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HomeMy WebLinkAboutInducement Resolution Regarding the Issuance of Economic Development Bonds for the Construction of Holiday Inn Motel RESOLUTION NO. 926-81 Passed by the Common Council of the City of South Bend, Indiana. November 9, �9 81 \ ut—"/Attest: °t City Clerk Attest: 1/14.&,_ President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana November 10 , rg 81 City Clerk Approved and signed by me 0.c.e 1 1— rg �/� �� gt-/A-7Mayor NO. 4 klast` INDUCEMENT RESOLUTION OF THE CITY OF SOUTH BEND, INDIANA Regarding the Issuance of Economic Development Bonds for the Construction of a Holiday Inn Motel 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 City pursuant to the provisions of Indiana Code 18-6-4 . 5 (the "Act" ) ; and WHEREAS, Brick Road Associates proposes to acquire economic development facilities to be located in the City as defined in the Act if the City will finance costs of such economic development facilities pursuant to the Act; and WHEREAS, the South Bend Economic Development Commission has received notice of an application by Brick Road Associates for the issuance of City of South Bend Economic Development Bonds in an amount not to exceed Ten Million ($10, 000, 000. 00) Dollars repayable over a designated period with interest thereon at a rate consistent with interest rates generally paid on tax- exempt bonds at the time the bonds are issued in order to construct a Holiday Inn, resulting in the creation of approximately one hundred fifteen (115) additional employees with an annual payroll of approximately Six Hundred Fifty Thousand ($650, 000. 00) Dollars per year. 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 Ten Million ($10, 000 , 000 . 00) Dollars 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 permitted 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. Brick Road Associates may proceed with financing efforts for this project 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 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. This Inducement Resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. L.41- Member of the Common Council FILED IN -2- CLERK'S OFFICE PRESENTED //- 5-5/ NOV 41981 NOT APPROVED Irene Gammon ADOPTED /I - —� COY OINK.SOWN FEND,mo.