Approving Industrial Development Revenue Bonds MMOB LTD

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ORDINANCE NO. ? AN ORDINANCE APPROVING THE FORM AND TERMS OF LEASE AND TRUST INDENTURE AND INDUSTRIAL DEVELOPMENT REVENUE BONDS, AND AUTHORIZING THE EXECUTION THEREOF PERTAINING TO MMOB, LTD. STATEMENT OF PURPOSE OF INTENT: The City of South Bend, Indiana, (.hereinafter called the "City ") by virtue of Indiana Code 18- 6 -4.5, as amended (the "Act "), is authorized and empowered to make direct loans to "developers" or "users" for the acquisition and construction of "economic development facilities" as those words are 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 for payment of costs of acquisition or construction of such economic development facilities, including engineering, legal fees and all other expenses related thereto during construction, including the costs of issuing the bonds and to secure said bonds pursuant to a trust indenture by the pledge of one or more notes of the developer or user; and MMOB, LTD. (the "Partnership ") is a limited partnership organized pursuant to the Indiana Uniform Limited Partnership Act having as its general partners Ray H. Riddle of Oklahoma City, Oklahoma, Robert R. Nelson, M.D. of South Bend, Indiana, and Traub & Company Equities, Inc. an Indiana Corporation; and the Partnership has agreed to acquire and construct a medical office building on a parcel of land in the City adjacent to and leased from Memorial Hospital of South Bend and thereby create new employment opportunities and provide diversification of business commerce and industry in and near the City, and make payments on the note or notes evidencing its loan obligations in an amount or amounts sufficient to pay the principal of and interest and premium, if any, on the economic development revenue bonds hereinafter authorized; and the South Bend Economic Development Commission (the "Commission ")., functioning and operating under the Act, has found by written resolution that because of insufficient employment opportunities and insufficient diversification of business, commerce and industry, the economic welfare of the City would be benefited by financing the acquisition and construction of economic development facilities for the Partnership; and the Commission has by such resolution approved a report estimating the public services which would be made necessary or desirable, the expense thereof, the number of jobs, the estimated payroll on account of the acquisition and construction of the economic development facilities and the cost of the economic development facilities and has submitted such report to the plan commission having jurisdiction over such facilities; and after giving notice in accordance with the Act, the Commission held a public hearing on the proposed financing and adopted a resolution finding the proposed financing benefits the economic welfare of the City and complies with the purposes and provisions of the Act and approving the financing and the proposed form and terms of the economic development revenue bonds, loan agreement and indenture of trust, which resolution and other instruments and information pertaining to the proposed financing have been transmitted to the Common Council of the City by the Commission; NOW, THEREFORE, BE IT ORDIANED by the Common Council of the City of South Bend, Indiana, that: Section 1. Public Benefits. The Common Council of the City hereby finds and determines that the medical office building (the "Project ") as described in Exhibit A to the Loan Agreement dated as of June 1, 1978 (the "Loan Agreement ") between the City and the Company to be acquired and constructed with the proceeds of $2,500,000.00 principal amount Economic Development Revenue Bonds, Series A (MMOB, LTD. PROJECT) (the