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1.3. The increase in the amount and cost of governmental services requires the need ror more inten- sive development and use of land to provide an adequate tax base to finance these costs. 1.4. Daniel T. Santarsiero, (the "Eor rower tI ), has advised this Council that it desires to acquire land within the City and acquire and construct an office/warehouse building thereon and acquire and install equipment therefor {the "Project"} to be leased to Thermo King Sales & Service, Inc. 1.5. The existence of the project in the City will contribute to more intensive development and use of land to increase the tax base of the Ci ty and over lapping taxing authorities and maintain and provide for an increase in opportuni ties for employment for residents of the City. 1.6. The City has been advised that conventional, commercial financing to pay the capi tal cost of the Project is available at such costs of borrowing that the economic feasibility of operating the Project would be significantly reduced, but that with the aid of municipal financing and its resulting low borrower cost the Project is economically more feasible. 1.7. This Council has been advised by a repre- sentative of Town & Country Bank, of Maplewood, Minne- sota, that on the basis of information submitted to them and their discussions with representatives of the Bor- rower and potential buyers of tax-exempt bonds, indus- trial development revenue bonds, notes or other Obliga- tions of the City could be issued and sold upon favor- able rates and terms to finance the Project. 1.8. The City is authorized by Minnesota Statutes, Chapter 474, to issue its revenue bonds, notes or other obligations to finance the cost, in whole or in part, of the acquisition, construction, reconstruction, improve- ment or exten3ion of capital projects consisting of properties used and useful in connection with a revenue- producing enterprise, such as that of the Borrower; the issuance of such bonds, notes 0:- other obligations by the City would be a substantial inducement to the Bor- rower to construct its facility in the City. 2. On the basis of information given the City to date, it appears that it would be in the best interest of the City to issue its industrial development revenue bonds, notes or other obligations under the provisions of Chapter 474 to finance the Project of the Borrower at a cost presently estimated not to exceed $900,000. - 2 -