12-08-80 Council Meeting Minutes

Home Browse Search

rfilrA Council Member Serge made a motion that the minutes of the November 24, 1980 meeting of the Council be accepted and placed on file, seconded by Council Member Dombrowski. Motion carriE SPECIAL BUSINESS Council President McGann welcomed the Adult Government Class from Central. RESOLUTION NO. 840 -80 INDUCEMENT RESOLUTION OF THE COMMON COUNCIL OF SOUTH BEND, INDIANA, RELATING TO THE LOCK JOINT TUBE COMPANY, INC. PROJECT. WHEREAS, there are insufficient employment opportunities and insufficient diversifit- WHEREAS, tion of business, commerce and industry in the City of South Bend, Indiana and The economic welfare of the City of South Bend, Indiana, would be benefitec and additional job opportunities and commercial diversification would result within the City of South Bend, Indiana, by the approval of a financing agreement which would be effected with Lock Joint Tube Company, Inc. relating to a project to be known as the "Lock Joint Tube Company, Inc. Project" and WHEREAS, said Lock Joint Tube Company, Inc. desires to.acquire or have acquired for its use a tube mill and related equipment for use in the manufacturing of welded carbon steel tubing at its existing plant located at 1400 Riverside Drive, South Bend, Indiana 46616, which tube mill and related equipment will constitute economic development facilities; and WHEREAS, the South Bend Economic Development Commission has heretofore received, investigated, studied, and approved an application of Lock Joint Tube Company, Inc., and Indiana corporation, relating to such Lock Joint Tube Company, Inc. Project in order that Industrial Development Bonds may be issued to acquire such economic development facilities in an amount not exceeding Eight Hundred Thousand Dollars ($800,000.00) payable with inter- est thereon at a rate which is seventy five percent (75 %) of the prime rate recognized by First Bank and Trust Company of South Bend, South- B.end, Indiana, adjusted on a quarter annual basis with the principal and interest on such Bonds being paid on a quarter annual basis over a period of eight `(8)' years after the issuance thereof. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: 1. That the acquisition of the tube mill and related equipment relating to such Lo Joint Tube Company, Inc. Project constitutes economic development facilities which sould be financed by the City of South Bend, Indiana, through the issuance of Industrial Development Bonds pursuant to the provisions of IC 18- 6 -4.5 -1 through IC 18- 6.4.5 -30, hereinafter referred to as the "Act ", which Bonds will not be general obligation Bonds of the City of South Bend, Indiana, but will be payable solely from the sources authorized and permitted by the Act. 2. That it is hereby determined that the issuance of such Industrial Development Bcnds to pay :a portion of the costs for the acquisition of the tube mill and related equipment relating to such Lock Joint Tube Company, Inc.;Project is determined to be in the best int- erests of the City of South Bend, Indiana, and the Common Council of .South Bend, Indiana hereby declares its intention to issue such Industrial Development- Bonds and hereby approv the application relating to such Lock Joint Tube Company, Inc. Project. 3. That it is hereby determined that the economic.development facilities relating to such Lock Joint Tube Company, Inc. Project will be of benefit to the economic welfare of the City of South Bend, Indiana, and will comply with the purposes and provisions of the Act. 4. That the South Bend Economic Development Commission be .and it hereby is authorized and directed to pursue the completion of such Lock Joint Tube Company, Inc. Project as referred to in said application of Lock Joint Tube Company, Inc. and as approved by this Inducement Resolution. 5. That the liability and.obligation of the City of South Bend, Indiana, shall be limited solely to the good faith efforts to consummate such Lock Joint Tube Company, Inc. Project, and the issuance of such bonds and neither the City of South Bend, Indiana, nor its officers or agents, shall incur any personal liability by virtue of the issuance of any such Bonds. /s/ Lewis A. McGann Member of the Common Council Council Member Taylor made a motion to suspend the rules and have public hearing on this resolution, seconded by Council Member Beck. The motion carried on a roll call vote of nine ayes. Mr. Kenneth Fedder, attorney for the Economic Development Commission, he said the Commission had accepted a preliminary application from this company, for the $800,000.00 project for the purchase of equipment to be used in the production of tubing. He indicated that because of a time crisis this application was not on the Council's agenda. Council Member Serge made a motion to adopt this resolution, seconded by Council Member Dombrowski. The resolution was adopted by a roll call vote of nine ayes. Council Member Taylor made a motion to resolve into the Committee of the Whole seconded by Council Member Dombrowksi. The motion carried. BILL NO. 101 -80 A BILL AMENDING ORDINANCE NO. 4990 -68, AS AMENDED, COMMONLY KNOWN AS THE ZONING ORDINANCE OF THE CITY OF SOUTH BEND, INDIANA (CHAPTER 21, MUNICIPAL CODE) (CLEVELAND AND MAPLE)