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B. The purpose of Chapter 474, Minnesota Statutes, <br />known as the Minnesota Municipal industrial Development Act <br />(hereinafter called "Act") as found and determined by the <br />legislature is to promote the welfare of the State by the <br />active attraction, encouragement and development of economic- <br />ally sound development proposals. <br />C. The City Council has received from the Company a <br />proposal, which proposal is on file with the City Clerk, that <br />the City assist in the financing of the Project through the <br />issuance of revenue obligations which may be in the form of a <br />note or notes (the "Note") pursuant to the Act. <br />D. The City of Lake Elmo is willing to support improve- <br />ments which will maintain the quality of an existing business <br />such as the Company where that can be done without cost to <br />the City. <br />E. The Project to be financed by the proposed Note is <br />the construction of waste disposal and wood -drying buildings <br />and purchase of related pollution control equipment, and may <br />result in the employment of additional persons to work with- <br />in the facilities. <br />F. The City has been advised by representatives of the <br />Company that: <br />1. The Company has its own financial equity <br />capital sufficient to meet the standard fin- <br />ancing requirements for equity capital. <br />2. That conventional, commercial financing <br />to pay the capital cost of undertaking the <br />Project is available only at such costs of <br />borrowing that the economic feasibility of <br />undertaking the Project would be reduced, <br />but the Company has also advised this Council <br />that with the aid of municipal financing, <br />and its resulting lower borrowing cost, the <br />Project is economically enhanced. <br />G. Juran & Moody, Inc., Investment Bankers, Saint Paul, <br />Minnesota, has advised that on the basis of information sub- <br />mitted to them, their discussions with representatives of <br />the Company, and discussions with financial institutions <br />interested in buying the Note, the Note could in their opinion <br />be issued and sold upon favorable rates and terms in the amount <br />required. <br />- 2 - <br />