9536-04 Authorizing the City of South Bend to issue its "Taxable Economic Development Revenue Bonds, Series 2004

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NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: SECTION I. The Common Council hereby finds and determines that the Project will not have an adverse competitive impact on other facilities of the same or similar kind already constructed or operating in the City. SECTION II. It is hereby found that the financing of the Improvements previously approved by the Commission and presented to this Common Council, the issuance and sale of the Bonds, the Loan of the net proceeds thereof to the Company for the development and construction of the Improvements and the repayment of the Loan by the Company, will be of benefit to the health, prosperity, economic stability, general welfare and public interest of the City and its citizens and complies with the purposes and provisions of the Act. SECTION III. The proposed financing and the form of the Financing Documents approved by the Commission are hereby approved and all such documents shall be incorporated herein by reference and shall be inserted in the minutes of the Common Council and kept on file by the Clerk. SECTION IV. The City shall issue the Bonds in two (2) series with one (1) series of bonds in an aggregate principal amount not to exceed Six Million and 00/100 Dollars ($6,000,000.00) designated as the "City of South Bend, Indiana, Taxable Economic Development Revenue Bonds, Series 2004 A (Erskine Village Project)" (the "Series A Bonds"), and with another series of bonds in an aggregate principal amount not to exceed Two Million and 00/100 Dollars ($2,000,000.00) designated as the "City of South Bend, Indiana, Taxable Economic Development Revenue Bonds, Series 2004 B (Erskine Village Project)" (the "Series B Bonds" and with the Series A Bonds, the "Bonds"). The proceeds of the Bonds net of the expenses in connection with or on account of the issuance of the Bonds shall be made available to the Company pursuant to the Loan Agreement. The Bonds shall not constitute an obligation or indebtedness of the City or the Commission. The Bonds, together with interest thereon, shall be payable from the TIF Revenues, and to the extent the TIF Revenues are not sufficient or otherwise available, from payments made by the Company to the extent necessary. The Series B Bonds shall be junior and subordinate to the Series A Bonds with respect to the Redevelopment Commission's pledge of its available TIF Revenues and with respect to the Company's obligation to make payments on the Bonds to the extent the TIF Revenues are not sufficient or otherwise available. The failure of the City to pay the principal of and interest on the Bonds due to the insufficiency of the TIF Revenues will not constitute an act of default with respect to the Bonds by the City, and the City shall have no future obligations with respect to payments not made because of such insufficiency. The Bonds shall be issued as fully registered bonds and shall mature, be dated, be subject to redemption and be payable in the medium and at the place or places and in the manner as provided in the Financing Documents approved by this Ordinance and incorporated herein by reference. SBIMANI 192617v2 - 3 -