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HomeMy WebLinkAboutInducement Resolution relating to the Marriott Hotels of Washington, D.C. ProjectRES0 LU i I ON NO. 678 -79 Passed by the Common Council of the City of South Bend, Indiana, February 12 19 79 Attest: - -� City Clerk Attest: President of Common Council. Presented by me to the Mayor of the City of South Bend, Indiana February 13 1979 4,",- City Clerk Approved and signed by me o %o a? _ 19 Mayor RESOLUTION NO. 678 -79 AN INDUCE14ENT RESOLUTIONd RELATING TO THE MARRIOTT HOTELS OF WASHINGTON, D.C. PROJECT WHEREAS I pursuant to the Indiana. Code of 1971, Title 18, Chapter 6, Article 4.5, as amended, the Common Council of the City of South Bend, Indiana created the South Bend Economic Development Commission, which such South Bend Economic Development Commission heretofore has 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 in order to improve and promote job opportunities and commercial diversification within the City of South Bend, Indiana, a financing agreement should be effected with Marriott Hotels of Washington, D.C. or its nominees, relating to a project to be known as the "Marriott hotels of Washington, D.C. Project "; and WHEREAS, said Marriott Hotels of Washington, D.C. is an exist- ing corporation engaged in the hotel business and desires to expand its operations and employ a substantial number of employees and be the principal user for such purpose of an eight - story hotel building complex with related equipment and furnishings which includes approximately three hundred (300) rooms and rentable retail space (hereinafter some- times referred to as "Economic Development Facilities ") to be located on a part of the 2.75 acre block in the South Bend, Indiana Urban Renewal Area R -66 which is bounded by St. Joseph Street on the East, Colfax Street on the North, Washington Street on the South and P,ichigan Street on the West, which such land is involved in the UDAG Grant to the City of South Bend, Indiana, pursuant to Application No. B- AA -78 -13 -0003. WHEREAS, to induce Narriott Hotels of Washington, D.C., or its nominees, to become the principal user of such Economic Development Facilities, the Common Council of the City of South Bend desires to adopt this resolution; and WHEREAS, it is apparent that such Marriott Hotels of Washington, D.C. Project will 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 by the Common Council of the City of South Bend, Indiana, as follows: SECTION 1. That approval is hereby given to the application of Marriott Hotels of Washington, D.C., or its nominees, relating- to the acquisition and construction of such Economic Development Facilities under an arrangement whereby a portion of the costs of such acquisition and construction would be paid from the proceeds of Industrial Development Bonds to be issued by the City of South Bend, Indiana, for an amount not exceed- ing Ten Million Dollars ($10,000,000.00), repayable with interest thereon over a period of time and with a maturity date which does not extend beyond thirty (30) years after the issue date. SECTION 2. In order to encourage, induce and solicit such application by 'Marriott Hotels of Washington, D.C., or its nominees, for such Industrial Development Bond issue relating to the acquisition and construction of such Economic Development Facilities, the South Bend Economic Development Commission on behalf of the City of South Bend, Indiana, shall proceed to cooperate with and take such action as may be necessary in the 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 acquisition and construction of such Economic Development Facilities. SECTION 3. Any costs or expenses incurred in connection with said Marriott Hotels of Washington, D. C. Project shall be in- cluded in the project costs and reimbursed from the proceeds of the Industrial Development Bonds to be issued with respect thereto. SECTION 4. This resolution shall be in full force and effect from and after its adoption by the Common Council and its approval by the Mayor. Membe o the Common Council Adopted, as amended, February 12, 1979 CITY of SOUTH BEND PETER J. NEMETH, Mayor COUNTY -CITY BUILDING SOUTH BEND, INDIANA 46601 OFFICE OF THE MAYOR February 7, 1979 AREA 219 284-9261 Common Council Members County -City Building South Bend, Indiana 46601 Dear Council Members: The attached resolution is an inducement resolution which, in effect, indicates the Council's support for the development of the First Bank - Marriott Hotel Complex in the so- called "Hole" area in downtown South Bend. It also indicates the Council's receptiveness and willingness to approve an economic development revenue bond application which will be forthcoming from RAHN Properties, the nominee and representative of Marriott Hotels for this project. This resolution is being sought for the purpose of attaching it to the agreement which will be submitted to HUD to obtain release of the UDAG funds so that the project may go forward. The hotel's willingness to proceed is contingent upon its being able to obtain economic development revenue bonds, and this resolution, in effect, will tell HUD, as well as the hotel interests, that the Council is willing to resolve that contingency. If you have any questions concerning this matter, please do not hesitate to contact me. AJNemeth urs, PJN /bjb Attachment SECTION 3. Any costs or expenses incurred in connection with said Marriott Hotels of Washington, D.C. Project shall be included in the project costs and reimbursed from the proceeds of the Industrial Development Bonds to be issued with respect thereto. PRESENTED, NOT APPRO-M PIED Member of the Common Council FLE X1979 Irene c-amm ti MY !Tk' iLF.RE4, SOUTH BEND, IND.