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HomeMy WebLinkAboutApproving the finding of the South Bend Economic Development Commission with respect to the issuance of revenue bonds in amount not exceeding Five Hundred Thousand Dollars ($500,000)RESOLUTION NO. 743 -79 Passed by the Common Council of the City of South Bend, Indiana_ Attest: n December 17 79 Iq Presented by me to the Mayor of the City of South Bend, City Clerk -- President of Common Council SOMEONED-WIT-IT4710TUM : • • Approved and signed by me a-p- C_Q_ � &A- j / q ;I Iqi_�_ Clerk } RESOLUTION NO.-.7413-9q RESOLUTION OF COMMON COUNCIL OF THE CITY OF SOUTH BEND A PROPOSAL FOR A GENERAL RESOLUTION approving the finding of the South Bend Economic Development Commission with respect to the issuance of revenue bonds in an amount not exceeding Five Hundred Thousand Dollars ($500,000) for financing the increased costs of certain economic development facilities to be under- taken by Express Freight Lines, Inc., and authorizing and committing the City to proceed with such project, subject to final action by this Council with respect to the terms and conditions of such financing and the obtaining of all approvals as may be required under IC 18- 6 -4.5. GENERAL RESOLUTION NO. December 17, 1979 WHEREAS, the City of South Bend, Indiana ( "City"), is authorized by IC 18 -6 -4.5 ( "Act ") to issue revenue bonds for the purpose of financing the acquisition, installation, and construction of economic development facilities; WHEREAS, the City has issued $1,000,000 of its Economic Development Mortgage Revenue Bonds (Express Freight Lines, Inc., Project) to finance a portion of the cost of a truck terminal and related facilities described in Exhibit A hereto to be located in St. Joseph County, Indiana (the "Project ") ; WHEREAS, Express Freight Lines, Inc., a Wisconsin corporation (the "Company "), now expects to incur increased costs in connection with the acquisition, installation and construction of the Project; WHEREAS, the Company has proposed that the City issue its revenue bonds under the Act to finance the increased costs of the acquisition, installation and construction of the Project under a financing agreement whereby the proceeds of such bonds would be utilized to pay the increased costs of the Project and the Company would make payments sufficient to pay the principal of, premium, if any, and interest on such bonds; the Company has further advised the City that a determination by the City to accept such a proposal for financing the increased costs of the Project will constitute a substantial inducement to the Company to proceed with the Project; and the Company has agreed to pay the costs of the City whether or not such revenue bonds are issued and the financing agreement consummated; WHEREAS, the South Bend Economic Development Commission has rendered a Report of the South Bend Economic Development Commission Concerning the Proposed Financing of the Increased Costs of Certain Economic Development Facilities for Express Freight Lines, Inc., and the executive director of the Area Plan Commission of St. Joseph County has been given an opportunity to comment thereon; WHEREAS, the South Bend Economic Development Commission on December 7, 1979, adopted a resolution giving its approval to such financing of the increased costs of the Project and recommending that the Common Council and the St. Joseph County Council also approve such financing, on the basis that the Project will cause additional employment opportunities in the City of South Bend and St. Joseph County, will comply with the purposes and provisions of the Act and will be of public benefit to the health, prosperity, economic stability and general welfare of the City of South Bend and St. Joseph County and their inhabitants; and -2- WHEREAS, subject to the required approvals under the Act, it appears that the financing of the increased costs of the Project will be of public benefit to the health, prosperity, economic stability and general welfare of the City of South Bend and St. Joseph County and their inhabitants and complies with the purposes and provisions of the Act: NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana: Section 1. The Common Council finds and determines that the construction of a truck terminal and related facili- ties of the Company in St. Joseph County, Indiana, by the acquisition, installation and construction of the Project is desirable to better the health, prosperity, economic stability and general welfare of the City of South Bend and St. Joseph County and their inhabitants, and that it is in the public interest that the City take such action as it lawfully may to encourage the Company to construct the truck terminal and related facilities. Section 2. The Common Council