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t <br />1 <br />1 <br /> <br />1 <br /> <br />I <br />I <br />I <br />I <br />! <br /> <br />Urban Development Action Grant. It should be realized that the City will <br />recover their land improvement cost through the tax formula which is used <br />in tax increment financing. Tax increment financing will be discussed <br />later in this memo. <br /> <br /> 2) Industrial Revenue Bond (IRB) - The IRB was also a <br />major part of the financial package that was offered to T. U. International. <br /> <br />It should be noted that when utilities are available, plus other things, <br /> better interest rates can probably be obtained from the IRB investors. <br /> Industrial Revenue Bonds will be discussed later in this memo. <br /> <br /> 3) Urban Development Action Grant (UDAG) - This grant, <br />if secured, will al~ be a very important part of the financial package, <br />as it amounts to $400,000 which will be used to purchase plant equipment. <br />T. U. will only have to pay 4% interest on this money plus the principal <br />to the City of Princeton. The Urban Development Action Grant will be <br />discussed later in this memo. <br /> <br /> 4) Miscellaneous - The City of Princeton stated other <br />benefits that they considered a plus factor which would be helpful to <br />a prudent firm. They are as follows: <br /> <br />a) Airport facilities - This is a very important <br />asset to a firm which deals nationwide with its product. <br /> <br />b) Insurance rates due to having City water - This <br />is a big ~onetary consideration for a company like <br />T. U. or any firm. <br /> <br />c) Tax base - It was noted that the Princeton people <br />cited that the Princeton Industrial Park was located <br />in Sherburne County and that the County has an extremely <br />fine tax base due to industry. <br /> <br />d) Personal assistance by the Princeton Development <br />Corporation and the City - This is also a big plus <br /> <br />Page 2 of 6 <br /> <br /> <br />