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HomeMy WebLinkAboutRelating to Applications by South Bend Orthopedic Associates Inc. and Tripods Partnership for Issuance of Revenue Bonds RESOLUTION NO. 1438-86 Passed by the Common Council of the City of South Bend, Indiana, September 22, 19 86 Attest: 1/414"a" )15-7-"-4-1--1.4—a.-•-•--/ City Clerk Attest: CYO y President of Common Council. Presented by me to the Mayor of the City of South Bend, Indiana September 23, 19 86 r City Clerk / Approved and signed by me Nei 0)-- 2 19 et./. ��i� � ,�� Mayor RESOLUTION NO. 1` 38-8.‘ INDUCEMENT RESOLUTION OF THE CITY OF SOUTH BEND, INDIANA RELATING TO APPLICATIONS BY SOUTH BEND ORTHOPEDIC ASSOCIATES, INC. , AND TRIPODS PARTNERSHIP FOR THE ISSUANCE OF CITY OF SOUTH BEND ECONOMIC DEVELOPMENT REVENUE BONDS WHEREAS, at the present time there are insufficient employment opportunities and insufficient diversification of business, commerce and industry in and near the City of South Bend, Indiana (the "City") ; and WHEREAS, the economic welfare of the City is benefited by the construction of economic development facilities within the corporate limits of the City pursuant to the provisions of Indiana Code 36-7-12 (the "Act" ) ; and WHEREAS, South Bend Orthopedic Associates, Inc. , an Indiana corporation and/or Tripods Partnership, an Indiana partnership (hereinafter collectively referred to as "Appli- cant") are constructing economic development facilities (the "Project" ) in South Bend, Indiana as defined in the Act, and the City has financed costs of such economic development facilities pursuant to the Act through economic development revenue bonds issued in 1985; and WHEREAS, the South Bend Economic Development Commis- sion has received an application by Applicant for the issuance of City of South Bend Economic Development Revenue Bonds in the approximate principal amount of Seven Hundred Thousand and no/100 Dollars ($700, 000. 00) with the terms of repayment to be determined by the market rates at the time the bonds are sold, and the proceeds of the bonds will be used to finance cost overruns related to the Project, which Project consists of acquisition of real estate, construction of improvements to real estate and acquisition of equipment to be used as a medical facility located on the South side of LaSalle Street immediately east of the St. Joseph River in South Bend, Indiana, resulting in a minumum of three (3) full-time jobs at the facility following completion of the project with an annual payroll of approximately $60, 000 .00 . NOW, THEREFORE, the Common Council of the City of South Bend, Indiana resolves as follows: 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 Seven Hundred Thousand and no/100 Dollars ($700,000. 00) of its revenue bonds, 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 . 2 . The proposed financing will be of benefit to the economic welfare of the City and will comply with the purposes and provisions of the Act. 3 . The Applicant may proceed with acquisition and construction of the economic development facilities in reliance upon this resolution. -2- 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. �1 Member of the Comm ouncil Dated: September 22, 1986 0E0 !N PER 'S OFFICE SEP 7 1986 !RENE GAMMON nrY CLERK, SO. Rnin PRESENTED 9- a -76 NOT APPROVED. -3- ADOPTED- 9 BARNES a THORNBURG 1313 MERCHANTS BANK BUILDING 600 1ST SOURCE BANK CENTER FEDERAL BAR BUILDING II SOUTH MERIDIAN STREET 100 NORTH MICHIGAN IBIS H STREET,N.W. WASHINGTON D C.20006 INDIANAPOLIS, INDIANA 46204 . 13171638-1313 SOUTH BEND, INDIANA 46601 12021955-4500 1219) 233-1171 305 FIRST NATIONAL BANK BUILDING 301 SOUTH MAIN STREET ELKHART,INDIANA 46516 TWX 810-341-3427 B&T LAW IND 12191 293-0681 TELECOPIER 1219) 237-1125 TO CALL WRITER BY HAND DELIVERY September 17, 1986 Mrs . Irene K. Gammon Office of the City Clerk Fourth Floor County-City Building South Bend, Indiana 46601 Re: Inducement Resolution and Ordinances for Economic Development Revenue Bond Financing for South Bend Orthopedic Associates, Inc. and Tripods Partnership Dear Mrs . Gammon: Enclosed are proposed forms of an inducement resolution and bond ordinances to authorized the issuance of economic development revenue bonds for South Bend Orthopedic Associates, Inc. and Tripods Partnership. We ask that the inducement resolution be presented at the Council meeting on Monday, September 22, with the ordinances also presented for first reading at that meeting. We ask that the ordinances be placed on the agenda for passage at the Council ' s October 13 meeting. An inducement resolution for these projects is being presented to the Economic Development Commission on Friday, September 19, with a public hearing before the Economic Development Commission scheduled for October 3 . In December of 1985, the City of South Bend issued two bonds to finance construction and equipping of the new medical office facility on the east bank of the St . Joseph River along the south side of LaSalle Street. The building is owned by Tripods Partnership, and the 1985 bond issue for the partner- ship to finance construction was in the amount of $1,300, 000. The 1985 bond issue for South Bend Orthopedic Associates, Inc. , which will be the tenant in the building, was in principal amount of $100, 000, with the proceeds to be used to finance equipment. Mrs . Irene K. Gammon September 17, 1986 Page 2 The enclosed inducement resolution and ordinances for bond financing are in the aggregate amount of $700, 000, with $175,000 to be allocated to the corporation, and a separate bond in the amount of $525, 000 for the partnership. Both of these bonds would be issued with respect to the same project and to finance cost overruns. There are currently 17 employees with an approximate annual payroll of $1,260,000 . The borrowers expect that the project will create 3 new jobs, with an estimated annual payroll of $60, 000 . It is currently anticipated that Valley American Bank and Trust Company will purchase the bonds . We thank you for your cooperation and assistance. Very truly yours, BARNES & THORNBURG Richard W. Morgan RWM/cac Enclosure cc: Kenneth P. Fedder, Esq. June Wynen BARNES a THORNBURG