Inducement Resolution for Issuance of $7.8 Million South Bend Economic Development Revenue Bonds for Brethren Care of South Bend, Inc. Project

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oerner ATTORNEYS AT LAW Mintz1400 St.Joseph Bank Building South Bend,Indiana 46601 Charles Roemer 1 1 in z [219)234-1234 Richard L Mintz May 6, 1983 - Mrs. Irene K. Gammon City Clerk County-City Building South Bend, Indiana Re: The Inducement Resolution Economic Development Bond Issue Brethren Care of South Bend, Inc. Dear Mrs. Gammon: Enclosed is a proposed inducement resolution by which the Common Council induces Brethren Care of South Bend, Inc. to submit an application for the issuance of up to 7.8 million dollars of economic development reve- nue bonds. The purpose of this bond is to refinance a portion of the construction indebtedness incurred when Brethren Care of South Bend, Inc. constructed a residential retirement facility in South Bend, Indiana. The retirement facility, known as St. Paul's Retirement Community, pre- sently employs approximately 85 persons with an approximate annual pay- roll of $715,000 in addition to normal fringe benefits. Due to the downturn in the economy and the depressed state of the local real estate market, occupancy levels at St. Paul's have been far lower than expected. As a result, St. Paul's is in default in its obligation to repay the $8,000,000 of economic development revenue bonds previously issued by the city as well as bank loans and other debt incurred in the construc- tion of the facility. The proposed financing appears to be the only present viable alternative for curing the project's financial problem and assuring the preservation of the existing jobs. Enclosed is a copy of our proposed inducement resolution as well as nine copies of this letter for the council members. Thank you very much for your cooperation in this matter. Sincerely, WI/9 Richard L. Mintz RLM/fn