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<br />'- .. l <br /> <br />undertake the acquisition and construction of an approximately 105,000 square foot <br />precision machinery manufacturing facility (the "Project") to be located in the <br />City; and <br /> <br />WHEREAS, the improvement of the Project will contribute to more <br />intensive development and use of land and will increase the tax base of the City <br />and overlapping taxing authorities and maintain and provide for an increase in <br />opportunities for employment for residents of the City, including economically <br />disadvantaged or unemployed individuals; and <br /> <br />WHEREAS, the City has been advised that conventional, commercial <br />financing to pay the capital costs of the Project is available at such costs of <br />borrowing that the Project would not be economically feasible without the <br />availability of industrial development bond financing; and <br /> <br />WHEREAS, this Council has been advised by the Developer that on the basis <br />of information submitted to them and their discussions with representatives of area <br />financial institutions and potential buyers of tax-exempt bonds, industrial <br />development revenue bonds of the City could be issued and sold at favorable rates <br />and upon favorable terms to finance the improvement of the Project; and <br /> <br />WHEREAS, pursuant to Minnesota Statutes, Chapter 469, the City is <br />authorized to issue its revenue bonds to finance the cost, in whole or in part, of the <br />acquisition, construction, reconstruction, improvement or extension of capital <br />projects consisting of properties used and useful in connection with a revenue <br />producing enterprise, such as the Project, and the issuance of such bonds by the <br />City would be a substantial inducement to the Developer to construct the Project <br />in the City; and <br /> <br />WHEREAS, on the basis of information given the City to date, it appears <br />that it would be in the best interest of the City to issue its industrial development <br />revenue bonds under the provisions of Chapter 469, in an amount presently <br />estimated not to exceed $4,500,000 to finance the cost of the Project; <br /> <br />NOW, THEREFORE, BE IT RESOLVED THAT: <br /> <br />1. The Project is hereby given preliminary approval by the City and the <br />issuance of the revenue bonds for such purposes and in an amount not to exceed <br />$4,500,000 approved, subject to the approval of the Project by the Minnesota <br />Department of Trade and Economic Development ("DTED"), and subject to the <br />mutual agreement of this body, the Developer and the initial purchaser of the <br />bonds as to the details of the bonds and provisions for their payment. In all events, <br />it is understood, however, that the bonds of the City shall not constitute a charge, <br />lien or encumbrance legal or equitable upon any property of the City except the <br />Project, and the bonds, when, as, and if issued, shall recite in substance that the <br />bonds, including interest thereon, are payable solely from the revenues received <br />from the Project and property pledged to the payment thereof, and shall not <br />constitute a debt of the City. <br /> <br />2. It is hereby found and determined that the Project furthers the <br />purposes set forth in Minnesota Statutes Chapter 469 and that it would not be <br />undertaken but for the availability of industrial development bond financing. <br /> <br />2 <br />