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HomeMy WebLinkAboutInducement Resolution of the City of South Bend Relating to: Automatic Molded Plastics, Inc. and Aquarius Plastics Finishers, Inc. RESOLUTION NO. 1338-85 Passed by the Common Council of the City of South Bend, Indiana, September 9, 19 85 . Attest: �— e City Clerk Attest: '' �.'` / , L/'r-: dent of Common Council. Presented by me to the Mayor of the City of South Bend, Indiana September 10, 19 85 < City Clerk Approved and signed by me ste.n. ) 19%.‘ . �� � Mayor RESOLUTION NO. 13 3 % - 85 INDUCEMENT RESOLUTION The City of South Bend, Indiana, Relating to: Automatic Molded Plastics, Inc. and Aquarius Plastic Finishers, Inc. WHEREAS, at the present time, there are insufficient em- ployment opportunities and insufficient diversification of business, commerce and industry and insufficient tax base in the City of South Bend, Indiana (the "City") ; and WHEREAS, the economic welfare of the City would be bene- fited by the acquisition and construction of economic development facilities, pursuant to the provisions of IND. CODE §36-7-12 (the "Act") ; and WHEREAS, Automatic Molded Plastics, Inc. and Aquarius Plastic Finishers, Inc. desire to acquire certain economic develop- ment facilities in South Bend, Indiana, provided that the City will finance a portion of the costs of such facilities, pursuant to the Act, which facilities will constitute economic development facilities, as defined in the Act; and WHEREAS, The South Bend Economic Development Commission has received an application by Automatic Molded Plastics, Inc. and Aquarius Plastic Finishers, Inc. for the issuance of City of South Bend Economic Development Revenue Bonds in the total amount of Three Million and No/100 Dollars ($3, 000, 000. 00) , with One Million Nine Hundred Forty-five Thousand and No/100 Dollars ($1,945 , 000. 00) , for Automatic Molded Plastics, Inc. and One Million Fifty-five Thousand and No/100 Dollars ($1, 055, 000. 00) for Aquarius Plastic Finishers, Inc. , for the following economic development facilities ( "Project") : A. Automatic Molded Plastics, Inc. will acquire : / One (1) building addition consisting of an additional 20, 000 square feet which would bring the building to a total of 107, 000 square feet Six (6) 200 ton molding machines Two (21 300 ton molding machines Two (2) 400 ton molding machines. B. Aquarius Plastic Finishers, Inc. will acquire: Two (2) 1,200 ton injection molding machines One (11 700 ton injection molding machine resulting in the addition, over a 5 to 7 year range, of one hundred (100) new jobs at Automatic Molded Plastics, Inc. and one hundred (100) new jobs at Aquarius Plastic Finishers, Inc. , with seventy- five (75) jobs being saved at Automatic Molded Plastics , Inc. There is an anticipated increased payroll of One Million Four Hundred Thousand and No/100 Dollars ($1, 400, 000. 00) for Automatic Molded Plastics, Inc. and One Million Three Hundred Thousand and No/100 Dollars ($1, 300, 000. 00) for Aquarius Plastic Finishers, Inc. , with a projected payroll from jobs saved of approximately One Million Seventy Thousand and No/100 Dollars ($1,070,000. 00) for Automatic Molded Plastics, Inc. ; and WHEREAS, Automatic Molded Plastics, Inc. will use Seven Hundred Fifty Thousand and No/100 Dollars ($750,000 .00) of the bonds for the building addition and the period for these bonds will be ten (10) years, with interest at the fixed rate of ten per cent (.10°%) . The remaining Two Million Two Hundred Fifty Thousand and No/100 Dollars ($2,250, 000. 00) of the bonds will be used by Automatic Molded Plastics, Inc. and Aquarius Plastic Finishers, Inc. for equipment acquisition and the period for these bonds will be seven (7) years, with interest at the fixed rate of ten per cent (10%) . NOW,. THEREFORE, the Common Council of the City of South Bend, Indiana, moves as follows: 1. The Project constitutes economic development facili- ties which shall be financed by the City through the issuance of 2. revenue bonds pursuant to the Act, and the City is willing, upon compliance with all provisions of Indiana law, to authorize ap- proximately Three Million and No/100 Dollars ($3,000, 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 proposed financing of the Project by the City for Automatic Molded Plastics, Inc. and Aquarius Plastic Finishers, Inc. is hereby found to comply with the purposes and provisions of the Act and Automatic Molded Plastics, Inc. and Aquarius Plastic Finishers, Inc. may proceed with the Project in reliance upon this resolution. 4. The South Bend Economic Development Commission shall take such action as is necessary to facilitate the issuance of In- dustrial Development Revenue Bonds (the "Bonds") by the City of South Bend, Indiana, for the Project, but that all costs and ex- penses incurred in the issuance shall be Project costs to be dis- bursed from the proceeds of the Bonds. 5. The South Bend Economic Development Commission, the South Bend Common Council and the City shall not be liable if the issuance of the Bonds is not consummated. This Inducement Resolution shall be in full force and effect from and after its adoption by the Common Council and approved by the Mayor. /Member of the Common Council FILED IN CLERK'S OFFICE PRESENTED 9- 9- 116 SEP 4 1985 Wit APPROVED ?ADOPTED 9- ?- 8a" IRENE GAMMON CITY CLERK, SO. BEND, IN 3 .