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HomeMy WebLinkAboutInducement Resolution Relating to Issuance of Multi-Family Housing Revenue Bonds and North central Indiana Medical Education Foundation RESOLUTION NO. 1295-85-- Passed by the Common Council of the City of South Bend, Indiana, May 28, 19 85 Attest: City Clerk Attest: .L :, President of Common Council. Presented by me to the Mayor of the City of South Bend, Indiana May 29, 19 85 sa City Clerk Approved and signed by me cZ 7 19 S . 7)0 Mayor RESOLUTION NO. (aq 5--J ,"S INDUCEMENT RESOLUTION RELATING TO THE ISSUANCE OF MULTI-FAMILY HOUSING REVENUE BONDS AND ECONOMIC DEVELOPMENT REVENUE BONDS FOR THE BENEFIT OF NORTH CENTRAL INDIANA MEDICAL EDUCATION FOUNDATION RECITALS: The City of South Bend, Indiana still has insufficient employment opportunities, insufficient tax base and insufficient diversification of economic development facilities, which conditions are harmful to the health, prosperity, economic stability and general welfare of the area and, if not remedied, will be detrimental to the development of such area and its environs. North Central Indiana Medical Education Foundation, an Indiana not-for-profit corporation (the "Borrower" ) , has filed an application with the South Bend Economic Development Commission ( "Commission") to finance the improvement of real estate located in St. Joseph County, Indiana, to constitute economic development facilities ( the "Project" ) resulting in the creation of a substantial number of new jobs, as well as other kienefits. The Borrower has further advised the City and the Commission that a determination by the City to issue its revenue bonds under the Act to finance the Project will constitute a substantial inducement to the Borrower to proceed with the Project. To induce the Borrower to acquire and improve the Project, the City desires to adopt this Resolution. It is apparent that the development of the Project will provide nursing home beds and needed decent, safe and sanitary housing for persons in the area, maintain existing levels of employment, assist in relieving conditions of unemployment in construction and related industries and encourage the increase of commerce in the State of Indiana, all of which are in the public interest of the City. Subject to all required approvals under the Act, the City intends to use its best efforts to cooperate with the Borrower by issuing the City' s revenue bonds to finance the Project. The financing of the proposed Project through the issuance of the hereafter-described Bonds of the City complies with the requirements of the Act and will provide for and promote the public health, safety, morals and welfare of the inhabitants in and near the City. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: Section 1 . That approval is hereby given to the application of the Borrower relating to the acquisition, construction and improvement of such real estate including the following: a. Approximately 400 multi-family residential units at a cost in excess of $15 , 000, 000 . 00 ; b. Approximately 150 congregate care residential units at a cost in excess of $5 , 000 , 000. 00; and c. Approximately 400 bed nursing care facility at a cost in excess of $10 ,000 ,000. 00. Section 2. That the City intends to issue its Multi-Family Housing and Economic Development Revenue Bonds (the "Bonds") in -2- an amount not to exceed $35, 000, 000. 00 for the purpose of making a loan to the Borrower to provide financing for the acquisition, construction and improvement of the Project. Section 3. To induce the Borrower to acquire, construct and improve the Project, the Common Council shall cooperate with and take such action as may be necessary in the drafting of documents or the performance of such other acts as will facilitate the issuance of the Bonds by the City to provide funds to be used toward the payment of the costs of acquiring, constructing and improving such Project. Section 4. Any costs or expenses incurred in connection with the Project shall be included in the Project costs and reimbursed either from the proceeds of the Bonds to be issued with respect thereto or from payments by other parties to the financing. Section 5. The liability and obligation of the City and its Common Council shall be limited solely to good-faith efforts to consummate such proceedings and issue the Bonds, and neither the City nor its Common Council, nor their officers Or agents , shall incur any liability whatsoever if for any reason the proposed issuance of the Bonds is not consummated. Section 6. This Resolution shall be in full force and effect from and after its passage by the Common Council of the City of South Bend, Indiana, and approval by the Mayor. 4ember of the Q.mmon Council PRESENTED a- gS NOT APPROVED ADOPTED S-a 8- ? ST CCd anu/I.0 ie4 • BUTLER & SIMERI ATTORNEYS AT LAW 406 WEST WAYNE STREET SOUTH BEND. INDIANA 46601 JOSEPH V.SIMERI 219 233-3303 KEVIN J.BUTLER MELANIE K.MORGAN May 28, 1985 South Bend Common Council 4th Floor County-City Building South Bend, Indiana 46601 Ladies and Gentlemen: Re: South Bend Economic Development Revenue Bonds Applicant: North Central Indiana Medical Education Foundation We have submitted to you for your consideration at your meeting this date a form of Inducement Resolution for the above project. The project will consist of approximately 400 multi- family residential units, 150 congregate care residential units, and 400 nursing home bed facility. The cost of the project is estimated at approximately $35 , 000, 000 .00 and we are requesting approval for a $30, 000, 000. 00 bond issue. Enclosed with this letter is a copy of the application to the Economic Development Commission. Thank you for your consideration of this matter. Sincerely, Kevin J. Butler KJB:1 j h Enclosure