HomeMy WebLinkAboutInducement Resolution Relating to The Lock Jount Tube Company, Inc. 1983 Project RESOLUTION
NO. 1084-83
Passed by the Common Council of the City of South Bend, Indiana,
September 12, 19 83 .
Attest: City Clerk
Attest: p � � President of Common Council.
Presented by me to the Mayor of the City of South Bend, Indiana
September 13, 19 83 .
/41-T Lc Ince- ✓ City Clerk
•
Approved and signed by me Sate,197,_ er /�J 1983 .
/2or
Resolution No. log q -es
INDUCEMENT RESOLUTION OF THE
COMMON COUNCIL OF SOUTH BEND, INDIANA, RELATING TO
THE LOCK JOINT TUBE COMPANY, INC. 1983 PROJECT
WHEREAS, there are insufficient employment opportuni-
ties and insufficent diversification of business , commerce and
industry in the City of South Bend, Indiana; and
WHEREAS, the economic welfare of the City of South
Bend, Indiana, would be benefited and additional job opportuni-
ties and commercial diversification would result within the
City of South Bend, Indiana, by the approval of a financing
agreement which should be effected with Lock Joint Tube Com-
pany, Inc . relating to a project to be known as the "Lock Joint
Tube Company, Inc. 1983 Project" ; and
WHEREAS, said Lock Joint Tube Company, Inc . desires to
expand its existing facilities and to acquire equipment for use
in the manufacturing of steel tubing at its plant located at
1400 Riverside Drive, South Bend, Indiana 46616 , which expan-
sion and equipment will constitute economic development facili-
ties; and
WHEREAS, the South Bend Economic Development Commis-
sion has heretofore received, investigated , studied , and ap-
proved an application of Lock Joint Tube Company, Inc. , an
Indiana corporation , relating to such Lock Joint Tube Company,
Inc. 1983 Project in order that Industrial Development Bonds
may be issued to acquire such economic development facilities
in an amount not exceeding One Million Two Hundred Fifty Thou-
sand Dollars ($1, 250 ,000 . 00) payable with interest thereon at a
rate which does not exceed the prime rate recognized by South
Bend, Indiana, financial institutions adjusted on a periodic
basis with the principal and interest on such Bonds being paid
on a periodic basis over a period of not exceeding twelve (12)
years after the issuance thereof.
NOW, THEREFORE, BE IT RESOLVED by the Common Council
of the City of South Bend, Indiana , as follows:
1. That the expansion of existing facilities and ac-
quisition of the equipment relating to such Lock Joint Tube
Company, Inc. 1983 Project constitutes economic development
facilities which should be financed by the City of South Bend,
Indiana, through the issuance of Industrial Development Bonds
pursuant to the provisions of Indiana Code Section 36-7-12-1 et
seq. , hereinafter referred to as the "Act, " which Bonds will
not be general obligation Bonds of the City of South Bend,
Indiana , but will be payable solely from the sources authorized
and permitted by the Act.
2. That it is hereby determined that the issuance of
such Industrial Development Bonds to pay a portion of the costs
for the expansion of existing facilities and acquisition of
equipment relating to such Lock Joint Tube Company, Inc . 1983
Project is determined to be in the best interests of the City
of South Bend, Indiana, and the Common Council of South Bend ,
Indiana hereby declares its intention to issue such Industrial
Development Bonds and hereby approves the application relating
to such Lock Joint Tube Company, Inc. Project .
3. That it is hereby determined that the economic
development facilities relating to such Lock Joint Tube Com-
pany, Inc . 1983 Project will be of benefit to the economic wel-
fare of the City of South Bend, Indiana, and will comply with
the purposes and provisions of the Act .
4. That this Bond issue will not have adverse compe-
titive effects as the nearest competitor to Lock Joint Tube
Company, Inc. is located in Ohio.
5. That the South Bend Economic Development Commis-
sion be and it hereby is authorized and directed to pursue the
completion of such Lock Joint Tube Company, Inc . 1983 Project
as referred to in said application of Lock Joint Tube Company,
Inc . and as approved by this Inducement Resolution.
6. That the liability and obligation of the City of
South Bend, Indiana, shall be limited solely to the good faith
efforts to consummate such Lock Joint Tube Company, Inc. 1983
Project , and the issuance of such bonds , and neither the City
-2-
of South Bend, Indiana , nor its officers or agents , shall incur
any personal liability by virtue of the issuance of any such
Bonds .
embe of Common Counc ' r
PRESENTED 9-/Q-83
NOT APPROVED
ADOPTED 9-/c-Y-3
FILED IN CLEW 'S OFFICE
Irene Gammon
CITY CLERK,SOOTN BEND,IND.
-3-