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HomeMy WebLinkAboutApproval of Bonds for Economic Development Facilities at 4404 William Richardson CtRESOLUTION NO. 2388 -96 Passed by the Common Council of the City of South Bend, Indiana, Attest: July 22, 96 19 Presented by me to the Mayor of the City of South Bend, Indiana July 23, 96 19 Clerk of Common Council. City Clerk Approved and signed by me 19 . G • �.C- '^"°"� Mayor COMMON COUNCIL RESOLUTION NO.0099 /6 A RESOLUTION OF THE CITY OF SOUTH BEND, INDIANA COMMON COUNCIL PROVIDING PRELIMINARY APPROVAL OF THE ISSUANCE OF BONDS FOR THE PURPOSE OF PROVIDING FINANCING OF CERTAIN ECONOMIC DEVELOPMENT FACILITIES LOCATED AT 4044WILLIAM RICHARDSON COURT, SOUTH BEND, INDIANA RESOLVED, by the Common Council of the City of South Bend, Indiana (the "City "), as follows: WHEREAS, 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 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, Crystal Mountain, Inc. (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 by Rick E. Newman (the "Lessor ") for lease to and operation by the Applicant of certain economic development facilities consisting of the financing of the acquisition, construction, installation and equipping of certain economic development facilities consisting of an approximately 12,000 square foot expansion to an existing 18,900 square foot building, including machinery and equipment therein, on approximately 2.91 acres of land located at 4044 William Richardson Court, South Bend, Indiana 46628 (the 'Project "), and the City wishes to induce the Lessor and the Applicant to acquire, construct, install and equip the Project within the City; 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 WHEREAS, the Project will be owned by the Lessor and leased to and operated by the Applicant for use as an economic development facility; and WHEREAS, it appears that the Project will not have adverse competitive effect on any similar facility already constructed or operating in the City; FURTHER 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 South Bend, Indiana will be of benefit to the health and general REWLM 105940.1 welfare of the citizens of the City; and that it is in the public interest that this Council take such action as it lawfully may to encourage diversification of industry and promotion ofjob 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 $790,000 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. 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 4. All costs of the Project incurred for planning, engineering, interest paid during construction, underwriting expenses, attorney and bond counsel fees, acquisition, construction and equipping of the Project, including reimbursement or repayment to the Applicant of moneys expended prior to the adoption by the Common Council of this resolution 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 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 finding, 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 constricted. The City is in no way responsible to the holders of any bonds for any payment obligation created by the bonds. nessLnm05940.1 -2- SECTION 8. The City does not warant 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 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 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 provisions of the Act. SECTION 11. This resolution shall be in full force and effect upon adoption and compliance with I.C. 364-6 et seq. The foregoing was passed by the Common Council this ' d y of 1996. PRESENTED / cZ2 6 NOT APPROVED ADOPTED 7-022 --%6 A5 ,qM6' 0ED UMM 105M.1 Member, Common Council City of South Bend, Indiana -3- Filed in Clerk's Office L L 1 6 1496 LORETTA 4, WOA.,.� CITY CLERK, 9C, SEND, IN.