06-12-00 Council Meeting Minutes

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REGULAR MEETING JUNE 12, 2000 This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. There being no one present wishing to speak to the Council either in favor of or in opposition to this bill, Councilmember Varner made a motion for favorable recommendation to full Council concerning this bill. Councilmember King seconded the motion which carried by a voice vote of seven (7) ayes. BILL NO. 46-00 PUBLIC HEARING ON A BILL AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $2,000,000 AGGREGATE PRINCIPAL AMOUNT OF THE CITY OF SOUTH BEND, INDIANA VARIABLE RATE DEMAND ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 2000 (DELUXE SHEET METAL, INC. PROJECT), THE PROCEEDS OF WHICH SHALL BE LOANED TO DSM HOLDING, LLC, TO FINANCE THE ACQUISITION, CONSTRUCTION, INSTALLATION AND EQUIPPING OF AN ECONOMIC DEVELOPMENT FACILITY LOCATED WITHIN THE CITY OF SOUTH BEND, INDIANA FOR LEASE TO DELUXE SHEET METAL, INC.; PROVIDING FOR THE PLEDGE AND ASSIGNMENT OF REVENUES FOR THE PAYMENT OF SAID BONDS; AUTHORIZING A TRUST INDENTURE, LOAN AGREEMENT AND BOND PURCHASE AGREEMENT, AUTHORIZING THE USE AND DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT AND AN OFFICIAL STATEMENT WITH RESPECT TO THE BONDS; AUTHORIZING AGREEMENTS TO SECURE FURTHER THE PAYMENT OF SAID BONDS; AND AUTHORIZING OTHER ACTIONS IN CONNECTION WITH THE ISSUANCE OF SUCH BONDS Councilmember Kelly made motion to hear the substitute version of this bill. Councilmember White seconded the motion which carried by a voice vote of seven (7) ayes. Councilmember Kelly reported that the Community and Economic Development Committee met on this bill and recommends this bill to the Council favorably. Mr. Kenneth P. Fedder, Attorney at Law, 205 West Jefferson Boulevard, South Bend, Indiana, advised that he is the attorney for the South Bend Economic Development Commission and will be making the presentation for this bill. Mr. Fedder informed the Council that this is an Industrial Revenue Bond for $2 million dollars of a bond issue of $2.5 million dollars for a project that will be undertaken by Deluxe Sheet Metal, Inc., as they continue to expand. Deluxe Sheet Metal will be occupying a new facility that is going to be constructed at 6661 Lonewolf Court in South Bend. It will be a forty thousand (40,000)square foot new addition to be used for manufacturing. This bond issue will pay the cost of the acquisition of the land, the construction of the building, installation of new equipment and the equipment itself. The South Bend Economic Development Commission at its Public Hearing passed a Resolution asking the Common Council to likewise approve this funding. This will continue a business that has been in our community for the past twenty -five (25) years. It will create additional payroll and will create additional tax revenues from the project itself. Mr. Fedder noted that there is no liability on the part of the taxpayers of the City as this is not a general obligation bond. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. There being no one present wishing to speak to the Council either in favor of or in opposition to this bill, Councilmember Kelly made a motion for favorable recommendation to full Council concerning