WHEREAS, the Legislature for the State of Minnesota has in Chapter 474 of Minnesota Laws, authorized municipalities to issue Industrial Development Revenue Bonds and/or Mortgages; and,

WHEREAS, the Legislature has stated that the intent of the Municipal Industrial Development Act is to promote, attract, and encourage economically sound industrial and commercial development in order to:

1. Discourage emergence of blight and marginal lands,
2. Prevent and alleviate chronic unemployment,
3. Preserve community and state investments in educational and public service facilities, and
4. Encourage more intensive development and use of land to provide an adequate tax base to finance the costs of public services; and

WHEREAS, the City Council of Lake City wishes to preserve and expand the quality of commercial and industrial development and their associated benefits in the City, and that the City Council is aware that Industrial Development Revenue Bonds and/or Mortgages financing may be beneficial to the City when used for certain purposes.

THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF LAKE CITY, that the following policies shall be established guiding the approval of Industrial Development Revenue Bonds and/or Mortgages:

1. The project shall be of a nature that the City wishes to attract, or an existing business that the City wishes to have expand within the City considering potential for employment, incentive for further development, impact on City service needs an support for industrial or commercial operations currently located in he City.

2. The industrial or commercial project shall be compatible with the overall development plans and objectives of the City and of the neighborhood in which the project shall lie.

3. The application cannot be considered by the City Council until tentative City Code findings and requirements have been made with respect to zoning, building plans, platting, streets and utility services.

a) The applicant shall furnish a description of the project, plat plan, rendering of proposed building, brief description of the applicant and the proposed financing in such form as shall be required at the time of the application. Such data is to be furnished to members of the City Council and the City?s staff for background information only.

4. When an applicant business is locating, relocating, or expanding in the City, the following objectives shall be considered:

a) Increase the job opportunities and income potential for persons within the City,

b) Increase the tax base to facilitate financing of public services,

c) Encourage business to utilize local suppliers to the greatest possible extent,

d) The direct benefit to the City's citizens,

e) Retention of employment which might otherwise leave the community,

f) Competition with existing retail establishments will be discouraged except for purposes of redevelopment,

g) Special construction and built-ins suitable only to one industry or business will not be included in the financing, and

h) No tax exempt enterprise shall be considered for Industrial Development Revenue Bond and/or Mortgage financing.

5. The applicant shall select at its own expense qualified financial consultants and/or underwriters as well as legal counsel to prepare all necessary documents and materials. The City Council may rely on the opinion of such experts and the application shall be applicant's letter of intent and a financial analysis by the underwriter regarding economic soundness of the applicant as well as the financial consultant's/underwriter's opinion regarding the financial strength of the applicant, feasibility of the project and a tentative letter of commitment from the lending institution.

6. The applicant must not commence any part of the construction of the project until there has been preliminary approval by the Council of the application for financing.

7. The City Council reserves the right to deny any application for financing at any stage of the proceedings prior to adopting the final resolution authorizing issuance of Industrial Development Revenue Bonds and/or Mortgages.

8. The City is to be reimbursed, and held harmless, for and from any out-of-pocket costs related to the actual or proposed issuance of the financing. To assure compliance with this provision, the applicant shall submit with the application a deposit in the amount of $2,500.00. The City shall charge against said deposit all administrative, legal, planning, fiscal, appraising, and any other expenses incurred by the City in connection with the financing proposal whether or not the proposed financing is completed.