Authorizing Submission of application for loan by the Indiana development finance authority relating to Bosch

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1200 COUNTY-CITY BUILDING SOUTH BEND, INDIANA 46601-1830 PHONE 219/ 235-9371 FAx 219/235-9021 TDD 219/ 235-5567 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR COMMUNITY ~L ECONOMIC DEVELOPMENT JON R. HUNT EXECUTIVE DIRECTOR Ms. Charlotte Pfeifer President, South Bend Common Council 435 County-City Building South Bend, Indiana 46601 Re: An Ordinance of the Common Council of the City of South Bend, Indiana Authorizing the Submission of an Application for a Loan from the Environmental Remediation Revolving Loan Fund Administered by the Indiana Development Finance Authority Relating to the Robert Bosch Corporation Retention Project and to Loan the Proceeds Thereof to the Robert Bosch Corporation Dear Ms. Pfeifer: Attached for filing please find the above-referenced Ordinance for first reading by the Common Council at its January 8, 2001 meeting. This Ordinance authorizes the submission of an application for a loan from the Indiana Development Finance Authority ("IDFA") which administers the Environmental Remediation Revolving Loan Program (the "Program") and Environmental Remediation Loan Fund (the "Fund") for the assessment and remediation of "brownfield sites" located throughout Indiana. The Ordinance further approves the loan of the proceeds to Robert Bosch Corporation ("Bosch") in accordance with the ternls of the Agreement for the Use and Rehabilitation of Real Property (the "Agreement") previously entered into by and between the City and Bosch. Pursuant to the terms of the Agreement, the City has agreed to use its best efforts to borrow up to $1,300,000 from IDFA (the "Loan")through the Program and Bosch has agreed to repay the Loan in accordance with the repayment schedule set forth in the Agreement subject to certain forgiveness provisions set forth in the Agreement as permitted by the Program. The terms of the Program and the Fund require that the Loan be secured by the payments to be made by Bosch to the City pursuant to the Agreement. In addition, IDFA requires additional security for the Loan in the event that Bosch does not make repayments as provided in the Agreement. Accordingly, the Redevelopment Commission (the "Commission") has adopted a resolution pledging available tax increment revenues (the "TIF Revenues") from the Airport Economic Development Area to the repayment of the Loan in the unlikely event that Bosch defaults on its repayment obligations under the Agreement. The City shall have no obligation with respect to the payment of principal of or interest on the Loan other than the payment to be made by Bosch under the Agreement or, if Bosch fails to make such payments, from the TIF Revenues: COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL LIL PROGRAM PAMELA C. MFYER DONALD E. INKS MANAGEb1ENT 219/235-9660 2191235-9371 ELIZABETH LEONARD FAX: 2191235-0607 219/235-9371