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'11' . , " r"---'....~'---.- .,..+ " r , 1.3. The increase in the amount and mental services requires the need for development and use of land to provide base to finance these costs. cost of govern- more intensive an adequa te tax 1.4. MCCullough & Company, an Illinois partnership (the "Company"), has advised this Council that it de- sires to acquire land, acquire and construct a building thereon and acquire and install equipment therefor (the "Project") to be used as a first-class hotel 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 capital 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. 1.7. This Council has been advised by a represena- tive of E. F. Hutton & Company, Inc., of Rockford, Illinois, investment bankers and dealers in municipal bonds, that on the basis of information submitted to them and their discussions with representatives of the Company and potential buyers of tax-exempt bonds, in- dustrial development revenue bonds, notes or other obli- gations 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 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 $10,000,000. - 4 -