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Home My WebLink AboutInducement Resolution of the South Bend Common Council relating to the issuance of economic development revenue bonds to William G. York and Gloria J. YorkRESOLUTION NO. 829 -80 Passed by the Common Council of the City of South Bend, Indiana October 27, Presented by me to the Mayor of the City of South Bend, Approved and signed by October 28 -�- r City Clerk Of Common Council 9-L-- €d City Clerk RESOLUTION NO. 829 -89 INDUCEMENT RESOLUTION OF THE SOUTH BEND COMMON COUNCIL RELATING TO THE ISSUANCE OF ECONOMIC DEVELOPMENT REVENUE BONDS TO WILLIAM G. YORK AND GLORIA J. YORK IN ORDER TO FINANCE THE PURCHASE OF LAND WITH AN EXISTING BUILDING THEREON, RENOVATION OF THE BUILDING AND PURCHASE OF NEW EQUIPMENT FOR LEASE TO THE ABSTRACT AND TITLE CORPORATION OF SOUTH BEND TO EXPAND THEIR PRESENT FACILITIES FOR USE IN ABSTRACTING AND PREPARATION OF TITLE INSURANCE WHEREAS, the South Bend Economic Development Commission investigated, studied, surveyed and reported to the Mayor and the Common Council of the City of South Bend, Indiana, that a need exists in the community for additional job opportunities and commercial diversification within the City of South Bend, Indiana; and to improve and promote job opportunities and commercial diver- sification within the City of South Bend, Indiana, a financing agreement should be effected with William G. York and Gloria J. York; and WHEREAS, William G. York and Gloria J. York desire to purchase land located at 305 West Jefferson, South Bend, Indiana, renovate the existing building thereon and purchase new equipment; and WHEREAS, to induce William G. York and Gloria J. York to construct such eco- nomic development facilities, the South Bend Economic Development Commission on Oct. 3, 1980,approved the application of William G. York and Gloria J. York for the issuance of up to One hundred seventy thousand Dollars ($170,000 ) of Economic Development Revenue Bonds payable with interest thereon at the market rate as of the date of final approval of the bonds and also adopted an Inducement Resolution relating to that bond issue; and WHEREAS, it is apparent that William G. York and Gloria J. York will pre- serve jobs and increase job opportunities and commercial diversification in South Bend, Indiana, resulting in a benefit to the welfare of the public in the City of South Bend, Indiana, and St. Joseph County, Indiana. NOW, THEREFORE, BE IT RESOLVED, that in order to encourage, induce and soli- cit the application by William G. York and Gloria J. York for an amount not exceeding One hundred seventy thousand Dollars ($170,000 ) of Economic Development Revenue Bonds to be issued by the City of South Bend, Indiana, repayable with interest thereon at the market rate as of the date of final approval of the bonds over a period of fifteen (15) years after the issue date for the construction of such economic development facilities, the City of South Bend shall proceed to cooperate with and take any action as may be necessary in drafting of documents or the performance of such other acts as will facilitate the issuance of such Economic Development Revenue Bonds by the City of South Bend, Indiana, to provide funds to be used toward the payment of the costs for the acquisition and construction of such economic development facilities; and BE IT FURTHER RESOLVED, that any costs or expenses incurred in connection with the William G. York and Gloria J. York Project shall be included in the project costs and reimbursed from the proceeds of the Economic Development Revenue Bonds to be issued with respect thereto; and BE IT FURTHER RESOLVED, that the liability and obligation of the South Bend Economic Development Commission and the City of South Bend, Indiana, shall be limited solely to the good faith efforts to consummate such proceedings and issue such Bonds, and neither the South Bend Economic Development Commission nor the City of South Bend, Indiana, or its officers or agents, shall 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. PRESENTED -" 0 cV % —,f 0 NOT APPROVED ADOPTED / /9 a) -o?) Member of the Common Council F I I E9 III CI -E]I'S 0 F F I C E 0C T 1980 Irene Gammon CITY CLERK, SOUTH BEND, IND. ATTORNEYS AT LAW ROEMER AND MINTZ CHARLES ROEMER 1400 ST. JOSEPH BANK BUILDING AREA CODE 219 RICHARD L. MINTZ SOUTH BEND, INDIANA 46601 TELEPHONE 232 -1442 October 22, 1980 Mrs. Irene K. Gammon City Clerk County -City Building South Bend, Indiana 46601 Re: Inducement Resolution Economic Development Bond Issue William G. York and Gloria J. York Project Dear Mrs. Gammon: Enclosed is a proposed Inducement Resolution by which the