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I ' I ~., -, ! ' . - 1.3. The increase in the amount and cost of govern- mental services requires the need for more intensive development and use of land to provide an adequate tax base to finance these costs.- 1.4. SR Building Company, a Minnesota general partnership to be formed (the "Company.), has advised this Council that it desires to acquire and construct a building on land within the City and acquire and install equipment therefor (the "Project") to be used as a medical clinic and related facilities. 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 overlapping taxing authorities and maintain and provide for an in- crease in opportunities 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 munici- pal financing and its resulting low borrowing cost the Project is economically more feasible. l.7. This Council has been advised by a'represena- tive of First State Bank of New Brighton, of New Brighton, Minnesota, that on the basis of information submitted to them and their discussions with representa- tives of the Company and potential buyers of tax-exempt bonds, industr ial development revenue bonds, notes or other obligations of the City could be issued and sold upon favorable 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 extension of capital projects consisting' of properties used and.useful in connection with a revenue- producing enterprise, such as that of the Company; the issuance of such bonds, notes or other obligations by the City would be a substantial inducement to the Com- pany 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 Company at a cost presently esti- mated not to exceed $1,700,000. - - 4 -