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<br />borrowing that the economic feasibility of operating the Project would be
<br />significantly reduced, but that with the aid of municipal financing, and its resulting
<br />lower borrowing cost, the Project is economically more feasible; and
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<br />WHEREAS, this Council has been advised by a representative of the
<br />Developer that on the basis ot intormation submitted to them and their discussions
<br />with representatives ot area financial institutions and potential buyers of tax-
<br />exempt bonds, industrial development revenue bonds of the City could be issued
<br />and sold upon favorable rates and terms to finance the Project; and
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<br />WHEREAS, the City is authorized by Minnesota Statutes, Chapter 474, to
<br />issue its revenue bonds to finance the cost, in whole or in part, of the acquisition,
<br />construction, reconstruction, improvement or extension of capital projects
<br />consisting of properties used and useful in connection with a revenue producing
<br />enterprise, such as that of the Developer, and the issuance of such bonds by the
<br />City would be a substantial inducement to the Developer to construct its facility in
<br />the City; and
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<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 474 to finance the Project of the
<br />Developer in an amount presently estimated not to exceed $1,700,000; and
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<br />WHEREAS, the City has by Resolution No. , dated October 31, 1984
<br />for the Project given preliminary approval to the issuance of bonds to finance the
<br />Project.
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<br />NOW, THEREFORE, BE IT RESOLVED THAT:
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<br />1. The preliminary approval given by the City for the Project and the
<br />issuance of the revenue bonds for such purpose is approved and reconfirmed,
<br />SUbject to approval of the Project by the Minnesota Energy and Economic
<br />Development Authority and to the mutual agreement of this body, the Developer
<br />and the initial purchaser oC the bonds as to the details of the bonds and provisions
<br />Cor their payment. In all events, it is...-understood, however, that the bonds of the
<br />City shall not constitute a charge, lien or encumbrance legal or equitable upon any
<br />property of the City except the Project, and the bonds, when, as, and if issued,
<br />shall recite in substance that the bonds, including interest thereon, is payable
<br />solely from the revenues received Cl"om the Project and property pledged to the
<br />payment thel"eoC, and shall not constitute a debt of the City.
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<br />2. In accordance with Minnesota Statutes, Section 474.01, Subdivision
<br />7a, the Mayor of the City is hereby authorized and directed to submit the proposal
<br />for the Project to the Minnesota Energy and Economic Development Authority Cor
<br />approval of the Project. The Mayor and other officers" employees and agents of
<br />the City are hereby authorized to provide the Minnesota Energy and Economic
<br />Development Authority with any preliminary inCormation needed for this purpose,
<br />and the City Attorney is authorized to initiate and assist in the preparation of such
<br />documents as may be appropriate to the Project, if it is approved by the Minnesota
<br />Energy and Economic Development Authority.
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<br />3. The law firm of Holmes ~ Graven, Chartered, is authorized to act as
<br />Bond Counsel and to assist in, the preparation and review of necessary documents
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