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agrees to construct the Development described below and the City agrees to provide tax increment assistance for the costs of the Development (the "Development Agreement") and an Agreement of Purchase and Sale, between the City and the Developer, a form of which is on file with the City, pursuant to which the City agrees to sell to the Developer approximately 10.36 acres of real property on which the Development will be constructed (the "Purchase Agreement"). Section 2. Findings for the Adoption and Approval of the Program Modification and TIF Plan. 2.01. The City Council hereby finds that the TIF District is in the public interest and is an "economic development district" within the meaning of Minnesota Statutes, Section 469.174, Subd. 12, because it will result in increased employment in the state and it will result in preservation and enhancement of the tax base of the state. In addition, the TIF District will facilitate the increase in manufacturing in the City by the construction of an approximately 100,224 square foot manufacturing facility for the Company, a metal powder coating company (the "Development"), and at least 85% of the facility will be used for manufacturing, warehousing, distribution, or research, with less than 15% available for office or other space not related to such functions. Based on representations by the Developer and the Company, the City finds that the Development will be fully constructed in 2013. The City finds that jobs will be created and maintained in this state, including construction jobs. 2.02. The City Council hereby makes the following additional findings in connection with the Tax Increment District: (a) The City Council further finds that the proposed Development, in the opinion of the City Council, would not occur solely through private investment within the reasonably foreseeable future and,therefore,the use of tax increment financing is deemed necessary. The specific basis for such finding being: The property on which the Development will occur would not be developed in the reasonably foreseeable future due to the high costs related to construction of manufacturing facilities and the acquisition and development of the site, including extraordinary site improvement costs associated with wetlands remediation and development of the site. The Developer and the Company have represented that they could not proceed with the development without tax increment assistance. (b) The City Council further finds that the TIF Plan conforms to the general plan for the development or redevelopment of the City as a whole. The specific basis for such finding being: The TIF Plan will generally compliment and serve to implement policies adopted in the City's comprehensive plan. The Development contemplated is in accordance with the existing zoning for the property and the City's Plamling Commission has determined that the Development is consistent with the comprehensive plan. 2 430951v2 JSB EU 85-22