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HomeMy WebLinkAboutInducement Resolution of South Bend Common Council relating to Masterbilt, Incorporated Machinery Aquisition ProjectRESOLUTION N0. 773 -80 Passed by the Common Council of the City of South Bend, Indiana, April 14, 19 80 t r Attest: A City Clerk V Attest: �� rL —� President of Comm Council, cn Presented by me to the Mayor of the City of South Bend, Indiana Approved and signed by me April 15, "It- &�' 19 City Clerk Mayor RESOLUTION NO . 7 7 ,q --82)' INDUCEMENT RESOLUTION OF SOUTH BEND COMMON COUNCIL RELATING TO MASTERBILT, INCORPORATED MACHINERY ACQUISITION PROJECT WHEREAS, the South Bend Common Council heretofore investigated, studied, surveyed and reported to the Mayor of the City of South Bend, Indiana, that a need exists in the community for additional job opportunities and commercial, light industrial and industrial diversification within the City of South Bend, Indiana; and in accordance with such investigation and to provide possible improvement of job opportunities and diversification within the City of South Bend, Indiana, a financing agreement should be effected with basterbilt, Incorporated relating to a project to be known as "A Machinery Acquisition Project "; and WHEREAS, Masterbilt, Incorporated is established in the light industrial trade or business of contract machining and is the owner of a machine shop for such purpose at 325 South Walnut Street, South Bend, Indiana, on which site it has re- cently erected additional facilities and buildings to expand its operation consisting of approximately a total of Ten Thousand (10,000) square feet, and funds are required for the acquisition of a "Cyclone CNC Turning Center," which is a sophisticated piece of machinery to be acquired from the manufacturer of such machinery, South Bend Lathe Works, of South Bend, Indiana. It is anticipated that the acquisition and installation of this machinery could create an additional two or three jobs in the company with an estimated payroll increase of approximately Thirty Thousand Dollars ($30,000.00) per year. It is contemplated that the South Bend Common Council will agree to a financing agreement acceptable to Masterbilt, Incorporated pursuant to which such acquisition and installation of the machinery would be acquired with Economic Development facilities by virtue of Economic Development page two Bonds to be issued by the City of South Bend, Indiana in an amount of Ninety Thousand Dollars ($90,000.00). WHEREAS, to induce Masterbilt, Incorporated to become the principal user of such economic development facilities, the South Bend Common Council desired to adopt this resolution; and WHEREAS, it is contemplated from the application relating to such Masterbilt, Incorporated Project submitted to the South Bend Economic Development Commission dated .March 28, 1980, and from other investigation and information received by the South Bend Common Council that such economic development facilities will increase job opportunities and diversification in St. Joseph County, Indiana, resulting in a benefit to the welfare of the City of South Bend, Indiana and St. Joseph County, Indiana. NOW, THEREFORE, BE IT RESOLVED, that the South Bend Common Council approve the application of Masterbilt, Incorporated relating to the acquisition and installation of additional machinery and equipment at its place of operation in South Bend, Indiana, wherein Industrial Revenue Bonds would be issued by the City of South Bend, Indiana, concerning such Masterbilt, Incorporated Project for an amount not exceeding Ninety Thousand Dollars ($90,000.00). IT IS FURTHER RESOLVED, that to induce the continuation of the operation of such economic development facilities in the City of South Bend, Indiana, the South Bend Common Council shall proceed to cooperate with and take such action as may be necessary in the drafting of documents or perform- ance of such other acts as will facilitate the issuance of Industrial Development Bonds by the City of South Bend, Indiana to provide funds for the acquisition and installa- tion of machinery for the additional improvement of such economic development facilities. page three BE IT FURTHER RESOLVED, that any costs or expenses incurred in connection with the said Masterbilt, Incorpor- ated Project shall be included in the development costs and reimbursed from the proceeds of the Industrial Development Bonds to be issued with respect thereto; and BE IT FURTHER RESOLVED, that the liability and obliga- tion of the City of South Bend, Indiana shall be limited solely to the good faith efforts to consummate such pro- ceedings and issue such bonds, and the City of South Bend, Indiana, or its officers or agents, shall not incur any liability whatsoever if for any reason the proposed issuance of such bonds is not consummated. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. ti V40T APPROV10 ADOPTED Z/-/ -/ - Member of the Common Council FILED IN W.