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. . . (e) WHEREAS, the Company is currently engaged in the business of manufacturing pressure control devices; and the Project to be financed by the Revenue Bonds is an approximately 30,000 square foot manufacturing building to be located at the company's existing facility at 12616 Industrial Boulevard in the City and consists of the construction of improvements and the installation of equipment therein and renovation of the existing facility, all to be constructed pursuant to the Company's specifications and to be owned and operated by the Company (the "Project"), and will result in the emploYment of approximately 84 additional persons by 1995 at the Company's facilities; and (f) WHEREAS, the City has been advised by representa- tives 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, and the Company' has also advised this Council that the Project would not be undertaken but for the availability of industrial development bond financing; and (g) WHEREAS, the Company has requested the City to give preliminary approval to the Project subject to consideration of information received at a public hearing to be held on May 18, 1992, at which public hearing all those appearing who desire to speak will be heard and written comments will be accepted; and (h) WHEREAS, 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 Elk River, Minnesota, as follows: 1. The Council hereby gives preliminary approval, subject to consideration of information received at the public hearing, to the proposal of the Company that the City undertake the proj ect pursuant to the Act and pursuant to a revenue agreement between the City and Company containing such terms and conditions (with provisions for revision from time to time as necessary) as may be necessary to produce income and revenues sufficient to pay, when due, the principal of and interest on the Revenue Bonds in the maximum aggregate principal amount of $1,500,000, to be issued pursuant to the Act to finance the acquisition, construction and equipping of the Project. Such revenue agreement may also provide for the entire interest of the Company therein to be mortgaged to the purchaser of the Revenue Bonds. The City hereby undertakes preliminarily to issue its Revenue Bonds in accordance with such terms and conditions. 629585.01