07-28-03 Council Meeting Minutes

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REGULAR MEETING JULY 28, 2003 (the "Commission ") and the City that they propose that the City issue economic development revenue bonds for the purpose of providing financing for certain economic development facilities consisting of the development and construction of the Project; and WHEREAS, the Company has proposed that the City issue its revenue bonds under the Act to finance the development and construction of the Project under a financing agreement whereby the proceeds of such bonds would be utilized to develop and construct the Project and the principal of, premium, if any, and interest on said bonds shall be payable solely from tax increment revenues to be pledged by the Redevelopment Commission and resulting from the increase in the assessed value of real property which comprises the Site and improvements thereon (the "Tax Increment "), with the aggregate principal amount of such bonds not to exceed Six Million Dollars ($6,000,000); and the Company has further advised the City that the determination by the City to proceed with the issuance of such bonds constitutes a substantial inducement to the Company to proceed with the Project; and WHEREAS, the Company has submitted evidence regarding the adverse competitive effect of the Project on similar facilities already constructed or operating in the City; and WHEREAS, it is estimated that the Project will result in the creation or retention of approximately one hundred and fifty (150) permanent jobs with an estimated total annual payroll of $2,5000,000; and WHEREAS, the Commission has rendered a report concerning the proposed financing of economic development facilities for the Company which report incorporates findings of fact by the Commission regarding the competitive effect of the Project or similar facilities already constructed or operating in the City; and WHEREAS, the Commission has given its approval to such financing of the Project; and WHEREAS, the issuance and sale of said revenue bonds will not reduce the legal bonding capacity of the City; and WHEREAS, the expenses incurred by the City in connection with the issuance and sale of said revenue bonds shall be paid from proceeds of the bonds; and WHEREAS, the principal of and interest on said bonds are payable solely from the Tax Increment and the failure of the City to pay such principal and interest due to the insufficiency of the Tax Increment will not constitute an act of default by the City with respect to the bonds; and WHEREAS, the issuance of said bonds shall not obligate the full faith and credit for the taxing power of the City; WHEREAS, subject to required approvals, it appears that the financing of the Project would be a public benefit to the health, prosperity, economic stability and general welfare of the City and its inhabitants; NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of South Bend, Indiana, as follows: .