HomeMy WebLinkAboutInducement Resolution Relating to Application by Allied Products Corporation for Issuance of Revenue Bonds RESOLUTION
NO. 1379-85
Passed by the Common Council of the City of South Bend, Indiana,
December 2, 1985 .
Attest: `–e.-`," /"( City Clerk
Attest: ,.1-` A t ._ •_ LC' President of Common Council.
Presented by me to the Mayor of the City of South Bend, Indiana
December 3 . 19 85 .
+ -...:-,,- City Clerk
Approved and signed by me D.W.,,C,0/l,f</-r/(-- 4 19 V5
1 Mayor
RESOLUTION NO. R7G-S
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
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 rehabilitation 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, Allied Products Corporation ("Applicant")
proposes to lease 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 Applicant for the issuance
of City of South Bend Economic Development Revenue Bonds in the
approximate principal amount of One Million Dollars
($1,000, 000. 00) with the terms of repayment to be determined by
the market rates at the time the bonds are sold and the pro-
ceeds of the bonds will be used to acquire and make improve-
ments to real estate to be used as a warehousing and
manufacturing facility located at 701 S. Chapin Street, South
Bend, Indiana, resulting in the preservation of approximately
10 jobs and the creation of approximately one-hundred (100)
jobs at the facility following completion of the project.
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 One Million Dollars ($1, 000,000. 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 and the City may proceed with the
proposed project in reliance upon this resolution.
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.
-2-
This Inducement Resolution shall be in full force and
effect from and after its adoption by the Common Council and
approval by the Mayor.
Member of th- 'ommon Council
L
Dated December 2 , 1985
L 41 'J CLERK'S NEE
EiE
NOV 2 5 1985
PRESENTED 1 01- a- J
IREN
NOT APPROVED T 'V Ci FPK!, So ;: m
ADOPTED V •-•- gs
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BARNES a THORNBURG
1313 MERCHANTS BANK BUILDING 600 1ST SOURCE BANK CENTER FEDERAL BAR BUILDING
II SOUTH MERIDIAN STREET 100 NORTH MICHIGAN ISIS H STREET,N.W.
INDIANAPOLIS, INDIANA 96209 WASHINGTON,0.0.20006
13171638-1313 SOUTH BEND, INDIANA 46601 12021955-9500
1219) 233-1171
305 FIRST NATIONAL BANK BUILDING
301 SOUTH MAIN STREET
EELKHART,INDIANA 46516 TWX B10-341-3427 B8T LAW IND
12191 293-0E81 TELECOPIER 1219) 237-1125
MARK C. KRCMARIC
BY HAND DELIVERY
November 25, 1985
Mrs. Irene K. Gammon
City of South Bend City Clerk
County-City Building
South Bend, Indiana 46601
Re: $1,000, 000 City of South Bend Economic
Development Revenue Bond (Allied Products
Corporation Project)
Dear Mrs. Gammon:
This letter describes the proposed project with
respect to the Ordinance and Inducement Resolution that were
filed with your office on November 22, 1985.
Allied Products Corporation, with corporate offices in
Chicago, Illinois, proposes to purchase and rehabilitate the
South Bend facility of White Farm Equipment Company, located at
701 South Chapin Street in the City of South Bend. The
purchase and the bond financing are dependent upon approval by
the Bankruptcy Court in White Farm Equipment Company' s
proceeding under the provisions of Chapter 11 of the United
States Bankruptcy Code.
Allied Products Corporation proposes to acquire this
facility and to spend an amount equal to several times the
purchase price to rehabilitate the facility. The property to
be acquired consists of approximately 35 acres and several
buildings totaling 900, 000 square feet. The equipment is
already owned by Allied Products Corporation.
The project is expected to result in the preservation
of approximately 10 jobs and the creation of approximately 100
jobs at the facility following completion of the project.
1st Source Bank has issued its commitment letter to
purchase the bonds to finance the project.
City of South Bend City Clerk
November 25, 1985
Page 2
We respectfully request the Council 's favorable con-
sideration of this project and the related Ordinance and
Inducement Resolution, with passage of the Inducement Resolu-
tion and first reading of the Ordinance on December 2, with
passage of the Ordinance on December 16.
Very truly yours,
BARNES & THORNBURG
7k �.�
Mark C. Krcmaric
MCK/cac
BARNES a. THORNBURG