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HomeMy WebLinkAboutAuthorizing submission of application for grant and loan assistance and repayment of industrial development fundORDINANCE No. s~~^~~ Passed by the Common Cottncil of the Ciry of South Bend, Indiana October 23, Attest: Attest: ~~a~, moo, 20 00 Presented by me to the Mayor of the Ciry of Sottth Bend, Indiana _ October 24, 20 00 Ciry Clerk President of Common Councit Ciry Clerk Approved and signed by me nrtnher 25~ 20 ~~ Mayor ORDINANCE NO. ~ I ~ ~ - b D AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR GRANT AND LOAN ASSISTANCE THROUGH THE INDUSTRIAL DEVELOPMENT FUND AND PLEDGING CERTAIN REVENUES TO THE REPAYMENT THEREOF (ROBERT BOSCH CORPORATION RETENTION PROJECT) STATEMENT OF PURPOSE AND INTENT: The City of South Bend, Indiana (the "City") has previously determined to offer certain assistance to Robert Bosch Corporation ("Bosch") in order to induce Bosch to retain and expand its facility in the City. Accordingly, the City and Bosch have agreed to undertake certain activities in connection with the acquisition, demolition, construction, rehabilitation, and environmental remediation of certain Property (the "Site") which Bosch formerly leased from Honeywell (formerly known as Allied Signal), including infrastructure and other site improvements (the "Project") and have memorialized their intentions in an Agreement for the Use and RehabilitationofReai Property (the "Agreement")and Real Property Lease Agreement (the "Lease") (the "Agreement" and the "Lease" sometimes collectively referred to herein as the "Project Documents"). The Agreement provides that the City and Bosch will undertake the Project in return for Bosch's commitment to meet certain levels of employment. In addition, the City has acquired the Site and the City and Bosch have entered into the Lease pursuant to which Bosch will lease the Site from the City. Under the terms of the Agreement, Bosch will repay to City a portion of the funds which the City has committed to the Project (the "Bosch Funds"). In addition, the City intends to H:\Wpdata\PLEDGERE. WPD submit an application to the Indiana Department of Commerce (the "Department of Commerce")and the Indiana State Board of Finance (the "Board of Finance") for assistance through the Industrial Development Fund in the form of an industrial development loan ("IDLF Loan") and an industrial development grant (the "IDGF Grant") in order to finance a portion of the Proj ect. The City intends that all or a portion of funds received from the Bosch Funds will be utilized to repay the IDLF Loan. In accordance with the requirements of the IDLF Loan, the City desires to pledge the Bosch Funds to the repayment of the principal and interest on the IDLF Loan. It is intended that the City shall have no other obligation with respect to the payment of principal of or interest on the IDLF Loan other than the Bosch Funds. NOW; THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND AS FOLLOWS: Section 1. The Common Council of the City (the "Common Council") hereby authorizes the Mayor to execute and submit the IDGF Grant Application and the IDLF Application to the Department of Commerce and the Board of Finance on behalf of the City and to take such actions as may be necessary to finalize the actions contemplated thereby, including, but not limited to, the execution of the loan agreement and the promissory note. Section 2. The Common Council hereby irrevocably pledges the Bosch Funds to the repayment of the principal of and the interest on the IDLF Loan. Such pledge shall terminate upon the final payment on the IDLF Loan and shall constitute the sole payment source for the repayment of the IDLF Loan. The IDLF Loan shall not constitute an indebtedness of the City within the provisions and limitations of the constitution of the State of Indiana. Bosch Funds received in H:\Wpdata\PLEDGERE.WPD "2" any year in excess of the amount necessary to pay the principal of and interest on the IDLF Loan in said year do not remain pledged and may be used by the City for any purpose. Section 3. The actions taken heretofore by the Mayor relating to the Project, including, but not limited to, the execution of the Project Documents, are hereby ratified in all respects. Section 4. This Ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor and shall not be repealed or amended in any manner which would serve to adversely affect the pledge of the Bosch Funds contained herein. 1st READING (a ~9 ~ ° a PUBLIC HEARING 10-'t_3-0(~ 9 rd READING ~ ~_ t-3- ~ 0 NOT APPROVED REFERRED PASSED ~ ~ -Z3 - O~ COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA By: ~ ,Q Member of the Common Counci H:\Wpdata\PLEDGERE.WPD '3' ~'l~~~ ~Ii ~~~I'~~'~ ~®~~~ Q ~~, ~o~~ Cl7YCLIW€~t, moo. G=i~J, 33•z. COMMITTEE REPORT TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 95-00 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR GRANT AND LOAN ASSISTANCE THROUGH THE INDUSTRIAL DEVELOPMENT FUND AND PLEDGING CERTAIN REVENUES TO THE REPAYMENT THEREOF (ROBERT BOSCH CORPORATION RETENTION PROJECT) 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. Andrew Udj ak Chairman 1200 COUNTY-CI'T'Y BUILDING SOUTH BEND, INDIANA 46601-1830 PHONE 219/ 235-9371 FAx 219/235-9021 TDD 219/ 235-5567 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR COMMUNITY $~ ECONOMIC DEVELOPMENT JON R. HUNT EXECUTNE DIREC'T'OR October 4, 2000 Ms. Charlotte Pfeifer President, South Bend Common Council 435 County-City Building South Bend, Indiana 46601 Re: An Ordinance of the Common Council of the City of South Bend, Indiana Authorizing the Submission of an Application for Grant and Loan Assistance Through the Industrial Development Fund and Pledging Certain Revenues to the Repayment Thereof (Robert Bosch Corporation Retention Project) Dear Ms. Pfeifer: Attached for filing please find the above-referenced Ordinance for first reading by the Common Council at its October 9, 2000 meeting. This Ordinance authorizes the submission of an application for grant and loan assistance (the "IDLF Loan") to the Indiana Department of Commerce and the Indiana State Board of Finance in order to provide funds for the acquisition and renovation of the facility occupied by Robert Bosch Corporation ("Bosch"). The Ordinance further provides for the pledge by the City of certain funds it expects to receive from Bosch pursuant to the terms of an agreement between the City and Bosch toward the repayment of the IDLF Loan. The pledge is necessary insofar as the payments to be received from Bosch shall constitute the City's only obligation toward the repayment of the IDLF Loan, which shall not constitute a general obligation debt of the City. Your favorable consideration is requested. Please do not hesitate to contact me if you need additional information. Sincerely, • 1~~~ Jon R. Hunt, Director Community and Economic v ~ 1 ~ ji ?~Q(~ ~~ p• ..:~Lrp}~':. COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT FINANCIAL HC PROGRAM PAMELA C. MEYER DONALD E. INKS MANAGEMENT 219/235-9660 219/235-9371 ELIZ48ETH LEONARD FAX: 2191235-0607 219/235-9371