HomeMy WebLinkAboutInducement Resolution relating to the issuance of Economic Development Revenue Bonds to the Rait CorporationRESOLUTION
NO. 742 -79
Passed by the Common Council of the City of South Bend,
December 17
I79
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City Clerk
i
Attest: ✓ ,4? -� President o f Common Council
Presented by me to the Mayor of the City of South Bend, I
December 18
�9 79
Approved and signed by me LQ-Q uz- L&.,— /9 . 19"
Clerk
RESOLUTION NO . '7 -:1-2 -?
INDUCEMENT RESOLUTION OF THE SOUTH BEND COMMON COUNCIL
RELATING TO THE ISSUANCE OF ECONOMIC DEVELOPMENT REVENUE BONDS
TO THE RAITT CORPORATION
IN ORDER TO CONSTRUCT AN AIR FREIGHT TERMINAL
AT THE MICHIANA REGIONAL AIRPORT
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 Raitt Corporation; and
WHEREAS, Raitt Corporation desires to construct a building for commer-
cial use on real estate located at the Michiana Regional Airport at South Bend,
Indiana; and
WHEREAS, to induce Raitt Corporation to construct such economic deve-
lopment facilities under an arrangement whereby United Air Lines and Towne Air
Freight, Inc. shall be principal users, the South Bend Economic Development
Commission on December 7, 1979 approved the application of Raitt Corporation for
the issuance of up to Five Hundred Fifty Thousand ($550,000.00) Dollars of
Industrial Development Bonds repayable with interest thereon at a rate not in
excess of eleven (11 %) percent per annum over a period of twenty (20) years and
also adopted an Inducement Resolution relating to that bond issue; and
WHEREAS, it is apparent that such Raitt Corporation Project 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
solicit the application by Raitt Corporation for an amount not exceeding Five
Hundred Fifty Thousand ($500,000.00) Dollars of Industrial Development Bonds to
be issued by the City of South Bend, Indiana repayable with interest thereon at
a rate not i.n excess of eleven (11 %) percent per annum over a period of twenty
(20) years after the issue date for the construction of such economic develop-
ment 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 Industrial Development
Bonds by the City of South Bend, Indiana, to provide funds to be used toward the
payment of the costs for the acqui.siti.on and constructi.on of such economic deve-
lopment facilities; and
BE IT FURTHER RESOLVED, that any costs or expenses incurred in connec-
tion with such Raitt Corporation Project shall be included in the project costs
and reimbursed from the proceeds of the Industrial Development Bonds to be
issued with respect thereto; and
BE IT FURTHER RESOLVED, that the liabi.lity 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, Indi.ana, or its officers or agents, shall incur any
liability if for any reason the proposed issuance of such Bonds is not consum-
mated.
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 % _V - / 7- 2
NOT APPROVED
ADOPTED / J..i7 -7�
Member fif the Common Council
D E C 12 1919
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Cite; .._,.._ BEND,1�,
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
December 10, 1979
Ms. Irene K. Gammon
City Clerk
County -City Building
South Bend, Indiana 46601
Re: Inducement Resolution
Economic Development Bond Issue
Raitt Corporation Project
Dear Ms. Gammon:
Enclosed is a proposed Inducement Resolution by which the Common Council
induces the Raitt Corporation to submit an application for up to $550,000
of Industrial Development Bonds repayable with interest thereon at a rate
not in excess of 11% per annum over a period of 20 years to finance the
construction of an air freight facility at the Michiana Regional Airport.
This facility will be rented to United Air Lines and Towne Air Freight,
Inc.
United and Towne are presently conducting their operations in temporary
quarters off the Michiana Regional Airport property. In order for them to
operate at maximum effectiveness, it is necessary for them to be located on
the airport property. By the construction of this project, a minimum of 12
jobs will be preserved having any annual payroll of $202,000. This Induce-
ment Resolution is needed so that Raitt Corporation may enter into a
construction contract with Sollitt Construction Company and begin construction
of the facility this year. If immediate action is not taken, construction
cannot be begun until the spring. If construction is delayed, it could
result in the loss of the abovementioned jobs.
We are requesting that you place this Inducement Resolution on the agenda
for the consideration of the Common Council at their December 17 meeting.
Enclosed is a copy of the Inducement Resolution passed by the Economic
Development Commission at their December 7 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,
Richard L. Mintz
RLM:mh
Enclosures
cc: Mr. Kenneth P. Fedder
Raitt Corporation