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

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PARKER, BRUNNER & HAMILTON ATTORNEYS AT LAW 1100 HAZLITT BUILDING ROBERT M.PARKER 120 WEST LASALLE AVENUE TELEPHONE THOMAS J.BRUNNER,JR. SOUTH BEND, INDIANA 46601 (2191 234-4149 JOHN C.HAMILTON TIMOTHY J.HARTZER August 14, 1985 Irene Gammon, Clerk City of South Bend County-City Building South Bend, IN 46601 Re: GEM Partnership Industrial Revenue Bonds Dear Mrs. Gammon: The enclosed ordinance references additional terms which have been required by the prospective purchaser of the GEM Partnership industrial revenue bonds, American Fletcher National Bank, since the passage of Ordinance No. 7501-85 on August 5 , 1985. These addi- tional terms further clarify the interest rate and the redemption provisions of these bonds. The clarifications in question are significant enough to require their approval by the Common Council before the bonds in question are sold. The proposed use of the bonds and their anticipated positive impact on the local economy remains unchanged. The proceeds of the bond issue will be used to purchase the Sears Warehouse building and associated property and to carry out such construction as is required to convert the building into a distribution and operation center for General Microcomputer as follows : 1. Warehouse space: 40,000 square feet 2. Service space: 5,000 square feet 3. Manufacturing space: 10,000 square feet 4. Office space: 15,000 square feet 5. Parking space: 200 cars (estimated) It is estimated that this project will result in the creation of approximately 25 new jobs within one year of General Microcomputer's occupancy of the facility. It is further estimated that these new jobs will generate an annual payroll of approximately $300 ,000 per year.