Appropriating $500,000 Community Development Block Grant Funds

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BILL NO. ORDINANCE NO. 717V -S_l AN ORDINANCE APPROPRIATING $500,000 FROM COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS TO SUPPLEMENT THE ECONOMIC DEVELOPMENT CAPITAL FUND FOR PURPOSES OF SHORT -TERM CONSTRUCTION LOANS TO BE ADMINISTERED BY THE CITY OF SOUTH BEND, INDIANA, THROUGH ITS DIVISION OF COMMUNITY DEVELOPMENT STATEMENT OF PURPOSE AND INTENT: The government of the City of South Bend, Indiana, in creative' and affirmative partnership with its residents, private enterprise and the Federal Government, is committed to the goal of expanding economic opportunities. To further this goal, the Community Development Block Grant Program contains the specific objective of alleviating physical and economic distress through the stimulation of private investment. The City believes that scarce federal funds should be used whenever possible to encourage private investment in the development and expansion of local economic enterprises; in the retention and ex- pansion of existing local economic enterprises; and in the creation of new economic enterprises. Therefore, the Division of Community Devel- opment intends to supplement the Economic Development Capital Fund which will assist economic enterprises through a variety of mechanisms, including, but not limited to, direct loans, equity investments, work- ing capital, loan guarantees, interest subsidies, and injection of seed funds. The funds will be used city -wide with an emphasis placed on the core area of the City, including NSA's, NCA's Studebaker Corridor, the Central Business District (CBD) and fringe, inner city industrial complexes, and inner city neighborhood commercial strips. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. The sum of $500,000 is hereby appropriated for program year starting July 7, 1982 (Program Year 1982), to be admin- istered by the Division of Community Development, as set forth below: PROGRAM YEAR CD83-1007 COMMUNITY DEVELOPMENT PROGRAM Purpose Economic Development Capital Fund Amount $500,000 SECTION II. The City, through its Board of Public Works, may contract with the South Bend Development Corporation for use of the funds appropriated above only in connection with a project which assists in the retention, relocation, and expansion of a manufacturing firm located in the East Bank Development Area known currently as South Bend Screw Products, Inc. The contract shall provide that any of the above funds not obligated or involved in any negotiations by the South Bend Development Corporation for such purposes on April 1, 1983, shall be immediately repaid to the City, pursuant to the terms of the contract. SECTION III. This appropriation is subject to the follow- ing conditions: that a lower interest rate loan in the amount of $500,000 to be used for the construction of a facility in Phase IV of the Airport Industrial Park will be made to Kawneer, Inc. The loan