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11 E XH I B IT A" CITY OF ROSEVILLE Industrial Revenue Financing Policy/Procedural Memo Section 1. Purpose: The City has received numerous informal and formal inquiries regarding availability of industrial revenue financing. The City will consider each on a case-by-case basis. In order, however, to evaluate proposals, conserve the time of City staff, advisors and the Council itself, as well as answer prelim- inary questions, the procedures in this memo will ordinarily govern. Section 2. Statutory Public Policy: Minnesota Statutes Section 474 permits the issuance of tax exempt industria; development notes and bonds (lOB's) for the pur- poses set forth in said chapter including, among others: (a) to promote, attract, encourage and develop economically sound industry; (b) to prevent the emergence of blighted and marginal land; (c) to prevent areas of chronic unemployment; (d) to prevent the movement of talented and educated persons; (e) to provide for an adequate tax basis; (f) to redevelop marginal land; and (g) to aid in the correction of persistent unemployment. Section 3. City Policy: The City's policy is to only consider applications for Industrial Zoned Property. Projects will be considered that will significantly improve the City's tax base, provide significant employment possibilities, not have significant adverse effect on industrial enterprises presently located in the City which have been established with normal private financing, improve existing indust- rial enterprises for their retention within the City, develop land or areas within the City which are now dormant, improve and redevelop industrial zoned areas within the City to their highest and best uses, and where reasonable private financing is proven not available through normal financing sources. Section 4. Policy Factors to be Considered: a) Whether the projects for Industrial Zoned Property shall be compatible with the comprehensive plans and policies of the City and of the neighborhood in which the project shall be located; b) Whether the facility to be financed is a special purpose structure not adaptable to other uses; c) Whether the project requires significant City expenditures for sewer, water, streets, storm sewer, etc., and the extent to which such expendi- tures can be recovered by special assessments against benefitted properties; d) Whether the proposed project is to be financed by a tax exempt mortgage with a sophisticated investor or investors without recourse, whether there is any collection or enforcement obligation on the City and the extent to which there is any exposure of the City or its officers to litigation in the event of default by the primary borrower or tenant of the premises; e) Whether, if not to be financed with a sophisticated investor, a non- recourse mortgage or bond financing is to be used; and