Approval of the Issuance of Bonds Providing Certain Economic Development Facilities - Kite Capital, LLC Erskine Village Project

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WHEREAS, it is estimated that the Project will result in the creation or retention of approximately one hundred and fifty (150) permanent jobs with an estimated total annual payroll of $2,500,000; and WHEREAS, the Commission has rendered a report concerning the proposed financing of economic development facilities for the Company which report incorporates findings of fact by the Commission regarding the competitive effect of the Project on similar facilities already constructed or operating in the City; and WHEREAS, the Commission has given its approval to such financing of the Project; and WHEREAS, the issuance and sale of said revenue bonds will not reduce the legal bonding capacity of the City; and WHEREAS, the expenses incurred by the City in connection with the issuance and sale of said revenue bonds shall be paid from proceeds of the bonds; and WHEREAS, the principal of and interest on said bonds are payable solely from the Tax Increment and the failure of the City to pay such principal and interest due to the insufficiency of the Tax Increment will not constitute an act of default by the City with respect to the bonds; and WHEREAS, the issuance of said bonds shall not obligate the full faith and credit for the taxing power of the City; WHEREAS, subject to required approvals, it appears that the financing of the Project would be a public benefit to the health, prosperity, economic stability and general welfare of the City and its inhabitants; NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of South Bend, Indiana, as follows: I. The Common Council finds, determines, ratifies and confirms that the creation and retention of opportunities for gainful employment and the creation of business opportunities to be achieved by the Project in the City will be of benefit to the health and general welfare of the citizens of the City; and that it is in the public interest that this Common Council take such action as it lawfully may to encourage diversification of industry and promotion of job opportunities in and near said City. II. The Common Council further finds, determines, ratifies and confirms that the issuance and sale of economic development revenue bonds of the City under the Act in an approximate amount of $6,000,000 for the Project and the loan of the proceeds of the revenue bonds to the Company will serve the public purposes referred to above, in accordance with the Act. III. In order to induce the Company to proceed with the Project and subject to all approvals required pursuant to Act, the Common Council hereby finds, determines, ratifies and confirms that: -2- SBIMANI 156691A