BRADLEY FOUNDATION CONSTRUCTION DEBT OPTIONS

At the August 28, 2000 Investment Committee meeting, there was a discussion regarding the current status of the financing agreements in connection with the acquisition and renovation of the Lion House and the Hawley House. (See Exhibit B.) In this connection, Reed Coleman suggested contacting Johnson Bank and Northern Trust to obtain current comparative financing options. This memo presents a summary of those options.

Exhibit A highlights the variety of financing options presented by Northern Trust compared to Johnson Bank and the current Firstar loan agreements.

To somewhat simplify the comparisons, presented below is one comparable option offered by the respective financial institutions and the existing Firstar agreements:

Original	Credit

Bank	Type	Term	Basis	Spread	Rate

Firstar (Lion)	Fixed	7 years	7.5%

Firstar (Hawley)	Floating	7 years	Prime	(1.25)%	8.25%

Northern Trust	Floating	5 years	Prime	(1.75)%	7.75%

Johnson Bank	Floating	5 years	Prime	(0.50)%	9.00%

Northern Trust was more competitive and creative in their refinancing alternatives compared to Johnson Bank. Northern Trust also presented a more favorable financing package for the Hawley House versus the existing Firstar (Hawley) revolving line of credit.

Given the additional information the recommendations below are similar to those presented at the Investment Committee meeting:

1.	Continue the Lion House Firstar financing agreement until maturity.

2.	With respect to the Hawley House there is an opportunity to borrow/refinance approximately $2.25M and remain within the IRS regulations. Because of the market volatility and the potential for reduced equity returns in future years, we suggest the conservative route and pay off the existing $218,506 Hawley House loan balance and not pursue any financing options. The Lion House financing strategy proved to be very beneficial but the Hawley House potential benefit may not be worth the effort.

3.	The Investment Committee may be more optimistic regarding the potential long term arbitrage benefit, so the matter will be reviewed and discussed at the Investment Committee meeting.

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