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. . > the economic feasibility of operating the Project would be significantly reduced~ but the Company has also advised this Council that with the aid of municipal financing~ and its resulting low borrowing cost~ the Project is economi- cally more feasible. NOW~ THEREFORE, BE IT RESOLVED by the City Coun- cil of the City of Arden Hills~ Minnesota~ as follows: 1. The Council hereby gives preliminary approval to the proposal of Company that the City undertake the Proj- ect pursuant to the Minnesota Municipal Industrial Develop- ment Act (Chapter 474~ Minnesota Statutes) consisting of the acquisition, construction~ improvement~ and equipping of a facility within the City pursuant to Company's specifica- tions suitable for the operations described above to be leased by the City to said general partnership and subleased to the Company~ upon such terms and conditions with provis- ions for revision from time to time as necessary~ so as to produce income and revenues sufficient to pay, when due~ the principal of and interest on proposed Commercial Development Revenue Bonds of the City in a total principal amount of approximately $1~200,OOO to be issued pursuant to the Act to finance the acquisition~ construction, improvement, and equipping of said Project and said proposal may also pro- vide for the entire interest of the City therein to be pledged and mortgaged to the holders of the bonds of the City or a trustee therefor; and the City hereby undertakes preliminarily to issue its revenue bonds in accordance with such terms and conditions. 2. On the basis of information available to this Council it appears, and the Council hereby finds~ that said Project constitutes properties, real and personal~ used or useful in connection with two or more revenue pro- ducing enterprises engaged in any business within the mean- ing of Subdivision la of Section 474.02 of the Act to become effective on August l~ 1974~ that the availability of the financing under the Act and willingness of the City to furnish such financing will be a substantial inducement to the Company to complete the Project~ and that the ef- fect of the Project, if completed~ will be to encourage on a selective basis the development of economically sound industry and commerce and will help the City to retain and improve its tax base and provide the range of services and employment opportunities required by its population, and will help to prevent the movement of talented and educated persons out of the state and to areas within the state where their services may not be as effectively used. -3-