Authorizing City to issue Variable Rate Demand Economic Development Revenue Bonds

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Section 1. It is hereby found that the financing of the economic development facilities referred to in the Loan Agreement approved by the South Bend Economic Development Commission and presented to this Common Council, the issuance and sale of the City of South Bend, Indiana Variable Rate Demand Economic Development Revenue Bonds (Colbert Packaging Corporation Project), Series 2000 (the "Bonds"), the loan of the proceeds of the Bonds to Colbert Packaging Associates, LLC (the "Borrower") for the acquisition, construction and equipping of such facilities, the payment of the Bonds by the note payments of the Borrower under the Loan Agreement and Promissory Note, the issuance of a letter of credit to secure the payment of interest on or principal of the Bonds, and the securing of such Bonds under the Trust Indenture complies with the purposes and provisions of I.C. 36-7-11.9 and 12 and will be of benefit to the health and welfare of the City of South Bend and its citizens. Section 2. The economic development facilities will consist of the acquisition, construction and equipping of a manufacturing facility to be leased to Colbert Packaging Corporation, an Indiana corporation, to be used in the manufacturing of set-up boxes and Valentine heart-shaped boxes, located at 3620 West McGill Street, South Bend, Indiana (the "Project") Section 3. At the public hearing held before the South Bend Economic Development Commission, the Commission considered whether the economic development facilities would have an adverse competitive effect on any similar facilities located in or near South Bend, and subsequently found, based on special findings of fact set forth in the Resolution transmitted hereto, that the facilities would not have an adverse competitive effect. This Common Council hereby confirms the findings set forth in the Commission's Resolution, and concludes that the economic development facilities will not have an adverse competitive effect on any other similar facilities in 650745.3 - 2 -