recorded against the Property. 4. Run with the Land. This Termination shall run with the land and is binding upon and inure to the benefit of the Parties hereto and their successors and assigns. 5. Miscellaneous. This Termination will in all respects be interpreted, construed and enforced according to the laws of the State of Minnesota. This Termination may be executed separately and independently in any number of counterparts and each and all of which together will be deemed to have been executed simultaneously and regarded as one agreement dated as of the Effective Date. (The remainder of this page is intentionally left blank.) 195365710v2 IN WITNESS WHEREOF, the parties hereto have caused this Termination of Agreement for Payments in Lieu of Taxes to be executed effective as of the day and year first written above. CITY OF SPRING PARK, MINNESOTA By Its Mayor By Its City Administrator STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _____________, 2025, by ____________________, the Mayor of the City of Spring Park, Minnesota, a municipal corporation duly organized and existing under the Constitution and laws of the State of Minnesota, on behalf of the City. Notary Public STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _____________, 2025, by ____________________, the City Administrator of the City of Spring Park, Minnesota, a municipal corporation duly organized and existing under the Constitution and laws of the State of Minnesota, on behalf of the City. Notary Public (SIGNATURE PAGE TO TERMINATION OF AGREEMENT FOR PAYMENTS IN LIEU OF TAXES) 195365710v2 IN WITNESS WHEREOF, the parties hereto have caused this Termination of Agreement for Payments in Lieu of Taxes to be executed effective as of the day and year first written above. PRESBYTERIAN HOMES HOUSING AND ASSISTED LIVING, INC., a Minnesota nonprofit corporation By: Name: Mark Meyer Its: Chief Financial Officer STATE OF MINNESOTA ) ) ss. COUNTY OF _____________ ) The foregoing instrument was acknowledged before me on this _____ day of _____________, 2025, by Mark Meyer, the Chief Financial Officer of Presbyterian Homes Housing and Assisted Living, Inc. on behalf of the corporation. Notary Public (SIGNATURE PAGE TO TERMINATION OF AGREEMENT FOR PAYMENTS IN LIEU OF TAXES) 195365710v2 IN WITNESS WHEREOF, the parties hereto have caused this Termination of Agreement for Payments in Lieu of Taxes to be executed effective as of the day and year first written above. PHS/LAKE MINNETONKA, LLC, a Minnesota limited liability company By: Name: Mark Meyer Its: Chief Financial Manager STATE OF MINNESOTA ) ) ss. COUNTY OF _____________ ) The foregoing instrument was acknowledged before me on this _____ day of _____________, 2025, by Mark Meyer, the Chief Financial Manager of PHS/Lake Minnetonka, LLC, on behalf of the limited liability company. Notary Public This instrument was drafted by: TAFT STETTINIUS & HOLLISTER LLP (AMN) 2200 IDS Center 80 South 8th Street Minneapolis, MN 55402 (SIGNATURE PAGE TO TERMINATION OF AGREEMENT FOR PAYMENTS IN LIEU OF TAXES) 195365710v2 EXHIBIT A TO TERMINATION OF AGREEMENT FOR PAYMENTS IN LIEU OF TAXES Legal Description of the Property Real property in the City of Spring Park, County of Hennepin, State of Minnesota, described as follows: Parcel A: (Torrens property; Certificate of Title No. 1322942) That part of Government Lot 8, Section 18, Township 117, Range 23 described as beginning on the South line of said Government Lot 8 distant 1326.9 feet West from the Southeast corner of said Government Lot 8, thence West along said South line a distance of 278.3 feet; thence North parallel with the East line of said Government Lot 8 to the North line of County Road No. 15; thence Southeasterly along the North line of said County Road to its intersection with a line drawn parallel with the East line of said Government Lot 8 from the point of beginning, thence South along said last mentioned parallel line to the point of beginning, according to the Government Survey thereof which lies North of a line drawn parallel with and 370.0 feet North, measured at right angles from the South line of Government Lot 8, except the West 22 feet thereof. Together with a non-exclusive easement for ingress and