Authorizing $10,000,000 Revenue Obligations Rahn Proeprties II

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ORDINANCE N0. (,0 .> AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF $10,000,000 REVENUE OBLIGATIONS OF THE CITY OF SOUTH BEND, INDIANA, FOR THE PURPOSE OF MAKING A LOAN TO RAHN PROPERTIES II IN ORDER TO FINANCE THE ACQUISITION AND CONSTRUCTION OF CERTAIN ECONOMIC DEVELOPMENT FACILITIES; AUTHORIZING EXECUTION OF A LOAN AGREEMENT, INDENTURE OF TRUST, BOND PURCHASE AGREEMENT AND OTHER DOCUMENTS IN CONNECTION THERE- WITH. BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AS FOLLOWS: Section 1. Preliminary Statement. The following recitals establish the background for the financing authorized hereby: (a) The City of South Bend Indiana (hereinafter called the "City "), by virtue of Indiana Code 18- 6 -4.5, as amended (herein- after called the "Act "), is authorized and empowered to make direct loans to users for the acquisition and construction of economic development facilities as defined in the Act to overcome insufficient employment opportunities and insufficient diversification of business, commerce and industry in and near the City and to promote the general economic welfare of the area in and near the City and to issue its revenue obligations to obtain funds to make such loan and to secure said revenue obligations pursuant to a trust indenture by the pledge of one or more notes of the user. (b) Rahn Properties II (the "Partnership "), of partnership organized and existing under and by virtue of the laws of Indiana, has agreed to acquire and construct a hotel and related facilities (the "Project ") which is an "economic development facility" as defined in the Act. (c) The Project is located in the City and will create new employment opportunities and provide expansion and diversification of business, commerce and industry in and near the City. (d) The City proposes to loan to the Partnership the proceeds of sale of the revenue obligations hereinafter authorized, and the Partnership has agreed to make payments on its notes evidencing its loan obligations in amounts sufficient to pay the principal of and interest and premium, if any, on such revenue obligations. (e) The South Bend Economic Development Commission (the "Commission"), which is functioning and operating under the Act, (1) has found by written resolution that because of existing insuf- ficient employment opportunities and insufficient diversification of business, commerce and industry, the economic welfare of the City would be benefited by financing costs of acquisition and construction of the Project; (2) has approved a report estimating the public services which would be made necessary or desirable, the expense thereof, the number of jobs, the estimated payroll on account of the acquisition and construction of the Project and the cost