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I <br /> (f) The City . has been advised by representatives of the <br /> Borrower that conventional. commercial financing to pay the capital <br /> • cost of the Project is available only on a limited basis and at <br /> such high costs of borrowing that the economic feasibility of <br /> operating the Project would be significantly reduced, but the <br /> Borrower has also advised this Council that with the aid of <br /> municipal financing and its resulting low borrowing cost the <br /> Project is economically more feasible. <br /> NOW THEREFORE, BE IT RESOLVED by the City Council (the <br /> "Council" ) of the City of St. Anthony, Minnesota, as follows: <br /> 1. The Council hereby gives preliminary approval to the <br /> proposal of the Borrower that the City undertake the Project <br /> pursuant to the Act, consisting of the acquisition, construc- <br /> tion and equipping of facilities within the City pursuant to the <br /> Borrower' s (or his affiliates) specifications suitable for the <br /> operations described above and to a revenue agreement between the <br /> City and the Borrower upon such terms and conditions with <br /> provisions for revision from time to time as necessary, so as to <br /> produce income and revenues sufficient to pay, when due, the <br /> principal of and interest on the proposed Bonds in the total <br /> principal amount of $1, 000, 000 to be issued pursuant to the Act to <br /> fi.-;ance the acquisition, construction and equipping of said <br /> Project and said agreement may also provide for the entire <br /> interest of the Borrower, therein to be mortgaged to the purchaser <br /> • of the Bonds; the City hereby undertakes preliminarily to issue <br /> its Bonds in accordance with such terms and conditions; and the <br /> City requires that its Bonds be sold to one or more institutions <br /> experienced in evaluating the type of credit involved, capable of <br /> bearing the financial risk and purchasing for investment purposes. <br /> 2. On the basis of information available to this <br /> Council, it appears and the Council hereby finds that said Project <br /> constitutes properties, real and personal, used or useful in <br /> connection with one or more revenue-producing enterprises engaged <br /> in any business within the meaning of Subdivision 1(a) of Section <br /> 474. 02, of the Act, that the availability of the financing under <br /> the Act and willingness of the City to furnish such financing will <br /> be a substantial inducement to the Borrower (or his affiliates) to <br /> undertake the Project and that the effect of the Project, if <br /> undertaken, will be to encourage the development of economically <br /> sound industry and commerce, to assist in the prevention of the <br /> emergence of blighted and marginal land, to help prevent chronic <br /> unemployment, to help the City retain and improve its tax base and <br /> provide the range of service and employment opportunities required <br /> by its population, to help prevent the movement of talented and <br /> educated persons out of the state and to areas within the State <br /> where their services may not be as effectively used, to promote <br /> more intensive development and use of land within the City and to <br /> eventually increase the City's tax base. <br /> • <br /> 2 <br />