Repealing Ordinance 7501-85 Economic Development Revenue Bonds (Gem Partnership Project)

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held on August 2, 1985 recommended that 2920 West Sample Street be designated an Economic Development Target Area since the project area has suffered from a lack of development, cessation of growth, and other factors that have made it undesirable for normal development, impaired values, or prevented a normal development or use of the property, and the Common Council has by ordinance so designated 2920 West Sample Street. The inclusion of additional terms in the Bond documents at the request of the Bond purchaser, AFNB, necessitates the passage of this new ordinance and repeal of Ordinance No. 89-85, passed by the Common Council on August 5, 1985. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA THAT: Section 1. This Council finds that the facilities described in said report and in the attached Loan Agreement and Mortgage are "economic development facilities" within the meaning of the Act and that such facilities will not have an adverse competitive effect on any similar facilities already constructed or operating in or about the City. Section 2 . This Council further finds that the proposed economic development revenue bond financing of such facilities will be of benefit to the health and welfare of the City and its citizens. Section 3 . This Council further finds that the proposed economic development revenue bond financing of such facilities complies with the purposes and provisions of the Act. Section 4. This Council hereby approves the proposed economic development revenue bond financing of such facilities, including (i) the form and terms of the aforementioned Loan Agreement, Mortgage, Promissory Note, Bond, Bond Purchase Agreement, and a form of Lease attached hereto and incorporated herein by reference (two [2] copies of which are on file in the Office of the Clerk of the City for public inspection) ; (ii) the issuance and sale of said Bond; (iii) the loan of the net proceeds of said Bond to the Partnership for the acquisition and construction of such facilities, such loan to be evidenced by said Promissory Note; (iv) the repayment of said loan by the partnership pursuant to said Loan Agreement and Mortgage and said Promissory Note; and (v) the securing of said Bond by said Loan Agreement and Mortgage and said Bond Purchase Agreement. Section 5. The City shall issue its Bond in the aggregate principal amount of One Million Dollars ($1, 000, 000) for the purpose of procuring funds to loan to the Partnership in order to finance the acquisition and construction of such facilities, as more particularly set out in said Loan Agreement and Mortgage, which Bond shall be payable as to principal and interest solely from the payments made by the Partnership on its aforesaid Promissory Note in the aggregate principal amount of One Million Dollars ($1, 000,000) which will be executed and delivered by the Partnership to evidence said loan, from -2-