9593-05 Authorizing to issue its "Economic Development Revenue Bonds, Series 2005 (MDC South Bend, LLC Project)

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ORDINANCE NO. "~ S ~13-~.~ AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE CITY OF SOUTH BEND, INDIANA, TO ISSUE ITS "ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 2005 (MDC SOUTH BEND, LLC PROJECT)" AND APPROVING AND AUTHORIZING OTHER ACTIONS IN RESPECT THERETO STATEMENT OF PURPOSE AND INTENT: Indiana Code Title 36, Article 7, Chapter 11.9 and 12, as amended (the "Act"), declares that the financing of economic development facilities constitutes a public purpose. The Act provides that an issuer may, pursuant to the Act, issue revenue bonds and lend the proceeds thereof to a corporation, partnership, limited liability company or individual for the purpose of financing costs of acquisition or construction of facilities, including real and personal property, for diversification of economic development and promotion of job opportunities in or near such issuer. The Act further provides that such bonds may be secured by a financing agreement between an issuer and a developer. MDC South Bend, LLC (the "Company") has undertaken the acquisition, construction, installation and equipping of an approximately 48,750 square foot airfreight facility to be located at the Michiana Regional Airport in the City (the "Project"), which will be leased by the Company from the St. Joseph County Airport Authority and subleased by the Company to and operated by DHL/Airborne Express for use in its business of airfreight and logistics services. In conjunction with the Project, the Company has further proposed that the City of South Bend, Indiana (the "City") issue and sell its economic development revenue bonds under the Act in one (1) series in an aggregate principal amount not to exceed Two Million Two Hundred Thousand and 00/100 Dollars ($2,200,000.00) (the "Bonds"), and that the City lend the proceeds of the Bonds to the Company (the "Loan") under a Loan Agreement (the "Loan Agreement") by and among the City, the Company and GE Capital Public Finance, Inc., as purchaser of the Bonds (the "Purchaser"} and as collateral agent, in a form substantially similar to that presented to the Common Council of the City (the "Common Council") whereby the Bonds will be sold by the City to the Purchaser and the proceeds of the Bonds will be utilized for the Project. The principal of, premium, if any, and interest on the Bonds shall be payable solely from payments made by the Company and the collateral pledged therefor, shall not be a general obligation of the City, and shall not be payable in any manner by taxation. The South Bend Economic Development Commission (the "Commission") has rendered its Report of the South Bend Economic Development Commission Concerning the BDDBO 1 4046058v2