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e ~' \11I RESOLUTION NO. 2400 Resolution Giving Preliminary Approval to a Project Under the Municipal Industrial Development Act Authorizing the Submission of an Application to the Commissioner of Securities of the State of Minnesota Giving Preliminary Approval to a Revenue Agreement and Authorizing the Preparation of Necessary Documents and Materials in Connection with the Project. WHEREAS, the Minnesota Legislature has enacted Chapter 474 of the Minnesota Statutes~ which is cited as the ''Municipal Industrial Development Act" (Act); and WHEREAS, in enacting the Act the Legislature found that the welfare of the state requires the active promotion, attraction, encouragement and dev~lopment of economically sound industry and commerce to prevent, as far as possible, the emergence of blight and areas of chronic unemployment, and to prevent economic deterioration; and WHEREAS, other factors necessitating such active promotion and development of industry and commerce within the City of New Brighton (City) are the increas- ing JJl)vement of population and business to out-of-state areas, the steady and rapid increase in the amount and cost of governmental services required to meet the needs of the City and the need for more intensive development and use of land within the City to provide an adequate tax base to finance these increasing costs, and to afford employment opportunities; and WHEREAS, Micom Corporation, a Minnesota corporation, has proposed to con- struct a building at 475 8th Avenue NW, New Brighton~ Minnesota (the Project); and WHEREAS, the Applicant presently estimates the total cost of the Project to be approximately $503~200, and has proposed that the City undertake to finance the Project under the Act through the issuance of revenue bonds or other obliga- tions (Revenue Bonds) in the approximate amount of $445,000, in the form of a Note secured by a JJl)rtgage on the Project; and WHEREAS, Applicant's proposal calls for the City and the Applicant to enter into a revenue agreement (Revenue Agreement) wherein the Applicant will agree to acquire~ construct and maintain the Project so as to produce income and revenues sufficient to provide for the prompt payment of the principal of and interest on the Revenue Bonds and all costs and expenses to the City in connection with the Project and issuance and sale of the Revenue Bonds; and WHEREAS, the City has been advised by representatives of the Applicant that conventional, commercial financing to pay the capital cost of the Project has not been obtained and is available only on a limited basis and at such high costs of borrowing that the economic feasibility of acquiring, constructing and operating the Project would be significantly reduced, but the Applicant has also advised this Council that the use of municipal financing, and its resulting low borrowing cost, will constitute a significant inducement to the Applicant to undertake the Project; and