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HomeMy WebLinkAboutRelating to Schafer Gear Works, Inc. ProjectNo. INDUCEMENT RESOLUTION OF COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, RELATING TO SCHAFER GEAR WORKS, INC. PROJECT WHEREAS, the City of South Bend, Indiana (the "Issuer) is authorized by I.C. 18- 6 -4.5 -1 through I.C. 18- 6- 4.5 -30 (the "Act ") to issue revenue bonds for the financing of economic development facilities, the funds from said financing to be used for the construction and installation of said economic development facilities, to be either sold or leased to the user or developer; and WHEREAS, Schafer Gear Works, Inc., an Indiana corporation (the. "Applicant "), has applied'to the South Bend Economic Development Commission (the "Commission ") for an Economic Development Bond issue in the principal amount of Two Hundred Fifty Thousand Dollars ($250,000) in order that the proceeds thereof may be used to pay a part of the costs of the construction and installation of an approximately 10,000 square foot expansion to the main plant of the applicant at 814 South 'lain Street, South Bend, Indiana 46624 including new walls, roof, flooring, partitions, ceilings, lighting, service wiring and outlets, air distribution system, and other features commonly incorporated in a plant expansion, which such economic development facilities are sometimes referred to as the "Schafer Gear Works, Inc. Project "; and WHEREAS, the diversification of industry and increase in job opportunities to be achieved by'the completion of the Schafer Gear Works, Inc. Project will be of public benefit to the health, safety and general welfare of the Issuer and its citizens; and WHEREAS, under date of August 14, 1981, the Commission adopted and enacted an Inducement Resolution approving such Schafer Gear Works, Inc. Project and recommending the issuance of Economic Development Bonds in accordance with the application of the Applicant; and WHEREAS, it is apparent that the financing of the Schafer Gear Works, Inc. Project is of public benefit to the health, safety and general welfare of the Issuer and its citizens, together with the citizens of St. Joseph County, Indiana; and WHEREAS, the construction and installation of such economic development facilities will not have an adverse competitive effect on any similar facility already installed or operating in St. Joseph County, Indiana. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana, as follows: 1. The Common Council of the City of South Bend, Indiana, finds, determines, ratifies and confirms that the promotion of diversification of economic development and job opportunities in or near South Bend, Indiana and in St. Joseph County, 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 South Bend Economic Development Commission and said Issuer take such action as they lawfully may take to encourage diversification of industry and promotion of job opportunities in and near said Issuer. 2. The Common Council of the City of.South Bend, Indiana, hereby finds, determines, ratifies and confirms that the issuance and sale of Economic Development Revenue Bonds in an amount of Two Hundred Fifty Thousand Dollars ($250,000.00) under the Act for the construction and installation of the economic development facilities constituting the Schafer Gear Works, Inc. Project will serve the public purpose in accordance with the Act. 3. In order to induce the Applicant and the Commission to Proceed with the construction and installation of such economic development facilities, the Common Council of the City of South Bend, Indiana, hereby finds, 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 which may be deemed appropriate with respect thereto, in order that Economic Development Revenue Bonds may be issued in accordance with the terms mutually acceptable to the Issuer and the Applicant; (ii) it will adopt such ordinances and resolutions and authorize the execution and delivery of such instruments (including but not limited to an Indenture of Trust, Loan Agreement, bond, and related instruments) and the taking of such action as may be necessary or advisable for the construction, issuance and sale of such Economic Development Revenue Bonds. 4. All costs of the Schafer Gear Works, Inc. Project incurred after the passage of this Inducement Resolution, including reimbursement or prepayment to the Applicant of monies heretofore expended with respect to attorney and bond counsel fees as well as all expenses of the sale of Economic Development Revenue Bonds and the construction and installation of all property constituting a part of such economic development facilities, shall be payable out of the proceeds of any such financing either to the Applicant or to others for such purposes. 5. The liability and obligation of the City of South Bend, Indiana, shall be limited solely to the good faith efforts to consummate such Schafer Gear Works, 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 Schafer Gear Works, 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. PRisENTo % - A4-% 1 NOT. APPROW, AbOPTEO 8 -Q11-91 Member of the Common Council CJ[7"I'S OFFICE F :± !,-19 19 81 Irene Gammon CITY CLERK, SOUTH BEND, IND.