10-28-85 Council Meeting Minutes

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REGULAR MEETING RESOLUTION NO. 1366 -85 OCTOBER 28, 1985 AN INDUCEMENT RESOLUTION OF THE CITY OF SOUTH BEND, INDIANA RELATING TO AN APPLICATION BY SOUTH BEND RESIDENCE ASSOCIATES FOR THE ISSUANCE OF CITY OF SOUTH BEND ECONOMIC DEVELOPMENT REVENUE BONDS, AND MAKING CERTAIN FINDINGS AND RECOMMENDATIONS REGARDING THE DECLARATION OF AN ECONOMIC DEVELOPMENT TARGET AREA OUTSIDE THE CITY LIMITS, COMMONLY KNOWN AS 51694 U.S. 31 -33 NORTH. WHEREAS, at the present time there are insufficient employment opportunities and insufficient diversification of business, commerce and industry in and near the City of South Bend, Indiana (the "City "); and WHEREAS, the economic welfare of the City would be benefited by the acquisition of economic development facilities within the corporate limits of the City pursuant to the provisions of Indiana Code 36 -7 -12 (the "Act "); and WHEREAS, South Bend Residence Associates ( "Associates ") proposes to acquire economic development facilities in South Bend, Indiana as defined in the Act if the City will finance a portion of the costs of such economic development facilities pursuant to the Act; and WHEREAS, the South Bend Economic Development Commission has received an application by Associates for the issuance of City of South Bend Economic Development Revenue Bonds in the approximate principal amount of Five Million and no /100 Dollars ($5,000,000.00) with the terms of repayment to be determined by the market rate at the time the bonds are sold, and the proceeds of the bonds will be used to acquire real estate and make improvements to real estate to be used as a suite hotel facility in St. Joseph County, Indiana, resulting in a minimum of twenty (20) full -time new jobs with an annual payroll of approximately Two Hundred Seventy -five Thousand Dollars ($275,000.00). WHEREAS, the 1983 and 1985 Indiana General Assembly amended I.C. 36 -7 -12 to provide at I. C. 36- 7 -12 -38 for the designation of economic development target areas by the fiscal body upon favorable recommendation by an Economic Development Commission. WHEREAS, I. C. 36- 7- 11.9 -3 provides that the statutory exclusion of a facility as an "economic development facility" will not be applicable in the case of a facility to be located in an economic development target area, if the fiscal body of the appropriate governmental unit finds that the proposed facility will not have an adverse competitive impact on other facilities of the same kind already operating in the same market area, and if the proposed facility will contribute significantly to the creation of permanent new job opportunities. WHEREAS, the South Bend Economic Development Commission has recommended favorably to the South Bend Common Council and the St. Joseph County Council the designation of an economic development target area, commonly known as 52694 U. S. 31 -33 North, St. Joseph County, Indiana more particularly described as follows: Lot numbered One (1) in Paxson Park, a recorded plat in Clay Township, St. Joseph County, Indiana, and the western half (1/2) of Lot numbered Thirty -seven (37) in Paxson Park, Clay Township, St. Joseph County, Indiana. NOW, THEREFORE, the Common Council of the City of South Bend, Indiana resolves as follows: 1. The project constitutes economic development facilities which shall be financed by the City through the Issuance of revenue bonds pursuant to the Act and the City is willing, upon compliance with all provisions of Indiana law, including consent of the St. Joseph County Council, to authorize approximately Five Million and no /100 Dollars ($5,000,000.00) of its revenue bonds, which bonds will not be general obligations of the City but will be payable solely from the limited sources authorized and permitted by the Act. 2. The proposed financing will be of benefit to the economic welfare of the City and will comply with the purposes and provisions of the Act. 3. Pursuant to the requirements of I. C. 36- 7- 11.9 -3, the Common Council hereby finds that the proposed facility to be located at 52694 U. S. 31 -33 North will not have an adverse competitive impact on other facilities of.the same kind already operating in the same market area and will contribute significantly to the creation of permanent new job opportunities.. 4. Associates may proceed with acquisition and construction of the economic development facility in reliance upon this resolution. 5. That the liability and obligation of the South Bend Economic Development Commission, the South Bend Council and the City of South Bend, Indiana, shall be limited solely to the good faith efforts to consummate such proceedings and issue