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HomeMy WebLinkAboutInductment Resolution of City of South Bend P.A.I. Properties RESOLUTION NO. 1431-86 Passed by the Common Council of the City of South Bend, Indiana, August 25, 19 86 Attest: r- City Clerk Attest`,` / J-( _it e ( .---1 President of Common Council. Presented by me to the Mayor of the City of South Bend, Indiana September 2, 19 86 City Clerk Approved and signed by me ,,, (i.-ILN. 19 cta, . AG RESOLUTION NO. I '43/-n INDUCEMENT RESOLUTION OF THE CITY OF SOUTH BEND, INDIANA P.A. I . PROPERTIES, AN INDIANA PARTNERSHIP PROJECT 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 would be benefited by the acquisition and construction of economic development facilities in the corporate limits of the City pur- suant to the provisions of Indiana Code 36-7-12 (the "Act) ; and WHEREAS, P.A. I . Properties, an Indiana partnership ("Company") , proposes to acquire and construct economic development facilities in South Bend, Indiana as defined in the Act if the City will finance costs of such economic development facilities pursuant to the Act; and WHEREAS, the South Bend Economic Development Commis- sion has received an application by the Company for the issu- ance of City of South Bend Economic Development Bonds in the approximate principal amount of Nine Hundred Fifty Thousand and no/100 Dollars ($950, 000 . 00) repayable upon terms governed by existing market rates at the time such bonds are issued; and WHEREAS, the proceeds of the Bonds will be used by the Company to acquire, construct, and equip a manufacturing and office facility for use by North American Signs, Inc. to be located at 1200 South Lafayette Street, South Bend, Indiana, which facility shall result in the addition of approximately thirty (30) new jobs to the payroll of the principal user within two (2) years after the completion of the project and shall increase such payroll of such principal user by approxi- mately Five Hundred Seventy-five Thousand Dollars ($575, 000 . 00) per annum. 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 Nine Hundred Fifty Thousand and no/100 Dollars ($950,000. 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, will comply with the purposes and provisions of the Act, and the proposed facility shall not have an adverse competitive effect on other similar facilities in the City. 3. The Company may proceed with acquisition and con- struction 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 of the City of South Bend, Indiana, shall be limited solely to the good faith efforts to consummate such proceedings and issue such Bonds. The South Bend Economic Development Com- mission 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 . SOUTH BEND COMMON COUNCIL Member A....H> .<2 5- 0'6 NOT APPROVEd g co -3-