egress purposes including vehicular use, utility use, pedestrian use and general driveway purposes over and across the West 22 feet of that part of Government Lot 8, Section 18, Township 117, Range 23, described as beginning on the South line of said Government Lot 8, distant 1326.9 feet West from the Southeast corner of said Government Lot 8; thence West along said South line a distance of 278.3 feet; thence North parallel with the East line of said Government Lot 8 to the North line of County Road No. 15; thence Southeasterly along the North line of said County Road to its intersection with a line drawn parallel with the East line of said Government Lot 8 from the point of beginning; thence South along said last mentioned parallel line to the point of beginning, as contained in Document No. 1392121. (see Order Document No. 1461150). Parcel B: (Torrens property; Certificate of Title No. 1322942) That part of Government Lot 8, Section 18, Township 117, Range 23, described as beginning on the South line of said Government Lot 8 distant 1326.9 feet West from the Southeast corner of said Government Lot 8; thence West along said South line a distance of 278.3 feet; thence North parallel with the East line of said Government Lot 8 to the North line of County Road No. 15; thence Southeasterly along the North line of said County Road to its intersection with a line drawn parallel with the East line of said Government Lot 8 from the point of beginning; thence South along said last mentioned parallel line to the point of beginning except therefrom that part lying North of a line drawn parallel with the 370.0 feet North, measured at right angles from the South line of said Government Lot 8, and except the West 22 feet of the above described property. Together with a non-exclusive easement for ingress and egress purposes, including vehicular use, utility use, pedestrian use and general driveway purposes over and across the West 22 feet of that 195365710v2 part of Government Lot 8, Section 18, Township 117, Range 23, described as beginning on the South line of said Government Lot 8, distant 1326.9 feet West from the Southeast corner of said Government Lot 8; thence West along said South line a distance of 278.3 feet; thence North parallel with the East line of said Government Lot 8 to the North line of County Road No. 15; thence Southeasterly along the North line of said County Road to its intersection with a line drawn parallel with the East line of said Government Lot 8 from the point of beginning; thence South along said last mentioned parallel line to the point of beginning, as contained in Document No. 1392120; (See Order Document No. 1461150). Parcel C: (Easement) A non-exclusive easement for roadway and utility purposes over part of the west 113.5 feet of the east 1718.7 feet of Government Lot 8 lying south of County Road 15 in Section 18, Township 117, Range 23, as contained in the Easement Agreement for Roadway and Utility Purposes, recorded November 21, 2006 in the office of the Hennepin County Recorder as Document No. 8895214 and in the office of the Hennepin County Registrar of Titles as Document No. 4329645. 176058296v2 1 TERMINATION OF REGULATORY AGREEMENT THIS TERMINATION OF REGULATORY AGREEMENT (the “Termination”) is effective as of _________, 2025 (the “Effective Date”) by and between the CITY OF SPRING PARK, MINNESOTA, the CITY OF CHANHASSEN, MINNESOTA and the CITY OF ST. BONIFACIUS, MINNESOTA, each a municipal corporation duly organized and existing under the Constitution and laws of the State of Minnesota (collectively, the “Cities” and each a “City”), NORTHEAST BANK, a Minnesota state banking corporation (the “Purchaser”), and PHS/LAKE MINNETONKA, LLC, a Minnesota limited liability company, the sole member of which is Presbyterian Homes Housing and Assisted Living, Inc., a Minnesota nonprofit corporation and a 501(c)(3) organization (the “Owner”). The Cities, Purchaser, and Owner may be referred to herein as the “Parties.” RECITALS: A. In 2014 the Cities each issued, sold and delivered their separate Housing and Health Care Revenue Refunding Notes (PHS/Lake Minnetonka Campus Project), Series 2014A, 2014B, and 2014C (the “Notes”) in the aggregate amount of $27,900,000 