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<br />(c) This Council has been advised by representatives <br />of the Borrower that conventional, commercial financing to pay <br />the cost of the Project is available only at such high costs of <br />borrowing that the economic feasibility of the Project would be <br />reduced. <br /> <br />(d) This Council has also been advised by <br />representatives of the Borrower that on the basis of their <br />discussions with potential buyers of tax-exempt bonds, revenue <br />bonds of the City (which may be in the form of a revenue note <br />or notes) could be issued and sold upon favorable rates and <br />terms to finance the Project. <br /> <br />(e) The City is authorized by the Act to issue its <br />revenue bonds to finance capital projects consisting of <br />properties used and useful in connection with a revenue <br />producing enterprise engaged in providing health care services, <br />such as that of the Borrower, and the issuance of the bonds by <br />the City would be a substantial inducement to the Borrower to <br />undertake the Project <br /> <br />SECTION 2 <br /> <br />Determination To Proceed with <br />the proiect and the Financinq <br /> <br />2.1. On the basis of the information given the City to date, <br />it appears that it would be desirable for the City to issue its <br />revenue bonds under the provisions of the Act to finance the <br />Project in the maximum aggregate face amount of $8,125,000. <br /> <br />2.2. It is hereby determined to proceed with the Project and <br />the financing and this Council hereby declares its present <br />intent to have the City issue its revenue bonds under the Act <br />to finance the Project. Notwithstanding the foregoing, <br />however, the adoption of this resolution shall not be deemed to <br />establish a legal obligation on the part of the City or its <br />Council to issue or to cause the issuance of such revenue <br />bonds. All details of such revenue bond issue and the <br />provisions for paYment thereof shall be subject to final <br />approval of the Project by the Minnesota Department of Trade <br />and Economic Development (the Department) and may be subject to <br />such further conditions as the City may specify. The revenue <br />bonds, if issued, shall not constitute a charge, lien or <br />encumbrance, legal or equitable, upon any property of the City, <br />except the revenues specifically pledged to the paYment <br />thereof, and each bond, when, as and if issued, shall recite in <br />substance that the bond, including interest thereon, is payable <br />solely from the revenues and property specifically <br /> <br />-2- <br />