03-27-00 Council Meeting Minutes

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REGULAR MEETING MARCH 27, 2000 determines, ratifies and confirms that (I) it will take or cause to be taken such actions pursuant to the Act as may be required to implement the aforesaid financing, or as it may deem appropriate in pursuance thereof; and (ii) it will adopt such ordinances and resolutions and authorize the execution and delivery of such instruments and the taking of such action as may be necessary and advisable for the authorization, issuance and sale of said economic development revenue bonds; and that the aforementioned purposes comply with the provisions of the Act; and (iii) it will use its best efforts at the request of Applicant to authorize the issuance of additional bonds for refunding and refinancing the outstanding principal amount of the bonds, for completion of the Project and for additions to the Project, including the costs of issuance (providing that the financing of such addition or additions to the Project is found to have apublic purpose (as defined in I.C. 36- 7 -12 -1) at the time of authorization of such additional bonds), and that the aforementioned purposes comply with the provisions of the Act; provided that all of the foregoing shall be mutually acceptable to the Issuer and the Applicant. 4. All costs of the Project incurred after the date which is 60 days prior to the date of adoption of this inducement resolution, including reimbursement or repayment to the Applicant of monies expended by the Applicant for planning, engineering, a portion of the interest paid during construction and equipping underwriting expenses, attorney and bond counsel fees, acquisition, construction and equipping of the Project will be permitted to be included as part of the bond issue to finance the Project, and the Issuer will lend the proceeds from the sale of the bonds to the Applicant for the same purposes. Also, certain indirect expenses, including but not limited to, planning, architectural work and engineering incurred prior to this inducement resolution will be permitted to be included as part of the bond issue to finance the Project. 5. This resolution shall constitute "official action" for purposes of compliance with federal and state laws requiring governmental action as authorization for future reimbursement from the proceeds of bonds. 6. This resolution shall be in full force and effect from and after its adoption by the common Council and approval of the Mayor. CITY OF SOUTH BEND, INDIANA s /Charlotte Pfeifer Member of the Common Council Councilmember Kelly reported that the Community and Economic Development Committee met on this bill and recommends this Resolution to the Council favorably. Mr. Kenneth P. Fedder, Attorney at Law, Allen, Fedder, Herendeen & Kowals, 205 West Jefferson Boulevard, Suite 606, South Bend, Indiana, advised the Council that he is general counsel for the South Bend Economic Development Commission and he will be making the presentation for this Resolution. Mr. Fedder noted that the Commission has undertaken and accepted an application from Colbert Packaging Corporation who presently operate a facility on Sample Street. Their lease has expired and they now seek the issuance of industrial revenue bonds in the amount of $1.8 million dollars for the purchase of a new facility at 3260 West McGill Street. Mr. Fedder noted that Colbert Packaging is a company that was founded in 1959. They employ seventy -five (75) people in our community and they desire to stay here and retain those jobs. They have an estimated payroll of one and one- half million dollars ($1,500,000.00). Mr. Fedder noted that it is their belief that the bonds will be pre - purchased and if not put on the public market. He further noted that presented today is an Inducement Resolution the purpose of which is to permit the corporate client to make expenditures as the project goes forward looking towards an eventual funding ordinance. With the passage of this Resolution they can reimburse themselves from the bonds without destroying their tax exempt status. In conclusion, Mr. Fedder requested the Council's favorable consideration. A Public Hearing was held on the Resolution at this time.