HomeMy WebLinkAboutRelating to an Application by Allied Products Corporation for Issuance of Revenue BondsRESOLUTION
NO. 1637 -88
Passed by the Common Council of the City of South Bend,
Attest: r _ Citv Clerk
Presented by me to the Mayor of the City of South Bend,
August 23, 19 88
of Common Council.
Approved and signed by me August 24, 19-8-$_.
Clerk
Mayor
RESOLUTION NO. JI4 - -$$
INDUCEMENT RESOLUTION
OF
THE CITY OF SOUTH BEND, INDIANA
RELATING TO AN APPLICATION BY
ALLIED PRODUCTS CORPORATION
FOR THE ISSUANCE OF
CITY OF SOUTH BEND ECONOMIC DEVELOPMENT REVENUE BONDS
STATEMENT OF PURPOSE AND INTENT:
At the present time there are insufficient employment
and business opportunities and insufficient diversification of
business, commerce and industry in and near the City of South
Bend, Indiana (the "City ").
The economic welfare of the City would be benefited by
the acquisition and rehabilitation of economic development
facilities within the corporate limits of the City pursuant to
the provisions of Indiana Code 36 -7 -11.9 and -12 (the "Act ").
Allied Products Corporation ( "Applicant ") proposes to
acquire and rehabilitate economic development facilities in
South Bend, Indiana, as defined in the Act, and has requested
that the City finance costs of such economic development
facilities pursuant to the Act.
The South Bend Economic Development Commission has
received an application by Applicant for the issuance of City
of South Bend Economic Development Revenue Bonds in the
approximate principal amount of Five Million Two Hundred Fifty
Thousand Dollars ($5,250,000.00) with the terms of repayment to
be determined by market rates at the time the bonds are sold,
and the proceeds of the bonds will be used to modernize,
rehabilitate and generally improve an existing facility to be
used as a manufacturing facility located at 601 West Broadway
Street, South Bend, Indiana, and to acquire and rehabilitate
machinery and equipment for use in said facility, resulting in
the preservation of approximately 400 jobs.
NOW, THEREFORE, the Common Council of the City of
South Bend, Indiana resolves as follows:
Section 1. The project constitutes economic
development facilities which shall be financed by the City
through the issuance of revenue bonds pursuant to the Act and
the City is willing, upon compliance with all provisions of
Indiana law, to authorize approximately Five Million Two
Hundred Fifty Thousand Dollars ($5,250,000.00) of its revenue
bohds, which bonds will not be general obligations of the City
but will be payable solely from the limited sources authorized
and permitted by the Act.
Section 2. The proposed financing will be of benefit
to the economic health and general welfare of the City and will
comply with the purposes and provisions of the Act.
Section 3. The Applicant and the City may proceed
with the proposed project in reliance upon this resolution.
Section 4. That the liability and obligation of the
South Bend Economic Development Commission, the South Bend
Common Council and the City of South Bend, Indiana, shall be
limited solely to the good faith efforts to consummate such
proceedings and issue such bonds, and the South Bend Economic
Development Commission and the City of South Bend, Indiana,
their officers and agents, shall not incur any liability if for
any reason the proposed issuance of such bonds is not
consummated.
This Inducement Resolution shall be in full force and
effect from and after its adoption by the Common Council and
approval by the Mayor.
NOT ;2^ ^ROVED
1370K
Memb r of the Common Council
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