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HomeMy WebLinkAboutApproval of Insurance Bonds for Imagineering Enterprises Inc. ProjectAttest: RESOLUTION 2977 -01 Passed by the Common Council of the City of South Bend, Indiana March 26, 01 20_. w Presented by me to the Mayor of the City of South Bend, Indiana March 27, 20 01 City Clerk President of Common Council Approved and signed by me March 29 2091. City Clerk RESOLUTION NO. 19 7 � V01 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 FINANCING OF CERTAIN ECONOMIC DEVELOPMENT FACILITIES TO BE OWNED BY IMAGINEERING PROPERTIES, LLC AND LEASED TO AND OPERATED BY IMAGINEERING ENTERPRISES, INC. ( IMAGINEERING ENTERPRISES, INC. PROJECT) WHEREAS, the City is authorized by I.C. 36 -7 -11.9 and 12, et. seg• as supplemented and amended (the "Act') to issue revenue bonds for the financing of economic development facilities, the funds from said financing to be used for the acquisition, construction, installation and equipping of said facilities, and said facilities to be either leased to another person or directly owned by another person; and WHEREAS, Imagineering Properties, LLC (the "Applicant'), has advised the South Bend Economic Development Commission (the "Commission ") and the City that it proposes that the City issue and sell its economic development revenue bonds for the purpose of providing financing to the Applicant for lease to and operation by Imagineering Enterprises, Inc. (the "Lessee ") of certain economic development facilities consisting of the acquisition, construction, installation and equipping of an approximately 63, 600 square foot manufacturing facility, togetherwith the purchase ofmachinery and equipment to be utilized therein, located at 4521 Nimtz Pkwy, South Bend, Indiana 46624 (the "Project'), and the Commission has adopted a Resolution, containing the requisite findings of the Commission, recommending that the City adopt a Resolution giving preliminary approval to a proposed issuance of economic development revenue bonds for the financing of the Project; and WHEREAS, the Project will be owned by the Applicant and leased to and operated by the Lessee for use as an economic development facility within the meaning of the Act; and WHEREAS, it appears that the creation and retention of opportunities for gainful employment and the creation of business opportunities to be achieved by the Project will serve a public purpose and will be of benefit to the health and general welfare of the City, and that the proposed financing complies with the provisions of the Act; and WHEREAS, it appears that the Project will not have adverse competitive effect on any similar facility already constructed or operating in the City; 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 of South Bend, Indiana 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 the Common Council take such action as it lawfully may to encourage diversification of industry and promotion of job opportunities in and near said 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 amount not to exceed $5,000,000 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. The proposed economic development facilities will not have an adverse competitive effect on any similar facilities already under construction or in operation in the City. SECTION 4. 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 resolutions 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 5. All costs of the Project incurred for planning, engineering, interest paid during construction, underwriting expenses, attorney and bond counsel fees, acquisition, construction, installation and equipping of the Project will 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 6. 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 and counsel. No independent examination, appraisal or inspection of the Project was made, requested, or is contemplated by the City. SECTION 7. The City does not, by this or any other approval or finding, guarantee, warrant or even suggest that the bonds (if and when issued), coupons or series thereof will be a reasonable investment for any person, firm or corporation. SECTION 8. 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 9. 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 10. The bonds, if and when issued, shall be special, limited 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 11. 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 provisions of the Act. SECTION 12. This Resolution shall be in full force and effect from and after adoption by the Common Council and approval by the Mayor. PRESENTEa 3-2'\0 -6` NOT APPR00 kDOPTED 3_ze -ok COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA is \% � le-'� Member, Common Council Filed In Clerk's office W9�,R 2 f 20119 LCg6TTAJ. WA CITY CLERK, 80. BEND.IN. COMMITTEE REPORT TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 01 -18 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 FINANCING OF CERTAIN ECONOMIC DEVELOPMENT FACILITIES TO BE OWNED BY IMAGINEERING PROPERTIES, LLC AND LEASED TO AND OPERATED BY IMAGINEERING ENTERPRISES, INC. ( IMAGINEERING ENTERPRISES, INC. 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