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HomeMy WebLinkAboutResolution of the Common Council Relating to Steel Warehouse Co. Inc. RESOLUTION NO. 1408-86 Passed by the Common Council of the City of South Bend, Indiana, April 1 , 19 86 . Attest: / L/r Lam City Clerk Attest: ±�'�" �l President of Common Council. Presented by me to the Mayor of the City of South Bend, Indiana April 2 , 19 86 4 I` City Clerk Approved and signed by me Ut.17,/ 12 19 O b , �/( Mayor RESOLUTION NO. i yes, - 4 RESOLUTION OF THE COMMON COUNCIL OF THE. CITY OF SOUTH BEND, INDIANA: RELATING TO STEEL WAREHOUSE CO. , INC. WHEREAS, the City of South Bend, Indiana (the "Issuer") is authorized by IC 36-7- 11.9 and 12 (the "Act") to issue revenue bonds for the financing of economic development facilities, the funds from said financing to be used for the acquisition, construction and equipping of said facilities, and said facilities to be either sold or leased to a company or directly owned by a company; and WHEREAS, Steel Warehouse Co., Inc., an Indiana corporation (the "Applicant") has advised the South Bend Economic Development Commission (the "Commission") and the Issuer that it proposes that the Issuer either acquire, construct and equip an economic development facility and sell or lease the same to the Applicant or loan proceeds of an economic development financing to the Applicant for the same, said economic develop- ment facility to consist of the expansion of the Applicant's existing steel processing facility, by the acquisition of machinery and equipment to be used as a continuous pickier system and the expansion of the existing building in order to house said system, all to be used in the Applicant's business of cutting and treating flat rolled, low carbon steel, which existing facility is located at 2722 W. Tucker Drive, in South Bend, Indiana ("Project"); and WHEREAS, the diversification of industry and increase in job opportunities (7 to 15 new jobs) to be achieved by the acquisition and expansion of the Project will be of public benefit to the health, safety and general welfare of the Issuer and its citizens; and WHEREAS, having received the advice of the South Bend Economic Development Commission, it would appear that the financing of the Project would be of public benefit to the health, safety and general welfare of the Issuer and its citizens; and WHEREAS, it is tentatively found that the acquisition and expansion of the facility will not have an adverse competitive effect on any similar facility already constructed or operating in South Bend, Indiana; NOW, THEREFORE, BE IT RESOLVED BY THE Common Council of the City of South Bend, as follows: 1. The Common Council of the City of South Bend finds, determines. ratifies and confirms that the promotion of diversification of economic development and job opportu- nities in and near South Bend, Indiana, is desirable to preserve the health, safety and general welfare of the citizens of the Issuer; and that it is in the public interest that the Commission and the Issuer take such action as they lawfully may to encourage economic development, diversification of industry and promotion of job opportunities in and near the Issuer. 2. The Common Council of the City of South Bend approves, determines, ratifies and confirms that the issuance and sale of economic development revenue bonds in an amount of $3,000,000 of the Issuer under the Act for the acquisition and expansion of the Project and the sale or leasing of the Project to the Applicant or the loan of the proceeds of the revenue bonds to the Applicant, will serve the public purposes referred to above, in accordance with the Act. 3. In order to induce the Applicant to proceed with the acquisition and expansion of the Project, the Common Council of the City of South Bend hereby approves, deter- mines, ratifies and confirms that (i) it will take or cause to be taken such actions pursu- ant to the Act as may be required to implement the aforesaid financing, or as it may deem appropriate in pursuance thereof; provided that all of the foregoing shall be mutu- ally acceptable to the Issuer and the Applicant; and (ii) it will adopt such ordinances and resolutions and authorize the execution and delivery of such instruments and the taking of such action as may be necessary and advisable for the authorization, issuance and sale of said economic development revenue bonds; and (iii) it will use its best efforts at the request of Applicant to authorize the issuance of additional bonds for refunding and refinancing the outstanding principal amount of the bonds, for completion of the Project and for additions to the Project, including the costs of issuance (providing that the financing of such addition or additions to the Project is found to have a public purpose [as defined in I.C. 36-7-12-1] at the time of authorization of such additional bonds), and that the aforementioned purposes comply with the provisions of I.C. 36-7-11.9 and 12. 4. All costs of the Project incurred after the adoption of this inducement resolu- tion, including reimbursement or repayment to the Applicant of moneys expended by the Applicant for planning, engineering, interest paid during construction, underwriting ex- penses, attorney and bond counsel fees, acquisition and equipping of the Project will be permitted to be included as part of the bond issue to finance the Project, and the Issuer will sell or lease the same to the Applicant or loan the proceeds from the sale of the bonds to the Applicant for the same purposes. Also, certain indirect expenses, including but not limited to, planning, architectural work and engineering incurred prior to this inducement resolution will be permitted to be included as part of the bond issue to fi- nance the Project. - 2 - 5 . That the liability and obligation of 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 neither the South Bend Common Council nor the City of South Bend, Indiana, or its officers or agents, shall incur any liability whatsoever if for any reason the proposed issuance of such Bonds is not consummated. This resolution adopted by the South Bend Common Council of the City of South Bend, Indiana, this 1st day of April, 1986 . SOUTH BEND COMMON COUNCIL Member of the Co Council nAR i 1986 T PRESENTED �I- I- SG 1 r NOT APPROVED ADOPTED y-/-eg.