06-23-80 Council Meeting Minutes

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REGULAR MEETING JUNE 23, 1980 REGULAR MEETING RECONVENED (CONTINUED RESOLUTION NO. 786 -80 AN INDUCEMENT RESOLUTION RELATING TO THE CHATEAU BENDIX PROJECT. WHEREAS, pursuant to I.C. 18- 6 -4.5 -1 et seq. (the "Act "), the Common Council of the City of South Bend, Indiana created the South Bend Economic Development Commission, which Commission, following an investigation and survey, has determined that a need exists in the community for additional residential opportunities for elderly persons and commercial diversification. That in order to improve and promote development of sites for residential use, commercial diversifica- tion, and the general welfare of the community, a financing agreement should be entered into with Cheaeau Bendix, a limited partnership (the "Partnership "), relating to an Economic Develop- ment Facility, as that term is defined in the Act, to be known as the "Chateau Bendix P oject;" and WHEREAS, the Partnership will engage in the business of developing, owning and operating multi - family residential facilities and the Partnership desires to develop, rehabilitate and equip multi - family residential facilities for elderly persons with the result that it will increase residential opportunities for such persons; and WHEREAS, the Partnership proposes to acquire a parcel of real estate and the building or buildings located thereon known as the Bendix Estate located in South Bend, Indiana, an to develop rehabilitate and equip said building or buildings consisting of a housing project for elderly persons consisting of approximately 70 to 74 units; and WHEREAS, to induce the Partnership to develop, rehabilitate and equip such Economic Development Facility, the Common Council of the City of South Bend desires to adopt this resolu- tion; and WHEREAS, it is apparent that the development of the Chateau Bendix Project will increase residential and commercial diversification in South Bend, Indiana, resulting in benefit to the welfare of the City of South Bend, Indiana. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend as follows: Section 1. That approval is hereby given to the application of the Partnership relating to the acquisition of such real estate and the development, rehabilitation and equipping of the Chateau Bendix housing project for elderly persons thereof, wherein First Mortgage Housing Revenue Bonds would be issued by the City of South Bend, Indiana, for an amount not exceeding Three Million Dollars ($3,000,000) repayable with interest thereon over a period of time and with a maturity date which does not extend beyond thirty (30) years after the issue dat for purposes of financing the Chateau Bendix housing project. Section 2. In order to encourage, induce and solicit such application by the Partnership for such First Mortgage Housing Revenue Bond issue relating to the acquisition, development and construction of such Ecnomic Development Facility, the Common Council of the City of South Bend shall proceed to cooperate with and take such action as may be necessary in the drafting of documents or the performance of such other acts as. will facilitate the issuance of such First Mortgage Housing Revenue Bonds by the City of South Bend, Indiana, to provide funds to t I e used toward the payment of the costs of acquiring such real estate and the development and rEhabilit tion of such Economic Development Facility. Section 3. Any costs or expenses incurred in connection with the Chateau Bendix P oject shall be included in the Project costs and reimbursed from the proceeds of the First Mo tgage Housing Revenue Bonds to be issued with respect thereto. Section 4. The liability and obligation of the Common Council of the City of South Bend, Indiana, shall be limited solely to good faith efforts to consummate such proceedings and issue such Bonds, and neither the Common Council of theCity of South Bend nor the City of South Bend, Indiana, or their officers or agents, shall incur any liability whatsoever if for any reason the proposed issuance of such bonds is not consummated. Section 5. This resolution shall be in full force and effect from and after its passage by the Common Council of the City of South Bend and approved by the Mayor. This resolution adopted by the Common Council of the City of South Bend, Indiana, 23 day of June, 1980. Lewis A. McGann Member of the Common Counci A public hearing was held on the resolution at this time. Mr. Ken Fedder, attorney for Economic Development Commission, indicated that the Commission passed their inducement I tion on June 6, 1980. Mr. Joe Phair, a representative of the project, indicated this pi would cost four million. He described the complex and what it would offer. He estimatE would hire between 55 -60 full and part -time employees. He said this property was zoned properly at the present time fortheuse they contemplated. He read the following letter record: Mr. John Phair The Holladay Corporation 3043 North Norway Maple South Bend, Indiana 46628 Dear Mr. Phair: This letter is in response to your request for a letter from me concerning the zoning classification of the Bendix Estate property. his the esolu- oject d they into the