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HomeMy WebLinkAboutInducement Resolution of the Common Council of South Bend relating to the Lock Joint Tube Company, Inc. ProjectRESOLUTION `• �Q Passed by the Common Council of the City of South Bend, Indiana. December 8 Attest: Clerk Of Common Council Presented by me to the Mayor of the City of South Bend, Indiana r- .:. Approved and signed by me ks� (A ig--�SD— City Clerk Resolution No. 840 -80 INDUCEMENT RESOLUTION OF THE COMMON COUNCIL OF SOUTH BEND, INDIANA, RELATING TO THE LOCK JOINT TUBE COMPANY, INC. PROJECT WHEREAS, there are insufficient employment opportunities and insufficient diversification of business, commerce and indus- try in the City of South Bend, Indiana; and WHEREAS, the economic welfare of the City of South Bend, Indiana, would be benefited and additional job opportunities and commercial diversification would result within the City of South Bend, Indiana, by the approval of a financing agreement which should be effected with Lock Joint Tube Company, Inc. relating to a project to be known as the "Lock Joint Tube Company, Inc. Pro- ject"; and WHEREAS, said Lock Joint Tube Company, Inc. desires to acquire or have acquired for its use a tube mill and related equipment for use in the manufacturing of welded carbon steel tubing at its existing plant located at 1400 Riverside Drive, South Bend, Indiana 46616, which tube mill and related equipment will constitute economic development facilities; and WHEREAS, the South Bend Economic Development Commission has heretofore received, investigated, studied, and approved an application of Lock Joint Tube Company, Inc., an Indiana corpora- tion, relating to such Lock Joint Tube Company, Inc. Project in order that Industrial Development Bonds may be issued to acquire such economic development facilities in an amount not exceeding Eight Hundred Thousand Dollars ($800,000.00) payable with interest thereon at a rate which is seventy five percent (755) of the prime rate recognized by First Bank and Trust Company of South Bend, South Bend, Indiana, adjusted on a quarter annual basis with the principal and interest on such Bonds being paid on a quarter annual basis over a period of eight (8) years after the issuance thereof. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: 1. That the acquisition of the tube mill and related equipment relating to such Lock Joint Tube Company, Inc. Project constitutes economic development facilities which should be financed by the City of South Bend, Indiana, through the issuance of Industrial Development Bonds pursuant to the provisions of IC 18- 6 -4.5 -1 through IC 18- 6- 4.5 -30, hereinafter referred to as the "Act ", which Bonds will not be general obligation Bonds of the City of South Bend, Indiana, but will be payable solely from the sources authorized and permitted by the Act. 2. That it is hereby determined that the issuance of such Industrial Development Bonds to pay a portion of the costs for the acquisition of the tube mill and related equipment rela- ting to such Lock Joint Tube Company, Inc. Project is determined to be in the best interests of the City of South Bend, Indiana, and the Common Council of South Bend, Indiana hereby declares its intention to issue such Industrial Development Bonds and hereby approves the application relating to such Lock Joint Tube Company, Inc. Project. 3. That it is hereby determined that the economic development facilities relating to such Lock Joint Tube Company, Inc. Project will be of benefit to the economic welfare of the City of South Bend, Indiana, and will comply with the purposes and provisions of the Act. 4. That the South Bend Economic Development Commission be and it hereby is authorized and directed to pursue the comple- tion of such Lock Joint Tube Company, Inc. Project as referred to in said application of Lock Joint Tube Company, Inc. and as approved by this Inducement Resolution. 5. That the liability and obligation of the City of South Bend, Indiana, shall be limited solely to the good faith efforts to consummate such Lock Joint Tube Company, Inc. Project, and the issuance of such bonds and neither the City of South Bend, Indiana, nor its officers or agents, shall incur any per- sonal liability by virtue of the suanc of any uch ds. FILED E�� CiE�'S OFFO , r -�' �° Membe f Common Coun PRESENTED DEC LI 1980 `T APPROVE@ :PTEO ��' Irene Gammon CITY CLERK, SOU11i BEND, IND.