pursuant to separate resolutions adopted by each City for the purpose of making funds available to make a loan to the Owner for the purpose of refinancing the acquisition of multiple multifamily rental housing developments, a portion which is located on real property more fully described on the attached Exhibits A-1, A-2, and A-3 (the “Project”). B. At the time of the issuance of the Notes, the Cities, Purchaser, and Owner entered into that certain First Amendment to Amended and Restated Regulatory Agreement (Park Hill, Park Hill North and Shoreview Apartments) dated June 3, 2014, filed June 4, 2014 as Document No. T051575051 in the Office of the Registrar of Titles, Hennepin County, Minnesota, which amended that certain Amended and Restated Regulatory Agreement (Park Hill, Park Hill North and Shoreview Apartments) dated as of June 1, 2010, filed June 15, 2010, as Document No. T4762969 in the Office of the Registrar of Titles, Hennepin County, Minnesota (collectively, the “Regulatory Agreement”) to restrict the use of the proceeds of the Notes and the use of the Project. C. On ____________, 2025, the Owner deposited with the Purchaser, cash and other obligations in an amount that was sufficient, along with other amounts on deposit with the Purchaser, to pay the principal of, interest to become due on, and premium, if any, on the that portion Notes related to the Project prior to __________, 2025 and to redeem and prepay such portion of Notes related to the Project maturing thereafter on__________, 2025, (ii) such portion of the Notes were redeemed and paid in full on ___________, 2025, (iii) no other tax-exempt obligations used to finance or refinance the Project are currently outstanding, (iv) there is no Housing Assistance Payments Contract relating to the Project under Section 8 of the United States 176058296v2 2 Housing Act of 1937 currently in effect, and (v) 15 years have elapsed since the date on which at least 50% of the units in the Project were first occupied by qualifying tenants. D. The Owner has requested, and the Cities and the Purchaser have agreed, to terminate the Regulatory Agreement. AGREEMENT: NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: The Regulatory Agreement, including all restrictions on the property set forth therein, is terminated and has no further force or effect from and after the Effective Date. (The remainder of this page is intentionally left blank.) 176058296v2 S-1 IN WITNESS WHEREOF, the parties hereto have caused this Termination of Regulatory Agreement to be executed effective as of the day and year first written above. CITY OF SPRING PARK, MINNESOTA By Its Mayor By Its City Administrator STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _____________, 2025, by ____________________, the Mayor of the City of Spring Park, Minnesota, a municipal corporation duly organized and existing under the Constitution and laws of the State of Minnesota, on behalf of the City. Notary Public STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _____________, 2025, by ____________________, the City Administrator of the City of Spring Park, Minnesota, a municipal corporation duly organized and existing under the Constitution and laws of the State of Minnesota, on behalf of the City. Notary Public 176058296v2 S-2 CITY OF CHANHASSEN, MINNESOTA By Its Mayor By Its City Manager STATE OF MINNESOTA ) ) ss. COUNTY OF CARVER ) The foregoing instrument was acknowledged before me this ____ day of _____________, 2025, by ____________________, the Mayor of the City of Chanhassen, Minnesota, a municipal corporation duly organized and existing under the Constitution and laws of the State of Minnesota, on behalf of the City. Notary Public STATE OF MINNESOTA ) ) SS. COUNTY OF CARVER ) The foregoing instrument was acknowledged before me this ____ day of _____________, 2025, by ____________________, the City Manager of the City of Chanhassen, Minnesota, a municipal corporation duly organized and existing under the Constitution and laws of the State of Minnesota, on behalf of the City. Notary Public 176058296v2 S-3 CITY OF ST. BONIFACIUS, MINNESOTA By Its Mayor By Its City Clerk-Treasurer STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _____________, 