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<br />WHEReAS, the City has been advised by representatives of <br />the Borrower that conventional commercial financing to pay the <br />capital cost of the Project is available o~ly on a limited basis <br />and at such hiyh costs of borrowing that the economic feasibility <br />of operating the Project would be significantly reduced, but the <br />Borrower has also advised this Council that with the aid of <br />municipal financing and its resulting low bor~owing cost the <br />Project is economically mo~e feasible and that the Project would <br />not be undertaken but for the availability of industrial <br />development bond financing. <br /> <br />NOW, THEREFO~E, BE IT RESOLVED BY THE COUNCIL OF THE CITY <br />AS FOLLOwS: <br /> <br />. 1. The City hereby ratifies and confirms the publication <br />of notice for the public hearing held o~ this date. <br /> <br />2. The Council hereby gives preliminary approval to the <br />proposal of the Borrower. that the City undertake the Project <br />pursuant to the Min~esota Municipal I~dustrial Development Act, <br />Chapter 474, Minnesota Statutes (the "Act"), pursuant to the <br />Borrower's specifications suitable for the operations described <br />above a~d to a revenue agreement between the City and the Borrower <br />upon such terms and co~ditions, with provisions for revision from <br />time to time as necessary, so as to produce income and revenues <br />sufficient to pay, when due, the principal of and interest on the <br />proposed bonds in the estimated maximum pr.incipal amount of <br />$5,000,000, to be issued pursuant to the Act to finance the costs <br />of the Project, and the agreement may also provide for the entire <br />interest of the Borrower therein to be mortgaged to the purchaser <br />of the bo~dsi the City hereby undertakes preliminarily to issue <br />its bonds i~ accor.dance with such terms and conditions. <br /> <br />3. On the basis of information available to this Council, <br />it appea~s and the Council hereby finds that the Project <br />constitutes properties, real and personal, used or useful in <br />co~nection with one or more revenue-producing enterprises engaged <br />in any business within the meaning of Subdivision 1 a~d <br />Subdivision la of Section 474.02 of the Act, that the availability <br />of the fi~ancing under the Act and willingness of the City to <br />furnish such financing shall be a substantial inducement to the <br />Borrower to under.take the Project, that, based upon <br />r.epr.esentations of the Borrower the Project would not be <br />under.taken but for the availability of industrial development bond <br />financing and that the effect of the Project, if undertake~, shall <br />be to encourage the development of economically sound industry and <br />commerce, to assist in the preve~tion of the emergence of blighted <br />and margi~al land, to help prevent chronic u~employment, to help <br />the City t".:tai:J a::d Ln;?rOV8 its tax base a:~d provid.: the l~a:;.ge of <br />ser.vice and employment opportunities required by its population, <br />to help prevent the movement of talented and educated persons out <br />of the State a~d to ar.eas within the State where their services <br />may not be as effectively used, to promote more intensive <br /> <br />2 <br />