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HomeMy WebLinkAboutInducement Resolution Relating to Application by Steel Warehouse Co. Inc. for Issuance of Economic Development Revenue Bonds RESOLUTION 1296-85 Passed by the Common Council of the City of South Bend, Indiana, June 10, 19 85 . Attest: ( ft City Clerk Attest: President of Common Council. Presented by me to the Mayor of the City of South Bend, Indiana June 11, 19 85 4""" ` °° " """" City Clerk Approved and signed by me TINE /24-h 19 85 . Mayor RESOLUTION NO . ) aCitp- S5• INDUCEMENT RESOLUTION OF THE CITY OF SOUTH BEND, INDIANA RELATING TO AN APPLICATION BY STEEL WAREHOUSE CO . , INC . , AN INDIANA CORPORATION, FOR THE ISSUANCE OF CITY OF SOUTH BEND ECONOMIC DEVELOPMENT REVENUE BONDS The City of South Bend, Indiana (the "Issuer") is authorized by IC 36-7-12 (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, Steel Warehouse Co . , Inc . , an Indiana Corporation, (the "Applican") 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 development facility to consist of the construction of an addition to an existing building, the purchase of new machinery and equipment, and "make ready" other portions of existing buildings to accommodate said machinery and equipment, so that the Applicant may expand its business in cutting and treating flat rolled low-carbon steel, slitting, levelling, shearing, pickling and storing such steel, said existing facility being located at 2722 W. Tucker Drive, South Bend, Indiana, on an approximate 22 acre tract of land (the "Project") ; and, The diversification of industry and increase in job opportunities (3 jobs saved and 6 to 10 new jobs) to be achieved by the construction and equipping of the Project will be of public benefit to the health, safety and general welfare of the Issuer and its citizens; and, approves , determines , ratifies and confirms that (i) it will take or cause to be taken such actions pursuant 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 mutually 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 cost 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 or authorization of such additional bonds) and that the aforementioned purposes comply with the provisions of I . C . 36-7-12 , 4. All costs of the Project incurred after the adoption of this inducement resolution, including reimbursement or repayment to the Applicant of moneys expended by the Applicant for planning, engineering, interest paid during construction, underwriting expenses , attorney and bond counsel fees , acquisition, construction 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 direct expenses , including but not limited to, - 3 - 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, It is preliminarily found that the construction of the addition to an existing building 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 opportunities 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 approximately $1 ,350,000 of the Issuer under the Act for the acquisition, construction and equipping 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 construction and equipping of the Project, the Common Council of the City of South Bend hereby - 2 - planning, architectural work and engineering incurred prior to this inducement resolution will be permitted to be included as part of the bond issue to finance the Project . 5 . 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. This Inducement Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. 'e .er of the Con Council DATED: this day of June, 1985 . FILED IN CLERK'S OFFICE JUN 5 1985 PRESENTED Co 16- 8s IRENE GAMMON CITY CLERK, SO. BEND, IN NOT APPROWD ADOPTED 0-16—�5 - 4 -