HomeMy WebLinkAboutInducement Resolution relating to Universal Companies, Inc. ProjectRESOLUTION
NO. 831 -80
Passed by the Common Council of the City of South Bend, Indiana
October 27, 19 80
Attest: ��`�"`2
/'—
City Clerk
[/i
of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
October 28, 1980
l�
Approved and signed by me - r 19 86
jj
Clerk
RESOLUTION NO. 831 -80
INDUCEMENT RESOLUTION
OF
THE CITY OF SOUTH BEND, INDIANA
Relating to: Universal Companies, Inc. Project
WHEREAS, at the present time there are insufficient em-
ployment opportunities and insufficient diversification of business,
commerce and industry in and near the City of South Bend, Indiana
(the "City "); and
WHEREAS, the economic welfare of the City would be
benefited by the acquisition and construction of economic devel-
opment facilities in St. Joseph County pursuant to the provisions
of Indiana Code 18- 6 -4.5 (the "Act "); and
WHEREAS, Universal Companies, Inc., a Michigan corpo-
ration ( "Universal ") proposes to acquire and construct economic
development facilities in St. Joseph County as defined in the
Act if the City will finance costs of such economic development
facilities pursuant to the Act; and
WHEREAS, the South Bend Economic Development Commission
has received an application by Universal for the issuance of City
of South Bend Economic Development Bonds in an amount not to ex-
ceed Three Hundred Fifty Thousand and no /100 Dollars ($350,000.00)
repayable with interest thereon to be calculated quarterly at an
interest rate of seventy -five percent (75 %) of local prime rate
over a period not to exceed fifteen (15) years in order to pur-
chase equipment and construct a manufacturing building to be
leased to Universal Forest Products, Inc., a Michigan corporation,
for lumber treating and processing resulting in an increase of
approximately ten (10) to fifteen (15) additional employees by
the principal user with an increased annual payroll of between
Eighty -five Thousand Dollars ($85,000.00) to One Hundred Twenty
Thousand Dollars ($120,000.00) per year.
NOW, THEREFORE, the Common Council of the City of
South Bend, Indiana resolves as follows:
1. The project constitutes economic development fa-
cilities which shall be financed by the City through the issuance
of revenue bonds pursuant to the Act and the City is willing,
upon compliance with all provisions of Indiana law, to authorize
approximately Three Hundred Fifty Thousand and no /100 Dollars
($350,000.00) of its revenue bonds, which bonds will not be
general obligations of the City but will be payable solely from
the limited sources authorized and permitted by the Act.
2. The proposed financing will be of benefit to the
economic welfare of the City and will comply with the purposes
and provisions of the Act.
3. Universal may proceed with acquisition and con-
struction of the economic development facilities in reliance
upon this resolution.
4. That the liability and obligation of the South
Bend Economic Development Commission, the South Bend Common
Council, the City of South Bend, Indiana, the St. Joseph County
Council and St. Joseph County shall be limited solely to the
good faith efforts to consummate such proceedings and issue
such Bonds, and the South Bend Economic Development Commission,
the City of South Bend, Indiana and St. Joseph County, their
officers or agents, shall not incur any liability if for any
reason the proposed issuance of such Bonds is not consummated.
This Inducement Resolution shall be in full force and
effect from and after its adoption by the Common Council and
approval by the Mayor.
�v
Member of the Common Council
PRESENTED /0—J;)-S0
NOT APPROVED
ADOPTED
-2-
F g €s "i l rib
Irene Gammon
CITY CLERK, SOUTH BEND, IND.