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HomeMy WebLinkAboutApproving Economic Development Revenue Bonds $20,000,000.00 Southfield Village, Inc.RESOLUTION NO. 2710 -99 Passed by the Common Council of the City of South Bend, Indiana March 8, 19 99 . Clerk Attest: ��?^ -- President of Common Council. Presented by me to the Mayor of the City of South Bend, I March 9,_ —19--2-9. City Clerk Approved and signed by me Mareb .9, _ 19 no_. Mayor RESOLUTION NO. J2 '6 - 1 1 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROVING THE FINDING OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION WITH RESPECT TO THE ISSUANCE OF NEW MONEY REVENUE BONDS IN THE AMOUNT NOT TO EXCEED TWENTY MILLION AND 00 /100 DOLLARS ($20,000,000.00) FOR THE FINANCING OF CERTAIN ECONOMIC DEVELOPMENT FACILITIES TO BE UNDERTAKEN BY SOUTHFIELD VILLAGE, INC., AND AUTHORIZING AND COMMITTING THE CITY OF SOUTH BEND, INDIANA, TO PROCEED WITH SUCH PROJECT, SUBJECT TO FINAL ACTION BY THIS COMMON COUNCIL WITH RESPECT TO THE TERMS AND CONDITIONS OF SUCH FINANCING WHEREAS, the City of South Bend, Indiana (the "City ") is authorized by IC 36 -7 -11.9 and 12 (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 WHEREAS, Southfield Village, Inc. ( "Southfield "), has advised the City that there is under consideration a proposal of Southfield for the acquisition, construction, installation and equipping of a senior living facility consisting of a sixty (60) bed skilled nursing facility and sixty- four (64) assisted living units located near the intersection of Miami and Kern Roads in the City (the "Project "); and WHEREAS, the total cost of the Project is presently estimated to be approximately Twenty Million and 00 /100 Dollars ($20,000,000.00), plus incidental costs of issuance of economic development revenue bonds; and WHEREAS, Southfield has proposed that the City issue revenue bonds under the Act to finance the acquisition, construction, installation and equipping of the Project (the 'Bonds ") under a financing agreement whereby the proceeds of such Bonds would be utilized to acquire, construct, install and equip the Project and Southfield would make payments sufficient to pay the principal of, premium, if any, and interest on the Bonds; and Southfield has further advised the City that a determination by the City to accept such a proposal for financing the Project will constitute a substantial inducement to Southfield to proceed with the Project; and WHEREAS, the South Bend Economic Development Commission (the "Commission ") has given its approval to the Project and the financing of the Project; and WHEREAS, it is tentatively found that the acquisition, construction, installation and equipping of the Project will not have an adverse competitive effect on any similar facility already constructed or operating near or in the City; and WHEREAS, it is estimated that the Project will result in the creation of approximately seventy -two (72) full -time equivalent permanent jobs with an estimated total annual payroll of $1,700,000 and provide continued future opportunities for employment; and WHEREAS, subject to required approvals, it would appear that the Project and the financing of the Project would be of public benefit to the health, safety and general welfare of the City and its citizens; NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, AS FOLLOWS: 1. The Common Council of the City (the "Common Council ") hereby finds, determines, ratifies and confirms that the promotion of diversification of economic development and ::ODMATCDOCS\S13DOCSI\32484 \1 -2- job opportunities in and near the City is desirable to preserve the health, safety and general welfare of the citizens of the City; and that it is in the public interest that the Commission and the City take such action as they lawfully may to encourage economic development, diversification of industry and promotion of job opportunities in and near the City. 2. The Common Council hereby approves, determines, ratifies and confirms that the issuance and sale of the Bonds of the City under the Act in an amount not to exceed Twenty Million and 00 /100 Dollars ($20,000,000.00), plus incidental costs in connection with the issuance of the Bonds, for the lending of the proceeds of the Bonds to Southfield for the acquisition, construction, installation and equipping of the Project will serve the public purposes referred to above, in accordance with the Act. In order to induce Southfield to proceed with the acquisition, construction, installation and equipping of the Project, the Common Council hereby approves, determines, ratifies and confirms that: (i) it will take or cause to be taken such actions pursuant to the Act as may be required to implement the aforesaid financing, or as it may deem appropriate in pursuance thereof; provided that all of the foregoing shall be mutually acceptable to the City and Southfield; (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 necessary and advisable for the authorization, issuance and sale of the Bonds; and that the aforementioned purposes comply with the provisions of IC 36 -7 -11.9 and 12; M1 -3- (iii) it will use its best efforts at the request of Southfield to authorize the issuance of additional bonds for completion of the Project and for additions to the Project, including the costs of issuance (provided that the financing of such addition or additions to the Project is found to have a public purpose, as defined in IC 36- 7 -12 -1 at the time of authorization of such additional bonds), and that the aforementioned purposes comply with the provisions of IC 36 -7 -11.9 and 12. 4. All costs of the Project incurred after the date beginning sixty (60) days prior to the adoption of this inducement resolution, including reimbursement or repayment to Southfield of monies expended by Southfield for planning, engineering, interest paid during construction, underwriting expenses, attorney and bond counsel fees, and acquisition, construction, installation and equipping of the Project will be permitted to be included as part of the Bond issue to finance the Project, and the City will lend the proceeds from the sale of the Bonds to Southfield for the same purposes. Also, certain indirect expenses, including but not limited to, planning, architectural work and engineering incurred prior to this inducement resolution will be, as permitted by law, included as part of the bond issue to finance the Project. 5. The liability and obligation of the Common Council of the City shall be limited solely to good faith efforts to consummate the proceedings leading to the issuance of the Bonds to finance the acquisition, construction, installation and equipping of the Project and the Bonds, if issued, shall never constitute a general obligation of, or indebtedness of, or a charge against the general credit of the City and shall not be payable to any extent from revenue raised by taxation. Neither the Common Council or the City or their officers or agents, shall incur any liability, if for any reason the proposed issuance of the Bonds is not consummated. ::ODMA\PCDOCS \SBDOCSI \32484 \I -4- 6. This Resolution shall be in full force and effect from and after its adoption and approval by the Mayor. Member, South Bend Common Council PRESENTED 3-(j'7 9 NOT APPROVED ADOPTED3 -0 / n / ::0DMA\PCD0CS \SBD0CSI\32484 \I '5' Filed in Clark's Office LIAR -_3 1329 LOREMA j. DUDA CITY CLERIC 3A. BEISG,IR.