Laserfiche WebLink
In order to finance the costs associated with the Project, the City has previously <br />submitted an application (the "Application") in order to borrow the aggregate principal amount of <br />One Million Dollars ($1,000,000) (the "Loan") from the Industrial Development Loan Fund <br />administered by the Indiana Department of Commerce (the "IDLF") and proposes to issue revenue <br />bonds (the "Bonds") of the City to evidence the Loan. Pursuant to the terms of the agreement which <br />shall evidence the Loan (the "Loan Agreement"), the IDLF requires that the City execute and deliver <br />a mortgage granting to the IDLF a security interest in the Property (the "Mortgage"). This Common <br />Council has previously approved the submission of the Application for the Loan as well as the <br />pledge of certain revenues payable by Bosch to the repayment thereof. The Common Council desires <br />to modify such pledge in order to provide for the pledge of such revenues for the Prior Bonds (as <br />defined herein). <br />To repay the Loan, the City will use certain sums payable by Bosch to the City <br />pursuant to the terms of the Agreement (the "Bosch Funds"). In addition, the Redevelopment <br />Commission (the "Commission") has adopted a resolution agreeing to consider the use of available <br />tax increment revenues from the Airport Economic Development Area (the "TIF Revenues") to repay <br />the Loan in the event that the Bosch Funds are insufficient for such purpose. It is intended that the <br />City shall have no other obligation with respect to the payment of principal of or interest on the Loan <br />other than (i) the Bosch Funds or (ii) if Bosch fails to make such payments or if such funds are <br />insufficient to repay the Bonds, from the TIF Revenues. The Bonds which shall evidence the Loan <br />shall constitute a limited obligation of the City payable solely from the Bosch Funds. Neither the <br />full faith and credit nor the taxing power of the City is pledged to the payment of the principal of and <br />the interest on the Bonds. <br />::ODMA~MIiODMA~SBIMAN1;103506;3 '2' <br />