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. . . RESOLUTION NO. 05-17 CITY OF ELK RIVER RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT PURSUANT TO MINNESOTA STATUTES, SECTION 469.154, AND AUTHORIZING THE SUBMISSION OF AN APPLICATION TO THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT AND THE PREPARATION OF NECESSARY DOCUMENTS (ST. ANDREW SCHOOL PROJECT) WHEREAS, (a) The purpose of Minnesota Statutes, Sections 469.152 to 469.165 relating to municipal industrial development (the "Act") as found and determined by the legislature is to promote the welfare of the state by the active attraction and encouragement and development of economically sound industry and commerce to prevent so far as possible the emergence of blighted and marginal lands and areas of chronic unemployment; (b) Factors necessitating the active promotion and development of economically sound industry and commerce are the increasing concentration of population in the metropolitan areas and the rapidly rising increase in the amount and cost of governmental services required to meet the needs of the increased population and the need for development of land use which will provide an adequate tax base to ftnance these increased costs and access to employment opportunities for such population; (c) The City Council of the City of Elk River (the "City") received a proposal from The Church of St. Andrew, a nonproftt religious corporation (the "Borrower") that the City undertake to ftnance a Project hereinafter described, through the issuance of revenue bonds (hereinafter the "Bonds" or the " Revenue Bonds") pursuant to the Act; (d) The City desires to facilitate the selective development of the community and surrounding area, retain and improve the tax base in the City, and help to provide the range of services and employment opportunities required by the population; and the Project will assist the City in achieving those objectives. The Project will help to increase assessed valuation in the City and help maintain a positive relationship between assessed valuation and debt and enhance the image and reputation of the community; (e) The Project to be ftnanced by the Bonds is (i) renovation, and constructing additions to, the St. Andrew School located at 428 Irving Avenue in the City and (ii) the acquisition and installation of equipment therein (the "Project"). The Project is expected to create 1.4 additional new full-time equivalent jobs in addition to the existing 26 jobs; (f) The City has been advised by representatives of Borrower that conventional, commercial fmancing 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 signiftcantly reduced;