HomeMy WebLinkAboutInducement Resolution Relating to Raconik Leasing an Indiana Partnership ProjectAttest:
RESOLUTION
NO. 795 -80
Passed by the Common Council of the City of South Bend, Indiana,
'1V— —`+- Citv Clerk
Attest: Y President of Common Council.
Presented by me to the Mayor of the City of South Bend, Indiana
Approved and signed by me
Julv 29, i4 80
City Clerk
— (, 19 -�6 _.
Mayor
RESOLUTION NO. 795 -80
INDUCEMENT RESOLUTION
OF
THE CITY OF SOUTH BEND, INDIANA
Relating to: Raconik Leasing, an Indiana Partnership 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 pursuant to the provisions of Indiana Code
18 -6 -4.5 (the "Act "); and
WHEREAS, Raconik Leasing, an Indiana Partnership
( "Raconik ") proposes to acquire economic development facilities
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 Raconik for the issuance of City
of South Bend Economic Development Bonds in an amount not to ex-
ceed Four Hundred Thousand and no /100 Dollars ($400,000.00) re-
payable with interest thereon to be calculated quarterly at an
interest rate of sixty -five percent (65 %) of local prime rate with
five percent (5 %) minimum rate and a twelve percent (12 %) maximum
rate over a period not to exceed ten (10) years in order to pur-
chase equipment to be leased to Adams Engineering, Inc., an
Indiana corporation, in its tool and die operation resulting in
an increase of approximately two (2) additional employees by
Adams Engineering, Inc. with an increased annual payroll of a
minimum of Sixty -two Thousand and no /100 Dollars ($62,000.00)
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 ap-
proximately Four Hundred Thousand and no /100 Dollars ($400,000.00)
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. The Partnership may proceed with acquisition of
the economic development facilities in reliance upon this reso-
lution.
4. That the liability and obligation of the South
Bend Economic Development Commission, the South Bend Common
Council 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 the South Bend Economic Development
Commission, and the City of South Bend, Indiana, 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 ap-
proval by the Mayor.
Member of the Common Council
FILED 11-1 CLE r1'S OFFICE
J U L la °`?
PRESENTED .7
NOT APPROVED Irene Gammon
CITY CLERK, SOWN 8ET10, IND.
ADOPTED %-
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