1999.07.06 RESO 1999-0012 - Laserfiche WebLink

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(f) The City has been advised by representatives of Company that conventional, commercial financing to pay the capital cost of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Project would be significantly reduced; (g) No public official of the City has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hugo, Minnesota, as follows: 1. The Council hereby gives preliminary approval to the proposal of Company -that the City undertake the Project pursuant to the Act, subject to holding a public hearing with respect to the Project, and pursuant to a revenue agreement between the City and Company upon such terms and conditions with provisions for revision from time to time as necessary, so as to produce income and revenues sufficient to pay, when due, the principal of and interest on the Bonds in a total principal amount: not to exceed $4,100,000 to - be issued pursuant to the Act to finance the acquisition, construction, and installation of the Project; and such revenue agreement may also provide for the interest of Company therein to be pledged to the purchaser of the Bonds; and the City hereby undertakes preliminarily to issue its Bonds in accordance with such terms and conditions. 2. On the basis of information available to this Council it appears, and the Council hereby finds, that the Project constitutes properties, real and personal, used or useful in connection with one or more revenue producing enterprises engaged in manufacturing within the meaning of Subdivision 2(a)(1) of Section 469.153 of the Act; that the Project furthers the purposes stated in Section 469.152; that the availability of the financing under the Act and willingness of the City to furnish such financing will be a substantial inducement to Company to undertake the Project, and that the effect of the Project, if undertaken, will be to encourage the development of economically sound industry and commerce, to assist in the prevention of the emergence of blighted and marginal land, to help prevent chronic unemployment, to help the surrounding area retain and improve the tax base and to provide the range of service and employment opportunities required by the population, to help prevent the movement of talented and educated persons out of the state and to areas within the State where their services may not be as effectively used, to promote more intensive development and use of land within the City and surrounding communities and eventually to increase the tax base of the community. 3. The Project is hereby given preliminary approval by the City subject to holding a public hearing with respect to the Project and consideration of information, if any, presented and further subject to final approval by this Council, Company, and the purchaser of the Bonds as to the ultimate details of the financing of the Project. 1062072.1 2