-,.11 OFFICE APR 9191Fq1 Irene Gammon CITY CLERK, SOUTH BEND, IND. DU COMB, NIMTZ & DU COMB ATTORNEYS AT LAW CHESTER L. DU COMB, 1954 INCOME BUILDING ROBERT J. DU COMB, SR. 511 W. COLFAX AVENUE TELEPHONE F. JAY NIMTZ SOUTH BEND,INDIANA 46801 233 -3147 ROBERT J. DU COMB, JR. AREA CODE 219 April 9, 1980 Mrs. Irene K. Gammon City Clerk County -City Building South Bend, Indiana 46601 Re: Inducement Resolution Economic Development Bond Issue Masterbilt, Inc. Dear Mrs. Gammon: Enclosed is a proposed Inducement Resolution by which the Common Council induces Masterbilt, Inc. to submit an application for up to $90,000 of Economic Development Bonds repayable with interest thereon at the market rate as of the date of final approval of the bonds over a period of five years to finance the purchase of additional equipment to be used for the manufacturing of machine parts. This project should produce a minimum of 1 - 3 additional jobs having an annual payroll of $30,000. This Inducement Resolution is needed so that Masterbilt, Inc. may begin purchase negotia- tions shortly. If immediate action is not taken, 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 April 14 meeting. Enclosed is a copy of the Inducement Resolution which was passed by the Economic Development Commission at its April 8 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,," � Lq �� Robert DuComb, Sr. RJDsr:mp Enclosures CC: Mr. Kenneth P. Tedder Masterbilt, Inc. INDUCEMENT RESOLUTION OF SOUTH BEND ECONOMIC DEVELOPMENT CMI ISSION Rr- LATnTG TO MASTERBILT, INCORPORATED MACHINERY ACQUISITION PROJECT WHEREAS, the South Fiend Lconomic Development Commission heretofore investigated, studied, surveyed and reported to the Mayor and the Corw.;on Council of the City of South Fiend, Indiana, that a need exists in the community for additional job opportunities and commercial, light industrial and industrial diversification within the City of South Bend, Indianan and in accordance with such investigation and to provide possible improvement of job opportunities and diversification within the City of South Bend, Indiana, a financing agreement should be effected with Masterbilt, Incorporated relating to a project to be known as "A Machinery Acquisition Project " - and WHEREAS, Masterbilt, Incorporated is established in the light industrial. trade or business of contract machining and is the owner of a machine shop for such purpose at 325 South Walnut street, South tend, Indiana, on which site it has recently erected additional facilities and buildings to expand its operation consisting of approximately a total of Ten Thousand (10,000) square feet, and funds are required for the acquisition of a "Cyclone CNC Turning Center," which is a sophisticated piece of machinery to be acquired from the manufacturer of such machinery, South Rend Lathe Works, of South Bend, Indiana. It is anticipated that the acquisition and installation of this machinery could create an additional two or three jobs in the company with an estimated payroll increase of approximately Thirty Thousand Dollars ($30,000.00) per year. It is contemplated that the South Fiend Economic Development Commission and the City of South fiend, Indiana will agree to a financing agreement acceptable to Masterbilt, page two Incorporated pursuant to which such acquisition and installation of the machinery would be acquired with Economic Development facilities by virtue of Economic Development nonds to be issued by the City of South fiend, Indiana in an amount of Ninety Thousand Dollars ($90,000.00). WHEREAS, to induce Masterbilt, Incorporated to become the principal user of such economic development facilities, the South Bend Economic Development Commission desires to adopt this resolution; and WHEREAS, it is contemplated from the application relating to such 14asterbilt, Incorporated Project submitted to the South Bend Economic Development Commission dated March 28, 1980, and from other investigation and information received by the South Bend Economic Development Commission that such economic development facilities will increase job opportunities and diversification in St. Joseph County, Indiana, resulting in a benefit to the welfare of the City of South Bend, Indiana and St. Joseph County, Indiana. NOW, THEREFORE, HE IT RESOLVED, that the South Fend Economic Development Commission approve the application of Masterbilt, Incorporated relating to the acquisition and installation of additional machinery and equipment at its place of operation in South Bend, Indiana, wherein Industrial Revenue Bonds would be issued, by the City of South Bend, Indiana, concerning such Masterbilt, Incorporated Project for an amount not exceeding Ninety Thousand Dollars ($90,000.00). IT IS FURTHER RESOLVED, that to induce the continuation of the operation of such economic development facilities in the City of South Bend, Indiana, the South Pena Economic Development Commission shall proceed to cooperate with and take such action as may be necessary in the drafting of documents or performance of such other acts as will facilitate page three the issuance of Industrial Development bonds by the City of South Lend, Indiana to provide funds for the acquisition and installation of rachinery for the additional improvement of such economic development facilities. BE IT FURTIMR RESOLVED, that any costs or expenses incurred in connection with the said Masterbilt, Incorporated Project shall be included in the development costs and reimbursed from the proceeds of the Industrial Development Bonds to be issued with respect thereto, and FE IT FURTHER RESOLVED, that the liability and obligation of the South Lend 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 Lend Economic Development Commission nor the City of South Bend., Indiana, or its officers or agents, shall incur any liability whatsoever if for any reason the proposed issuance of such bonds is not consummated. Dated this .� day of :rSr.�. " ' , 2980. zf SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION ICON By--- Vice PresPent C_. N, By d adz 1 a�,� Secretary