PRILIMINARY OFFIC STATEMENT 11-15-2001 44.

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2001C (ORONO WOODS APARTMENT PROJECT) INTRODUCTORY STATEMENT The following is a brief introduction to certain matters discussed elsewhere in this Official Statement and is qualified in its entirety as to such matters by such discussion and the text of the actual documents described or referenced. Any term used with an initial capital letter is used with the meaning assigned in Appendix A or in the Indenture, the Loan Agreement, the Mortgage, the Subordinate Mortgage or other document with respect to which the term is used. Any definition of a term contained in the text hereof is for ease of reference only and is qualified in its entirety by any corresponding definition in Appendix A or the documents with respect to which such term relates. The Appendices hereto are an integral part of this Official Statement and each potential investor should review the Appendices in their entirety. General This Official Statement provides information regarding the Senior Housing Revenue Bonds(Orono Woods Apartments Project),Series 2001 A,in the original aggregate principal amount of$7,825,000* (the "Series 2001A Bonds"), the Senior Housing Revenue Bonds (Orono Woods Apartments Project), Taxable Series 2001B, in the original aggregate principal amount of$210,000*(the"Series 2001 B Bonds"and with the Series 2001 A Bonds, the "Senior Bonds") and the Senior Housing Revenue Bonds (Orono Woods Apartments Project), Subordinate Series 2001C, in the aggregate principal amount of$250,000* (the "Subordinate Bonds,"with the Series 2001A Bonds,the"Series 2001 Tax-Exempt Bonds," and with the Senior Bonds, the "Series 2001 Bonds"), to be issued by the City of Orono, Minnesota(the "City")pursuant to an Indenture of Trust,dated as of November 1,2001 (the "Indenture"), between the City and U.S. Bank Trust National Association, in Saint Paul, Minnesota, as trustee (the "Trustee"). (See "The Indenture" in Appendix A to this Official Statement.) The Series 2001 Bonds are being issued to finance a portion of the costs of the acquisition,construction and equipping of a 62-unit senior housing facility located in Orono, Minnesota, designed to provide housing to the elderly (the "Project"), to pay capitalized interest on the Series 2001 Bonds through construction and lease-up of the Project,to fund a Debt Service Reserve Fund for the Senior Bonds and to pay certain costs of issuance. (See "The Project Facilities" in Appendix B to this Official Statement.) A more detailed description of the uses of the proceeds of the Series 2001 Bonds is included herein under "ESTIMATED SOURCES AND USE OF FUNDS." Loan of Bond Proceeds; Loan Agreement Proceeds of the Series 2001 Bonds will be lent (the "Loan") by the City to Orono Senior Housing, LLC, a Minnesota limited liability company (the "Borrower"), the sole member of which is Wedum Foundation,a Minnesota nonprofit corporation and a 501(c)(3)