HomeMy WebLinkAboutInducement Resolution Relating to Teachers Credit Union Project RESOLUTION
NO. 1181-84
Passed by the Common Council of the City of South Bend, Indiana,
July 23 , 19 84 .
Attest: ' ` City Clerk
Attest: �
� y-C-Sr-A--) P resident of Common Council.
Presented by me to the Mayor of the City of South Bend, Indiana
July 24 , 19 84
Z ;
City Clerk
Approved and signed by me 9AAA L y 19 PV.
t/(_//A/ Mayor
RESOLUTION NO.u$j -84
INDUCEMENT RESOLUTION
OF
THE CITY OF SOUTH BEND, INDIANA
Relating to : Teacher 's Credit Union Project
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 of economic development facilities
in the corporate limits of the City pursuant to the provisions
of Indiana Code 18-6-4 .5 (the "Act") ; and
WHEREAS, Teacher 's Credit Union of South Bend, Indiana
proposes to acquire and construct economic development facili-
ties in South Bend, Indiana as defined in the Act if the City
will finance costs of such economic development facilities pur-
suant to the Act; and
WHEREAS, the South Bend Economic Development Commis-
sion has received an application by Teacher 's Credit Union for
the issuance of City of South Bend Economic Development Revenue
Bonds in the approximate principal amount of Seven Million Nine
Hundred Thousand and no/100 Dollars ($7,900,000 .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 and construct an approximate 70,000
square foot office building at the southeast corner of Main and
Washington Streets, South Bend, Indiana , resulting in the addi-
tion of approximately 113 new jobs by the principal users with
an increase in their annual payrolls of approximately One
Million Five Hundred Sixty Thousand and no/100 Dollars
($1 ,560 ,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 Seven Million Nine Hundred Thousand and
no/100 Dollars ($7 ,900 ,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. Teacher 's Credit Union may proceed with acquisi-
tion and construction of the economic development facilities in
reliance upon this resolution.
4. 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
-2-
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 .
4 !',lr/iY�c,�_ 41-C
M- 4 -r of the Co n C.uncil
7- 23_ 8y
NOT APPROVED
'ADOPTED 7 —073 -S-/ Q.o ei... Q
-3-
HARDIG AND SOPKO
ATTORNEYS AT LAW
419 W.JEFFERSON BLVD.-P.O.BOX 928
TELEPHONE
EDWARD W.HARDIG SOUTH BEND,INDIANA 46624 234-0041
THOMAS C.SOPHO AREA CODE 219
July 19, 1984
Common Council of the City of South Bend
4th Floor, County-City Building
South Bend, Indiana 46601
Re: Request for Inducement Resolution
for Teachers Credit Union Project
Gentlemen:
Teachers Credit Union of South Bend, Indiana, hereby
makes application to the Common Council of the City of South
Bend for an inducement resolution relating to the potential
issuance of the City of South Bend Economic Development Revenue
Bonds in connection with the acquisition of real estate and the
construction and equipping of an office building located on the
southeast intersection of Main and Washington Streets in South
Bend, Indiana.
Petitioner desires that the bonds be issued in the
total principal amount of approximately $7 ,900,000.00, the terms
of which bonds will be governed by market conditions at the time
the bonds will be issued by the City.
The proceeds of the bond issue will be utilized to
pay the cost of the purchase of land and the construction of an
approximate 70, 000 square foot office facility, part of which will
be occupied by Teachers Credit Union and part of it will be leased
to other occupants plus the acquisition of equipment to be located
in the office building.
It is anticipated that the economic development
facility will result in approximately 113 new jobs added to the
payroll of Teachers Credit Union plus additional new jobs as a
result of the lease of space in the building to other enterprises.
That the new jobs will be added to the payroll of Teachers Credit
Union within 9 months of the completion of the facility resulting
in an increase in the annual payroll of Teachers Credit Union of
approximately $130,000. 00.
Very truly yours,
�cJ•
Edward W. Hardie
EWE/sb
cc : Mr. Kenneth P. Fedder
Mr. Richard W. Morgan
Mr. W. B. Hawkins