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HomeMy WebLinkAboutInductement Resolution Goodwill Industries of Michiana, Inc. Project 1805 Western Ave & 1904-1906 Ireland Rd.Attest: RESOLUTION 2961 -01 Passed by the Common Council of the City of South Bend, Indiana January 8, 01 20_. Presented by me to the Mayor of the City of South Bend, Indiana January 9, 2 01 0 City Clerk President of Common Council Approved and signed by me January 9, 20 01 City Clerk RESOLUTION NO. Z 1 � 1 O \ INDUCEMENT RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA (GOODWILL INDUSTRIES OF MICHIANA, INC., PROJECT) (1805 WESTERN AVENUE AND 1904 -1906 IRELAND ROAD) A RESOLUTION approving the findings ofthe South Bend Economic Development Commission with respect to the issuance of revenue bonds in the approximate amount of Two Million and 00 /100 Dollars ($2,000,000.00) for the financing of certain economic development facilities to be undertaken by Goodwill Industries of Michiana, Inc., and authorizing and committing the City of South Bend, Indiana, to proceed with such prof ect, subj ect to final action by this Common Council with respect to the terms and conditions of such financing. WHEREAS, the City of South Bend, Indiana (the "City "), is authorized by IC 36 -7 -11.9 and IC 36 -7 -12 (the "Act ") to issue revenue bonds for the purpose of financing the acquisition, installation, construction and equipping of economic development facilities; and WHEREAS, the City has been advised that there is under consideration a proposal of Goodwill Industries of Michiana, Inc. (the "Company "), to (i) construct an approximately forty thousand (40,000) square foot production and industrial services facility to be located on Western Avenue adjacent to the current Goodwill headquarters and processing plant at 1805 Western Avenue in the City; and (ii) construct an approximately eleven thousand (11,000) square foot new retail store to be located on Ireland Road near Ironwood Road at 1904 -1906 Ireland Road in the City (collectively, the "Project "); and WHEREAS, the Company has proposed that the City issue its revenue bonds under the Act to finance the Project under a financing agreement whereby the proceeds of such bonds ::ODMA\PCDOCS\SBDOCS 1\805 1 0\2 would be utilized to construct the Project and the Company would make payments sufficient to pay the principal of, premium, if any, and interest on such bonds; and the Company has further advised the City that a determination by the City to accept such a proposal for financing the Project will constitute a substantial inducement to the Company to proceed with the Project; and WHEREAS, the Company has submitted evidence regarding the adverse competitive effect of the Project on similar facilities already constructed or operating in the City; and WHEREAS, it is estimated that the Project will result in approximately fifty (50) permanent jobs with an estimated total annual payroll, including benefits, of $800,000; and WHEREAS, the South Bend Economic Development Commission (the "Commission ") has rendered a report concerning the proposed financing of economic development facilities for the Company and a certain other project which is not proceeding at this time, which report incorporates findings of fact ofthe Commission regarding the competitive effect ofthe Project on similar facilities already constructed or operating in the City; and and WHEREAS, the Commission has given its approval to such financing of the Project; WHEREAS, the issuance and sale of the revenue bonds will not reduce the legal bonding capacity of the City; and WHEREAS, the City is to bear no expense in connection with the issuance and sale of said revenue bonds and all expenses in connection thereto which are incurred by the City shall be reimbursed to the City by the Company; and ::ODMA\PCDOCS \SBDOCSI \80510\2 -2- WHEREAS, the principal and interest payable on said bonds are payable solely from the payments made by the Company to the City pursuant to a loan agreement, and are not payable from funds raised by taxation by the City; and WHEREAS, the issuance of said bonds shall not obligate the full faith and credit for the taxing power of the City; and WHEREAS, subject to required approvals, it appears that the financing of the Project will be of 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: Section 1. This Common Council hereby finds, determines, ratifies and confirms that the Project is desirable to better the health, prosperity, economic stability and general welfare of the City and its inhabitants, that the Project complies with the purposes and provisions of the Act, and that it is in the best interest of the City that it take such action as it lawfully may to encourage the Company to construct the Project. Section 2. This Common Council hereby further finds, determines, ratifies and confirms that the issuance and sale of revenue bonds of the City under the Act, and the use of the net proceeds derived therefrom to finance the construction of the Project, will enable the Project to be constructed and thereby serve the public purposes referred to above in accordance with the Act. Section 3. In order to induce the Company to proceed with the construction of the Project, this Common Council hereby undertakes that: ::ODMATCDOCS\SBDOCS 1\805 1 0\2 -3- (i) It will authorize and issue one or more series of revenue bonds of the City pursuant to the Act, in the approximate aggregate principal amount of Two Million and 00 /100 Dollars ($2,000,000.00), to finance the costs of the Project, including reimbursement or repayment to the Company for planning, engineering, underwriting and attorney and bond counsel fees, and will enter into a financing agreement to lend the net proceeds of such bonds to the Company to enable the Project to be constructed and repay the loan in installments sufficient to pay the principal of, premium, if any, and interest on such bonds; (ii) It will adopt such ordinances and resolutions and authorize the execution and delivery of such instruments and the taking of such actions as may be necessary or advisable for the authorization, issuance and sale of such bonds; and (iii) It will take or cause to be taken such other actions as may be required to implement the aforesaid or as it may deem appropriate in pursuance thereof, provided that all of the foregoing shall be authorized by law and mutually acceptable to the City and the Company. Section 4. It is hereby recognized that the issuance and sale of revenue bonds by the City under the Act for the purposes set forth herein shall be subject to the City's obtaining such approvals as may be required under the Act. Section 5. To the extent permitted by the Act, such changes may be made in the Project as are deemed necessary or desirable, or as may be required in light of then existing regulations or technology, or both, provided that after such changes the Project will continue to w\z -4- constitute economic development facilities within the meaning of the Act and any other applicable laws or regulations. in the City. Section 6. The Project will contribute to the creation of permanent job opportunities Section 7. The evidence submitted by the Company regarding the adverse competitive impact of the Project on similar facilities already constructed or operating in the City, such evidence being embodied in the "Findings of Fact of South Bend Economic Development Commission Regarding Goodwill Industries of Michiana, Inc., as Applicant" attached to the Report of the South Bend Economic Development Commission, establishes that the Project will not have an adverse competitive impact on similar facilities already constructed or operating in the City. Section 8. This Resolution shall be in full force and effect immediately upon compliance with the procedures required by law. ::ODMA\PCDOCS\SBDOCSI \80510\2 'S" Adopted by the Common Council of the City of South Bend, Indiana, this '9* day of January, 2001. By: Y 1/" Member of the Common Councq () PRESENTED \-3-0\ NOT APPROVED ADOPTED t-K-Ok :ODMATCDOMSBDOCS 1\805 10\2 -6- [DECT2 6 2000