further finds and determines that the issuance and sale of revenue bonds of the City under the Act, and the use of the net proceeds derived therefrom to finance the increased costs of the acquisition, installation and construction of the Project (which increased costs have not yet been paid or incurred) will enable the Project to be constructed and will be of benefit to the health, prosperity, economic stability and general welfare of the City of South Bend and St. Joseph County and their citizens and will comply with the purposes and provisions of the Act. Section 3. In order to induce the Company to proceed with the acquisition, installation and construction of the Project, the Common Council hereby undertakes that: -3- (i) It will authorize and issue one or more series of revenue bonds of the City pursuant to the Act, in an aggregate principal amount not exceeding Five Hundred Thousand Dollars ($500,000), to finance the increased costs of the acquisition, installation and construction of the Project, including reimburse- ment or repayment to the Company of any moneys expended by the Company for planning, engineering, interest during construction, underwriting and attorney and bond counsel fees, and will enter into a financing agreement to lend such net proceeds to the Company to enable it to pay the increased costs of the Project and repay the loan in installments sufficient to pay the principal of, premium, if any, and interest on such bonds; (ii) It will adopt such ordinances and resolutions and authorize the execution and delivery of such instru- ments and the taking of such actions as may be necessary or advisable for the authorization, issuance and sale of such bonds; and (iii) It will take or cause to be taken such other actions as may be required to implement the aforesaid or as it may deem appropriate in pursuance thereof, provided that all of the foregoing shall be authorized by law and mutually acceptable to the City and the Company. Section 4. It is hereby recognized that the issuance and sale of revenue bonds by the City under the Act for the purposes set forth herein shall be subject to the City's obtaining such approvals as may be required under the Act specifically including the consent of the St. Joseph County Council to the financing of the increased costs of the Project. -4- Section 5. This resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. PRFSWTFD - / 7 57 MOT APPROVED gDOPTED Memb of the Common Council VILED 51 DEC 12 1979 Irene Gamoon CITY CLEFM SOUTH BEND.IND. DESCRIPTION OF THE PROJECT The Project involves the construction of a new truck terminal facility to be located on ten acres of land at the intersection of U.S. Highway 20 and Olive Road, German Township, St. Joseph County, Indiana. The terminal facility will consist of a 18,080 square foot one -story main terminal building with 41 overhead doors and dock boards, a separate 5,653 square foot maintenance and repair building, miscella- neous fixtures and equipment including gas and diesel fuel pumps and tanks and a truck scale, and associated site work. The main terminal building will include a 4,400 square foot office facility. As a convenience to the Company, the main- tenance and repair building will be leased to an unaffiliated individual who will maintain and repair the vehicles of the Company. The acquisition of the real estate where the ter- minal will be located is not a part of the Project. EXHIBIT A CITY of SOUTH BEND PETER J. NEMETH, Mayor SOUTH BEND, INDIANA 46601 Economic Development Commission 230 West Jefferson Boulevard (219) 234 -0051 Jerry Hammes, President Frank Horvath, Vice - President Walter A. Mucha, Secretary Kenneth P. Fedder, Counsel Members of the South Bend Common Council County -City Building South Bend, Indiana 46601 RE: Revenue Bond Application EXPRESS FREIGHT LINES, INC. Supplemental Issue Dear Councilmen: The South Bend Economic Development Commission has received an application from EXPRESS FREIGHT LINES, INC., a Wisconsin Corporation, for the issuance of a supplemental Revenue Bond issue in the amount of $500,000.00 for financing the increased costs of construction and installation of equipment to be located on a 10 acre tract of land at the intersection of U.S. Highway 20 and Olive Road, German Township, St. Joseph County, Indiana. With the supplemental issue, there will be created approximately 10 new jobs with an estimated payroll of approximately $250,000.00. I am enclosing herewith a proposed form of Inducement Resolution, which I would ask that you place on your agenda under Resolutions for December 17, 1979. KPF /mb Enclosure j Very truly yours, r--- l j KENNETH-P. FEDDER ATTORNEY FOR THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION Al 2 DEC 1 ? it U 4..>3 e�4 Cliff UER. , ivlir licii i, IPdt?.