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The Project; <br /> Use of Proceeds Proceeds of the Series 2001 Bonds, together with certain <br /> other funds, will be used to finance the development, <br /> acquisition, construction and equipping of the Project, pay <br /> interest on the Series 2001 Bonds during construction and <br /> lease-up of the Project, fund the Debt Service Reserve Fund <br /> for the Senior Bonds and pay certain costs of issuance. The <br /> Project consists of a 62-unit senior housing facility located <br /> in the City designed to provide housing to the elderly and to <br /> be located on land leased from the HRA pursuant to a <br /> Ground Lease. (See"ESTIMATED SOURCES AND USES <br /> OF FUNDS"herein and"The Project Facilities"in Appendix <br /> B to this Official Statement.) <br /> The Borrower The Borrower, Orono Senior Housing,LLC, is a Minnesota <br /> limited liability company organized in 2001, the sole <br /> member of which is Wedum Foundation, a Minnesota <br /> nonprofit corporation and a 501(c)(3) Organization (the <br /> "Sponsor"), for the purpose of owning and operating the <br /> Project Facilities. (See "The Borrower" and "The Sponsor" <br /> in Appendix B to this Official Statement.) The Borrower's <br /> obligations with respect to the repayment of the Series 2001 <br /> Bonds are nonrecourse to the Borrower and payable only <br /> from the Collateral. The Borrower has no operating history <br /> and the Project is the only significant asset held by the <br /> Borrower. The Sponsor has no obligation to pay Loan <br /> Repayments,fulfill any of the Borrower's obligations under <br /> the Loan Agreement, or make any payments of principal of, <br /> premium and/or interest on the Series 2001 Bonds. <br /> Trustee U.S. Bank Trust National Association, a national banking <br /> association with its principal corporate trust office in Saint <br /> Paul, Minnesota. <br /> Investment <br /> Considerations An investment in the Series 2001 Bonds involves certain <br /> risks, including, but not limited to, those discussed under <br /> "BONDHOLDERS' RISKS." <br /> OFFICIAL STATEMENT <br /> CITY OF ORONO, MINNESOTA <br /> $7,825,000* SENIOR HOUSING REVENUE BONDS, SERIES 2001A <br /> $210,000* SENIOR HOUSING REVENUE BONDS,TAXABLE SERIES 2001B <br /> 5250,000* SENIOR HOUSING REVENUE BONDS, SUBORDINATE SERIES <br />