09-15-80 Council Meeting Minutes

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REGULAR MEETING SEPTEMBER 15, 1980 REGULAR MEETING RECONVENED (CONTINUED WHEREAS, East Bank Center Partnership, an Indiana partnership, comprised of Thomas J. Suddes, Donald C. Bullock, Michael G. Suddes, David L. Foster, William B. Beedie and James Yoder, ( "East Bank Center ") proposes to acquire and construct economic development facilities pursuant to the Act; and WHEREAS, the South Bend Economic Development Commission has received an application by the East Bank Center for the issuance of City of South Bend Economic Development Bonds in an amount of approximately three million five hundred thousand and no /10- dollars !, ($3,500,000.00), which bonds would bear interest thereon at the prevailing market rates at the time of issuance over a period not to exceed twenty -five (25) years in order to pur- chase and renovate the former Indiana and Michigan Electric Company service building locatedi at 401 East Colfax Street, South Bend, Indiana, for use as an office and commercial building, 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 economic development revenue bonds pursuant to the act and the City is willing, upon compliance with all provisions.of Indiana law, to authorize approximately three million five hundred thousand and no /100 Dollars ($3,500,000.00) of its revenue bonds, which bonds will not be general obligations of theCity 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. The partnership may proceed with acquisition and construction of the economic development facilities in reliance with this resolution. 4. That the liability and obligation of the South Bend Economic Development Commis- sion, the South Bend Common Council and the City of South Bend, Indiana, shall be limited solely to the good faith efforts to consummate such proceedings and issue such Bonds, and and the South Bend Economic Development Commission, and the City of South Bend, Indiana, their officers or agents, shall not incur any liability if for any reason the proposed issuance of such Bonds is not consummated. This Inducement Resolution shall be in full force and effect from and after its adoption by the Common. Council and approval by the Mayor. /s/ Lewis A. McGann Member of the Common Council A public hearing was held on the resolution at this time. Mr. Kenneth Fedder, attorney for the Economic Development Commission, indicated they planned to purchase and renovate the presently vacant I &M Service Building at 401 E. Colfax. He indicated this would be used for office space. Council Member Szymkowiak made a motion to adopt this resolution, seconded.by Council Member Taylor. The resolution was adopted by a roll call vote of nine ayes. RESOLUTION NO. 814-80 AN INDUCEMENT RESOLUTION OF THE CITY OF SOUTH BEND, INDIANA RELATING TO THE SCHILLING'S SALES CO., INC. PROJECT WHEREAS, at the present time here are insufficient employment opportunities and in- sufficient 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 acquistion and construction of economic development facilities pursuant to the provisions. of Indiana Code 18-6-4-.5 ( the 11 Acttc) ; and WHEREAS, Schilling's Sales Co., Inc., an Indiana corporation ( "Schilling's "), pro- poses to acquire and construct economic development facilities as defined in the Act if the City will finance costs of such economic development facilities pursuant to the Act; and WHEREAS, the South Bend Economic Development Commission has received an application by Schilling's for the issuance of City of South Bend Economic Development Bonds in an amount not to .exceed Two Hundred Fifty Thousand and no /100 Dollars ($250,000.00) repayable with interest thereon of eight and seven- eights percent (8 7/8 %) per annum over a period not to exceed fifteen (15) years in order to enlarge and remodel the commercial buildings located at 329 S. Lafayette Blvd., South Bend, Indiana, occupied by Schilling's Sales Co., Inc. and Schilling's Printing.Co., Inc., an Indiana corporation, resulting in an increase of approximately two (2) additional employees by the two (2) corporations with an increased annual payroll of a minimum of Thirty Thousand Dollars ($30,000.00)per. year. j 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 economic development revenue bonds pursuant to the act and the City is willing, upon compliance with all provisions of Indiana law, to authorize Two Hundred Fifth Thousand Dollars ($250,000.00) 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. The Partnership may proceed with acquisition and.construction of the economic development facilities in reliance upon this resolution. 4. That the liability and ob sion, the South Bend Common Council solely to the good faith efforts to the South Bend Economic Development officers or agents, shall not incur of such Bonds is not consummated. ligation of the South Bend Economic Development Commis - and the City of South Bend, Indiana, shall be limited consummate such proceedings and issue such Bonds, and Commission, and the City of South Bend, Indiana, their any liability if for any reason the proposed issuance