Preliminary Approval of the Issuance of Economic Development Revenue Bonds to Finance certain Economic Development Facilities - Bonds

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2. In order to encourage and induce Applicant to undertake such Project, the City shall cooperate with and take such action as maybe necessary to finance the cost of such Project from the proceeds of economic development revenue bonds issued by the City in an aggregate principal amount of not to exceed $8,500,000, including reimbursements of costs of the Project from the proceeds of the bonds. 3. The City intends this Resolution to satisfy the requirements of the Internal Revenue Code of 1986, as amended and the regulations promulgated thereunder, and specifically Treas. Reg. § 1.150-2, regarding the declaration by the City of its official intent to issue its revenue bonds for the purpose of reimbursing original expenditures (as that term is defined in Treas. Reg. §1.150-2(c)) incurred with respect to the Project within 60 days preceding the adoption of this Resolution. 4. All original expenditures of the Project incurred within 60 days preceding the adoption of this Resolution, including the disbursement and/or repayment of monies expended by the Applicant for the planning, engineering, interest paid during construction, underwriting expenses, attorney and bond counsel fees, and expenditures relating to the improvement, expansion, rehabilitation, renovation, acquisition, construction, reconstruction, equipping and furnishing of the Project, will be permitted to be included as part of the bond issue to finance the Project, and the City will thereafter loan the proceeds of such financing to the Applicant for the same purposes. 5. The City shall proceed to cooperate with and take such action as may be necessary in drafting documents or in the performance of such other acts as will facilitate the issuance of such bonds to provide funds for such purpose. 6. The liability and obligation of the South Bend Economic Development Commission, the Common Council of the City, and the City, shall be limited solely to the good faith efforts to consummate such proceedings and issue such bonds, and such entities and their officers and agents shall not incur any liability if for any reason the proposed issuance of such bonds is not consummated. 7. The bonds shall be special, limited obligations of the City, payable solely from the funds provided therefor as described in the documents authorizing the issuance of the bonds, and shall not constitute an indebtedness of the City or a loan of the credit thereof. 8. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. Filed in Cierk'e Ofi~ice JUN 2 0 2006 JOHN YOORDE CITY CLERK, 30. BEND, tN. COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIAN _ ~ , ~ ~. Member of the mmon Council FIOT, APPROVEn f rr ADOPTED b -L~- OIo