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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 and commercial revenue bond 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 preliminary questions, the procedures in this memo will ordinarily govern. Section 2. Statutory Public poliC~: Minnesota Statutes Section 474 permits the issuance of tax-exempt industrial evelopment notes and bonds (lOB's) for the pur- poses set forth in said chapter includin~, among others: (a) to promote, attract, encourage and develop economically sound business; (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 will consider applications for industrial and commercial projects. Projects will be considered that will significantly improve the City's tax base, provide significant employrrent possibilities, not have sig- nificant adverse effect on enterprises presently located in the City which have been established with normal private financing, improve existing enterprises for their retention within the City, develop land or areas within the City which are now dormant, improve and redevelop 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 industrial or commercial project shall be compatible with the comprehensive plans and policies of the City and of the neighbor- hood 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 expenditures 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 lit- igation 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 nonrecourse mortgage or bond financing is to be used; and