2025, by ____________________, the Mayor of the City of St. Bonifacius, Minnesota, a municipal corporation duly organized and existing under the Constitution and laws of the State of Minnesota, on behalf of the City. Notary Public STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _____________, 2025, by ____________________, the City Clerk-Treasurer of the City of St. Bonifacius, Minnesota, a municipal corporation duly organized and existing under the Constitution and laws of the State of Minnesota, on behalf of the City. Notary Public 176058296v2 S-4 NORTHEAST BANK, a Minnesota state banking corporation By: Name: Its: STATE OF MINNESOTA ) ) ss. COUNTY OF ______________ ) The foregoing Termination of Regulatory Agreement was acknowledged before me on this _____ day of _____________, 2025, by ____________________, the _________________________ of Northeast Bank, a Minnesota state banking corporation, on behalf of the Minnesota state banking corporation. Notary Public (SIGNATURE PAGE TO TERMINATION OF REGULATORY AGREEMENT) 176058296v2 S-5 PHS/LAKE MINNETONKA, LLC, a Minnesota limited liability company By: Name: Mark Meyer Its: Chief Financial Manager STATE OF MINNESOTA ) ) ss. COUNTY OF _____________ ) The foregoing Termination of Regulatory Agreement was acknowledged before me on this _____ day of _____________, 2025, by Mark Meyer, the Chief Financial Manager of PHS/Lake Minnetonka, LLC, on behalf of the limited liability company. Notary Public This instrument was drafted by: TAFT STETTINIUS & HOLLISTER LLP (CJC) 2200 IDS Center 80 South 8th Street Minneapolis, MN 55402 (SIGNATURE PAGE TO TERMINATION OF REGULATORY AGREEMENT) 176058296v2 A-1-1 EXHIBIT A-1 TO TERMINATION OF REGULATORY AGREEMENT Legal Description of Park Hill Project Real property in the City of Spring Park, County of Hennepin, State of Minnesota, described as follows: Parcel A: (Torrens property; Certificate of Title No. 1322942) That part of Government Lot 8, Section 18, Township 117, Range 23 described as beginning on the South line of said Government Lot 8 distant 1326.9 feet West from the Southeast corner of said Government Lot 8, thence West along said South line a distance of 278.3 feet; thence North parallel with the East line of said Government Lot 8 to the North line of County Road No. 15; thence Southeasterly along the North line of said County Road to its intersection with a line drawn parallel with the East line of said Government Lot 8 from the point of beginning, thence South along said last mentioned parallel line to the point of beginning, according to the Government Survey thereof which lies North of a line drawn parallel with and 370.0 feet North, measured at right angles from the South line of Government Lot 8, except the West 22 feet thereof. Together with a non-exclusive easement for ingress and egress purposes including vehicular use, utility use, pedestrian use and general driveway purposes over and across the West 22 feet of that part of Government Lot 8, Section 18, Township 117, Range 23, described as beginning on the South line of said Government Lot 8, distant 1326.9 feet West from the Southeast corner of said Government Lot 8; thence West along said South line a distance of 278.3 feet; thence North parallel with the East line of said Government Lot 8 to the North line of County Road No. 15; thence Southeasterly along the North line of said County Road to its intersection with a line drawn parallel with the East line of said Government Lot 8 from the point of beginning; thence South along said last mentioned parallel line to the point of beginning, as contained in Document No. 1392121. (see Order Document No. 1461150). Parcel B: (Torrens property; Certificate of Title No. 1322942) That part of Government Lot 8, Section 18, Township 117, Range 23, described as beginning on the South line of said Government Lot 8 distant 1326.9 feet West from the Southeast corner of said Government Lot 8; thence West along said South line a distance of 278.3 feet; thence North parallel with the East line of said Government Lot 8 to the North line of County Road No. 15; thence Southeasterly along the North line of said County Road to its intersection with a line drawn parallel with the East line of said Government Lot 8 from the point of beginning; thence South along said last mentioned parallel line to the point of beginning except therefrom that part lying North of a line drawn parallel with the 370.0 feet North, measured at right angles from the South line of said Government Lot 8, and except the West 22 feet of the above described property. 