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HomeMy WebLinkAboutInducement Resolution Relating to Application by South Bend Orthopedic Associates Inc. & Tripods Partnership for Issuance of Revenue Bonds RESOLUTION NO. 1380-85 Passed by the Common Council of the City of South Bend, Indiana, December 2, 19 85 . Attest: (- "--"-- City Clerk Attest: ,`/_d"i�L`L /s.L i� '—/ _ President of Common Council. / Presented by me to the Mayor of the City of South Bend, Indiana December 3, 19 R5 . 4,,L... !dam—,i City Clerk Approved and signed by me D!2(Yji7Z/2 t 4 19 d . / 7, / v145 Mayor RESOLUTION NO. L3ga-8'a' 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 would be benefited by the acquisition and 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") 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 Applicant for the issuance of City of South Bend Economic Development Revenue Bonds in the approximate principal amount of One Million Two Hundred Thou- sand and no/100 Dollars ($1,200, 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 acquire real estate, construct improvements to real estate and acquire equipment to be used as a medical facility located on the South side of LaSalle 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 One Million Two Hundred Thousand and no/100 Dollars ($1,200, 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 permit- ted 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 facility in reliance upon this resolution. 4. That the liability and obligation of the South Bend Economic Development Commission, the South Bend Common -2- 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. // ML •er of the o t i on Council Dated December 2, 1985 NI `CGN39 0S `N6 IJ AIiJ NOWM5 O 3N3 jff PRESENTED 1 'a ` F1Sf 9861 5 Z AON NOT APPROVED ekt+2'�7 1 Ssad; ,1 ADOPTED I a- a -g.s— �' �1' —3— BARNES a THORNBURG 1313 MERCHANTS BANK BUILDING 600 1ST SOURCE BANK CENTER FEDERAL BAR BUILDING II SOUTH MERIDIAN STREET 100 NORTH MICHIGAN 1815 H STREET,N.W. INDIANAPOLIS, INDIANA 46209 WASHINGTON,D.C.20006 1317/63B-1313 SOUTH BEND, INDIANA 46601 (2021955-4500 (219) 233-1171 305 FIRST NATIONAL BANK BUILDING 301 SOUTH MAIN STREET ELKHART. INDIANA 96516 TWX 810-341-3427 B&T LAW IND 12191293-0681 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: $1,200, 000 City of South Bend Economic Development Revenue Bonds (South Bend Orthopedic Associates, Inc./Tripods Partnership) Dear Mrs. Gammon: This letter outlines the project relating to the Ordi- nances and Inducement Resolution which were filed with your office on November 22, 1985. The proposed project consists of the construction of a medical office facility and the purchase of equipment to be used therein. The South Bend Orthopedic Associates, Inc. , an Indiana corporation, proposes to finance and purchase the equipment, while a related partnership, Tripods Partnership, proposes to acquire the real estate and construct the build- ing. The proposed facility would be constructed on the south side of LaSalle Street immediately east of the St. Joseph River. It is presently anticipated that the proposed project would result in a minimum of 3 full-time jobs with an annual payroll of approximately $60, 000 . 00. Valley American Bank and Trust Company has issued its commitment letter to purchase the bonds to finance this project. We respectfully request the Council ' s favorable action with respect to this project, with first reading of the Ordi- nances and passage of the Inducement Resolution on December 2, with passage of the Ordinances on December 16. Very truly yours, BARNES & THORNBURG i Mark C. Krcmaric MCK/c ac