Loading...
HomeMy WebLinkAboutPreliminary Approval of the Issuance of Economic Development Revenue Bonds to Finance certain Economic Development Facilities - BondsRESOLUTION 3605-06 Passed by the Common Council of the City of South Bend, Indiana June 26, 06 20 Attest: ~ City Clerk c ,.-, Attest• ~"'ti~---- President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana June 27, 20 06 Approved and signed by me June 29, 20 ~ 6 ~-i/~~- City Clerk RESOLUTION NO. 3 ~'~ ~ ~ ~~" A RESOLUTION OF THE CITY OF SOUTH BEND, INDIANA, COMMON COUNCIL, PROVIDING PRELIMINARY APPROVAL OF THE ISSUANCE OF ECONOMIC DEVELOPMENT REVENUE BONDS TO FINANCE CERTAIN ECONOMIC DEVELOPMENT FACILITIES AND PROVIDING THAT CERTAIN PRELIMINARY COSTS BE REIMBURSED FROM THE PROCEEDS OF SAID BONDS WHEREAS, the City of South Bend, Indiana (the "City"), is authorized by I.C. 36-7-11.9 and 12, as supplemented and amended (the "Act"), to issue revenue bonds for the financing of economic development facilities, the funds for said financing to be used for the development, construction, installation and equipping of said facilities; and WHEREAS, PEUGenesis, Inc. ("PEI") and Tuliptree Associates, LLC ("Tuliptree") (PEI and Tuliptree, collectively, the "Applicant") desire to finance the acquisition, construction and equipping of an approximate 142,000 square foot manufacturing facility to be located at 4747 West Cleveland Road in South Bend, Indiana, which facility will be owned by Tuliptree and leased to PEI (the "Project"); and WHEREAS, the Applicant has advised the South Bend Economic Development Commission (the "Commission") and the City that the Applicant proposes that the City issue economic development revenue bonds for the purpose of providing financing for certain economic development facilities consisting of the development, construction and equipping of the Project; and WHEREAS, it is anticipated that the Project will result in the creation of approximately twelve (12) new, full-time, permanent jobs with an estimated annual payroll of $340,000 and will retain one hundred forty (140) full-time, permanent jobs and four (4) part-time, permanent jobs with a total estimated annual payroll of $3,700,000; and WHEREAS, the issuance of said bonds shall not obligate the full faith and credit of the taxing power of the City; and WHEREAS, subject to required approvals, it appears that the financing of the Project would be a public benefit to the health, prosperity, economic stability and general welfare of the City and its inhabitants; and WHEREAS, to induce Applicant to proceed with the Project, the Common Council of the City desires to adopt this resolution. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: 1. It is apparent that said Project will increase job opportunities and industrial diversification within the City, resulting in a benefit to the welfare of the public in the City. 2. In order to encourage and induce Applicant to undertake such Project, the City shall cooperate with and take such action as maybe necessary to finance the cost of such Project from the proceeds of economic development revenue bonds issued by the City in an aggregate principal amount of not to exceed $8,500,000, including reimbursements of costs of the Project from the proceeds of the bonds. 3. The City intends this Resolution to satisfy the requirements of the Internal Revenue Code of 1986, as amended and the regulations promulgated thereunder, and specifically Treas. Reg. § 1.150-2, regarding the declaration by the City of its official intent to issue its revenue bonds for the purpose of reimbursing original expenditures (as that term is defined in Treas. Reg. §1.150-2(c)) incurred with respect to the Project within 60 days preceding the adoption of this Resolution. 4. All original expenditures of the Project incurred within 60 days preceding the adoption of this Resolution, including the disbursement and/or repayment of monies expended by the Applicant for the planning, engineering, interest paid during construction, underwriting expenses, attorney and bond counsel fees, and expenditures relating to the improvement, expansion, rehabilitation, renovation, acquisition, construction, reconstruction, equipping and furnishing of the Project, will be permitted to be included as part of the bond issue to finance the Project, and the City will thereafter loan the proceeds of such financing to the Applicant for the same purposes. 5. The City shall proceed to cooperate with and take such action as may be necessary in drafting documents or in the performance of such other acts as will facilitate the issuance of such bonds to provide funds for such purpose. 6. The liability and obligation of the South Bend Economic Development Commission, the Common Council of the City, and the City, shall be limited solely to the good faith efforts to consummate such proceedings and issue such bonds, and such entities and their officers and agents shall not incur any liability if for any reason the proposed issuance of such bonds is not consummated. 7. The bonds shall be special, limited obligations of the City, payable solely from the funds provided therefor as described in the documents authorizing the issuance of the bonds, and shall not constitute an indebtedness of the City or a loan of the credit thereof. 8. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. Filed in Cierk'e Ofi~ice JUN 2 0 2006 JOHN YOORDE CITY CLERK, 30. BEND, tN. COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIAN _ ~ , ~ ~. Member of the mmon Council FIOT, APPROVEn f rr ADOPTED b -L~- OIo TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 06-59 A RESOLUTION OF THE CITY OF SOUTH BEND, INDIANA, COMMON COUNCIL, PROVIDING PRELIMINARY APPROVAL OF THE ISSUANCE OF ECONOMIC DEVELOPMENT REVENUE BONDS TO FINANCE CERTAIN ECONOMIC DEVELOPMENT FACILITIES AND PROVIDING THAT CERTAIN PRELIMINARY COSTS BE REIMBURSED FROM THE PROCEEDS OF SAID BONDS Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with a favorable recommendation. Karen L. White Chairman BARNES &THORNBURG LLP Philip J. Faccenda, Jr. (574)237-1148 Email: philip.faccendaC~?btlaw.com HAND DELIVERY John Voorde Clerk of the City of South Bend 455 County-City Building 227 West Jefferson Boulevard South Bend, Indiana 46601 100 North Michigan 600 1st Source Bank Center South Bend, IN 46601-1632 U.S.A. (574)233-1171 Fax (574)237-1125 www.btlaw.com June 20, 2006 Re: Inducement Resolution of the South Bend Common Council in connection with the Issuance of Economic Development Revenue Bonds (PEUGenesis, Inc./Tuliptree Associates, LLC Project) Dear Mr. Voorde: Enclosed are three (3) copies of the above-referenced Resolution for consideration of the South Bend Common Council at its meeting on Monday, June 26, 2006. Please place this matter on the agenda for the South Bend Common Council meeting on June 26, 2006. Please call me with any questions or comments you may have. Sincerely, ., ~~ ~-' Philip J. accenda, Jr. PJF:mdm Enclosures cc: Kenneth P. Fedder Greg Warshaw SBDS02 PFACCENDA 339907v1 Chicago Elkhart Fll~d In ~te~k's ®fi~a~e J U ~l 2 0 2006 JOHN VOORDE CITY CL'v9K, 50._SeND,1!'1. ~7 Fort Wayne Grand Rapids Indianapolis South Bend Washington, D.C.