$8,000,000 Economic Development Revenue Bonds Brethren Care of South Bend

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ORDINANCE NO. (o AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF $8,000,000 ECONOMIC DEVELOPMENT REVENUE BONDS OF THE CITY OF SOUTH BEND, INDIANA, FOR THE PURPOSE OF MAKING A LOAN TO BRETHREN CARE OF SOUTH BEND, INC. IN ORDER TO FINANCE THE 'ACQUISITION-AND CONSTRUCTION OF CERTAIN ECONOMIC DEVELOPMENT FACILITIES; AUTHORIZING EXECUTION OF A LOAN AGREEMENT; PROVIDING FOR THE DELIVERY OF A NOTE AND THE ASSIGNMENT THEREOF AS SECURITY FOR SAID BONDS; AND AUTHORIZING AN INDENTURE OF TRUST. 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 deyelopment 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 economic development revenue bonds to obtain funds to make such loan and to secure said bonds pursuant to a trust indenture by the pledge of one or more notes of the user. (b) Brethren Care of South Bend, Inc. (the "Company "), a nonprofit corporation organized and existing under and by virtue of the laws of Indiana, has agreed to acquire and construct a residential retirement community (the "Project ") which is a health facility licensed and regulated by the Indiana Health Facilities Council under Indiana Code 16 -10 -2 and by virtue thereof an "economic development facility" as defined in the Act. (c) The Project is located in St. Joseph County with a portion thereof 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 Company the proceeds of sale of the revenue bonds hereinafter authorized, and the Company has agreed to make payments on its note or notes evidencing its loan obligation in an amount sufficient to pay the principal of and interest and premium, if any, on such revenue bonds. (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 in- sufficient employment opportunities and insufficient diversification of business, commerce and industry, the economic welfare of the City would be benefited by financing a portion of the costs of