176058296v2 A-1-2 Together with a non-exclusive easement for ingress and egress purposes, including vehicular use, utility use, pedestrian use and general driveway purposes over and across the West 22 feet of that part of Government Lot 8, Section 18, Township 117, Range 23, described as beginning on the South line of said Government Lot 8, distant 1326.9 feet West from the Southeast corner of said Government Lot 8; thence West along said South line a distance of 278.3 feet; thence North parallel with the East line of said Government Lot 8 to the North line of County Road No. 15; thence Southeasterly along the North line of said County Road to its intersection with a line drawn parallel with the East line of said Government Lot 8 from the point of beginning; thence South along said last mentioned parallel line to the point of beginning, as contained in Document No. 1392120; (See Order Document No. 1461150). Parcel C: (Easement) A non-exclusive easement for roadway and utility purposes over part of the west 113.5 feet of the east 1718.7 feet of Government Lot 8 lying south of County Road 15 in Section 18, Township 117, Range 23, as contained in the Easement Agreement for Roadway and Utility Purposes, recorded November 21, 2006 in the office of the Hennepin County Recorder as Document No. 8895214 and in the office of the Hennepin County Registrar of Titles as Document No. 4329645. 176058296v2 A-2-1 Exhibit A-2 Legal Description of Shoreview Project That part of Lot 2, Block 1, Presbyterian Homes on Lake Minnetonka contained in: That part of Government Lot 8, Section 18, Township 117, Range 23, Hennepin County, Minnesota, described as follows: Beginning at a point on the South line of said Government Lot 8 distant 1326.90 feet West from the Southeast corner of said Government Lot 8; thence East along said South line 174.50 feet; thence North, parallel with the East line of said Government Lot 8, a distance of 200.00 feet; thence East parallel with said South line, 120.00 feet; thence North, parallel with said East line, 180.00 feet; thence West, parallel with said South line, 180.0 feet; thence North parallel with said East line, to the center line of County Road No. 15; thence Westerly along said center line to a line drawn North, parallel with said East line, from the point of beginning; thence South along the last-described parallel line to the point of beginning. (Torrens property; Certificate of Title No. 1043963) And as depicted on Exhibit A-3 attached hereto. 176058296v2 A-3-1 Exhibit A-3 Depiction of Shoreview Project CITY OF SPRING PARK SPRING PARK, MINNESOTA RESOLUTION 25-14 A RESOLUTION ADOPTING 2026 FINAL TAX LEVY BE IT RESOLVED by the City Council of the City of Spring Park, County of Hennepin, Minnesota, that the following sums of money be levied for the current year, collectible in 2026, upon taxable property in the City of Spring Park, for the following purposes: General Revenue Levy: $ 1,704,852 Debt Service Levy: $ 22,869 Total General Fund Levy: $ 1,727,721 The City Clerk is hereby instructed to transmit a certified copy of this resolution to the County Auditor of Hennepin County, Minnesota. Adopted by the City Council of the City of Spring Park, Minnesota on December 1, 2025. Approved: ______________________ Mark Chase, Mayor Attest: ______________________ Jamie Hoffman, City Clerk CITY OF SPRING PARK SPRING PARK, MINNESOTA RESOLUTION #25-15 A RESOLUTION ADOPTING THE 2026 GENERAL FUND BUDGET BE IT RESOLVED, by the Spring Park City Council, County of Hennepin, Minnesota, that the final 2026 General Fund Budget be accepted as follows: Total General Fund Budget is $2,119,084 ADOPTED by the City Council of the City of Spring Park, Minnesota on December 1, 2025. CITY OF SPRING PARK Approved: ________________________________ Mark Chase Mayor Attest: __________________________________ Jamie Hoffman City Clerk