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HomeMy WebLinkAboutInducement Resolution of City of South Bend Relating to Best Products Co. Inc. RESOLUTION NO. 949-82 Passed by the Common Council of the City of South Bend, Indiana. March 22 . xg 82 Attest: K d City Clerk Attest: President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana March 30, �9 82 City Clerk Approved and signed by me 0A-4-1k- 3 i 19801- 9(4 6 ' 71-4 '1t Mayor NO . 9149- INDUCEMENT RESOLUTION of THE CITY OF SOUTH BEND, INDIANA Relating to : BEST PRODUCTS CO . , INC. , PROJECT WHEREAS, the Counuon Council of the City of South Bend, Indiana (the "Issuer") is authorized by I . C . 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 WHEREAS , Best Products Co . , Inc . (the "Applicant") 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 be a 40 ,000 to 67 , 000 square foot catalog distribution center facility, including the real estate on which it is located and the machinery and equipment to be installed therein, to be located in or near South Bend, Indiana, on a site to be mutually agreed upon by the Issuer and the Applicant , though the exact location of the facilities has not yet been determined ("Project") ; and WHEREAS, the diversification of industry and increase in job opportunities (90 full-time and 170 part-time 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 WHEREAS, 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 NOW, THERFORE, 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 $6,000,000 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 acquisition, construction and equipping of the Project, the Common Council of the City of South Bend hereby 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 -2- 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 costs 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 of 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 indirect expenses , including but not limited to, 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 . 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 - 3 - 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 or agents, shall not incur any liability if for any reason the proposed issuance of such bonds is not consummated. 6. This Resolution is conditioned upon the Applicant locating the proposed catalog distribution center facility within the Central downtown Urban Renewal Area of the City of South Bend, Indiana, commonly referred to as Indiana R-66, and more particuarly described as Exhibit A attached hereto and made a part hereof. 7. This Resolution is further subject to the terms and provisions of a Memorandum of Agreement to be signed by the City of South Bend and Best Products Co. , Inc. , which upon signing shall be attached hereto and made a part hereof. This Inducement Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. r 1.Mem•er or the Common Count 1 Adopted, as amended, March 22, 1982 EXHIBIT "A." AMENDMENT TO INDUCEMENT RESOLUTION OF THE CITY OF SOUTH BEND, INDIANA Relating to: BEST PRODUCTS CO. , INC. , PROJECT Beginning. at a point formed by the intersection of the north right-of-way line of LaSalle Avenue and the west right-of-way line of Main Street; thence south along the west right-of-way line of Main Street to the north right-of-way line of Washington Street; thence west along the north right-of-way line of Wash- ington Street to the west right-of-way line of Lafayette Boule- vard; thence south along the west right-of-way line of Lafayette Boulevard to the south right-of-way line of Jefferson Boulevards ; thence east along the south right-of-way line of Jefferson Boule- vard to the west right-of-way line of Main Street; thence south along the west right-of-way line of Main Street to the south right-of-way line of Monroe Street ; thence east along the south . right-of-way line of, Monroe Street to the west right-of-way line of Fellows Street; thence south along the west right-of-way line of Fellows Street to the south right-of-way line of Monroe Street ; thence east along the south right-of-way line of Monroe Street and proceeding in a northeasterly direction along said right-of- way line to the center of the St. Joseph River; thence proceeding in a northwesterly direction along the center of the St. Joseph ,. River to the north right-of-way line of LaSalle Avenue ; thence . west along the north right-of-way line of LaSalle Avenue to the - west right-of-way line of Main Street which is the point of begin- ning d :a 3/22/82