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Council to issue or to cause t)Meissuance of such revenue
bonds. All details of such revehde bond :issue and 'the
provisions for payment ,thereof shall be subject to
(a) final approval of the Project by the Commissioner of
Minnesota Department of Energy, Planning and Development,
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(b) ; final authorization of the Project and the sale and
issuance -of such revenue bonds by this Council'iio later
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than August 1, 3.983, unless such date is furthei; extended
by resolution:,of this Council,, and (c) the condition that
such revenue bonds be sold privately and not offered for
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sale; to the general public as coupon :bearer bonds, and may
be subject to
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such further conditions as the Municipality
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may ,specify. The revenue bonds, if issued, shall not
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constitute a charge, lien or „encumbrance, ,legal or
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equitable, upon any property 'of,, Municipality, except
the- Project, and each bond, when, and
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as if issued, shall
recite in substancia that the bond, including , ' interes t
thereon, is payable solely from the revenues received from
the. Project and propErty pled e$ to the
g payment thereof”
and shall not conatitute a debt of the Municipality, within
the meaning any constitutional �' statutory limitation.
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2.47,_ The Rpolication to the Com�issioner of Minnesota
Department of'Ener gy, Planning and Development with
attachmtn,to,, ids
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hereby approved; and the Mayor and City
Mana�ger�a!e
authorized to execute said documents on behalf
" of ,
the HU icipal�ay.
2.440 lw 'ac:cordance with Section 474. 10,. Subdivision 7a of
the Act, the Mayor and City�,3Manager are hereby authorized E
'dipOtted
and to cause the Application to be submitted to
the C =Iiissione.r of Minnesdta -Department, of .Energy,
F nning ancT Development for approval of the Project. The ,
Mayor, ,City kansger; City Attorney and other officer's,,
employees and agents of,,fthe Municipality are hereby''
auth� rritto,,and' directed' to provide the Commissioner, with
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any�prelYminary inforv�'ation needed for this purpose. The
City Attorney is- au orized to initiate and assist in the
preparation of d'o'c�ulftnts as may be appropriate to - the v
Psbject, if a oved by {' Comm
l the issioner.
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= SECTION
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3.1. If the bonds are issued and sold, the'Municipality
it
OWll enter, into a lease, sale o , l6an agreement or similar
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agree to t satisfying the requirements of the Act (the
Revenue `Agreement) with Horrowes: The lease rentals, ^
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installment sale payments, loan payments or other amounts
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(c) The existence of the Project would add to
the tax base of the Municipality, the County and School
District in which the Project i`s located, and would provid'l
increased, opportunities for employment for residents of
the Municipality and surrounding area.
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(d) This Council, has''been advised by
representatives of and agents.,for the Borrower that
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conventional, commercial financing to pay the cost of the
Project is available only on a "limited basis and at such
hgh' costs of, borrowing that the. .economic feasibility of
operating the' would be significantly reduced, but
that with the aid of municipal borrowing,, and its
resulting lower borrowing cost, the Project is
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economically more feasible.
(e) This Council has also - „been advised by
representatives of and agents for the Borrower that on the
basis of their discussions with potential 'buyers o£ 4
tax - exempt bonda, revenue of the Municipality (which
may bed in the form of a dommarcial development revenue
note or notes) could!` br issued and sold -upon .favorable y
rates and terms to finance the .Project. �
(if) The Municipality; is authorized by the Act to
its to finance
issue revenue ,bonds capital projects
consisting used in
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of properties and useful connection
with a revenue producing-'enterprise, such as that of the
Borrower, and the issuance of the bonds bythe
Municipality would be -a substantial inducement to the'I
Borrower to ac quire. and, construct the Project.
SECTION 2
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Determination to Proceed with
the Project and its Pinanain4
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21. on the basis of the information given the
Municipality ;to •date, it appears that it would be
desirable for the Municipality to issue its revenue bonds
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under provisions of the Act to.f +sauce the Project in
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an estimated total, amount of $,1,200,000.
22. at it, hereby determined to pr6ceed. with the= Project
And its finincing and this Council 114iebi declares its
present intent to have the Municipality, issue its - revenue
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k�ond's under; the Act to finance the Project.,,,
1Notwithstandinq,,the foregoing,ihowever, the adoption of
"`this resolution 'shall notbe deemed to establish a leg
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obligation ,on the;`��axt of��the Municipality or its City
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