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HomeMy WebLinkAboutApproval of the Issuance of Bonds for the Purpose of Providing Certain Economic Development FacilitiesAttes RESOLUTION 3334 -04 Passed by the Common Council of the City of South Bend, Indiana May 24, 1� r� Presented by me to the Mayor of the City of South Bend, Indiana May 25, Approved and signed by me 25, 2 04 0 City Clerk dent of Common Council 20 04 . City Clerk RESOLUTION NO. 3 3 3y_ A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, PROVIDING PRELIMINARY APPROVAL OF THE ISSUANCE OF BONDS FOR THE PURPOSE OF PROVIDING CERTAIN ECONOMIC DEVELOPMENT FACILITIES 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 acquisition, construction, installation and equipping of said facilities; and WHEREAS, MDC South Bend, LLC (the "Applicant ") has advised the South Bend Economic Development Commission (the "Commission ") and the City that it proposes that the City issue economic development revenue bonds for the purpose of providing financing for certain economic development facilities consisting of the acquisition, construction, installation and equipping of a facility to accommodate the business of DHUAirborne Express, which is airfreight and logistics services (the 'Project "); and WHEREAS, the Applicant has proposed that the City issue its revenue bonds under the Act to finance the acquisition and installation of the Project under a financing agreement whereby the proceeds of such bonds would be utilized to acquire and install the Project and the Applicant would make payments sufficient to pay the principal of, premium, if any, and interest on said bonds; and the Applicant has further advised the City that the determination by the City to accept such a proposal for financing the Project will constitute a substantial inducement to the Applicant to proceed with the Project; and WHEREAS, the Applicant has submitted evidence regarding the lack of an adverse competitive effect of the Project on similar facilities already constructed or operating in the City; and WHEREAS, it is estimated that the Project will result in the retention of eighty - eight (88) jobs and the creation of approximately five (5) new permanent jobs; and WHEREAS, the Commission has rendered a report concerning the proposed financing of economic development facilities for the Applicant which report incorporates findings of fact by the Commission; and WHEREAS, the Commission has given its approval to such financing of the Project; and SBIMANI 182576A WHEREAS, the issuance and sale of said revenue bonds will not reduce the legal bonding capacity of the City; and WHEREAS, the City shall bear no expense in connection with the issuance and sale of said revenue bonds and all expenses in connection thereto which are incurred by the City shall be reimbursed to the City by the Applicant; and WHEREAS, the principal and interest payable on said bonds are not payable from funds raised by taxation by the City; and WHEREAS, the issuance of said bonds shall not obligate the full faith and credit for 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; NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of South Bend, Indiana, as follows: SECTION 1. The Common Council finds, determines, ratifies and confirms that the creation and retention of opportunities for gainful employment and the creation of business opportunities to be achieved by the Project in the City will be of benefit to the health and general welfare of the citizens of the City; and that it is in the public interest that this Common Council take such action as it lawfully may to encourage diversification of industry and promotion of job opportunities in the City. SECTION 2. The Common Council further finds, determines, ratifies and confirms that the issuance and sale of economic development revenue bonds of the City under the Act in an aggregate principal amount not to exceed $2,200,000.00 for the Project and the loan of the proceeds of the revenue bonds to the Applicant will serve the public purposes referred to above, in accordance with the Act. SECTION 3. In order to induce the Applicant to proceed with the Project, the Common Council hereby finds, determines, ratifies and confirms that: i) It will take or cause to be taken such actions pursuant to the Act as may be reasonably required to implement the aforesaid financing, or as it may deem reasonably appropriate in pursuance thereof; provided that all of the foregoing shall be mutually acceptable to the City and the Applicant; and ii) It will adopt such ordinances and resolution and authorize the execution and delivery of such instruments and the taking of such action as may be reasonably necessary and advisable for the authorization, issuance and sale of said economic development bonds. SECTION 4. All costs of the Project incurred for planning, engineering, interest paid during construction, underwriting expenses, attorney and bond counsel fees, acquisition, 2- SBIMANI I825760 construction and equipping of the Project, including reimbursement or repayment to the Applicant of moneys expended prior to the adoption by the City of this resolution would be permitted to be included as part of the Project costs to be financed out of the loan of the proceeds from the sale of the bonds to the extent permitted by the Act and applicable regulations promulgated under the Internal Revenue Code of 1986, as amended. SECTION 5. All action taken and approvals given by the City with regard to the Applicant, are based upon the evidence submitted and representations made by the Applicant, its agents or counsel, to the Commission and the City. No independent examination, appraisal or inspection of the Project was made, requested, or is contemplated by the City. SECTION 6. The City does not, by this or any other approval or funding, guarantee, warrant or even suggest that the bonds, coupons or series thereof will be a reasonable investment for any person, firm or corporation. SECTION 7. The City shall not be obligated, directly or indirectly, to see to the application or use of the proceeds from the sale of the bonds or to see that the contemplated improvements, if any, are constructed. The City is in no way responsible to the holders of any bonds for any payment obligation created by the bonds. SECTION 8. The City does not warrant, guarantee or even suggest that interest to be paid to or income to be received by the holders of any bond, coupon, or series thereof is exempt from taxation by any local, state or federal government. SECTION 9. The bonds shall be limited, special obligations of the City payable solely from the funds provided therefor as described in the indenture authorizing the bonds, and shall not constitute an indebtedness of the Commission or the City or a loan of the credit thereof. SECTION 10. This resolution does not constitute a binding obligation of the Commission or the City to issue the bonds, but instead, is a commitment by the City to proceed with negotiations for the financing described herein with the Applicant and is subject to the adoption of a bond ordinance by the City in accordance with the provision of the Act. SECTION 11. This resolution shall be in full force and effect upon adoption by the Common Council and compliance with the procedures required by law. -3- SBIMANI 18257Gv1 COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA Member of the Common ouncil ATTEST: Presented by me to the Mayor of the City of South Bend, Indiana, on the 2 5� day of }an.0 , 2004, at 2 ` -t S o'clock --p—m. City Clerk / �V T / Approved and signed by me on the cgs day of 2004, at � o'clock, -e--m. ATTEST: �-ZA Ci Cle k PRESENTELI %, S -2 \ Oy NOT APPROVED y ADOPTED S crnm.rr .9410 ri Mayor, City of S h Bend, Indiana Filed in Clerk's Office MAY 1 9 =E JOHN VOORDE CITY CLERK, SO. BEND, N1. TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 04 -55 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, PROVIDING PRELIMINARY APPROVAL OF THE ISSUANCE OF BONDS FOR THE PURPOSE OF PROVIDING CERTAIN ECONOMIC DEVELOPMENT FACILITIES 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. Sean Coleman Chairman