Common Council induces William G. York and Gloria J. York to submit an application for up to $170,000 of Economic Development Bonds repayable with interest thereon at a rate not in excess of 10% per annum over a period of 15 years to finance the purchase of land with an existing building thereon, the renovation of the building and the purchase of new equipment. The remodeled building and equipment will be leased to the Abstract and Title Corporation of South Bend for use in its business of abstracting and preparing title insurance policies. By the purchase and renovation of this land and building, a minimum of 11 jobs will be preserved and 4 new jobs created increasing the annual payroll to $217,000. This Inducement Resolution is needed so that William G. York and Gloria J. York may purchase the land and begin renovation of the facility shortly. If prompt action is not taken, renovation cannot be started imme- diately and the delay could result in the loss of the above mentioned jobs. We are requesting that you place this Inducement Resolution on the agenda for the consideration of the Common Council at its October 27 meeting. Enclosed is a copy of the Inducement Resolution passed by the Economic Development Commission at its October 3 meeting. We are also including 9 copies of this letter and request that you distribute them to the Council members. Thank you very much for your cooperation in this matter. Sincerely, l Richard L. Mintz jk Enclosures cc: Mr. Kenneth P. Fedder Mr. William G. York INDUCEMENT RESOLUTION OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION WHEREAS, the South Bend Economic Development Commission has heretofore investigated, studied, surveyed and reported to the Mayor and the Common Council of the City of South Bend, Indiana, that a need exists in the community for additional job opportunities and industrial diversification within the City of South Bend, Indiana; and that to improve and promote job opportunities and industrial diversification within the City a financing agreement should be effected with William G. York and Gloria J. York; and WHEREAS, William G. York and Gloria J. York are engaged in the operation,-of an abstract and title insurance business known as The Abstract and Title Corporation of South Bend and they desire to acquire and renovate an existing building to house and expand their business and to continue their operations in this County, if the Commission and the City will agree to a financing agreement acceptable to them pursuant to which the existing building will be acquired and improved with the proceeds from bonds to be issued by the City in the approxi- mate amount of One hundred seventy thousand dollars ($170,000); and WHEREAS, to induce William G. York and Gloria J. York to acquire and reno- vate said building, purchase the equipment and operate said business, the Commission desires to adopt this resolution; and WHEREAS, it appears clear from the application submitted to the Commission dated September 23, 1980, and other information received by the Commission that the new facility will increase job opportunities and industrial diversification in the County resulting in a benefit to the welfare of the County; NOW, THEREFORE, BE IT RESOLVED that the South-Bend Economic Development Commission approves the proposal of William G. York and Gloria J. York to acquire and renovate an existing building in St. Joseph County at an estimated project cost of approximately One hundred seventy thousand dollars ($170,000). BE IT FURTHER RESOLVED that to induce the continuation of the operation of the facility in the City, the Commission will proceed to cooperate and take such action as may be necessary in the drafting of documents as may be necessary to issue the City's Economic Development Revenue Bonds to provide funds to pay for the acquisition and renovation of the building and purchase of equipment. BE IT FURTHER RESOLVED that any expenses incurred in connection with said proceedings and the acquisition and renovation of the building and purchase of equipment shall be included in the project cost and reimbursed from the proceeds of said bonds. BE IT FURTHER RESOLVED that the liability and obligation of the Commission and the City shall be limited solely to the good faith efforts to consummate said proceedings and issue the bonds, and neither the Commission, the City, its officers or agents shall incur any liability whatsoever if for any reason the proposed issuance of the bonds is not consummated. Dated this-�-kiday of October, 1980. SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION J rry Ha es, President Frank Horvath, Vice President Walter Mucha, Secretary - 2 -