10-24-11 Common Council Meeting Minutes

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REGULAR MEETING OCTOBER 24, 2011 SECTION IV. All costs of the Project, including but not limited to, costs incurred for planning, engineering, interest paid during construction, underwriting expenses, attorney and bond counsel fees, and the acquisition, construction, installation and equipping of the Project, including reimbursement or repayment to the Applicant of moneys expended after the date which is sixty (60) days prior to the date of adoption by the Applicant’s Board of Directors of its Reimbursement Resolution will be permitted to be included as part of the costs of the Project to be financed out of the loan of the proceeds from the sale of the Bonds to the extent permitted by the Act and applicable regulations promulgated under the Internal Revenue Code of 1986, as amended. SECTION V. All action taken and approvals given by the City with regard to the Applicant are based upon the evidence submitted and representations made by the Applicant, its agents or counsel to the Commission and the City. No independent examination, appraisal or inspection of the Project was made, requested, or is contemplated by the City. SECTION VI. The City does not, by this or any other approval or finding, guarantee, warrant or even suggest that the Bonds, coupons or series thereof will be a reasonable investment for any person, firm or corporation. SECTION VII. The City shall not be obligated, directly or indirectly, to see to the application or use of the proceeds from the sale of the Bonds or to see that the contemplated improvements, if any, are constructed. The City is in no way responsible to the holders of any Bonds for any payment obligation created by the Bonds. SECTION VIII. The City does not warrant, guarantee or even suggest that interest to be paid to or income to be received by the holders of any Bond, coupon, or series thereof is exempt from taxation by any local, state or federal government. SECTION IX. The Bonds hall be special, limited obligations of the City payable solely from the funds provided therefore as described in the indenture authorizing the Bonds, and shall not constitute an indebtedness of the Commission or the City or the City or a loan of the credit thereof. SECTION X. This resolution does not constitute a binding obligation of the Commission or the City to issue the Bonds, but instead, is a commitment by the City to proceed with negotiations for the financing described herein with the Applicant and is subject to the adoption of a bond ordinance by the City in accordance with the provisions of the Act. SECTION XI. This resolution shall be in full force and effect upon adoption and compliance with I.C. 36-4-6- et. seq. s/Derek D. Dieter Member of the Common Council Councilmember Rouse, Chairperson, Community and Economic Development committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with no recommendation. Mr. Stephen Hartz, 63551 Miami Road, South Bend, Indiana, made the presentation for this bill. Mr. Hartz advised the bonds are being issued to finance the construction of a 106,000 square foot charter school located at 3801 Crescent Circle in the Blackthorn Office Park. He noted that the South Bend Economic Development Commission adopted their resolution on September 19, 2011, finding that the financing of certain economic 5