Resolution No. 2024-3 (Intend Indiana)

Home Browse Search

3 and increase diversification of economic development in the City, will improve and promote the economic stability, development and welfare in the City, will encourage and promote the expansion of industry, trade and commerce in the City and the location of other new industries in the City; that the public benefits to be accomplished by the making of the Loan to the Developer to finance and/or reimburse Project costs, in tending to overcome insufficient employment opportunities, insufficient diversification of industry and lack of adequate housing, are greater than the cost of public works or services (as that phrase is used in the Act) which will be required by the Project; and, therefore, that the financing of a portion of the Project by the making the Loan to the Developer under the Act: (i) will be of benefit to the health and general welfare of the City; and (ii) complies with the Act. SECTION II. Approval of Financing. The proposed financing of the Project by the funding of the Loan to the Developer under the Act, in the form that such financing was approved by the Commission, is hereby approved. SECTION III. Terms of the Loan. (a) A portion of the costs of the Project will be funded by the Loan to the Developer on an annual draw basis. The City shall fund the Loan on an annual draw basis over a five (5) year period with each annual draw amount totaling not more than $1,250,000 (the “Draw Amount”), in the aggregate principal amount not to exceed Five Million Dollars ($5,000,000), from River West TIF Revenues then on deposit in the allocation fund for the Allocation Area, and made available by the Redevelopment Commission to the City for the purposes of making the Loan to the Developer under the Act and the terms of the Loan Agreement. The Loan shall (i) mature on December 31, 2029 (the “Maturity Date”), (ii) bear no interest, except as provided herein, and (iii) be secured by the pledge of an unsecured promissory note (the “Note”) of the Developer, with payments under the Note to be guaranteed by Intend Indiana, Inc. as the sole owner and operator of the Developer, to the extent the Note is not forgiven pursuant to the Loan Agreement. Subject to the Unavoidable Delay provisions of the Loan Agreement, the principal of each outstanding Draw Amount on the Loan shall be forgiven upon the earlier of (i) the substantial completion of the corresponding portion of the Project as evidenced by receipt of the certificate required by Section 3.2 of the Loan Agreement, or (ii) the repayment of any principal not previously forgiven and remaining outstanding and interest, if any, of the Loan on the Maturity Date. In the event that the Developer abandons the Project or otherwise fails to proceed to substantially complete the Project as required by the Loan Agreement and the Development Agreement between the Redevelopment Commission and the Developer (the “Development Agreement”), the repayment of any outstanding amount of the Loan (the “Outstanding Amount”) will be on a date not later than thirty (30) days from the date when the City’s Department of Community Investment, on behalf of the City, provides written notice to the Developer that, in its sole discretion, it has determined that the Developer has abandoned or failed to proceed with the Project as required by the Loan Agreement and the Development Agreement (the date of such written notice being the “Trigger Date”). Interest will begin to accrue on the Outstanding Amount beginning on the Trigger Date at the Prime Rate (as defined in the Loan Agreement) plus three percent (3.0%) until the Outstanding Amount is fully paid by the Developer. In the event that the Loan is forgiven, it is hereby acknowledged that the consideration received by the City for the Loan being forgiven is the completion of the Project by the Developer and the economic benefits resulting to the City therefrom.