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REGULAR MEETING
<br />MAY 9, 1983
<br />11.SS
<br />WHEREAS, the issuance of such tax - exempt notes will contribute substantially to
<br />the revitalization of the Project, together with the preservation of job opportunities
<br />and industrial diversification in the City, resulting in a benefit to the welfare of
<br />the City; and
<br />WHEREAS, in relation to the issuance of the Series A bonds, the Commission and
<br />the Common Council of the City (the "Council ") found that a need existed in the City
<br />for the Project and the jobs which it would create; and
<br />WHEREAS, the Commission has heretofore investigated, studied, surveyed and reported
<br />to the Mayor and the Common Council, that a need exists in the community for the
<br />preservation of existing jobs within the City, and to achieve that goal the Construction
<br />Indebtedness should be refinanced; and
<br />WHEREAS, to induce Brethren Care to refinance the Construction Indebtedness, the
<br />Commission on May 9, 1983 approved the application of Brethren Care for the issuance
<br />of up to Seven Million Eight Hundred Thousand Dollars of Economic Development Revenue
<br />Bonds and also passed an Inducement Resolution relating thereto; and
<br />WHEREAS, to induce Brethren Care to refinance the Construction Indebtedness and
<br />thereby contribute to the revitalization of the Project and the preservation of jobs,
<br />the Council desires to adopt this resoltuion;
<br />NOW, THEREFORE, BE IT RESOLVED, that in order to encourage, induce and solicit
<br />the application by Brethren Care for an amount not exceeding Seven Million Eight
<br />Hundred Thousand Dollars of Economic Development Revenue Bonds to be issued by the
<br />City of South Bend, Indiana, for the refinancing of the Construction Indebtedness
<br />relating to the Project in South Bend, Indiana, the City of South Bend shall proceed
<br />to cooperate with and take any action as may be necessary in drafting of documents or
<br />the performance of such other acts as will facilitate the issuance of such Economic
<br />Development Revenue Bonds by the City of South Bend, Indiana, to provide funds to be
<br />used for the refinancing of the Consturction Indebtedness; and
<br />BE IT FURTHER RESOLVED that any expenses incurred in °connection with said proceedings
<br />shall be included in the Project cost and reimbursed from the proceeds of said notes.
<br />BE IT FURTHER RESOLVED that the liability and obligations of the Commission and
<br />the city shall be limited solely to the good faith efforts to consumate said proceeds
<br />and issue the notes, and neither the Commission, the City, its officers or agents
<br />shall incur any liability whatsoever if, for any reason, the proposed issuance of the
<br />notes is riot consumated.
<br />This Inducement Resolution shall be in full force and effect from and after its
<br />adoption by the Common Council.
<br />/s/ Beverlie J. Beck
<br />Member of the Common Council
<br />A public hearing was held on the resolution at this time. Kenneth Fedder, attorney
<br />for the Economic Development Commission, indicated the purpose of this bond is to
<br />refinance a portion of the construction indebtedness incurred when Brethren Care
<br />constructed a residential retirement facility. He indicated that due to the downturn
<br />in the economy and the depressed state of the local real estate market, occupancy
<br />levels at St. Paul's have been far lower than expected. He indicated this proposed
<br />financing appears to be the only present viable alternative.for curing the project's
<br />financial problems. Council Member Szymkowiak made a motion to adopt this resolution,
<br />seconded by Council Member Taylor. The resolution was adopted by a roll call vote of
<br />nine ayes.
<br />RESOLUTION NO. 1049 -83 AN INDUCEMENT RESOLUTION OF THE CITY OF SOUTH BEND, IDNIANA,
<br />RELATING TO: ST. JOSPEH STATION, II, AN INDIANA LIMITED
<br />PARTNERSHIP PROJECT.
<br />WHEREAS, at the present time there are insufficient employment opportunities and
<br />insufficient diversification of business, commerce and industry in and near the City
<br />of South Bend, Indiana (the "City ")); and
<br />WHEREAS, the economic welfare of the City would be benefited by the acquisition
<br />of economic development facilities in the corporate limits of the City pursuant to
<br />the provisions of Indiana Code 18 -6 -4.5 (the "Act "); and
<br />WHEREAS, St. Joseph Station, II, an Indiana limited - partnership ( "St. Joseph
<br />Station ") proposes to acquire economic development facilities in South Bend, Indiana
<br />as defined in the Act if the City will finance costs of such economic development
<br />facilities pursuant to the Act; and
<br />WHEREAS, the South Bend Economic Development Commission has received an application
<br />by St. Joseph Station for the issuance of City of South Bend Economic Development
<br />Bonds in the approximate principal amount of Four Million Five Hundred Thousand and
<br />no /100 Dollars ($4,500,000.00) with the terms of repayment to be determined by the
<br />market rates at the time the bonds are sold and the proceeds of the bonds will be
<br />used to make certain improvements to real estate at 300 North Michigan Street, South
<br />Bend, Indiana, for use as an office building with limited retail space resulting in
<br />approximately 100 new jobs by the tenants of the facility with an annual payroll of
<br />approximately Nine Hundred Thousand and no /100 Dollars ($900,000.00).
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