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HomeMy WebLinkAboutInducement Resolution Relating to Mechanics Laundry & Supply, Inc. Project RESOLUTION NO. 921-81 Passed by the Common Council of the City of South Bend, Indiana, November 9 , 19 81 . Attest: - �` City Clerk Attest: President of Common Council. ~1 Presented by me to the Mayor of the City of South Bend, Indiana November 10 . 19 Ai . A -r- -sue City Clerk Approved and signed by me (iu.e 19 g7 . 4I ��Mayor RESOLUTION NO. Q pat-g\ AN INDUCEMENT RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA : RELATING TO: MECHANICS LAUNDRY AND SUPPLY, INC. PROJECT. WHEREAS, the City of South Bend, Indiana, (the "Issuer"), is authorized by IC 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 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 , Mechanics Laundry & Supply, Inc . of Indiana, an Indiana Corporation, (the "Applicant") , has advised the South Bend Economic Development Commission, (the "Commission"), and the Issuer, that it proposes that the Issuer either acquire 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 consist of the acquisition and expansion of a 24,000 square foot industrial laundry facility which supplies all types of rental merchandise including the real estate on which it is located and the machinery and equipment to be installed therein, to be located at 835 South Prairie Street , South Bend, Indiana, on an approximate 2-acre tract of land ("Project") ; and, WHEREAS, the diversification of industry and increase in job opportunities, (23 new jobs) , to be achieved by the acquisition 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, WHEREAS , the acquisition of the facility will not have an adverse competitive effect on any similar facility already constructed or operating in South Bend, Indiana; NOW, THEREFORE, 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 $800, 000. 00 of the Issuer under the Act for the acquisition and equipping of the Project and the sale or leasing of the Project 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 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 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 bonds ; and, - 2 - (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 IC 36-7-12-1] at the time of authorization of such additional bonds) , and that the aforementioned purposes comply with the provisions of IC 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 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 City of South Bend, Indiana, shall be limited solely to the good faith efforts to consummate such Mechanics Laundry & Supply, Inc . Project and the issuance of such bonds , and that neither the City of South Bend, Indiana, nor its officers or agents shall incur any personal liability by virtue of the issuance of any such Economic Development Revenue Bonds or the undertaking of such Mechanics Laundry & Supply, Inc . Project . THIS INDUCEMENT RESOLUTION SHALL BE IN FULL FORCE AND EFFECT FROM AND AFTER ITS ADOPTION BY THE COMMON COUNCIL AND APPROVAL BY THE MAYOR. FILED IN CLERK'S OFFICE PRESENTED //-5-Yl Member NOT APPROVED Nov 41981 Common Council ,City of South Bend,IN ADOPTED IL"9- Irene Gammon - 3 - K SOUTH WEMM,M.