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<br />" <br /> <br />.' <br /> <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 <br /> <br />WHEREAS, this Council has been advised by a representative of the <br />Developer that on the basis of information submitted to them and their discussions <br />with representatives of 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 <br /> <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 th~ 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 <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 474 to finance the Project of the <br />Developer in an amount presently estimated not to exceed $1,700,000; and <br /> <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. <br /> <br />NOW, THEREFORE, BE IT RESOLVED THAT: <br /> <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 of the bonds as to the details of the bonds and provisions <br />for 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 from the Project and property pledged to the <br />payment thereof, and shall not constitute a debt of the City. <br /> <br />2. In accordance with MiMesota Statutes, Section 474.01, Subdivision <br />780, 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 for <br />approval of the Project. The Mayor and other officers" employees and agents of <br />the City are hereby authorized to provide the MiMesota Energy and Economic <br />Development Authority with any preliminary information 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. <br /> <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 <br /> <br />-2- <br />