Resolution - #05-05-139 - 05/24/2005

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(t) The City has been advised by representatives of the 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 Ramscy, Minnesota, as follows: 1. The Council hereby indicates its preliminary intent to undertake the Project pursuant to the Minnesota Municipal Industrial Development Act and to issue the Revenue Bonds in the approximate principal amount of $3,845,000 pursuant to the Act to finance the Project. 2. On the basis of information available to the Board it appears, and the Board hereby finds, that the Project constitutes properties, real and personal, used or useful in connection with one or more revenue producing enterprises within the meaning of Subdivision 2(a) of Section 469.153 of the Act; that the Project furthers the purposes stated in Minnesota Statutes, 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 City 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 eventually to increase the tax base of the community. 3. The issuance of the Revenue Bonds by the City is subject to, among other things, (a) the holding of a public hearing on the proposal, (b) the approval of the Project by the City and the Minnesota Department of Employment and Economic Development, (c) review and approval of the proposed Project by Bond Counsel, (d) final approval by this Board, the Company, and the purchaser of the Revenue Bonds as to the ultimate details of the financing of the Project and (e) receipt of federal bonding allocation for the Revenue Bonds. 4. The Company has agreed and it is hereby determined that any and all costs incurred by the City, including all fees required by the City's administrative policies, in connection with the financing of the Project whether or not the Project is carried to completion and whether or not approved by the City will be paid by Company. 5. Nothing in this resolution or in the documents prepared pursuant hereto shall authorize the expenditure of any municipal funds on the Project other than the revenues derived fi'om the Project or otherwise granted to the City for this purpose. The Revenue Bonds shall not Resolution #05-05-139 Page 2 of 5