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<br />1.3. The increase in the amount and cost of govern- <br />mental services requires the need for more intensive <br />development and use of land to provide an adequate tax <br />base to finance these costs. <br /> <br />1.4. Daniel T. Santarsiero (the "Bor.rower"), has <br />advised this Council that it desires to acquire land <br />within the City and acquire and construct an <br />office/warehouse building thereon and acquire and <br />install equipment therefor (the "Project") to be leased <br />to Thermo King Sales & Service, Inc. <br /> <br />1.5. The existence of the Project in the City will <br />contribute to more intensive development and use of land <br />to increase the tax base of the Ci ty and overlapping <br />taxing authorities and maintain and provide for an in- <br />crease in opportunities for employment for residents of <br />the City. <br /> <br />1.6. The City has been advised that conventional, <br />commercial financing to pay the capi tal cost of the <br />project is available at such costs of borrowing that the <br />economic feasibility of operating the Project would be <br />significantly reduced, but that with the aid of munici- <br />pal financing and its resulting low borrowing cost the <br />Project is economically more feasible. <br /> <br />1.7. This Council has been advised by a representa- <br />tive of Town & Country Bank, of Maplewood, Minnesota <br />that on the basis of information submitted to them and <br />their discussions with representatives of the Borrower <br />and potential buyers of tax-exempt bonds, industr 1al <br />development revenue bonds,. notes or other obligations of <br />the City could be issued and sold upon favorable rates <br />and terms to finance the Project. <br /> <br />1.8. The City is authorized by Minnesota Statutes, <br />Chapter 474, to issue its revenue bonds, notes or other <br />obligations to finance the cost, in whole or in part, of <br />the acquisition, construction, reconstruction, improve- <br />ment or extension of capital projects consisting of <br />properties used and useful in connection with a revenue- <br />producing enterprise, such as that of the Borrower; the <br />issuance of such bonds, notes or other obligations by <br />the City would be a substantial inducement to the Bor- <br />rower to construct its facility in the City. <br /> <br />2. On the basis of information given the City to date, <br />it appears that it would be in the best interest of the City <br />to issue its industrial development revenue bonds, notes or <br />other obligations unde= the provisions of Chapter 474 to <br />finance the Project of the Borrower at a cost presently <br />estimated not to exceed $900,000. <br /> <br />- 2 - <br />