HomeMy WebLinkAboutApproving an Amendment to the Industrial Revolving Fund of South Bend Indiana ORDINANCE No. 7861-88
Passed by the Common Council of the City of South Bend, Indiana
March 28, 88
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Attest: t -` �¢`�`"�"'' '�'`J City Clerk
IRENE K. GAMMON
Attest: Aot.i President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
March 29, 88
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-- `� City Clerk
IRENE K. GAMMON
Approved and signed by me 19 ge?
64/0-e.- Mayor
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BILL NO.
ORDINANCE NO. 7F6 /.-ke
AN ORDINANCE APPROVING AN AMENDMENT TO THE
INDUSTRIAL REVOLVING FUND OF SOUTH BEND,
INDIANA TRUST AGREEMENT.
STATEMENT OF PURPOSE AND INTENT:
On June 9, 1975, the Common Council of the City of South Bend,
Indiana, adopted an ordinance approving the Industrial Revolving Fund
of South Bend, Indiana, Trust Agreement between the First Bank and
Trust Company of South Bend, Indiana, as Trustee and the City of
South Bend, Indiana, for the handling of funds granted to the City by
the Economic Development Administration pursuant to Title IX of the
Public Works and Economic Development Act of 1965, as amended. The
Common Council now desires to approve an amendment to said trust
agreement in order to permit the use of Industrial Revolving Fund
monies in a designated area which lies outside the corporate limits
of the City of South Bend, Indiana.
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF
SOUTH BEND AS FOLLOWS:
SECTION I : The First Amendment to the Industrial Revolving Fund of
South Bend, Indiana Trust Agreement, a copy of which is attached
hereto and made a part hereof, is approved in its entirety.
SECTION II: This Ordinance shall be in full force and effect from
and after its passage by the Common Council and approval by the
Mayor.
Memb`: o the Common Council
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FIRST AMENDMENT TO
THE INDUSTRIAL REVOLVING FUND
OF SOUTH BEND, INDIANA
TRUST AGREEMENT
This First Amendment to The Industrial Revolving Fund of
South Bend, Indiana Trust Agreement (hereinafter referred to as
"First Amendment" ) is agreed to on this day of
1988, by and between the City of South Bend, Indiana, a municipal
corporation duly organized and existing pursuant to the laws of the
State of Indiana (hereinafter referred to as "City" ) , and the 1st
Source Bank, South Bend, Indiana, as Trustee (hereinafter referred
to as "Trustee") .
W I T N E S S E T H :
WHEREAS, the City was awarded an Economic Adjustment
Assistance Grant (hereinafter referred to as "Grant") on May 15,
1975, by the United States Economic Development Administration and
pursuant to said Grant, the City entered into the Trust Agreement
with 1st Source Bank, on June 10, 1975, creating a trust known as
the "Industrial Revolving Loan Fund of South Bend, Indiana"
(hereinafter referred to as "IRF"; and
WHEREAS, under the terms of Section 2 of the Trust
Agreement the purpose of the IRF is to promote economic development
within the corporate boundaries of the City in support of
industrial projects of all types and all present or future phases
of the Airport Industrial Park, South Bend, Indiana; and
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WHEREAS, the Toll Road Industrial Park and the Airport
Industrial Park are both owned and managed by the Industrial
Foundation, Inc. , of South Bend, Indiana; and
WHEREAS, the Toll Road Industrial Park is nearly adjacent
to and a natural extension of the Airport Industrial Park; and
WHEREAS, portions of the Toll Road Industrial Park are
outside the corporate limits of the City; and
WHEREAS, the City and Trustee desire to amend the Trust
Agreement to permit the use of the IRF for industrial projects
lying outside of the corporate limits of the City, but within the
boundaries of all phases of the Toll Road Industrial Park.
NOW, THEREFORE, for and in consideration of the sum of
Twenty-Five Dollars ($25.00) paid by each of the parties, receipt
of which is mutually acknowledged, and for other good and valuable
consideration and the mutual covenants and promises herein
contained, the parties hereto agree as follows:
SECTION I.
All recitals heretofore set forth above in this First
Amendment are approved by the parties hereto and are a part of this
First Amendment.
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SECTION II.
Section 2 of the Trust Agreement shall be deleted in its
entirety, and a new Section 2 shall be inserted in its place to
read in its entirety as follows:
2. This Trust is created to promote economic development
in and around the City of South Bend, Indiana consistent
with projects proposed or recommended in the study
entitled "Redevelopment Opportunities, Studebaker
Industrial Corridor, South Bend, Indiana" (and as the same
may be amended) or in support of industrial projects of
all types and all present or future phases of the Airport
Industrial Park, South Bend, Indiana and the Toll Road
Industrial Park, South Bend, Indiana and pursuant to the
terms and conditions of EDA project number 06-19-01251;
that is, proceeds of the Trust (including accruals thereto
and repayments thereof) shall be used (a) to promote and
finance the use of Employee Stock Ownership Plans (i) to
assist companies in and around South Bend which are
threatened with closing or curtailment of operations or
(ii) to effect economic adjustment in and around South
Bend in any other manner consistent with Title IX of the
Act; or (b) for industrial purposes consistent with Title
IX of the Act as the Economic Development Administration
may allow by grant amendment. The Trustee agrees to hold,
administer and loan the assets in the fund for industrial
purposes consistent with Title IX of the Act, and`on
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repayment, proceeds of any loans from the fund shall be
deposited and held until further loans are consummated for
such purposes.
SECTION III.
The EDA-Approved Economic Adjustment Plan submitted by the
City with its grant application dated March 25, 1975 shall be
hereby amended to permit the use of project account funds in a
manner consistent with this First Amendment to the Trust Agreement.
SECTION IV.
This First Amendment to the Trust Agreement between the
City and Trustee shall be attached to the Trust Agreement and
incorporated therein as if fully set out in the Trust Agreement.
SECTION V.
The Trust Agreement remains in full force and effect,
except as modified by the provisions of this First Amendment
thereto.
SECTION VI.
This First Amendment was approved by the United States
Economic Development Administration prior to execution by the
parties to the Trust Agreement in accordance with the terms of that
agreement, such written approval having been obtained on
, 1988, as evidenced by letter of the same date
attached hereto.
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IN WITNESS WHEREOF, the parties have caused this First
Amendment to be executed by their respective authorized officers on
the day and year first above mentioned.
CITY OF SOUTH BEND, INDIANA
ATTEST:
By:
Clerk Joseph E. Kernan, Mayor
1ST SOURCE BANK, TRUSTEE
ATTEST:
By:
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AE, INC.
PROJECT DESCRIPTION
AE, Inc. will be constructing and operating a major aluminum piston
manufacturing facility within the Toll Road Industrial Park in St.
Joseph County, Indiana. The project will directly address
community needs by creating new manufacturing employment
opportunities as well as developing and utilizing currently vacant
land which will increase the tax base.
St. Joseph County, Indiana will see $16,060,333 in total investment
by this project, $15,300,000 of which will be invested by AE, Inc.
The new plant will create 75 new jobs with an annual payroll of
$1.6 million. 51% of these jobs are expected to benefit
low/moderate income individuals.
In addition, the project will create a direct spin-off affect on
the local economy of approximately $500,000 per annum in equipment
servicing and other supportive services. Furthermore, based upon
successful operation of the new plant, AE, Inc. anticipates
doubling its investment in the operation in the future.
BL/ED/1
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